If you have a desire to trade in cement, you can easily opt for the UltraTech cement dealership and start your business.
Construction work never stops in a growing country like India, so you can start the cement business boldly.
In this article, we will give you complete information about the ultratech cement dealership. This article contains all the topics related to ultratech cement dealership, which includes ultratech cement dealership cost, profit margin, shop space required, licenses, registrations, whom to contact, etc.
Why choose the ultratech cement dealership?
Ultratech cement has been there in the market for over 17 years and has succeeded in maintaining its brand value. So you don’t need to tell people about this brand of cement, and there is no doubt that people will be looking for your shop.
You might know, that UltraTech Cement is a subsidiary of Aditya Birla Group. It is the largest Grey cement, Ready mix concrete, and white cement manufacturing company in India.
UltraTech Cement has 90,000+ dealers and retail networks all over the country and has a presence in more than 80% of Indian states.
It has 23 grey cement manufacturing units with an annual production capacity of 117 Million tonnes and also has more than 100 ready mix concrete plants in 39 towns.
Ultratech also produces white cement with an annual production capacity of 0.7 million tonnes.
After looking at the above figures, you may feel that you do not need to think hard to make your decision.
Licenses and Registrations Required
These are the licenses and documents required to open an Ultratech cement 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
- Six-month bank statement (for verifying financial background)
- 3 years IT Returns
UltraTech Cement Dealership Cost
You need approximate INR 6 to 8 lakhs to start an UltraTech cement dealership.
This amount may vary from one city to another. In tier 1 cities it would be a bit expensive compared to tier 2 and tier 3 cities. Other factors like whether you have your own shop or not and your initial stock purchase quantity also alter the total cost.
Here is the break-down above said amount,
- Dealership Security Deposit as DD -> 3 lakhs
- Initial inventory/stock purchase -> 1 lakh to 2 lakhs
- Shop Interior and Warehouse -> 1 to 1.5 lakhs (racks, furniture, computer system & printer, Signage board)
- Labour for loading and unloading (1st month salary) -> 30,000 (2 people)
- Shop Advance + First-month Rent -> extra (if you do not own a shop)
- Vehicle for Delivery – (If Required)
Profit Margin in Ultratech Dealership
From the ultratech cement dealership, you can expect a profit margin of 3% to 8%.
The profit margin in any cement 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 an 8% profit margin.
Almost all cement companies offer special schemes like cash discounts, quantity discounts, product discounts, tour scheme packages, gold schemes & outstanding balance nil, etc.
Space required for Ultratech Dealership
You require a minimum space of 700 to 1500 square feet shop area to open an ultratech cement dealership.
Make sure that your shop has good connectivity & has enough parking space for trucks (for loading and unloading cement bags)
How to get Ultratech Cement Dealership?
To get an ultratech cement dealership, first, you need to contact your territory ultratech cement sales manager. You can get his number by dialling ultratech cement’s toll-free number 1800 210 3311. You can also visit their official website and fill out their get in touch form.
Once you call the territory sales manager, he will be in touch with you and if you are eligible, then helps you in launching your dealership.
Your eligibility for the Ultratech dealership mainly depends on factors like the density of other Ultratech cement dealers in your area, your experience in the field, your shop location, your financial background, etc.
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FAQ about Dealership
How much space is required to start an ultratech cement dealership?
You require a minimum space of 700 to 1500 square feet of shop space
Investment required to start an ultratech cement dealership?
You need to invest 6 lakh to 8 lakhs Indian rupees
Which is the biggest cement company in India?
Ultratech cement is the biggest cement company in India
How to contact ultratech cement?
You call their toll free number 1800 2100 3311
I hope this guide to ‘Ultratech cement 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.