If you are planning to start a cement business in the southern or western states of India, you can partner with Penna Cement and start a cement dealership business.
This article includes topics like Penna cement dealership cost, profit margin, licenses and documents required, space required, and how to apply for the dealership.
Why choose Penna cement?
Established in 1991, Penna Cement is one of the leading cement manufacturing companies in India.
Penna Cement has a production capacity of 10 Million tonnes per anum. Its manufacturing plants are located in Andhra Pradesh.
Penna Cement has a strong presence in the southern and western parts of India.
Some of the companies well know products are Penna Power, Penna Suraksha, Penna Premium, Penna Concrete plus, etc.
Licenses and Registrations required
These are the licenses and documents required to start a Penna 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.
Penna Cement Dealership Cost
You need an investment of approximately INR 4 to 6 lakhs to start a Penna 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 -> 2 lakh to 3.5 lakh rupees
- Shop Interior and Warehouse -> 40,000 thousand
- 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 Penna 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 Penna cement Dealership?
To get a Penna Cement dealership, you need to contact your area sales officer. You can get his number by calling Penna toll-free customer care number 040- 44565100.
Once you get in touch with the area sales manager, he will guide you about the next steps.
There should not be any other Penna cement dealer in a 2-3 kilometer radius from your shop. If there is any Penna dealer nearby, then the chances of you getting a dealership are very less.
How to contact Penna Cement?
Also, visit them at –
#705, Lakshmi Nivas, Road No 3, Banjara Hills, Hyderabad – 500034
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FAQ about Dealership
How much investment is required for the Penna cement dealership?
You require 4 lakh to 6 lakhs rupees investment to start a dealership
Shop space required for Penna cement dealership?
Minimum space required in 500 square feet
Profit margin in Penna cement dealership?
You can expect a profit margin of 6% to 10% on sales.
How to contact Penna cement?
You can call Penna cement by calling their toll-free number 040- 44565100.
I hope this article has resolved many of your doubts related to the Penna cement dealership. If you have any suggestions feel free to mention them in the comment box below.