There is a huge demand for building materials in developing countries like India. One such material is cement. Despite heavy competition in the market, demand is also increasing.
Using this opportunity, you can easily start a cement trading business by partnering with any one of the cement brands available in the Indian market.
Out of these cement brands, in this article, we will talk about the India Cement Dealership opportunity.
This article includes topics like India cement dealership cost, profit margin, licenses and documents required, space required, and how to apply for the dealership, etc.
why choose India cement?
Established in 1946, India Cements is a Tamilnadu-based cement manufacturing company. The company has headquarters in Chennai, Tamilnadu.
India cements has a manufacturing capacity of 15.5 million tonnes per annum with 8 integrated cement plants spread in states like Tamilnadu, Telangana, Rajasthan, and also has two grinding units in Tamilnadu and Maharashtra.
The company owns three cement bands namely Sankar Cement, Coramandel Cement, and Raasi Gold cement.
These brands have some well-known products like Coromandel King, Sankar superpower, Raasi concrete, Coromandel super king, etc.
India cements also offer other allied products like white cement and wall putty.
Licenses and Registrations required
These are the licenses and documents required to start an India cements 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, you can take business loans from banks such as SIDBI Bank.
India Cement Dealership Cost
You need an investment of approximately INR 4 to 5.5 lakhs to start an India 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 -> 1.5 lakhs
- Initial inventory/stock purchase -> 50,000 to 1.5 lakh rupees
- Shop Interior and Warehouse -> 75,000 to 1 lakh rupees
- Labour for loading and unloading (1st month salary) -> 30,000 (for 2 nos)
- Shop Advance + First-month Rent -> extra (if you do not own a shop)
- Vehicle for Delivery – extra if Required
The monthly expenses include labor salary, stock purchase, utility bills & Shop rent.
Profit margin in India cement dealership
You can expect a profit margin of 7% to 8% 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 India cement?
To get an India Cement dealership, you need to contact your area sales manager. You can get his number by calling their toll-free number 1800 425 6001.
You can also visit their official website – contact us page. You need to fill an inquiry form, with your basic details.
Once you get in touch with the area sales manager, he will guide you about the next steps.
There should not be any other India cement dealer in a 2-3 kilometer radius from your shop. If there is an India cement dealer nearby, then the chances of you getting a dealership are very less.
FAQ about Dealership
How much investment is required for India cement dealership?
You require 4 lakh to 5.5 lakhs rupees investment to start a dealership
Shop space required for India cement dealership?
Minimum space required in 500 square feet
Profit margin in India cement dealership?
You can expect a profit margin of 7% to 8% on sales.
How to contact India cement?
You can contact India cements at their toll-free number 1800 425 6001.
I hope this article has resolved many of your doubts related to the India cement dealership. If you have any suggestions feel free to mention them in the comment box below.
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