The pleasant fragrance of ice cream, happy conversations among customers, and plenty of flavorful displays mark a good ice cream parlor. 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 creates a promising opportunity for aspiring entrepreneurs.
One such opportunity is the Arun Ice Cream franchise, which offers a proven business model with reduced risk and strong returns on investment. The growing popularity of branded and hygienic frozen desserts—especially among younger, urban consumers—is fueling Asia’s ice cream boom, and India is right at the center of it.
Arun Ice Cream, a well-known brand from Hatsun Agro Product Ltd., has become a household name in South India and is now expanding its footprint across the country. Starting out as a small ice candy maker, the company has grown into a major player in the ice cream industry by prioritizing product quality, innovation, and customer satisfaction.
Arun Ice Cream at a Glance
The ice cream brand, Arun, is a popular name in India and is run by Hatsun Agro Product Ltd. (HAP), one of America’s biggest dairy undertakings. Started in 1970 by the enterprising R.G. Chandramogan, Arun Ice Cream decided to provide quality ice cream to people throughout India, mostly in smaller cities and towns.
Why is Arun Ice Cream different from others? The USPs of the organization are various and well integrated into the way it operates.
- Innovator of the Parlour Route: Arun Ice Cream was one of the first in India to bring the distinctive ice cream parlour concept to life. By selling their ice creams exclusively through their parlours, they were able to avoid hurdles associated with traditional distribution by delivering high-quality, fresh, cold products directly to their consumers. Especially in locations that do not have cold chain facilities where distribution was problematic. There is little doubt that establishing a focus on exclusive outlets has created an experience that attracts consumers and built strong brand loyalty.
- Deep Market Penetration: Many brands look to concentrate their business in urban or large city markets but Arun Ice Cream has exacted their markets in semi-urban and rural areas. Their ability to identify untapped, large consumer segments in semi-urban and rural markets has established Arun Ice Cream as a household name in these markets. Arun Ice Cream’s recognition can be seen in towns with as few as 30,000 people, and less.
- Optimal products, selling at affordable prices: Arun Ice Cream also has a breadth of ice creams, frozen desserts, kulfi, cones, bars, tubs and novelties. Arun’s wide range of products appeals to varied tastes or preferences. Most importantly “which is important at the end of the day” their prices are affordable, and their ice cream is of quality that large segments of consumers will have affordable access to quality ice cream.
- Quality and Innovation: Even though Arun Ice Cream is very popular, it has kept standards of quality very high. They focus on coming up with fresh new options by introducing various unique and exciting products. This brand is well known for always using fresh ingredients.
Why Choose an Arun Ice Cream Franchise?
Choosing an Arun Ice Cream franchise is a smart decision for many reasons, especially for any entrepreneur looking to start a stable and profitable business in the food and beverage sector. Here are just a few:
- Established Brand Recognition: Arun Ice Cream is a brand that everyone recognizes, especially in South India, with more than five decades of trust and brand loyalty. This strong loyalty provides franchisees with a sizable customer base from day one, and the costs and efforts of developing a brand are dramatically reduced.
- Proven Business Model: The franchise of Arun Ice Cream business model is proven to be successful, meaning franchisees are starting a business with a proven operational system, including recipes, production process, quality control, and inventory management system- and all of those are developed for the franchisee, removing a lot of the guesswork from operating the franchise.
- Low Investment, High Demand: The initial investment for Arun Ice Cream is relatively low compared to a lot of other food and beverage, or QSR (quick service restaurant)franchises, making the market much more appealing for first time entrepreneurs or anyone with limited capital. Plus, the high demand of ice cream during summer months and festival periods means the sales potential is endless.
- Thorough Support System: Hatsun Agro Product Ltd. maintains significant support provided to each of its franchisees in many aspects of running their business. This includes assistance with set-up, provision of equipment (like branded refrigerators and freezers for product storage), stock delivered regularly, product training, assistance with operations guidance, and marketing support.
- Minimal Technical Knowledge Needed: The franchise model is designed to be simple to operate, there is no need for anyone to have extensive previous experience in the food industry. The detailed training provided by the franchisor transfers the skills required to help new franchisees operate their outlets successfully.
