Are you looking to start your own business in the retail sector, seeking the top brand to begin your business journey? Look no further. Hindustan Unilever is offering franchise opportunities to aspiring entrepreneurs. Can You Afford HUL Franchise?, Profit, and How to Start in 2024? In this, we will discuss how much a Hul franchise costs, how profitable it is, the requirements for a franchise, and how to get a franchise.
Table of Contents
About Hindustan Unilever Limited
Hindustan Unilever Limited is the largest fast-moving consumer goods company in India. It is a British-owned Indian company headquartered in Mumbai with more than 90 years of presence in India. It has products in various categories, like foods, beverages, cleaning agents, personal care products, and water purifiers. And HUL boasts a portfolio of 50+ fast-moving consumer goods (FMCG) brands within the country.
Hindustan Unilever Limited achieved 59,579 crore turnover in the years 2023–2024. In India, more than 9 million retail outlets sell Hul products, and there are 3500+ distributors across the country. Now Hul is offering a franchise or dissent opportunity for people who aspire to start their own businesses.
Key Details of HUL Franchise
- Brand Name: Hindustan Unilever Limited
- Industry: Retail Industry
- Number of Outlets: 3500+
- Franchise cost: 25 to 50 lakhs
- Profit Margin: 3 to 8%
- Space required: 1200 to 1600 sq ft
- Official Website: https://www.hul.co.in/
How much does the HUL Franchise Cost?
Whenever a person thinks about business ideas or opportunities, investment is the first thing that strikes his or her mind. So here we will discuss the initial investment of the HUL franchise in detail. Hindustan Unilever Limited is offering franchise opportunities without charging any franchise fee or royalty fee. The investment is required in purchasing land, for exterior and interior design total, setting up the outlet, purchasing vehicles, initial inventory, working capital, employee salaries, and other things. The total initial cost required to start a HUL franchise is INR 25 lakhs for rural areas and INR 50 lakhs for urban areas.
| Franchise investment Details | Rural | Urban |
|---|---|---|
| Franchise Fee | Zero | Zero |
| Cost of Land | 10 to 15 lakhs | 10 to 15 lakhs |
| Estimated setup cost | 5 to 10 lakhs | 10 to 20 lakhs |
| Cost of Vehicle | 2 to 5 lakhs | 2 to 5 lakhs |
| Initial Inventory | 10 to 15 lakhs | 25 to 30 lakhs |
| Royalty Fee | Zero | Zero |
| Working Capital | 4 to 5 lakhs | 5 to 8 lakhs |
| Total Investment | 25 lakhs | 50 lakhs |
This Cost figure varies if you have your own space or own outlet and based on the size of the outlet.
How is a Profitable HUL Franchise?
After knowing the investment, the second thing you have to clear up is how profitable this HUL franchise is. A HUL franchise is considered a profitable franchise opportunity because the average gross revenue of the HUL outlet of the HUL outlet is around INR 25 to INR 50 lakhs per month. Based on the location and brand reputation, every outlet can reach this revenue. The HUL franchise profit margin is between 3 and 8% on each sale based on the different categories of products. With this profit margin, franchises can easily make between INR 1 and INR 3 lakhs per month. The franchisee may recover the initial investment in 2 to 3 years of time.
| Sales Per Month | 25 to 50 lakhs |
| Gross Profit Margin | 3 to 8% |
| Profit Per Month | 1 to 3 lakhs |
| Return on Investment | 2 to 3 years |
Requirements to Open Franchise
Required Age: The applicant must be older than 21 years to be a franchisee of HUL
Education: A graduated degree is necessary, but if the applicant is from an urban area, a PUC passed education must or applicant from rural area PUC passed education is required, or if the applicant is from a rural area, a PUC-passed education is also needed.
Investment: You must be financially strong and able to invest 25 to 50 lakhs as an initial investment.
Business Experience: The person is only eligible if he or she has two to three years of experience in the FMCG industry.
Required Space: The required space to set up HUL franchises for offices ranging from 150 to 250 sq ft is necessary. At least 1200 to 1600 sq ft area is required to warehouse to store the goods.
Vehicles: At least two vehicles are required to pick up and deliver the products.
Location: urban or rural, both locations are good to start businesses. However, the franchisee must choose a location where there is no Hul outlet with a radius of 2 to 3 km area.
Required Staff: Franchisees need to hire necessary employees to manage sales, billing, warehouse management, office management, and others.
Required Documents
- Adhar Card
- Pan Card
- Bank Account Details
- 2 to 3 years of Income tax returns
- Rent agreement or Property documents
- Business Plan
- Trade License
- Shop Act Establishment
- GST Registration
- Fire and Safety
How to Get HUL Franchise?
The important guidelines you need to consider before you apply for an HUL franchise
- HUL does not offer any franchise, distributorship opportunity, or process through an online website or franchise form.
- All appointments for franchises after a detailed background verification check or face-to-face meetings with company staff.
- HUL Looks for a franchise or distributorship through newspaper ads or face-to-face interaction.
- After the interaction, the next step is for company staff will visit your store and have multiple meetings in the field before the next process.
- Detailed verification of financial and legal terms.
- The final agreement discussion with this franchisee or distributorship is finalized.
- Note: HUL Company does not charge any royalty fees or franchise fees. Be aware of online fraud and avoid paying any security deposit or franchise fee online.
- For franchise queries, feedback, or complaints, you can contact us through the helpline: +91 18001022221.
- After all the verification processes, the franchisee receives a 6-digit code.
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Conclusion
In conclusion, can you afford a HUL franchise? Profit and How to Start in 2024? HUL franchise is the finest opportunity with 90 years of market experience, huge loyal customer support, no franchise fee, no royalty fee business model, and 25 to 50 lakhs of sales per month. Also, you need to consider the availability of franchises in your location. Applying for a franchise is a little bit difficult, and the and the profit margin is between 3 and 8%. A franchisee can make a profit only if he or she makes a lot of revenue per month.
FAQ
How much does a HUL franchise cost in India?
The initial investment required to start the HUL franchise is 25 lakhs for rural locations and 50 lakhs for urban locations, including setup costs, working capital, the cost of the land, vehicle costs, and initial stocks.
