It is always a good idea to start a business in emerging markets such as the automotive industry. Here you can tie up with any lubricant oil brand if you want to start a lubricant or engine oil business.
In this article, we will give you complete information about the Gulf oil dealership. This article contains all the topics related to the Gulf dealership, which includes Gulf oil dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.
Why choose Gulf oil dealership?
Gulf oil is owned by Gulf Oil Lubricants India Ltd (GOLIL), part of the Hinduja Group, and has a presence in over 100 countries.
In India, gulf oil is a pan India brand with 320 auto distributors, 30 industrial distributors, and 50,000+ retailers spread all over the country.
Gulf India has manufacturing plants in Silvassa, Gujarat with a production capacity of 90,000 Kl, and in Chennai, Tamilnadu with production capacity of 50,000 KL.
Gulf oils deals in the automotive sector, industrial sector, batteries, and Marine Sector.
In the automotive sector, it produces bike engine oil, car engine oil, heavy-duty vehicle engine oils, greases, gear oil, brake fluids, steering fluid, coolants, and many more.
Licenses and Registrations Required
These are the licenses and registrations required to open a Gulf 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
Gulf Oil dealership cost
You need approximately 4.5 to 6 lakh rupees to start a Gulf 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 alters 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.
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Profit margin in Gulf oil dealership
From the Gulf dealership, you can expect a profit margin of 15% to 25%.
The profit margin in the Gulf oil 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 Gulf dealership
You require a minimum space of 150 to 250 square feet shop area to open a Gulf oil dealership. Make sure that your shop has good connectivity.
How to get Gulf oil dealership?
To get a Gulf oil dealership, first, you need to contact your area’s Gulf sales manager. You can get his number by calling the Gulf oil toll-free number +91-22-6648 7777.
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 Gulf oil dealership mainly depends on factors like the density of other Gulf dealers in your area, your experience in trading, your shop location, and your financial background, etc.
FAQ about the dealership
How much space is required to start a Gulf dealership?
You require a minimum space of 150 to 250 square feet of shop space
Investment required to start a Gulf oil dealership?
You need to invest around 4.5 to 6 lakh rupees
What is the Profit Margin in a Gulf oil dealership?
You can expect a profit margin of 15% to 25%
How to contact Gulf for the dealership?
You can call their toll-free number +91-22-6648 7777.
I hope this guide to ‘ Gulf Oil 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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