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India’s ice cream market is growing fast, and one brand that people still love a lot is Ibaco. It offers tasty ice creams with many flavors and has become a favorite among dessert lovers across the country. A premium frozen dessert brand owned by Hatsun Agro Product Ltd. Renowned for its extensive range of flavors, flexibility in creating customized products, and use of superior ingredients, Ibaco has made a mark in the crowded ice cream market.
If you want to start a business in the food and drink industry, choosing an Ibaco franchise can be a smart and money-making idea. It’s a well-known ice cream brand that offers good support and has the potential to earn profits quickly.
This blog helps you understand everything you need to know regarding opening an Ibaco franchise in 2025—investment fees and profit margins to setup needs and application procedures.
About Ibaco
Started in 2010 by RG Chandramogan and Subramanian Suriyanarayanan, Ibaco is a part of Hatsun Agro Product Ltd, India's largest private dairy firm.
Ibaco provides an array of ice creams, ice cream cakes, and shakes made with pure cow milk. With more than 150 outlets in India, Ibaco has earned a great reputation for quality, innovation, and customer satisfaction.
Why Choose Ibaco?
Here's how Ibaco excels as a franchise opportunity:
- Trusted Brand: Established name with loyal customers.
- Tailored Offers: Customers can create their own sundaes and shakes.
- Quality Ingredients: Emphasis on freshness and quality.
- Extensive Support System: Training, marketing, and operational support offered.
- Excellent Profit Potential: Competitive margins and quick ROI.
Ibaco Franchise Cost in 2025
Starting an Ibaco franchise requires a moderate investment compared to other premium food brands. Here's a breakdown of the estimated costs:
| Expense Category |
Estimated Cost (INR) |
|---|---|
| Franchise Fee | ₹3 Lakhs + 18% GST |
| Infrastructure Setup | ₹5–8 Lakhs |
| Initial Inventory | ₹2-5 Lakhs |
| Equipment & Furniture | ₹5–8 Lakhs |
| Marketing & Signage | ₹1–2 Lakhs |
| Security Deposit | ₹2–3 Lakhs |
| Working Capital | ₹2–3 Lakhs |
| Total Investment | ₹15–20 Lakhs |
The minimum space required is around 200–500 sq. ft., and the franchise agreement typically lasts for 5 years.
Profit Margin & ROI
Ibaco franchises have healthy profit margins and quick returns on investment. Here's what you can anticipate:
- Gross Profit Margin: 40%
- Net Profit Margin: 15–20%
- Monthly Revenue: ₹3–12 Lakhs (location-dependent)
- Monthly Net Profit: ₹55,000–₹3.6 Lakhs
- Break-even Period: 12–24 months
Example Calculation
Assuming monthly sales of ₹3 Lakhs:
Cost of Goods Sold (COGS): ₹1.5 Lakhs
Rent: ₹40,000
Utilities: ₹10,000
Salaries: ₹20,000
Miscellaneous Expenses: ₹10,000
Net Profit: ₹55,000/month
Eligibility Criteria
To become an Ibaco franchisee, you must fulfill the following criteria:
- Age: At least 21 years
- Nationality: Indian
- Education: No formal education is required
- Experience: Not necessary, but business knowledge is desirable
- Financial Standing: The ability to invest ₹15–20 Lakhs
- Space: 200–500 sq. ft. in a high-traffic area
Documents Required
Following is a list of documents to be submitted for applying:
- Franchise Agreement
- Aadhaar Card
- PAN Card
- GST Registration
- Business Address Proof
- Shop Address Proof
- NOC from property owner
- Business Plan and Financial Statements
Application Process for Ibaco Franchise
Ibaco is managed by Hatsun Agro Product Ltd, therefore applications are processed via their official website. Proceed as follows:
1. Go to the HAP Business Enquiry Page: hap.in/business-enquiry.php
2. Fill Out Application Form: Select "Ibaco" as your desired brand.
3. Submit Documents as Needed: Provide your business plan and financial information.
4. Initial Screening: Ibaco will evaluate your eligibility through phone or face-to-face interview.
5. Site Selection: Select an area with decent pedestrian traffic; Ibaco can help.
6. Franchise Agreement: Sign the agreement after approval and pay the charges.
7. Training & Setup: Undergo training in operations, customer service, and product handling.
8. Launch: Launch your outlet after setup and test runs with marketing assistance.
Support & Training
Ibaco offers extensive support to its franchisees:
- Menu Planning & Pricing
- Operational Training
- POS System Integration
- Marketing Assistance
- Inventory Management
- Relationship Manager Access
Pros & Cons of Ibaco Franchise
| Pros | Cons |
|---|---|
| Strong brand recognition | High up-front investment |
| High-quality products | Competitive ice cream space |
| No royalty charges in some models | Success depends heavily on location |
| Quick ROI | |
| Comprehensive training and support |
Market Overview
Indian ice cream market is expected to hit USD 2.8 billion by 2025, fueled by:
- Increasing disposable income
- Urbanization
- Premium and customized dessert demands
- Hot climate in most geographies
Ibaco competes with players such as Amul, Baskin Robbins, Cream Stone, and Naturals, but its model of customization and premium positioning provide it with a value differentiation.
Tips for Success
- Select a high-traffic location (malls, markets, colleges)
- Provide seasonal flavors and combo offers
- Ensure hygiene and quality standards
- Utilize online delivery platforms to increase reach
- Participate in local promotions and advertising
Conclusion
In 2025, starting an Ibaco franchise is a smart choice for anyone who wants to run a food business. Ibaco is a trusted ice cream brand known for tasty flavors and fresh ingredients.
The company helps you with training, marketing, and daily operations, so you’re not alone. You can earn good profits if you choose a busy location and work with care.
The startup cost is high, but the returns can be worth it. If you have money to invest and a passion for serving great desserts, Ibaco can be a rewarding way to start your business journey.
Some Frequently Asked Questions
1. Can I run an Ibaco franchise as a co-owner with a partner?
Yes, Ibaco allows joint ownership. If you're planning to run the business with a friend, spouse, or business partner, you can register both names, provided financial and operational responsibilities are clearly defined in the agreement.
2. Does Ibaco help in finding the right location?
Ibaco does offer location advisory, especially for new franchisees. While the final decision is yours, their team may provide recommendations based on footfall analysis, demographics, and nearby competition.
3. Is interior design and branding uniform across all Ibaco outlets?
Yes, Ibaco maintains a standard store layout and design for branding consistency. The company may provide layout guidelines or approve vendor services to ensure visual identity matches the brand’s image.
4. Is financing available to start an Ibaco franchise?
Ibaco itself may not offer direct financing, but third-party financing or bank loans can be explored. Some financial institutions may have tie-ups with established franchise brands like Ibaco, offering favorable loan terms.
