- Key investment range: ₹15–25 lakhs depending on outlet type
- Break-even timeframe: 18–24 months in metro cities; slightly longer in Tier-2/Tier-3 markets
- Break-even: Most outlets recover investment in 12–18 months, depending on city and footfall.
- Typical profit margin: 20–25% (higher during summer months)
- Support from Hatsun Agro: Supply chain, branding, marketing assistance, training
- Major risks to consider: Seasonal demand, high electricity costs, competitive market
- Best suited locations: High-footfall urban areas, highways, tourist destinations
The Arun Ice Cream Franchise has emerged as one of the most attractive opportunities for aspiring entrepreneurs in India’s growing food and beverage sector. Backed by Hatsun Agro’s strong distribution network, Arun Ice Cream is popular for its affordability, wide range of flavours, and deep presence across South India. With India’s ice cream market expanding at double-digit growth rates, opening an Arun franchise can be a profitable venture if you understand the costs, profitability, and location-specific opportunities.
At BossWallah, we specialise in helping entrepreneurs make informed franchise investments by analysing market trends, profitability factors, and risks. Our goal is to guide you through every step of your business journey, from evaluating opportunities like Arun Ice Cream to building long-term growth strategies. With our expertise in franchise research and small business consulting, you can take confident steps toward entrepreneurship backed by data-driven insights and industry know-how.
Brand & Market Overview
About Arun Ice Cream and Hatsun Agro
Arun Ice Cream is a flagship brand of Hatsun Agro Product Ltd (HAP), one of India’s leading dairy companies. Established in Tamil Nadu, the brand has expanded across South India with strong brand recognition, wide flavour offerings, and a consistent supply chain.
India’s Ice Cream Market Growth Trends
- India’s ice cream market is valued at ₹25,000+ crore (2025 estimates).
- CAGR of 12–14%, driven by urbanisation, rising disposable incomes, and a preference for branded desserts.
- Tier-2 and Tier-3 cities are showing the fastest growth due to increasing cold storage infrastructure.
Why Arun Stands Out in the Franchise Space
- Deep-rooted brand loyalty in South India.
- Affordable pricing strategy compared to premium competitors like Baskin Robbins.
- Strong logistics and freezer infrastructure, ensuring consistent quality.
Why Choose Arun Ice Cream Franchise?
Here are some strong reasons why investing in an Arun Ice Cream franchise in 2025 makes good business sense:
- Trusted Brand: Over 50 years in the industry.
- Affordable Investment: Suitable for small-town entrepreneurs.
- Fast-moving Products: High demand during summer & festivals.
- Marketing Support: Provided by the parent company.
- Easy Operations: Requires less technical knowledge.
Investment & Financial Breakdown
Cost Components
- Franchise Fee: Approx. ₹1–2 lakhs
- Setup & Interiors: ₹7–12 lakhs (depending on outlet format)
- Equipment & Freezers: ₹3–5 lakhs
- Initial Working Capital: ₹2–4 lakhs
Financial Models
| Outlet Type | Approx. Investment | Expected ROI Period |
|---|---|---|
| Kiosk / Pushcart | ₹10–12 lakhs | 18–20 months |
| Parlour (50–100 sq. ft.) | ₹15–20 lakhs | 20–24 months |
| Highway Outlet | ₹22–25 lakhs | 24–30 months |
Seasonal Impact on Cash Flow
- Summer: Highest demand, sales often double.
- Monsoon/Winter: Sales dip, requiring diversification (milkshakes, sundaes).
Geographical Insights & City-Level Guidance
Karnataka Market Potential (Bengaluru, Mysuru, Mangalore)
- Bengaluru: High disposable income + mall culture.
- Mysuru: Tourist-driven seasonal spikes.
- Mangalore: Coastal preference for chilled desserts.
Tamil Nadu and South India Hotspots
- Chennai and Coimbatore remain strongholds.
- Arun has brand legacy in Tamil Nadu, giving new franchisees faster traction.
Tier-2 and Tier-3 City Opportunities
- Cities like Hubli, Salem, Madurai, and Vijayawada are underpenetrated but growing.
