How to Start Castrol Dealership in India?

Looking to start a lubricant oil business? You can start a lubricant oil trading business by tying up with any reputable lubricant oil brand.

There are already well-established Engine oil brands in the country like Castrol, Servo, Shell, Gulf, Mobil 1, Motul, Veedol, etc.

In this article, we will give you complete information about the Castrol dealership. This article contains all the topics related to the Castrol oil dealership, which includes Castrol dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.

Why choose Castrol dealership?

Castrol is a British-based automotive lubricant oil and industrial lubricant producer.

In India company has a headquarters in Mumbai, Maharashtra and the brand have a strong presence all over the country. Castrol is one of the largest sold lubricant oil in India.

Castrol produces engine oil and fluids for motorcycles, cars, commercial vehicles, heavy-duty, and farm vehicles.

The Castrol product range includes engine oils, brake fluids, ale lubricants, greases, etc.

Licenses and Registrations Required

These are the licenses and registrations required to open a Castrol lubricant oil 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

Castrol dealership cost

You need approximately 5 to 6 lakh rupees to start a Castrol oil 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 lubricant oil varieties you are going to sell also alter the total cost.

Here is the break-down of the above-said amount,

• Dealership Security Deposit -> 1 lakh to 1.5 lakhs
• Initial inventory purchase -> 3 to 4 lakh rupees
• Shop Interior -> 25,000 (racks, computer system, Signage board etc)
• Equipments -> 20,000 rupees
• 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 Castrol dealership

From the Castrol dealership, you can expect a profit margin of 15% to 25%.

The profit margin in the Castrol 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 Engine oil brands offer special schemes like cash discounts, quantity discounts, product discounts, & outstanding balance nil, etc.

Space required for Castrol Dealership

You require a minimum space of 150 to 300 square feet shop area to open a dealership. Make sure that your shop has good connectivity.

How to get Castrol dealership?

To get a Castrol dealership, first, you need to contact your area’s Castrol sales manager. You can get his number by calling Castrol toll-free number 1800-222-100.

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 Castrol dealership mainly depends on factors like the density of other Castrol dealers in your area, your experience in trading, your shop location, and your financial background, etc.

FAQ about the dealership

I hope this guide to ‘Castrol 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.

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