Arun Ice Cream Franchise Cost
The money needed to start an Arun Ice Cream franchise is an important factor for anyone thinking of becoming a franchisee. Depending on the store’s location, size, and needs, the estimates offered usually show that it is affordable for people to enter the franchise business. Its reasonable cost and strong brand presence make it a contender for the best franchise in India for those looking to start in the food and dessert sector.
| Category | Details |
| Initial Franchise Fee | ₹1 – ₹2 lakh for brand usage, trademarks, and business model |
| Shop Setup / Infrastructure | ₹2,00,000 – ₹3,00,000 (can vary ₹50,000 – ₹20,00,000 based on outlet size) |
| Equipment & Freezers | Generally provided by Hatsun Agro Product (confirm during inquiry) |
| Inventory Capital | ₹50,000 – ₹1,00,000 for initial stock |
| Working Capital | ₹1,00,000 (for initial months’ operating costs: utilities, payroll, stock) |
| Licenses & Permits | Varies by location (FSSAI, local food authority, etc.) |
| Additional Funds | ₹50,000 for miscellaneous/unforeseen costs |
| Ongoing Fees | 8% royalty fee + 3.5% advertising/marketing fee on sales |
| Profit Margins | Approx. 12% – 15% |
| Potential Additional Income | Possible through brand expansion and cross-selling opportunities |
| Franchisee Net Worth Requirement | ₹12 – ₹15 lakh recommended |
| Estimated ROI Timeframe | 1 to 3 years |
| Business Opportunity | Rapidly growing ice cream market, strong brand recognition, and support |
Totally, you need to invest between Rs 3.5 lakh and Rs 5 lakh to open an Arun Ice Cream. Usually, this total cost takes into account several main elements.
- Franchise Fee: The upfront one-time fee will be paid to the franchisor to be able to use the Arun Ice Cream brand, trademarks and business model. Cost of franchise fee generally falls within ₹50,000 to ₹1 Lakh. While some sources indicate fees could be as high as ₹1.5 to ₹2 Lakhs, it is prudent to verify these latest official fees with Hatsun Agro Product.
- Shop Setup Cost / Infrastructure Investment: This cost has to do with the cost of setting up the physical outlet, that is, to do the interiors, any civil works, painting, branding, and basic furniture. Generally, this cost can range from ₹2,00,000 to ₹3,00,000, although a few sources show a larger range, between ₹50,000 and ₹20 Lakhs, again, depending on the size, scale, and vision of the outlet.
- Equipment & Freezers: One of the notable advantages for Arun Ice Cream franchisees is that Hatsun Agro Product generally provides branded coolers and freezers, which minimizes the initial expenditure for the franchisee, because these are expensive items. However, you should strongly verify this during your enquiries.
- Working Capital: This is financing needed to pay your daily operating costs for the first few months. Things like debt servicing, utility payments, payroll costs, and every day inventory purchases, until the business begins to earn income. It is a good policy to allow for working capital.
- Licenses and Permits: Getting the licences and permits to run a food business is very important and where you live will affect these costs.
Key Requirements to Become an Arun Ice Cream Franchise
Becoming a franchise of Arun Ice Cream requires potential partners to meet a few basic criteria to ensure their values and standards align with the brand. Requirements usually include financial capacity, appropriate location, and commitment to running business:
- Minimum Area Requirement: The ideal space for a franchise of Arun Ice Cream outlet will typically be 100 sq. ft. to 200 sq. ft. for smaller kiosks or takeaway models. On the other hand, for parlours with seating capacity, you will usually need between 2000 sq. ft to 5000 sq. ft. The amount of area required primarily depends on the chosen format and location.
- Location Type: The location is critical to any retail business’s success, but especially for an ice cream parlour.
- Employee Headcount: A typical Arun Ice Cream outlet requires a small team. Most locations operate with about 1 to 2 persons for basic operations. However, larger parlours with seating or longer operating hours may require 2 to 3 persons.
- Financial Capability: Potential franchisees must show they have enough liquid assets to cover the initial investment and working capital. While the total investment is quite small, having cash on hand is extremely important. Some sources indicate that a net worth of ₹12 – 15 Lakhs may be preferred, indicating overall financial honesty.
- Entrepreneurial spirit and commitment: While experience in the food space is an advantage, Arun Ice Cream is also happy to welcome people with genuine entrepreneurial spirit, customer-loving people who want to adhere to company processes and quality. A hand-on approach and commitment are highly regarded.
- Legal cooperation: Franchisees must be ready to obtain all necessary licenses and permits to operate a food and beverage outlet in its community.
How to Contact Arun Ice Cream for Franchise Opportunities
Getting the process of applying for a franchise with Arun Ice Cream is an easy task. To show your genuine interest, you should make your opinion known through the right channels of Hatsun Agro Product Ltd.
Most of the time, contact can be made in these ways:
Official Website: In most cases, people go to Hatsun Agro Product Ltd.’s or Arun Ice Cream’s official websites to get in touch. A “Business Enquiry” or “Contact Us” section should exist on the franchise website.
- Go to the site www.hap.in or www.arunicecreams.in.
- Go to the area of the website that handles business openings or those concerning franchising.
Try to find either an online form or a special email address for anyone who is interested in becoming a franchisee.
