How to start a JSW steel dealership?

There is always a demand for building materials in a developing country like India. Also, we know that India is the second-largest steel producer in the world.

So if you have a plan to start a business in the construction material industry, you can start a steel TMT bar business by partnering with any known steel brands.

This article includes topics related to the JSW steel dealership, also called JSW neo dealership, which includes dealership cost, profit margin, licenses and documents required and how to apply for the dealership etc.

Why choose JSW Steel?

Founded in 1982, JSW steel Ltd is an Indian-based multinational steel-making company. The company has headquarters in Mumbai, Maharashtra.

JSW Steel manufactures steel TMT bars under the brand name JSW Neosteel. These premium quality bars have higher corrosion resistance, are easy to weld and bend, and have higher seismic and fatigue resistance.

The steel TMT bar products include JSW Neosteel 550D, JSW Neosteel 600 and JSW Neosteel CRS.

JSW Steel has 14 manufacturing facilities in India with a production capacity of 29 metric tonnes per annum.

Licenses and Registrations required

These are the licenses and documents required to start a JSW Neosteel dealership.

• Business Registration – Sole proprietorship is enough
• Shop & Establishment Registration – from the state board
• GST certificate
• IT returns/Previous bank statement – for financial background verification
• Valid land documents / Lease agreements.

If you lack capital, then you can approach banks like SIDBI for a business loan.

JSW Steel Dealership Cost

You need an investment of around 15 lakhs to 20 lakhs to start a JSW steel dealership.

Here is the break-down of the investment,

• Dealership Security Deposit -> 1 lakh
• Initial inventory/stock purchase -> 13 lakh to 16 lakh rupees
• TMT bar cutting machine -> 17,000 rupees
• weighing machine -> 15,000 rupees
• Shop Interior and Warehouse -> 1 lakh rupees
• Labour for loading and unloading (1st month salary) -> 30,000 (2 nos)
• Shop security deposit – Extra

The monthly expenses include Shop rent, labour salary, stock purchase, utility bills, etc.

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Profit margin in JSW steel dealership

You can expect a profit margin of around 1% to 1.5% on your total sales.

As with other TMT bar brands, these profit margins are decided by the bonuses and schemes offered by the company.

If you make more monthly sales, you will be more likely to get a good discount from the company. You will also be offered different schemes and bonuses.

If you purchase stock on credit, you will not get good discounts, so try to purchase stock in cash.

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How to get JSW steel Dealership?

To get a JSW Neosteel dealership, you need to contact your area sales officer. You can get his number by calling JSW steel’s toll-free number 1800-225-225.

Once you get in touch with the area sales manager, he will guide you about the next steps.

There should not be any other JSW Neosteel dealer in a 2-3 kilometre radius from your shop. If there is any JSW steel dealer nearby, then the chances of you getting a dealership are very less.

How to contact JSW steel?

You can contact JSW steel by calling their toll-free number 1800-225-225. You can also contact them at their official website to get contact details.

Also, visit them at –

JSW Centre, Bandra Kurla Complex, Mumbai – 400051.

FAQ about Dealership

I hope this article has resolved many of your doubts about the JSW steel dealership, if you have any suggestions feel free to mention them in the comment box below.