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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.

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Store Setup Costs
Investment Component | Details | Estimated Cost |
Space Requirement | 200–300 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 Development | Must 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 Fixtures | Includes refrigeration units, weighing machines, billing system, display racks, and storage units. | ₹8 – ₹12 lakhs |
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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 Component | Approximate Cost (₹) |
Franchise Fee | 2-3 lakhs |
Security Deposit | 5-10 lakhs |
Interior Development | 3-7.5 lakhs |
Equipment and Fixtures | 8-12 lakhs |
Technology Systems | 1.5-2.5 lakhs |
Licenses and Permits | 0.25-0.5 lakhs |
Working Capital | 10-15 lakhs |
Total Investment | 30-50 lakhs |
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Operational Expenses
The average monthly operational costs of an average Safal store are as follows:
Expense Category | Details | Estimated Monthly Cost |
Rent | Location-based commercial rent | ₹30,000 – ₹1,50,000 |
Staff Salaries | For 3–5 staff members | ₹60,000 – ₹1,00,000 |
Electricity | Required for refrigeration and store operations | ₹15,000 – ₹25,000 |
Wastage | 5–8% of goods’ value | ₹50,000 – ₹1,20,000 |
Transportation | Delivery and logistics costs | ₹15,000 – ₹30,000 |
Miscellaneous Expenses | Cleaning, maintenance, minor repairs, etc. | ₹20,000 – ₹40,000 |
Total Estimated Monthly Expenses | Combined 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
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The Cost of a Mother Dairy Safal Franchise in India
Category | Details |
---|
Brand | Mother Dairy Safal |
Founded | 1974 (Mother Dairy), 1988 (Safal) |
Parent | NDDB (National Dairy Development Board) |
USP | Farm-fresh supply (direct from farmers) and Affordable pricing (daily rate variations)l |
Revenue Growth | FY 2023-24: ₹11,500 Cr (↑21.5%) |
Market Demand | Dairy industry CAGR 10% (2024-2029) |
Future Growth | Fresh produce market to grow by ₹50,000 Cr by 2027 |
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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.
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