• The Franchisee can start the business with a freezer truck and walk-in freezer, initially with an investment of Rs.25 Lac only including working capital. Loans & Government subsidies are available up to 75-80% under Standup India Scheme of GOI.
  • The company is committed to giving a margin of 10% to Franchisee distributors, which is higher than the current industry standard of 8.5%.

Under this model, the payback period is around 9-12 months.

Under this model, break-even sales are achievable on sales of 9 lac per month.

Frozen truck

Walk-in freezer

Distribution Model
Monthly Expenses Investment Payback Period
Particulars Amounts Particulars Amounts Particulars Amounts
Fuel Cost Per Month 25000 Reefer Van 1000000 Monthly Sale 2000000
Driver Salary 15000 Walk In Freezer 450000 Monthly Variable Expense 1700000
Support Person Salary 10000 Working Capital 1000000 Gross Profit 300,000
2 Sales Person Salary 30000 1 Bike 50000 Monthly Fixed Expenses 135170
Miscellaneous Exp. 10000
Loading & Unloading Exp. 10000 Net Profit 164830
Electricity Cost 25000
*Avg. Interest Cost 10170 Ideal Payback Period 9 - 12 Months
Total Fixed Monthly Expenses 135170 Distribution Margin 10%
*Avg. Principle Repayment 23810 Total 2500000 Additional Margin(1st year) 5%
*the cost may vary depending on the loan amount

Sales volumes are expected to grow at 20%, while the prices are kept constant. This will directly increase the revenues by 20%. Majority of the costs, being variable, are also expected to rise by 20% year-on- year. The manpower cost is expected to rise at 10%. The assets are depreciated using straight line method with a useful life of 7 years. The residual value is assumed to be zero. In general, the walk-in freezer and the frozen truck has a useful life of more than 7 years.

S.No Licences Exclusive Store
1 Food Safety Licence Yes
Authority To Approach FSSAI www.foodlicensing.fssai.gov.in (By going through this web site, any one can fill the form state wise & apply for FSSAI License. Fees is 7500 for 1 year.)
2 Health/Trade Licence Yes
Authority To Approach Local Civil Authorities In case of Delhi there is site , www.mcdonline.gov.in , under this trade licence can be filed. Other cities may have site or forms can be filled manually
3 Fire License Yes
Authority To Approach Chief Fire Officer of Particular City
4 Pollution Certificate Yes
Authority To Approach Pollution Control Committee of City

  • Franchisee fee is Rs.300,000 and is converted into soft loan, payable in five years, to be paid after two years of successful operations.
  • Franchisee fee is free for first 100 entrepreneurs.
  • Royalty 3% of turnover and free for first 100 entrepreneurs.

The investment required is Rs.25 lacs. Out of the total amount, Rs.5 lac will be used for purchasing a walk-in freezer & Rs.10 lac for purchasing a small refrigerated truck. Rs.10 Lac will be used for working capital requirement. . In Case Franchisee requires Loan from bank he is expected to bring in a minimum of 20-25% and the balance will come as bank loan and eligible incentives. The loan is repayable within 7 years. The repayments are expected as per the bank norms. The Debt Service Coverage Ratio is very comfortable throughout the loan tenure. The Franchisee will have to apply for the loan Himalaya will guide the Franchisee on various schemes to revise loan from bank and completion of document. The most popular schemes are Stand-Up India & Mudra loan. .

Himalaya will provide all financial details to the applicant to the bank and advise on the scheme so as to facilitate to sanction of the loan by the bank. Franchisee will be responsible to meet the bank and complete all formalities, documents etc to sanction of the loan. The most popular schemes are Stand-Up India & Mudra loan.

Eligibility Criteria for availing MUDRA refinance/ loan.
Guides » Schemes & Subsidies in India » Stand Up India Scheme – Procedure to Apply.

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