Franchise Inquiry Form: On most corporate websites, there is a form that helps you to provide your name, contact information, the proposed place you want to move, and your business background. Filling all the fields accurately and providing complete information will help you get your reply faster.
Direct Contact Information: Corporate office addresses, phone numbers, and email IDs are often given on the contact page of Hatsun Agro Product Ltd. Check to see if there is a special department for business development or franchises, as these tend to handle the issues connected to them.
- Telephone Number: 044-24501622 (Hatsun Agro Product Ltd. Corporate Office, Chennai)
- Mail ID: info@hap.in (general inquiry, they can redirect your franchise query)
Industry Portals and Exhibitions: Corporate office addresses, phone numbers, and email IDs are often given on the contact page of Hatsun Agro Product Ltd. Check to see if there is a special department for business development or franchises, as these tend to handle the issues connected to them.
Step-by-Step Application Process
Making contact normally greets the start of the structured selection process to check if a partnership with Arun Ice Cream would be successful. In most cases, the steps are somewhat alike even if some variations exist:
Initial Inquiry/Application Submission:
- The first step, as explained before, is this one. The Hatsun Agro Product website’s online form allows you to share your interest.
- Give all the details that are required, such as your personal information, contact details, finances, where you want to be located, and any experience you have in business.
Preliminary Screening & Evaluation:
- When they get your application, the Arun Ice Cream team will start a first screening.
- They will evaluate your abilities, check your finances, and consider if the given place suits them according to their research and expansion strategies.
- In order to collect more information before the interview, you could get a phone call or email.
Detailed Discussion and Information Exchange:
- If your preliminary application is accepted, you will usually be asked to discuss things in more detail. An employee may take part in a virtual meeting or visit the company’s office for this step.
- During this part, you will obtain more information on the model, the backing you get, and exactly how much you are investing. You need to show further details about your money and resources, business planning (if you have one), and knowledge of the local market.
It’s the right time to inquire and find accurate answers to your uncertainties.
Site Selection and Approval:
- It’s very important for an ice cream business to be located correctly. Usually, the Arun Ice Cream team helps you select the proper location or approves the place you picked. Sometimes, they will examine the site, measure the number of visitors, collect data on the target audience, see what shops are nearby, and check whether the place is suitable for a store.
- It is very important that the site fits the company’s standards for operations and branding.
Franchise Agreement and Legal Formalities:
As soon as all the evaluations are done and the location is confirmed, the Franchise Agreement will be provided.
- It shows the essential terms and conditions that control the franchisee and franchisor relationship like fees required, how to operate, support offered, brand names, tenure rules, and options for renewal.
- It is very important to get legal advice before signing the agreement.
Training and Setup
After the agreement is done and the first payments are received, Arun Ice Cream will organize full training programs for all your workers. It usually involves learning about products, here is a couple, the way to run operations, handle stock, take care of customers, and maintain hygiene.
At the same time, the process of getting your outlet ready will begin with interior design, adding equipment, and delivering the first batch of goods.
Support and Benefits for Arun Ice Cream Franchise
Backed by Hatsun Agro Product Ltd., Arun Ice Cream’s franchisees have easy access to the help they need to grow their businesses. Taking part in the Arun family means getting valuable help that is very helpful for new businesses:
Branding and Marketing Support:
- Unit Interior & Exterior Advertising: The Company offers support for branded interior signage and exterior signage and display materials provided, and to ensure the store holds true to the Arun Ice Cream brand identity.
- Local Advertising Support: While the franchisee has the obligation for additional local marketing, Arun Ice Cream may provide support for local advertising or will provide some guidance, or possibly partially support advertising and promotional activities.
- Marketing Materials: The franchisee will receive point of sale materials, combined with posters, and other marketing material to encourage consumers.
- Promotional Schemes: Occasionally, the company will announce and/or provide promotional schemes on a national or regional basis that will help the franchisee sell more product.
Operational Support:
- Equipment Provision: One key benefit is – Hatsun Agro Product provides you with branded refrigerators and freezers. This significantly decreases your up-front capital investment into cold storage.
- Regular Stock Delivery: Because of Hatsun’s vast supply chain and distribution network, they will provide you with fresh ice cream stock to your franchise outlets on a regular and consistent basis. This limits any issues or challenges the franchisee may have when managing their inventory.
- Centralized Billing & Inventory System: Franchisees often come up with a unified way of billing and inventory management, which eliminates some of the complications of day-to-day operations and reporting for the franchisee.
- Quality Control: The franchisor will allow every franchisee to receive up to date instructions and audits to be compliant with Arun Ice Cream Standards in quality and hygiene.
Training and Development:
- Product Training: Franchisees receive full training on all the products, flavors, ingredients, and serving suggestions.
