Safal Franchise Cost in India: Model, ROI, Eligibility & How to Apply

Safal, the fresh produce arm of Mother Dairy, an NDDB-owned brand since 1988, is India’s largest organized retailer of fruits, vegetables, and frozen foods, with 400+ outlets—mostly across Delhi NCR and Bengaluru. As demand grows for healthy, pesticide-free produce, Safal offers a franchise model combining brand strength, supply-chain power, and market trust.

Franchise Model Overview

Safal offers two popular retail formats:

• Safal Franchise Outlet (Fruits & Vegetables + Frozen foods) – Dedicated store for fresh and frozen produce.
• Mother Dairy Milk Booth/Retail – Complementary outlets for dairy and frozen goods.
• This guide focuses on the Safal Franchise Outlet—covering capital, returns, and operational realities.

Investment Requirements & Cost Structure

Here’s a table summarizing typical capital requirements:

Component	Amount (₹)	Details
Franchise Fee	50,000–100,000	One-time right-to-operate fee
Security Deposit	100,000	Refundable
Shop Setup & Infrastructure	100,000–200,000	Display units, weighing scales, freezers
Initial Inventory	50,000–100,000	Fresh produce, frozen foods
Working Capital (3 months)	100,000–150,000	Salaries, utilities, replenishment
Total Initial Investment Range	₹5–7 Lakh	Confirmed by multiple sources

The required outlet size is usually 300–500 sq ft, ground-floor preferred for high foot traffic.

Revenue Model & Profit Margins

Franchisees earn primarily through retail margins:

• Gross margin on produce: approximately 10–15%.
• Gross margin on dairy/frozen goods: similar range or higher.
• Net margin after expenses: typically 8–12%, based on operational efficiency .

Example revenue scenario:

• Gross monthly sales: ₹4 L
• Gross profit (~12%): ₹48,000
• Operating costs (rent, staff, utilities ~8%): ₹32,000
• Net profit: ₹16,000/month → ₹1.9 L annually

ROI & Payback Estimates

Financial highlights:

• Monthly revenue range: ₹2–6 L, depending on location.
• Net annual profit: ₹2.4–7.2 L.
• Payback period: Typically 18–24 months, based on site and efficiency .
• Return on Investment: ~30% per annum.

Eligibility Criteria for Applicants

Safal seeks franchisees with:

• Capital: ₹5–7 L available including security deposit and working capital.
• Space: 300–500 sq ft ground-floor retail outlet.
• Business Acumen: Experience in retail, food, or FMCG is beneficial but not mandatory.
• Regulatory Compliance: Readiness for licenses—FSSAI, GST, Shop/Establishment.
• Commitment: Active involvement ensures proper inventory/quality management.
• Clean Background: No criminal history; financial probity checked.

Franchisor Support & Benefits

Safal franchisees gain robust backing from Mother Dairy:

• Supply chain: Fresh produce directly from farmers, ensuring quality and price control.
• Brand edge: Safal/Mother Dairy is trusted, with strong market presence and recall.
• Operational support: Guidance on store setup, display, freezing equipment.
• Training: Inventory control, customer service, hygiene protocols.
• Marketing: Local and regional promotions via franchisor support.
• Ongoing monitoring: Periodic audits, supply chain coordination, restocking assistance.

Step‑by‑Step Application Process

Inquiry & Application
Visit Mother Dairy’s Franchise section or apply through AWPO.

Screening
Review of credentials, financial capacity, location feasibility.

Personal Discussion
Interview to evaluate fit, motivation, and operational readiness.

Site Approval & Agreement
Lease terms evaluated; franchise agreement signed with fees and deposit.

Training & Equipment
Staff training and outlet setup guided centrally.

Inventory & Soft Opening
Stocking, trial operations to test supply chains and customer flow.

Official Launch
Grand opening with local promotions and brand support.

Ongoing Operations
Reordering cycles, audits, business reviews to ensure performance.

Advantages & Key Considerations

Advantages:

• Low investment (<₹7 L) with solid margins.
• Trusted, large-scale brand backing from Mother Dairy/National Dairy Development Board.
• Turnkey support—supply, training, marketing.
• Steady demand for fresh produce; daily repeat purchases.

Considerations:

• Margin pressure due to perishable waste—requires tight stock control.
• Location-dependent revenues; low-traffic areas risk poor returns.
• Competition from local vendors and supermarket chains.
• Must comply with freshness, hygiene, and license regulations.

Is Safal Franchise Right for You?

Safal suits entrepreneurs seeking:

✅ A low-risk agritech retail model with small capital
✅ Association with a government-backed, trusted brand
✅ Opportunity for steady earnings from daily consumer staples
✅ Supportive supply chain and operational framework

Ideal for first-time business owners seeking a manageable, structured entry into retail.

Quick Checklist Before You Apply

• Funding: ₹5–7 L total capital ready
• Real estate: 300–500 sq ft outlet in high-footfall location
• Documentation: PAN, address proof, bank statements, site lease
• Franchise application: Fill online form via Safal/Mother Dairy or AWPO
• Screening/interview: Be interview-ready; have site details and plan
• Sign agreement: Pay fees, deposit and initiate setup
• Launch plan: Training, inventory, soft launch, grand opening
• Track performance: Weekly KPIs; manage wastage; restock promptly

Final Thoughts

A Safal franchise is a compelling small-cap retail venture in India’s evolving grocery market—with low entry cost, steady demand, trusted brand value, and structured backing. It’s perfect for entrepreneurs seeking profitability with minimal complexity.

If you’d like help creating a financial projection, evaluating Delhi NCR locations, or comparing Safal with other food and grocery franchises, I’m here to guide you!