Nandini Milk Franchise Cost, Royalty Fees, Profit, Eligibility & More (2026)

Nandini is one of India’s most recognised dairy brands, owned by the Karnataka Milk Federation (KMF). It offers a wide range of dairy products — from fresh milk and curd to ghee, butter, paneer, cheese and sweets — through its network of retail outlets, distributors, and franchise stores.

The franchise model allows entrepreneurs to open Nandini milk parlours or retail counters selling popular dairy items with strong brand recall and consistent demand.

Investment Cost (INR)

Total Estimated Investment

*Figures are indicative and can vary based on location, store size, city and vendor rates.

The franchise fee is generally around ₹1 lakh, while the rest covers shop setup, refrigeration, initial stock, working capital and store expenses.

Franchise Fee & Royalty

Franchise Fee

• A one-time franchise fee of approximately ₹1 lakh (non-refundable) is typical for a Nandini milk store.

Royalty / Revenue Share

• Nandini does not usually charge ongoing royalty fees in the traditional sense. Franchise partners retain a large majority of revenue share (~90 – 95 %), with the franchisor’s share being relatively small (around 5%) in some models.
• Many dairy franchise comparisons list Nandini’s revenue share as about 95% to the franchisee and 5% to the brand (acting as a kind of revenue share rather than royalty).

This structure means you keep most of the revenue, making the Nandini model attractive compared with many food or retail franchises.

Profit Margin & ROI

Profit Expectations

Profit margins typically fall between 10 % and 15 % for Nandini franchise outlets, depending on footfall, pricing and cost control.

With consistent demand for dairy products — especially milk, curd and value-added items like ghee and paneer — many franchisees can break even within 1 – 1.5 years, provided they manage costs and location well.

Space & Manpower Needs

Space Requirements

Most Nandini retail franchises operate in 150 – 250 sq.ft spaces with dedicated billing counters, product displays and refrigeration units.

Manpower

Typical staffing needs include:

• 1 – 2 sales staff
• 1 helper / delivery support (optional)

Outlets are usually low-staff operations, which helps reduce ongoing labour costs.

Franchisor Support

Nandini (through KMF) offers several supports to franchise partners:

✔ Training: Guidance on product handling, display and sales.
✔ Branding & Marketing: Brand signage, product branding and some local marketing support.
✔ Supply Chain & Logistics: Access to a well-established distribution network for regular delivery of dairy products.
✔ Operational Guidelines: Basic SOPs for inventory management and customer service.

Franchisees benefit from KMF’s strong cooperative structure and supply chain, especially in southern states and expanding markets.

Pros & Cons

Pros

✔ Trusted brand with strong reputation in dairy (state government-backed)
✔ Low startup cost compared to full restaurant or retail franchises
✔ High revenue share retained by franchisee (~90 %+)
✔ Essential product demand — dairy is consumed daily across India
✔ Simple operations — suitable even for first-time entrepreneurs

Cons

❌ Profit margins are moderate (10 % – 15 %) and depend on sales volume
❌ Cold-chain and inventory management is critical to avoid spoilage
❌ Competition from other dairy brands like Amul and Mother Dairy
❌ Limited product pricing flexibility as dairy prices are regulated and competitive

Application Process

Here’s a step-by-step overview of how to start:

1. Initial Inquiry: Visit the Nandini franchise page through the Karnataka Milk Federation or dairy distribution network.
2. Franchise Form: Submit basic details — your contact information, proposed location, investment capacity and business profile.
3. Site Evaluation: The franchisor or KMF partner evaluates the location for demand and logistics feasibility.
4. Agreement & Fee: Once approved, sign the franchise agreement and pay the franchise fee.
5. Setup & Training: Arrange shop setup, refrigeration, interior work and staff training.
6. Launch: Start operations with ongoing support from the Nandini team.

Typical franchise agreements last around 5 – 6 years, renewable on mutual terms.

Risks to Consider

⚠ Location Risk: A poor location with low footfall will limit sales.
⚠ Perishable Products: Dairy products are perishable — proper refrigeration and inventory control are essential.
⚠ Competition: Competing dairy brands and local stores can affect pricing and sales.
⚠ Price Volatility: Dairy input costs can fluctuate, affecting margins.
⚠ Management Skills: Inventory, cold chain, and customer service quality influence success.

FAQs (Frequently Asked Questions)

Q1. What is the Nandini Milk franchise cost in India?
A: Typically ₹10 – ₹20 lakh including setup, equipment, inventory and fees.

Q2. Is there any royalty fee?
A: Nandini does not usually charge ongoing royalty — franchisees keep a large part of revenue (~90 %+).

Q3. How much space is needed?
A: Around 100 – 300 sq.ft for a retail dairy outlet.

Q4. What profit margin can I expect?
A: Around 10 % – 15 % depending on sales and costs.

Q5. Do I need experience in dairy retail?
A: No — training is provided, and no prior industry experience is required.

Conclusion

The Nandini Milk franchise presents a solid opportunity for entrepreneurs looking to enter India’s essential dairy market with a trusted, government-backed brand. With a relatively moderate investment of ₹10 – ₹20 lakh, no heavy royalty fees, and guidance from a strong supply chain, it can be suitable for both first-time and experienced business owners.

However, success relies on choosing the right location, efficient inventory and cold-chain management, and quality customer service. With careful planning, realistic expectations and disciplined operations, a Nandini milk franchise can become a steady, everyday business with potential for consistent demand in Indian markets.