If you’re interested in entering the food and beverage industry, particularly the ice cream business, the Arun Ice Cream Franchise offers a fantastic opportunity. As one of the leading ice cream franchises in South India, Arun Ice Cream provides a low-risk investment model with significant revenue potential.
With rising disposable incomes and evolving consumer tastes, the ice cream business in India has seen impressive growth. In fact, the Indian ice cream market reached a value of ₹228.6 billion in 2023 and is projected to soar to ₹956.0 billion by 2032, growing at a remarkable CAGR of 17.23%. This rapid expansion, driven by increasing demand for branded and hygienic frozen desserts—especially among urban youth—makes it a promising space for aspiring entrepreneurs. Arun Ice Cream, backed by Hatsun Agro Product Ltd., is well-positioned to capitalize on this growth through its expanding nationwide presence.
This article will guide you through the details of owning an Arun Ice Cream franchise, including investment, revenue sharing, infrastructure requirements, and much more.
In this blog, we have added the Arun Ice Cream Franchise cost in India and all the important details you need to know to open an Arun Ice Cream outlet.
About Arun Ice Cream
Arun Ice Cream is part of the food and beverage industry, focusing on ice cream. The brand was founded by R.G. Chandramogan in 2014 and has quickly grown to become one of the most recognised names in South India. Although the number of franchise outlets isn’t publicly available, the business is well-established in the region.
Arun caters to different people with different tastes with a whole range of ice cream bars exclusively for kids and novel ice cream flavours like Indian sweets. The brand also consistently introduces new flavours every season, just to make sure customers have something fresh to look forward to every time they walk into an Arun Ice Cream Franchise Cost in India.
The franchise setup time is between 1 to 2 months, and the franchise tenure lasts for 2 years, after which it can be renewed. Arun Ice Cream offers franchisees the chance to capitalise on the growing demand for quality ice cream.
Why Choose Arun Ice Cream Franchise?
Rapid Growth of India’s Ice Cream Industry
The Indian ice cream market continues to experience significant development based on a predicted 12% compound annual growth rate (CAGR). The market analysts project that the ice cream industry will achieve a ₹50000 crore valuation by 2027. The 8% yearly rise in individual ice cream consumption serves as a main factor behind the market expansion.
Arun Ice Cream’s Strong Market Position
Arun Ice Cream has operated for more than forty years in South India while progressively expanding its operations throughout the entire country. The company runs its operations through more than 3,000 retail locations, which primarily serve suburban and rural customer bases. Hatsun Agro Product Ltd supports Arun Ice Cream through its operation as a dairy industry giant that generates more than ₹7,000 crore per year in revenue.
Affordable Investment with High Returns
The starting costs of ice cream franchise for obtaining an Ice Cream franchise amount to ₹1 lakh to ₹2 lakh for the franchise fee, together with an additional ₹1 lakh to ₹2 lakh for stocking and setup expenses. The franchise fee requires an additional funding of between ₹1 lakh to ₹2 lakh to obtain stock, together with the initial setup. The cost to establish an Ice Cream franchise ranges widely from ₹5 lakh to ₹20 lakh based on both store dimensions and store locations.
Consistent and Stable Demand
Arun Ice Cream establishes consistent consumer requests because it maintains business operations independently from seasonal peaks. Stable revenue generation for franchise owners results from this system, which enables them to forecast their earnings. Customer loyalty stands as an essential element that drives business reliability because more than 60% of its clients frequently buy its products.
A Profitable Franchise Model
Every Ice Cream franchise shows solid financial stability through its daily revenue numbers. The ice cream stores located in busy zones generate sales between ₹5,000 and ₹15,000 each day. Revenue from two buying customers amounts to roughly ₹250 on average. The combination of location selection and customer numbers determines franchise income between ₹50,000 and ₹2 lakh each month.
Dominance in South India’s Ice Cream Market
South Indian states Tamil Nadu and Karnataka alongside Kerala represent the primary market for Arun Ice Cream because it produces over 30% of local ice cream sales in these regions. The majority of Amul and Kwality Walls operations target metro cities but Arun Ice Cream positions itself as the dominant player in both non-metro and suburban markets, a significant achievement in the bustling food franchise sector.