Tourist Hubs & Highway Outlets
- Franchisees near Ooty, Kodaikanal, Coorg, and Kerala beaches report strong seasonal revenues.
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Step-by-Step Application Process
Step 1. Eligibility Requirements
- Minimum age: 21 years
- Basic financial capacity (₹15–25 lakh investment)
- Preference for individuals with retail/F&B experience
- Suitable outlet location in high-footfall area
- Compliance with FSSAI and local licenses
Step 2. Document Submission Checklist
- PAN card and Aadhaar card
- GST registration
- Bank statement (6 months)
- Shop rental/ownership proof
- FSSAI license application
Step 3. Site Inspection and Approval
- Hatsun team inspects the site for visibility and footfall
- Outlet size verification (min. 80 sq. ft. for parlour)
- Evaluation of freezer installation feasibility
- Competition mapping in the area
- Final go-ahead from the regional manager
Step 4. Agreement Signing and Training
- Legal franchise agreement (5–7 years)
- Fee submission and deposit clearance
- Franchisee and staff training on POS, hygiene, and product handling
- Orientation on marketing campaigns
- Initial inventory allocation
Step 5. Setup, Launch, and Initial Operations
- Store interiors and branding installation
- Freezer and equipment setup
- Pre-launch marketing support from Hatsun
- Grand opening with promotions
- Ongoing stock replenishment through Hatsun’s supply chain
Franchisee Experiences & Case Studies
Bengaluru Kiosk Success Story
A small kiosk near a metro station in Bengaluru broke even in 20 months, leveraging daily commuter traffic and weekend family outings.
Mysuru Parlour Operations Journey
A franchisee in Mysuru combined tourist-driven sales + Swiggy/Zomato deliveries, boosting revenue by 30% during off-season.
Key Lessons Shared by Existing Franchisees
- Location selection matters more than outlet size.
- Seasonal product bundling (milkshakes, kulfis) reduces revenue dips.
- Hiring trained staff ensures quality customer experience.
Operational Strategies & Growth Playbook
- Inventory & Staff Management: Monitor freezer capacity, maintain hygiene, and ensure skilled staff.
- Local + Digital Marketing: Use Google My Business, Instagram reels, and Zomato promotions.
- Upselling & Bundling: Milkshakes, sundaes, and family packs increase per-customer revenue.
- Scaling Up: After success, many franchisees open multiple outlets across different cities.
Risks, Mitigation & Exit Planning
- Exit Strategy: Arun offers buyback/transfer support in select cases.
- Seasonal Slump: Mitigate with new product offerings (milkshakes, cold coffee).
- High Power Costs: Invest in energy-efficient freezers.
- Competition: Build customer loyalty with digital offers.
Conclusion
The Arun Ice Cream Franchise is a high-potential opportunity for entrepreneurs seeking a proven brand in India’s growing F&B sector. With Hatsun Agro’s backing, strong regional demand, and well-structured franchise support, it offers both stability and growth. However, success depends on careful location choice, operational efficiency, and long-term planning.
At BossWallah, we empower entrepreneurs with research-driven insights and hands-on guidance to choose the right franchise. If you’re considering Arun Ice Cream or any other franchise, our expertise will help you take the leap with confidence.
Frequently Asked Questions (FAQs)
The total investment typically ranges from ₹15–25 lakhs, depending on the outlet type (kiosk, parlour, or highway outlet).
No fixed royalty is charged. Instead, franchisees work on a supply-based model where Hatsun Agro provides stock and margins are built into product pricing.
Most outlets achieve break-even in 18–24 months in metro cities, while Tier-2/Tier-3 outlets may take slightly longer depending on footfall.
Support includes branding, freezer equipment, staff training, logistics, and initial marketing assistance.
High-footfall areas such as malls, metro stations, highways, tourist spots, and Tier-2 city centers are considered ideal.
While prior retail/F&B experience is preferred, it is not mandatory. Hatsun provides training and operational guidance to first-time entrepreneurs.
