The automobile industry is booming in developing countries like India. If you have an interest in starting an automotive battery business you can easily tie up with any battery brand and can start a battery shop business.
There are already well-established battery brands in the country like Exide, Amaron, Luminous, Base, Okaya, HBL, etc.
In this article, we will give you complete information about the Amaron battery dealership. This article contains all the topics related to the Amaron dealership, which includes Amaron Battery dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.
Why choose Amaron dealership?
Amaron is the second largest selling lead-acid automotive battery brand in India.
Amaron brand is owned by Indian multi-national company Amara Raja Group. The company was established in 1985 in Tirupathi, Andhra Pradesh.
Together with the automotive battery business, the company also deals with electronics products manufacturing, infrastructure sector, power system production, fasteners, and packaged food sectors.
Amaron manufactures batteries for passenger vehicles, commercial vehicles, two-wheelers, farm vehicles, Inverters, and home UPS.
The electric vehicle market in India is growing very fast. So keeping this in mind, Amaon has also launched a pilot project to manufacture lithium-ion batteries in India.
Licenses and Registrations Required
These are the licenses and registrations required to open an Amaron battery dealership in India.
- Company Registration – Sole proprietorship/LLP/Pvt Ltd
- Trade Licence – from your local municipality
- Shop & Establishment Registration – from the state government
- GST Registration
- Previous bank statement / Income Tax Returns Returns
- Business Insurance if required
If you need a business loan, banks like SIDBI offer loans for this type of business.
Amaron battery dealership cost
You need approximately 6 to 7.5 lakh rupees to start an Amaron battery dealership.
The actual investment amount mainly depends on the quantity of inventory/stock that you are going to buy at the beginning
Other factors like whether you have your own shop or not and the battery types you are going to sell also alters the total cost.
Here is the break-down of the above-said amount,
- Dealership Security Deposit -> 1 lakh to 1.5 lakh
- Initial inventory purchase -> 3 to 4 lakh rupees
- Shop Interior -> 25,000 (racks, computer system, Signage board etc)
- Equipments -> 20,000 rupees ( battery recharging machine, clamp meter & hydrometer )
- Shop Advance + First-month Rent -> extra (if you do not own a shop)
The working capital required is employee salary, utility bills, adding stocks, shop rent, etc.
Profit margin in Amaron battery dealership
From the Amaron battery dealership, you can expect a profit margin of 20% to 30%.
The profit margin in the Amaron battery dealership is directly proportional to the number of sales you have made. i.e If you make more sales, then you will be able to gain more offers and bonuses offered by the company.
The company offers these bonuses & schemes after 6 months to 1 year after you have opened your dealership. If you succeed in meeting those sales targets then you can expect up to a 30% profit margin.
Almost all battery brands offer special schemes like cash discounts, quantity discounts, product discounts, & outstanding balance nil, etc.
Space required for Amaron Dealership
You require a minimum space of 100 to 250 square feet shop area to open an Amaron battery dealership. Make sure that your shop has good connectivity.
How to get Amaron battery dealership?
To get an Amaron dealership, first, you need to contact your area’s Amaron battery sales manager. You can get his number by calling Amaron battery corporate office number +91 40 2313900.
You can also contact them at their official website.
Once you contact the brand, they will be in touch with you and if you are eligible, then help you in launching your dealership.
Your eligibility for the Amaron battery dealership mainly depends on factors like the density of other Amaron battery dealers in your area, your experience in trading, your shop location, and your financial background, etc.
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FAQ about Dealership
How much space is required to start an Amaron battery dealership?
You require a minimum space of 100 to 250 square feet of shop space
Investment required to start an Amaron battery dealership?
You need to invest around 6 to 7.5 lakh rupees
What is the Profit Margin in an Amaron battery dealership?
You can expect a profit margin of 20% to 30%
How to contact Amaron for the dealership?
You can call their corporate office number +91 40 2313900.
I hope this guide to the ‘Amaron battery dealership’ will help you get started. If you have any additional suggestions, feel free to mention them in the comments section below. If you like this article then kindly share it with your friends.