Arun Ice Cream Franchise Models
Parlour Model
This is the most popular and widely adopted franchise model by Arun Ice Cream. The parlour model involves setting up a dedicated ice cream shop in high-footfall areas like markets, residential hubs, or near schools and colleges.
- Area Required: 200 to 500 sq. ft.
- Investment: ₹5 lakh to ₹15 lakh depending on size and location.
- Revenue: ₹50,000 to ₹2 lakh per month based on customer flow.
- Ideal For: Urban or suburban entrepreneurs with moderate capital.
Kiosk Model
The kiosk model is ideal for places with space constraints like malls, airports, or railway stations. It requires a smaller space and involves less operational cost, while still ensuring good visibility.
- Area Required: 100 to 200 sq. ft.
- Investment: ₹3 lakh to ₹7 lakh.
- Revenue Potential: Moderate, dependent on the traffic of the kiosk location.
- Ideal For: Investors looking for low-investment, high-footfall zones.
Mobile Cart Model
For those looking to reach customers in a flexible, low-cost way, Arun also supports mobile ice cream cart models. These are typically used during festivals, carnivals, and local fairs.
- Area Required: Not available
- Investment: ₹1 lakh to ₹2.5 lakh.
- Revenue Potential: Variable; can be highly profitable in peak seasons or high-traffic areas.
- Ideal For: Small entrepreneurs and local vendors.
Arun Ice Cream Franchise Cost: Breakdown
To start an Arun Ice Cream franchise, prospective franchisees must make an initial investment covering various financial components:
- Franchise Fee: ₹1 to ₹2 lakh
- Inventory Capital: ₹50,000 to ₹1 lakh
- Shop Setup / Infrastructure: ₹2,00,000 – ₹3,00,000
- Working Capital: ₹1 lakh
- Additional Funds: ₹50,000
In addition to these initial expenses, franchise owners must pay ongoing fees that include:
- Advertising Fee: 3.5% of total sales
- Royalty Fee: 8% of total revenue
Required Documents For Franchise Application
- Identity Proof: A copy of a government-issued ID, such as a passport, Aadhaar card, or driver’s license.
- Address: A piece of documentation from a utility service or a rental agreement will serve as address verification.
- Bank Statements: Recent bank statements demonstrate the financial stability of the business.
- FSSAI License: To prove food safety compliance, you must receive a Food Safety and Standards Authority of India (FSSAI) certification.
- Tax Documents: To handle Goods and Services Tax collection from sales businesses, one must obtain GST registration as a requirement.
How to Apply for an Arun Ice Cream Franchise guide step by step
- Visit the Official Website: The official inquiry form process can be completed only through the Arun franchise investment website.
- Submit an Application: The franchise application process starts by engaging with the Arun Ice Cream team through its website and by filling out their online form.
- Evaluation: The evaluation committee assesses all applications through their evaluation of business experience and the desired location selection.
- Agreement: After the approval process finishes, the franchisees need to sign an agreement with terms and conditions described within.
Support Offered by Arun Ice Cream
The franchise support services at Arun Ice Cream deliver complete systems that make franchisees more successful.
- Training: The franchise system trains both its employee staff members and owners by providing complete operational training about quality service delivery and product management.
- Marketing Support: Both national brand promotion and local customer acquisition are supported by marketing strategies carried out at different levels through which Arun Ice Cream grows its franchise network across the nation.
- Operational Guidance: The business runs its operations efficiently daily through precise instructions that franchise partners receive.
- Supply Chain Management: Step-by-step supply chain management allows the company to provide regular supply deliveries of fresh and basic components to all of its franchise locations.
Expected Profit Margin and ROI
A franchise under the Arun Ice Cream brand enables business owners to obtain profits that fall between 12% and 15%. Sunlight Ice Cream’s profit fluctuates based on the interplay between sales figures and customer selection of products, together with operational effectiveness and customer movement patterns. The standard revenue a franchisee makes from each customer is ₹250, which produces monthly profits between ₹20,000 and ₹50,000 in this Franchise Business.
