Apply For Franchise & Dealership

Safal is the largest organised retail network of fruits and vegetables in the National Capital Region of India. Currently it operates over 400 retail outlets in the NCR region.Safal is owned by Mother Dairy, a subsidiary of the National Dairy Development Board. Safal was started in 1988 as an Indian government initiative to benefit fruit & vegetable producers and the urban consumers. The task was assigned to the National Dairy Development Board, as they had similar experience in the related sector of milk. Safal’s supply chain covers 16 states, around 50,000 farmers and over 200 farmer associations.

Apply For Franchise & Dealership

Store Setup Costs

Investment ComponentDetailsEstimated Cost
Space Requirement200–300 sq. ft. selling area; can be rented or purchased. Rent security in cities usually lasts 6 to 12 months.₹30,000 – ₹1.5 lakhs/month (rent)
Interior DevelopmentMust follow Mother Dairy’s branding and layout guidelines; includes painting, signage, flooring, and layout planning.₹3 – ₹7.5 lakhs (₹1,500–2,500/sq. meter)
Equipment and FixturesIncludes refrigeration units, weighing machines, billing system, display racks, and storage units.₹8 – ₹12 lakhs

Apply For Franchise & Dealership

Total Investment Summary

Taking into account all the above considerations, the overall initial investment needed for opening a Mother Dairy Safal franchise varies between around ₹30-50 lakhs, as follows:

Investment ComponentApproximate Cost (₹)
Franchise Fee2-3 lakhs
Security Deposit5-10 lakhs
Interior Development3-7.5 lakhs
Equipment and Fixtures8-12 lakhs
Technology Systems1.5-2.5 lakhs
Licenses and Permits0.25-0.5 lakhs
Working Capital10-15 lakhs
Total Investment30-50 lakhs

Apply For Franchise & Dealership

Operational Expenses

The average monthly operational costs of an average Safal store are as follows:

Expense CategoryDetailsEstimated Monthly Cost
RentLocation-based commercial rent₹30,000 – ₹1,50,000
Staff SalariesFor 3–5 staff members₹60,000 – ₹1,00,000
ElectricityRequired for refrigeration and store operations₹15,000 – ₹25,000
Wastage5–8% of goods’ value₹50,000 – ₹1,20,000
TransportationDelivery and logistics costs₹15,000 – ₹30,000
Miscellaneous ExpensesCleaning, maintenance, minor repairs, etc.₹20,000 – ₹40,000
Total Estimated Monthly ExpensesCombined operational costs₹1.9 – ₹4.65 lakhs

Return on Investment (ROI)

Based on the initial investment range of ₹30-50 lakhs and projected monthly profits, the average ROI term for a Safal franchise would be:

Breakeven Point: 18-24 months

ROI Timeline: 3-5 years for overall investment payback

Annual Return Rate: 20-30% once the business stabilizes

Apply For Franchise & Dealership

The Cost of a Mother Dairy Safal Franchise in India

Apply For Franchise & Dealership

Mother Dairy Safal Franchise: Opportunity

The Mother Dairy Safal franchise is strategically positioning itself to take advantage of this growing market. 

Here’s how this franchise opportunity is presentable as a profitable venture for aspiring entrepreneurs:

  • Brand Recognition: Mother Dairy is a household name in India, synonymous with quality and reliability. By using this established brand recognition, franchise owners gain significantly in attracting customers.
  • Enhanced Supply Chain: Mother Dairy prides itself on having a robust and well-stocked supply chain. This ensures regular delivery of fresh produce and dairy products to franchise outlets, reducing procurement challenges for franchisees.
  • Business Support: Mother Dairy provides full business support to its franchisees. This is including training programs on inventory management, marketing strategies, and customer service best practices
  • Reduced marketing costs: Franchisees benefit from Mother Dairy’s national marketing campaigns,. Therefore, reducing the need for extensive marketing capital of their own.

Potential Benefits

While guaranteed returns cannot be guaranteed, Mother Dairy Safal offers a compelling opportunity to make money by generating more revenue:

  • Sales royalties: Franchisees receive royalties on the sale of Mother’s Milk products and separate royalties on fresh produce and pulses.
  • Return customers: By maintaining a clean and also inviting store environment in terms of customer service, and new quality products, franchisees can build a loyal customer base. Moreover, that will drive sales always.
  • Upselling and cross-selling: Including add-ons, such as pre-cut vegetables, healthy recipe booklets, or snacks, can drive up the average order price higher and profits have increased

Data to support

Industry reports suggest that the profit margins of a well-run grocery store in India can range from 10% to 20%. While Mother Dairy doesn’t specify the specific benefits it won, its franchise program offers a structure that can achieve these benefits. Here’s how to do it:

  • Focus on essentials: Mixtures are always in demand for basic foods, reducing the risk of system downtime.
  • Inventory Support: Mother Dairy provides inventory management guidance, assisting franchisees with waste reduction as well as inventory quality improvement.
  • Reduced operating costs: A standardized franchise model streamlines operations. Therefore, potentially leading to cost efficiencies in areas such as purchasing and labor.

A bright future for a successful breast milk franchise

  • Looking ahead, the future of the Mother Dairy Safal franchise looks promising:
  • Expanding Urbanization: As urbanization continues, the demand for convenient and accessible fresh food options is likely to rise, therefore, creating a favorable market for Mother Dairy Safal outlets.
  • Evolving Consumer Preferences: With increasing health consciousness, consumers might favor readily available fresh produce and dairy products, further propelling the growth of the Mother Dairy Safal business model.
  • Omnichannel Retailing: Mother Dairy’s potential foray into online grocery delivery could expand the customer base for franchisees, also offering additional sales channels.

Apply For Franchise & Dealership

Apply For Franchise & Dealership

Scroll to Top