If you are looking to start a simple and stable retail business in India, opening a Safal franchise could be a smart option. Safal is one of the most trusted names in fruit and vegetable retail. In this guide, our industry experts will walk you through everything you need to know about starting a Safal franchise.

What is Safal?

safal franchise outlet

Safal is the retail arm of Mother Dairy, a subsidiary of the National Dairy Development Board. The Company operates under the Central Government and is headquartered in Noida. Retail shops are generally run by ex-servicemen or their dependents. The items are procured directly from farmers from 20 states, including north-eastern states.

Safal sells fresh fruits, vegetables, pulses, dairy items, frozen foods, and more. It is the largest chain of fresh fruits and vegetables in Delhi. The company is adding more product categories like pulses, snacks, etc. Safal outlets are known for quality and fair prices. At present, they have more than 400 retail outlets in Delhi, Gurgaon, Noida, Ghaziabad, Faridabad and 23 outlets in Bangalore.

Safal also supplies items to institutional clients like government organisations( Parliament House, Rail Bhawan, National Zoo), and hospitals like AIIMS.

Why Choose a Safal Mother Dairy Franchise?

Here’s why many people are opening Safal franchises:

  • It’s backed by a trusted government brand (Mother Dairy)
  • You get a steady supply of fresh products
  • There’s a daily demand for fruits and vegetables
  • Customers trust the brand for quality
  • The company helps with training and marketing

Product Offerings at Safal Stores

Safal retail outlet sells a wide range of grocery items along with fresh vegetables and fruits. Some of the items typical Safal outlet sells are listed below:

  • Fresh fruits and vegetables
  • Frozen peas, corn, and other ready-to-cook items
  • Dairy products like milk, curd, and paneer
  • Pulses, rice, and edible oils
  • Organic products (in select stores)
  • Grocery staples and seasonal produce

These items ensure regular customer visits throughout the week.

Types of Franchise Models of Safal

Safal offers different types of outlets, so you can choose what suits you:

  • Small retail kiosk – good for limited space
  • Full-size store – for bigger areas with more footfall
  • Mobile cart – may be available in select areas (check with the company)

Each model has different investment and space requirements.

Read: How to Start a Grocery Store in India

Safal Franchise Cost and Investment

Safal is a low-cost franchise opportunity in India and can be started with an initial investment of around ₹5 to ₹10 lakhs. You will also need to have a shop space in a good location with daily foot traffic (residential area, market, near schools, etc.). Basic retail knowledge helps, but it’s not mandatory

Here’s a quick idea of the cost and earnings:

Item Estimated Cost
Initial Setup & Interiors ₹2 – ₹4 lakhs
Inventory (first stock) ₹2 – ₹3 lakhs
Misc. expenses (licenses, etc.) ₹50,000 – ₹1 lakh
Total Investment ₹5 – ₹10 lakhs

Infrastructure Requirements

To start a Safal store, you will need:

  • Space: 300 to 500 sq. ft. (owned or rented)
  • Location: Preferably in a residential area, local market, or near schools/hospitals
  • Basic Interiors: Shelves, cold storage/freezer (provided or guided by Safal), weighing scales
  • Signage & Branding: As per Safal brand guidelines
  • Internet connection & billing software: For managing daily sales and inventory

The company may guide you during the store design and setup process.

What is the Duration of the Agreement for the Safal Outlet?

The initial duration of the Agreement for the Safal outlet will be two years. After that, renewal will be done based on performance during the ongoing tenure.

Step-by-Step Process to Apply for the Safal Franchise

safal franchise infographic
Here is how to apply for a Safal franchise:

  • Fill out an application form with AWPO, Army Welfare Placement Organisation
  • Appear for an interview jointly conducted by Safal & AWPO
  • Deposit Security & Working Capital Draft under Agreement with two Govt. Officials, as your Guarantors
  • Safal provides training & assistance to operationalise the allotted outlet
  • Work under the guidelines & on the job advice of Safal’s Sales Team on a day-to-day basis to maximise your earnings

Documents Required

Make sure you keep the documents mentioned below ready:

  • Aadhaar and PAN card
  • Shop ownership or rental agreement
  • Address proof of the shop
  • Bank account details
  • Business registration certificate (if any)

How Much Will You Earn?

Earnings depend on location, sales, and how well you manage the store. On average:

  • Monthly revenue: ₹2 to ₹5 lakhs
  • Profit margin: 10% to 20%
  • Net income: ₹20,000 to ₹75,000 per month
  • Break-even period: 12 to 18 months

With time, regular customers and higher sales can boost your profits.

Support You Get from Safal

The company offers full support once you’re on board. Some of them are mentioned below:

  • Training for running the store
  • Help with billing systems and inventory
  • Regular product supply
  • Promotions and branding support
  • Assistance with seasonal offers and customer engagement

Challenges and How to Manage Them

Every business has some challenges. Here are a few with simple tips:

  • Fresh product wastage: Keep daily records and manage stock wisely
  • Local market competition: Offer better service and product quality
  • Seasonal changes in prices: Adjust your pricing and stock accordingly
  • Customer retention: Offer loyalty discounts and keep your store clean and organised.

More Franchise Articles:

FAQs

How much does it cost to open a Safal franchise?

Around ₹5 to ₹10 lakhs, depending on location and store size.

Does Safal supply products daily?

Yes, the company provides regular supply and logistics support.

Can I run the store without retail experience?

Yes, Safal offers training and support even if you’re new to retail.

Is there a franchise fee?

It depends on the agreement. Check directly with the company.

How long does the approval process take?

Usually 2 to 4 weeks after all documents are submitted.

Conclusion

Opening a Safal franchise is a great way to start your journey as a small business owner. With daily demand, low risk, and full company support, it’s a solid business choice. If you have a good location and want a stable source of income, Safal could be the right fit for you.

  • NextWhat Research Desk

    We are a passionate and dedicated team of small business experts, committed to helping entrepreneurs and small business owners achieve their dreams. With a wealth of experience and a deep understanding of the unique challenges faced by small businesses, our mission is to provide new business ideas, actionable insights, and practical advice, to fuel your business growth.



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