The franchise business requires 1.5 to 3 years to become profitable. Many important variables determine how profitable a franchise business can become. Business location and effective customer pull capabilities produce high revenue margins that stem from increased customer volume. A standard number of daily customers forms a foundational business aspect that determines sales performance directly. Key factors influencing success include:
- Profit Margins: The expected profit margins for franchisees in this venture amount to 12% to 15%.
- Market Demand: The growth of India’s ice cream product consumer market sustains the continuous business expansion throughout the country.
- ROI Timeline: Return on investment (ROI) for franchisees should be achievable between 1.5 years and 3 years, though their performance depends on business location and operational management effectiveness.
Pros and Cons of the Arun Ice Cream Franchise
Pros
- Established Brand: Arun Ice Cream functions as a popular brand that maintains an established relationship with numerous customers across the market.
- Low Investment: For a start-up price of ₹3-5 lakh, besides being an affordable investment opportunity, ty this franchise system exists in India.
- High Demand: The growing demand for ice cream in India leads to profitable market opportunities across the country.
- Franchise Support: The franchise operates successfully because the company gives extensive training and provides marketing assistance to both new and existing businesses.
Cons
- Seasonal Demand: The winter season can negatively impact sales of ice cream products, thus reducing revenue flow.
- Location Dependency: Business success depends heavily on location since bad locations result in decreased customer numbers and reduced profits.
- Limited Product Customisation: Brand franchisees must follow their menu and policy guidelines exactly as stated.
Tips for Success as an Arun Ice Cream Franchise
Succeeding with an Arun Ice Cream franchise involves more than just setting up a shop. Entrepreneurs must actively engage with the business, optimise operations, and understand the market. Here are key tips for running a successful Ice Cream business:
Choose the Right Location
The location of the outlet significantly influences its performance. A store in a high-traffic area, such as near schools, colleges, shopping areas, or residential neighbourhoods, will attract more customers and increase daily revenue.
Focus on Customer Experience
Ensuring a welcoming environment, cleanliness, and fast service can increase customer satisfaction. Friendly staff, neat presentation, and quick service contribute to repeat business and customer loyalty.
Manage Inventory Efficiently
Regularly restocking popular products and maintaining a variety of flavors is crucial. Effective inventory control prevents stock-outs and wastage, ensuring optimal use of working capital.
Leverage Local Marketing
While Arun Ice Cream provides national-level marketing, local promotions such as discounts, combo offers, and school tie-ups can increase footfall. Using social media and digital platforms can also help attract younger audiences.
Understand Seasonal Trends
Although ice cream is consumed year-round, sales peak in summer. Franchisees should prepare for higher demand during peak seasons and also innovate during lean months by offering warm desserts or festive flavours.
Train Your Staff Well
Properly trained staff ensure consistent service quality. Make use of the training programs offered by Arun Ice Cream to educate staff about product offerings, customer handling, and hygiene standards.
Monitor Financials Regularly
Track daily sales, monitor expenses, and analyse profits monthly. Keeping tabs on operational costs and adjusting pricing strategies when needed can improve profit margins.
Conclusion
The Arun Ice Cream Franchise is a lucrative business opportunity for anyone looking to enter the ice cream market. With an affordable investment range, a strong revenue-sharing model, and excellent franchisee support, it is a great choice for entrepreneurs in South India. Franchisees can expect a return on investment within 1.5 to 3 years, making it an attractive business option with long-term growth potential.
If you are passionate about running a business in the food and beverage sector and want to be part of a trusted and beloved brand, the Arun Ice Cream is an ideal choice to consider.
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FAQs
Is the Arun Icecream franchise profitable?
Today every business in the food and beverage business is profitable.
How do I start an Arun ice cream shop?
- Investment: Start from 50,000 to 2 Lac
- Area Requirements: 22000 SQF to 5000 SQF
- ROI: 1 Year to 3 Years
- Royalty Fee: 5%
What is the profit of an ice cream Parlour?
The average profit of the Arun Ice Cream franchise in India is a 20-30% profit margin.
Who is the manufacturer of Arun ice cream?
Arun Ice Creams products are manufactured by Hatsun Agro Product Limited.
Who is the owner of Arun Ice Cream?
Arun Ice Cream is owned by Hatsun Agro Product Limited.
