In developing countries like India, there is always a demand for construction materials. One such construction material is cement.
So if you have a desire to trade in cement, you can easily opt for Ambuja cement dealership and start your business.
This article contains all the topics related to the Ambuja cement dealership, which includes Ambuja cement dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.
Why choose Ambuja cement dealership?
Founded in 1983, Ambuja cement is one of the major cement manufacturers in India. It has a strategic partnership with Holcim (the world’s second-largest cement manufacturing company). Holcim holds 62% shares in Ambuja cement.
Ambuja Cement has 48,000+ dealer and retail networks all over the country and has a presence in almost all major Indian states.
The company has an annual cement production capacity of 30 Million tonnes and also has 4 captive ports.
Ambuja Cement is the first cement company to introduce 53-grade cement & get ISO 14064 Certification in India.
After looking at the above figures, you may feel that you do not need to think hard to make your decision.
Licenses and Registrations Required
These are the licenses and registrations required to open an Ambuja cement 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 statements/IT Returns – to check your financial background
- Business Insurance – (not necessary)
Ambuja Cement Dealership Cost
You need approximately INR 5 to 6.5 lakhs to start an Ambuja cement dealership.
This amount may vary from one location to another. In tier 1 cities it would be a bit expensive compared to tier 2 and tier 3 cities.
Other factors like whether you have your own shop or not and your initial stock purchase quantity also alters the total cost.
Here is the break-down above said amount,
- Dealership Security Deposit as DD -> 2 lakhs to 2.5 lakhs
- Initial inventory purchase -> 1 lakh to 1.5 lakhs
- Shop Interior and Warehouse -> 1 to 1.5 lakhs (racks, furniture, computer system & printer, Signage board)
- Labour for loading and unloading (1st month salary) -> 25,000 (2 people)
- Shop Advance + First-month Rent -> (extra – if you do not own a shop)
- Vehicle for Delivery –> (Extra-If Required)
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Profit Margin in Ambuja Cement Dealership
From Ambuja cement dealership you can expect a profit margin of 3% to 7%.
Like any other cement dealership, if you make more sales, then you will be able to gain more offers and bonuses offered by the company. So, your profit margin is decided by the monthly sales you have made.
The company offers these bonuses & schemes 5 to 9 months after you have started your dealership. If you succeed in meeting those sales targets then you can expect up to a 7% profit margin.
Almost all cement companies offer special schemes like cash discounts, quantity discounts, product discounts, tour scheme packages, gold schemes, etc.
Space required for Dealership
You require a minimum space of 600 to 1500 square feet carpet area to open a Ambuja cement dealership.
Make sure that your shop has good connectivity & has enough parking space for trucks (for loading and unloading cement bags)
How to get Ambuja Cement Dealership?
To get an Ambuja cement dealership, first, you need to contact your area sales manager. You can get his number by dialing Ambuja cement toll-free number 1800 223 010. You can also visit their official website here.
Once you call your area sales manager, he will be in touch with you and if you are eligible, then helps you in launching your dealership.
Your eligibility for the Ambuja dealership mainly depends on factors like the number of other Ambuja cement dealers in your area, your experience in the trading field, your shop location, and your financial background, etc.
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FAQ about Dealership
How much space required to start an Ambuja cement dealership?
You require a minimum space of 600 to 1500 square feet shop space
Investment required to start an Ambuja cement dealership?
You need to invest 5 lakh to 6.5 lakhs Indian rupees
How to contact Ambuja cement?
You call their toll free number 1800 223 010
I hope this guide to ‘Ambuja cement 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.