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The very first thing that most Indian households do after waking up in the morning is to have a good hot cup of tea. Whether it’s a wedding, a party, or even a small family gathering, tea is served almost everywhere. People bond over tea. Tea is not only a drink; it’s an emotion for tea lovers. There are many tea sellers in India, but only a few have made a name for themselves in the tea industry, Yewale Amruttulya tea business being one of them. If you are interested in starting a tea franchise, the Yewale Amruttulya franchise can be a wise choice. Know all about Yevale Amruttulya franchise cost along with the investment and the profitability from this franchise.
Did you know? You can earn an expected monthly profit of ₹1,00,000 by investing in the Yewale Amruttulya franchise business.
What is Yewale Amruttulya?
If you reside in Pune or anywhere in the surrounding area, you must have heard this name from tea lovers quite often. Yewale Amruttulya, founded by the Yewale brothers, caught everyone’s attention around the beginning of 2018 when newspapers began running headlines like “How this Pune chaiwala makes ₹12 lakhs a month?” or “Meet the Yewale brothers, who make ₹1.2 million a month selling tea”.
In 2017, the Yewale brothers began Yewale Amruttulya by zeroing in on a friend's food joint near Bharti Vidyapeeth, with uncompromising quality, warm reception, and humble service and with the Punekar’s embracing them with open arms, they became a household name in no time. However, the origins of Yewale Amruttulya go much deeper.
Idea behind Yewale Amruttulya
The idea for Yewale Amruttulya arose when the Yewale brothers decided to fulfil the dreams of their late father, Shri Dashrath Bhairu Yewale. As a legacy to his family, their father, who owned a tea stall called "Ganesh Amruttulya," left behind two core business principles: hard work and honesty. After numerous researches, experiments, and failures, the Yewale brothers came up with the idea of Yewale Amruttulya to fulfil their father's dream of inventing such a product that would be timeless for future generations, and they thought what better than their core product “tea”.
Meaning of Amruttulya
The dictionary meaning of Amruttulya is “elixir”. However, Amrut or Amrit is a Sanskrit word that means "immortality" but can also mean "nectar," and Tulya means "comparable." As a result, Amruttulya means "Comparable to Nectar," i.e., sweet, exactly how most Indians love their tea to be.
What makes Yewale Amruttulya different from the other tea shops/joints?
Despite having numerous tea sellers all around, what makes the tea lovers of Pune draw towards the tea served at Yewale Amruttulya? Some of the reasons are:
- Hygiene: Yewale Amruttulya's tea joints are well-known for hygiene and cleanliness. According to Nilesh Yewale, one of the co-founders, anyone who drinks tea from Yewale Amruttulya does not get acidity because they boil the milk, cool it, and then make tea. In contrast, other tea vendors empty milk packets directly into a pan of boiling water, which causes acidity.
- Standardisation: Timers have been installed to ensure the same quality of tea across all the tea joints. The gas oven is automatically turned off when the timer rings, ensuring the tea is not overboiled.
- Quality: The special tea powder used in their shops to make tea is specially prepared at their home to make sure it tastes the same across all the shops, thus enhancing the quality of the product and providing a unique taste to its customers.
- Price: Price is the most important factor that draws customers to their stores. The tea is priced at a minimal price of ₹10 per cup, making it affordable to all economic classes.
Scope of tea business in India
India is known to be the second-largest tea producer globally, after China. According to research, the tea industry is expected to grow at a CAGR (Compounded Annual Growth Rate) of 4.2% by 2026. India is expected to produce an annual tea crop of 1.40 million tonnes. Surprisingly, almost 80% of the total tea produced is consumed domestically in India. The average consumption of tea daily is 2-3 cups a day by an adult.
Is it worth investing in the Yewale Amruttuly franchise?
Yewale Amruttulya has around 280 branches across the country, most of which are located in the Maharashtra region. The demand for tea does not seem like going down anytime soon, thus, making it a great business to invest in. Moreover, it can be opened in any metropolitan city, even in towns or small villages.
How can I start a Yewale Amruttulya franchise?
If you are interested in opening a franchise of the Yewale Amruttulya tea business, then:
- You can contact their head office through the details mentioned on their website- http://yewaleamruttulya.com/contactus1.aspx
- Or you can fill out the following Google Form: http://yewaleamruttulya.com/ApplicationForm1.aspx
What is the Yewale Amruttulya Franchise Cost?
If you plan to begin a tea franchise in Mumbai or near your location under the brand name of Yewale Amruttulya, the initial franchise cost will be approximately around ₹13,00,000.