- Operational Training: Franchise owners and staff of franchise owners receive training on important aspects of daily operation, cash handling, customer service, and using the point of sale system.
- Food Safety Training: Food safety and use of hygiene practices are emphasized to provide the product quality consumers expect and to maintain their trust.
- New Menu Training: Whenever new products, promotional products, seasonal flavors or new packaging are introduced, franchise owners and staff will receive training on how to handle, promote and sell the products.
Business Guidance and Consultation:
- Business Management Assistance: The franchisor offers assistance with effective business management, specifically in assisting the franchisee’s business in running efficiently and profitably.
- Performance Measurement: Monthly sales reports and key performance indicators (KPI) may be sent via franchisee dashboard allowing comparison and health of their business on an actionable basis.
- Troubleshooting Support: Operational problems or concerns typically involve a support call from the company representative in your region.
No Royalty Charges: As noted, in many instances their Arun Ice Cream franchises do not involve a regular royalty fee meaning the franchisee is able to keep more of the sales revenue. This represents substantial financial savings with direct, positive correlation to the bottom line.
Profit Potential & ROI
Before investing, most people seek out the possible profits and their return on investment. Because Arun Ice Cream does so well in both areas, it is an appealing option for any business investor.
Profit Margin:
Owners of Arun Ice Cream usually earn a significant profit from their businesses. Due to aspects such as place of business, sales figures, management efficiency, and competitors locally, most figures show that profit margins tend to be within 20% and 35%. A few sources suggest a 12-15% profit margin as a normal amount for any restaurant.
Let’s look at a theoretical situation based on some numbers:
- Estimated revenue/month: ₹1,50,000 (This number can be more depending on footfall)
- Estimated expenses/month: Approximately ₹90,000 (This included rent, staff pay, utilities and reoccurring inventory).
- Estimated net profit: ₹60,000 per month Estimated profit after 12 months: ₹7,20,000 (₹60,000 x 12)
These are just hypothetical figures. Actual profit will depend on your actual sales and managing your expenses correctly. Location is important; the closer you are to footfall near schools, colleges, and/or busy markets; the more footfall, and sales you will likely receive.
Return on Investment (ROI):
It is known that it does not take very long to achieve an ROI with an Arun Ice Cream franchise. Experts usually suggest that being a franchisee allows for recovering the initial investment in less than three years. Several analysts point out that it may take only 12-15 months for the company to break even.
Other significant aspects influencing profitability and ROI:
- Location: Its more profitable when the location can attract high levels of customer traffic and are highly visible.
- Operational: Efficiency in managing the inventory, staff and utilities can contribute greatly to margins.
- Customer Service: Excellent customer service can help create loyalty in customers to return to same store.
- Local Marketing: The franchisee needs to supplement the company marketing but local marketing efforts will help contribute to sales.
- Seasonality: Ice cream is growing to be a year-round treat and consumable, ice cream sales typically happen mostly during warm weather months and festive seasons, you should consider seasonality in the financial plan and criteria.
Conclusion
Pricing follows the best practices of finance, considering maximizing customer experience as well. And when you hear 2,000 crore, think of a folder of ice cream in your mind and name it “Arun Ice Cream”. Arun Ice Creams connect greedily to the Indian psyche, and surges in interest like ice cream’s ubiquitous offering on social media today the day will just continue this lucrative path. When you invest in Arun Ice Cream Franchise you enjoy all avoiding previously defined struggles of building a brand figured through Hatsun Agro Product Ltd’s strong leader.
Invest in Arun Ice Cream with the strengths of brand and offer, location, recognized lifetime franchise agreement; registration of customers; and a fuller peace of mind seldom matched.
Also want a limited cost to invest. There is primary sales target, and significant profit is more likely when operating margins (20 to 35% commonly) and return on investment (1.5 to 3 years frequently) become more attractive. Then Arun Ice Cream attracts more excitement from opportunity.
Also Read :- Natural Ice Cream Franchise cost
FAQs
What should a buyer expect to pay in the beginning to purchase a franchise of Arun Ice Cream ?
Normally, it costs ₹3.5 Lakhs to ₹5 Lakhs to start a Domino’s franchise, including the franchise fee, setting up the place, and initial stock.
Is there a cost for royalty when I franchise the Arun Ice Cream brand?
Franchisees with Arun Ice Cream do not always have to pay ongoing royalty fees, which is great for their profits.
How much profit can a franchise of Arun Ice Cream make?
Usually, franchisees’ profits range from 20% to 35%, depending on both how much they sell and how well they run their operations.
When will the initial investment be made up for?
It usually takes 1.5 to 3 years for a franchise of Arun Ice Cream to pay back the investment.
