Every year new companies are investing in this industry amid heavy competition in the Indian cement market. This shows the high demand for building materials in India.
So using this opportunity, you can start building a materials business in India. You can easily start a cement business by partnering with any cement brand available in the Indian market.
Out of these cement brands, in this article, we will talk about the MP Birla Cement Dealership opportunity.
This article includes topics like Birla cement dealership cost, profit margin, licenses and documents required, space required, and how to apply for the dealership.
why choose MP Birla cement?
Owned by Birla Corporation Limited, MP Birla Group is India’s one of the leading cement manufacturing companies. The company has a headquarters in Kolkata, West Bengal.
MP Birla Cement has a cement manufacturing capacity of 15.5 million tonnes per Annum. It has plants in Madhyapradesh, West Bengal, Uttar Pradesh, Rajasthan, and Maharashtra.
MP Birla Cement has a strong presence in the rest of India except the southern and northeastern states.
Some of well know MP Birla cement brands are, MP Birla Samrat, MP Birla Rakshak, MP Birla Ultimate Ultra, MP Birla Perfect plus, MP Birla Unique, etc.
Licenses and Registrations required
These are the licenses and documents required to start a Birla cement dealership.
- Company Registration – Sole proprietorship/LLP/Pvt Limited
- Trade Licence – from the local municipality
- Shop & Establishment Registration – from the state board
- GST certificate
- Previous bank statement – for financial background verification
- Valid land documents / Lease agreements.
- Business Insurance – (optional)
If you lack capital, then you can approach banks like SIDBI for a business loan.
Birla Cement Dealership Cost
You need an investment of approximately INR 5 to 7 lakhs to start a Birla cement dealership.
If you have your own shop then you can start the dealership with minimum investment.
Here is the break-down of the investment,
- Dealership Security Deposit -> 2 lakhs
- Initial inventory/stock purchase -> 1 lakh to 3 lakh rupees
- Shop Interior and Warehouse -> 1 lakh
- Labour for loading and unloading (1st month salary) -> 30,000 (2 nos)
- Shop Advance + First-month Rent -> (if you do not own a shop)
- Vehicle for Delivery – extra if Required
The monthly expenses include Shop rent, labor salary, stock purchase, utility bills, etc.
Profit margin in Birla cement dealership
You can expect a profit margin of 6% to 10% from this dealership.
As with other cement brands, these profit margins are decided by the bonuses and schemes offered by the company. If you make more monthly sales, then the chances of getting good discounts from the company will be high.
How to get MP Birla cement Dealership?
To get a Birla Cement dealership, you need to contact your area sales officer. You can get his number by calling MP Birla cement toll-free customer care number +91 033 6603 3300.
Once you get in touch with the area sales manager, he will guide you about the next steps.
There should not be any other Birla cement dealer in a 2-3 kilometer radius from your shop. If there is any MP Birla dealer nearby, then the chances of you getting a dealership are very less.
How to contact Birla Cement?
Also, visit them at –
Birla Corporation Limited, Shakespeare Sarani, Kolkata – 700071.
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FAQ about Dealership
How much investment is required for the Birla cement dealership?
You require 5 lakh to 7 lakhs rupees investment to start a dealership
Shop space required for MP Birla cement dealership?
Minimum space required in 500 square feet
Profit margin in Birla cement dealership?
You can expect a profit margin of 6% to 10% on sales.
How to contact Birla cement?
You can call Birla cement by calling their toll-free number +91 033 6603 3300.
I hope this article has resolved many of your doubts related to the Birla cement dealership. If you have any suggestions feel free to mention them in the comment box below.