Let’s get into the break-up of the cost mentioned:
Interior decoration, plumbing work, civic work, hardware, and ACP panelboard
Steel counter, refrigerator, cooler, milk boiling machine, milk cane, and gas pipeline
Marketing and other related expenses
Outlet launches expense
IT Infrastructure like software, billing tab, CCTV, LED, Wi-Fi connection
Housekeeping and material
Licenses required to start Yewale Amruttulya Tea Franchise Business
To start a business, certain licenses are required. The licenses required to start the Yewale Amruttulya tea franchise business are very much similar to the licenses required to start any other food-related business, such as:
- Trade License: You cannot carry out a business if you don’t have a trade license. A Trade license is a document/certificate granted to you by the local authority, enabling you to start a particular trade or business.
- Firm Registration/Company Incorporation Certificate: Whether you want to start your business as a Partnership Firm or Proprietorship Firm, you need to register your firm under the relevant Act. If you want to start your business in the form of a company, then it needs to be registered with the Registrar of Companies (ROC) as per the provisions laid down by The Companies Act, 2013.
- GST Registration: You are required to get your business registered under the GST Act, 2017, and obtain a GST Registration Certificate.
- FSSAI License: The Yewale Amruttulya franchise is categorised under the food processing industry. Hence, you are required to obtain a license from the Food Safety and Standards Authority of India (FSSAI).
- Shop Act Licence: Every newly established shop and commercial establishment must obtain a license from their respective municipal corporation or local authority under The Shop Act.
Important Facts for Opening Yewale Amruttulya franchise?
To start a Yewale Amruttulya tea franchise business, some important things to be kept in mind are:
- You need to have a shop with a minimum area of 250-300 sq. feet with good outside space.
- The franchisor will provide the franchise for a term of 5 years.
- Franchise Fees will amount to approximately ₹3,00,000.
- Store timings will be 5 AM to 10 PM, all 365 days.
Is the Yewale Amruttulya tea franchise business profitable?
Yes! If you start a Yewale Amruttulya tea franchise, you are expected to earn a profit of ₹1 lakh monthly. However, the amount of profit is largely determined by the shop's geographical location. Yewale Amruttulya tea is well-known among Pune-Mumbai and the surrounding areas, so establishing a tea franchise in these areas may prove to be more profitable than in other areas.
Why the Yewale Amruttulya Franchise business?
There are certain advantages of owning the Yewale Amruttulya tea Franchise business. Some of them are:
- Brand Recognition: Working under Yewale Amruttulya's already established brand name is one of the major benefits of opening a franchise. If you want to start a new business from scratch, building the brand value and customer base takes a long time, which is not the case with this tea franchise.
- Customer base: Yewale Amruttulya already has a large loyal customer base, saving you the time and effort to build a new customer base.
- Lower risk: It is observed that franchise businesses have a lower risk of failure as compared to a newly set up business, as they are operated under the name of an already established business. Therefore, Yewale Amruttulya Franchise is an excellent choice for a franchise business.
- Profits: In the early days of a newly established business, profits are typically very low, but this is not the case with a franchise business. Furthermore, franchise businesses are expected to generate higher profits than independently established businesses.
- Business assistance: With the franchise comes business assistance from the franchisor, which can be beneficial for entrepreneurs in their learning process. They often get expert advice from the franchisor, which they may use in the long run.
Risks of entering into the franchise business
There are always two sides to every coin. Similarly, when it comes to business, if there are benefits, there are also risks. Some of the risks associated with the Yewale Amruttulya franchise business are:
- Restrictions: There can be certain restrictions laid down in the franchise agreement, which have to be followed by the franchisee. These limitations may be in respect to:
- Hours of operation
- Quality of the product
- Ongoing expenses: Certain costs are unique to franchises, such as franchise fees, royalties, or any other cost specified in the franchise agreement and must be incurred regularly.
Entering into a franchise business is not risk-free. However, the risk here is comparatively lower than in a newly established business, and as it is rightly said, “No risk, no gain”.
Also read: What is McDonald's Franchise Cost in India?
The tea industry is constantly growing and is expected to expand even further in the coming years. A good cup of tea is said to uplift the mood of the tea-drinkers, and that’s what Yevale Amruttalya has been doing for so many years now: providing satisfaction with a good cup of tea. They also plan to win not only over Maharashtra but at every place around the world, because according to them, everyone deserves a good cup of tea. From this article, we hope you have an in-depth insight on how to start the Yevale Amruttalya franchise, the investments required, and how much profits you can earn.
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