The Chhaswala Franchise was launched in 2015 with a mission to make healthier alternatives to expensive soft drinks more accessible to people.
In 1994, Savitaben Patel had no idea that her dairy shop would evolve into a thriving business decades later. She started the dairy shop to provide for her family, but through her dedication to the quality of her dairy products, Patel Dairy became a trusted name in the community. Among their many products, Patel Dairy’s chhas (buttermilk) was particularly popular. When Jatin Patel, Savitaben’s son, took over the family business, he noticed the growing demand for chaas and decided to open a dedicated franchise for buttermilk and other dairy products which is now known as chhaswala.
Chhaswala’s vision is to become a customer-centric health drink and dairy food brand available to all citizens across India. The company has seen significant growth in its express retail outlets year over year, and its goal is to have 200 outlets across Gujarat by the end of the 2023 financial year.
Chhaswala Franchise Cost
The cost of starting a Chhaswala franchise varies depending on the location and size of the outlet. However, the company provides a rough estimate of the investment costs for a typical franchise, as follows:
| Expense | Amount (in rupees) |
|---|---|
| Franchise fee – 2.5 lakh (+18% GST) | 2,95,000 |
| Equipment costs | 1,20,000 |
| Construction costs | 2,20,000 |
| Marketing and Furniture | 1,60,000 |
| Working capital | 1,00,000 |
| Total Investment | 8,95,000 |
Keep in mind that these figures are estimates and may vary based on your location and other factors. It is always a good idea to carefully review the investment costs and potential returns before making a decision about starting a Chhaswala franchise.
Benefits of Chhaswala Franchise in India
There are several benefits to starting a Chhaswala franchise in India:
- Established brand: Chhaswala is a well-known and trusted brand in the Indian dairy industry, with a strong reputation for high-quality products and excellent customer service. By becoming a Chhaswala franchisee, you will be able to tap into this brand recognition and reputation, which can help you attract customers and build your business more quickly.
- Comprehensive training and support: Chhaswala provides comprehensive training and support to its franchisees, including initial training on the company’s products and operations, as well as ongoing support through regular visits and guidance. Franchisees also have access to the company’s marketing and promotional materials, as well as its supply chain management system.
- Flexible business model: Chhaswala’s franchise model is flexible, allowing franchisees to choose their own location and customize their business to fit their needs and goals. This can be especially helpful for entrepreneurs who want to start their own businesses but are not sure where to begin.
- Strong potential for returns: The potential returns for a Chhaswala franchise depend on a variety of factors, including location, competition, and market demand. However, the company states that its franchisees can expect to achieve a healthy return on investment within the first year of operation.
- Opportunity to make a positive impact: By becoming a Chhaswala franchisee, you will not only be running your own business, but you will also be helping to promote healthier alternatives to traditional soft drinks. This can be a rewarding way to make a positive impact in your community and contribute to the overall health and wellness of your customers.
Overall, the Chhaswala franchise opportunity offers a range of benefits for entrepreneurs looking to start their own business in the Indian dairy industry. With a trusted brand, comprehensive training and support, and strong potential for returns, a Chhaswala franchise can be a rewarding and lucrative business venture.
Chhaswala franchise Profit Margin in India
The profit margin for a Chhaswala franchise depends on a variety of factors, including location, competition, and market demand. Additionally, it is important to consider the costs of running the business, such as the cost of ingredients, rent, utilities, labor, and marketing. To calculate the profit margin for a Chhaswala franchise, you will need to determine your total revenue and subtract your total costs.
Below is the profit margin calculation for a Chhaswala franchise considering 3 sales scenarios
| Particulars | Best Case Sales (in Rupees) | Average Case Sales (in Rupees) | Worst Case Sales (in Rupees) |
|---|---|---|---|
| Gross Monthly Sales | 3,40,000 | 2,40,000 | 1,40,000 |
| Raw material (65% of sales) | -2,21,000 | -1,56,000 | -91,000 |
| Shop Rent | -45,000 | -35,000 | -25,000 |
| Employee Salary | -30,000 | -25,000 | -15,000 |
| Electricity and Water Bills | -6,000 | -4,000 | -4,000 |
| Online Delivery partner commission | -5,000 | -4,000 | -3,000 |
| Total Monthly Net Profit | 33,000 (9.70% of sales) | 16,000 (6.66% of sales) | 2,000 (1.42% of sales) |
The above calculation shows that the average net profit of chhaswala franchise combining(median of) all 3 scenarios is 5.92% of total monthly sales.
Keep in mind that this is just an example, and your actual profit margin may be different depending on your specific circumstances. It is always a good idea to carefully track your costs and revenue to get a clear picture of your profit margin and make any necessary adjustments to improve your profitability.
How to apply for Chhaswala Franchise?
You can visit their website at https://chhaswala.co.in/join-franchise-program.html and fill the franchise form. Their representative will contact you after sending your inquiry for the further steps.
Also read: Naturals Ice-cream Franchise cost and profit details.
