How to start a Nilgiris Franchise
Franchises Retail

How to start a Nilgiris 1905 Franchise: Cost, Profit and Process

Are you looking for starting Nilgiris 1905 Franchise at your location in India? If Yes, then please read this post.

 

Company History

The origin of Nilgiris 1905 dates back to early 1905. In South India, it is one of the largest and older supermarket chains. It is a part of many homes in South India. It started with Muthuswami Mudaliar and the past century has seen four generations of Mudaliar family passing on the success. Among other brands, Nilgiris sells its own products, unlike other supermarkets. It offers a wide range of different products of general merchandise, grocery, and personal care. It delivers a great shopping experience to its customers.

 

Nilgiris 1905 Franchise USP

Nilgiris is an iconic brand and a household name in Karnataka, Tamil Nadu, Andhra Pradesh, and Kerala. Across the southern states of India, it has more than 170 franchised stores. The shopping experience of the Nilgiris 1905 franchise connects the customers to the superior quality and freshness of the produce.

The growth is constant in the Nilgiris, it evolved from dairy farm to supermarket chain of over 90 stores across southern states of India. It is famous for its fresh bakes, bread, food, and dairy that comes with goodness. It offers products in categories such as bakery, dairy, and rice and grocery and includes a wide range of items.

It has introduced many different flavors of milk and yogurt to provide quality products to its customers. 

It offers variety to the customers to choose from at affordable prices and high quality. There are many supermarkets that open and close quickly, but Nilgiris is in operations for the last 115 years and has maintained its name by evolving with the change in time. It has been known for generations and is expanding rapidly.

The items that Nilgiris sells are inhouse production of the company. It is the third-largest milk producer in India with an annual growth rate of 5 percent in the production of milk and 10 percent to 15 percent for other milk products such as ghee, curd, butter, and many more.  

 

Benefits of owning a Nilgiris 1905 Franchise

The Nilgiris 1905 franchise gets a lot of benefits from Nilgiris. It supports in the site selection, setting up the design, and construction of the store. The Head Office is the training location of the franchise and they are provided with complete operating manuals.

They provide field assistance to the franchise. At the time of opening of the franchise store, the franchise is provided with the expert guidance from the Head Office. Along with the support in opening the franchise store, the IT systems including the software and hardware support is incorporated into the franchise.

The franchise would be able to grow the business quickly with the advertising pamphlets. It is an ISO 22000:2005 certified company and offers products at a reasonable rate to its customers. The franchise can get many benefits as the company never supplies products of inferior quality to its customers. 

 

What are the requirements to start a Nilgiris 1905 Franchise in India?

The minimum area of 2000 square feet is required to include the facilities of the Nilgiris franchise. It would require a location with adequate visibility such as prime location in high streets or preferable corner locations. The franchise needs to be sincerely committed or highly motivated to ensure the consistent needs of the customers.

There is no requirement of any specific skills or experience to start a franchise of Nilgiris, but having the experience of running a supermarket outlet would be helpful.

The franchise partner will have to look after running of the outlet and managing the staff. The franchise services are given to franchise in specific states such as Karnataka, Tamil Nadu, Andhra Pradesh, and Kerala. Nilgiris is focusing on tier 2 and tier 3 cities and wants to expand in the rest of South India.

When the entrepreneurs apply to become a franchise of Nilgiris, a team contacts them to understand their needs. Needs and location are then evaluated. Once the Memorandum of Understanding is signed, the team shares detailed information about the business.

The interested individuals should visit the official website of Nilgiris to apply for becoming a franchise. On the portal, there is an option “Franchise Enquiry” that needs to be clicked for the application process.

An application form opens up on the screen, complete the details. The details such as applicant name, email, phone, state, city, and profession or business need to be filled out. The application is submitted by clicking on the “Submit” option after completing the details. 

 

How much does a Nilgiris 1905 Franchise cost?

The cost of the land required to open the store is not included in the investment. Depending on the different areas, the cost of the land will vary.

There will be variation in the land cost but the investment amount required to start a nilgiris franchise will be around Rs. 20,00,000 to Rs. 25,00,000. The return on investment can be expected to be up to 20 percent on sales and services.

The essential equipment required in the store such as stock inventory, barcode scanners, cashier machines, freezer, and other necessary equipment will be provided by Nilgiris to the franchise partner.

From the fourth year of business, the company charges Rs. 250 per square feet as a franchise fee. A standard franchise agreement is signed between Nilgiris and the franchise partner and the expected payback period is three to four years. When the contract expires, it can be renewed depending on the discretion of the company.

 

Conclusion

Since 1905, Nilgiris has been selling milk and products of dairy. It has sold the best quality of products to its customers for the last 115 years. It is the first-ever supermarket chain of India with its head office in Whitefield, Bangalore.

The customer base of the company ranges from older generations to younger generations. This is why the company sells products by keeping the need of all of its customers in mind.

The nilgiris franchise offers the best opportunity for the entrepreneurs to associate with the brand and do business in the industry. It has a strong network of stores in Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala and is aiming to open more stores in these states as well as the other states in the South of India.