In the automotive industry and industrial sector, there is a large market for lubricant oils. So if you are planning to start an engine oil or lubricant oil business, you can tie up with any one brand and get started easily.
In this article, we will give you complete information about the Veedol dealership. This article contains all the topics related to the Veedol oil dealership, which includes Veedol engine oil dealership cost, profit margin, shop space required, licenses, and registrations, whom to contact, etc.
Why choose Veedol dealership?
Veedol brand is owned by US-based company Tidewater Oil Co. Ltd. Tidewater oil is a multi-national company that manufactures and markets lubricants in 65 countries.
Veedol entered India in 1928 and has a head office in Kolkata. Today Veedol has 500+ distributors and dealers all over the country serving 50,000+ retail outlets.
Veedol serves both the automotive and Industrial sectors. In the automotive sector, it has Motor cycle oils, car oils, heavy-duty vehicle oils, tractor oils, gear and transmission oils, and greases.
In the industrial sector, it offers machinery oils, thermic oils, turbine oils, compressor oils, transmission oils, spindle oils, Mill roll oils, lithium soap greases, coolants, etc.
Licenses and Registrations Required
These are the licenses and registrations required to open a Veedol 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
Veedol dealership cost
You need approximately 4 to 6 lakh rupees to start a Veedol 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 alter the total cost.
Here is the break-down of the above-said amount,
- Dealership Security Deposit -> 1 lakh to 2 lakhs
- Initial inventory purchase -> 3 to 3.5 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.
Profit margin in Veedol dealership
From the Veedol dealership, you can expect a profit margin of 20% to 25%.
The profit margin in the Veedol engine 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 Veedol dealership
You require a minimum space of 100 to 300 square feet shop area to open a Veedol oil dealership. Make sure that your shop has good connectivity.
How to get Veedol Engine oil dealership?
To get a Veedol oil dealership, first, you need to contact your area’s Veedol sales manager. You can get his number by calling Veedol oil toll-free number 033-7125 7700.
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 Veedol engine oil dealership mainly depends on factors like the density of other Veedol 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 Veedol dealership?
You require a minimum space of 100 to 300 square feet of shop space
Investment required to start a Veedol engine oil dealership?
You need to invest around 4 to 6 lakh rupees
What is the Profit Margin in a Veedol dealership?
You can expect a profit margin of 20% to 25%
How to contact Veedol for the dealership?
You can call their toll-free number 033-7125 7700.
I hope this guide to ‘ Veedol 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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