A member of Switzerland’s multinational Holcim Group, Ambuja Cement is a trusted name when it comes to delivering unique products for the Indian landscape. Interestingly, this 80s company was founded by two individuals who were totally alien to the cement industry. Narotam Sekhsaria and Suresh Neotia were regular traders but great visionaries who had foreseen the role of cement in India’s future. Together, they set up a cement plant in Gujarat with state-of-the-art technology which manufactured quality cement. Since its inception, the company has scaled new heights of success. The initial single plant in Gujarat is now complemented with five integrated production plants and eight cement grinding units. The company has many ‘firsts’ to its credit, the most impressive being the Ambuja Knowledge Centre, a knowledge-sharing platform for the diverse professionals of the construction industry.
Did you know? Ambuja Cement is the first company that tunnelled through three mountains in order to build a conveyor belt for the transportation of limestone without harming the environment.
Why Choose the Ambuja Cement Dealership?
Ambuja Cement is one of the leading cement companies in India. The company is known for forging meaningful relationships to enhance its cement production in a qualitative manner. It is the first-ever cement company to resort to transportation of cement by sea as road transportation was deemed expensive. Some of the key reasons to set up an Ambuja Cement dealership are as follows:
- Ambuja Cement is acknowledged as one of the most trusted brands in India.
- Ambuja Cement offers its dealers' territory rights to enhance sales volume.
- As its dealer, you can avail of support services from the company every single day of the year.
- The company is known to indulge in aggressive advertising campaigns to create brand awareness. Dealers do not have to worry about marketing the brand.
- It has a phenomenal network of more than 26,000 cement dealers across the country.
- It has a production capacity of 29.65 million tons a year.
- It is an employee-friendly company that functions in the nation's larger interests.
- It is unique because of its myriad initiatives, which include sustainability, environment protection, home-building solutions, and Water positive and is associated with CSR activities with numerable communities across India.
- It is rated as one of the most reliable and trusted cement brands.
- It has an established presence in the east, west and northern territories of India.
Various Licenses and Registrations Required
Given below is the list of licenses and registrations which are binding on anyone desirous to set up a dealership of Ambuja Cement:
- Personal ID proof – Aadhar and PAN cards, voter card
- Proof of residence – The electricity bill, passport
- Your contact details – email id, mobile number/s
- GST registration details
- Your bank account details
- Registration details – Are you planning a partnership, a Limited liability partnership (LLP) or is it going to be a proprietorship.
- Details of the shop and establishment registration – You can avail of this from the State government authorities
- Details of the trade license – The local municipality authorities provide you with this
- Bank statements – Of the last six months
- Details of IT returns
- Dealership insurance – This is entirely dependent on you
Also Read: Know About India's Top Ten Cement Companies
How Much Does an Ambuja Cement Dealership Cost?
The total cost of establishing an Ambuja Cement dealership is dependent on your business plans. Your investments will be low if you decide on a small-scale set-up, e.g., a storefront with a warehouse or storage facility on the rear side of the premises. If you plan to sell cement as well as the other products of Ambuja Cement, the size of your commercial set-up will have to be bigger. A bigger commercial space means more investment. Let’s understand this in detail.
- On average, you may need to invest at least ₹5 – ₹7 lakhs. This amount could decrease or increase depending on the city of your operations. Tier-1 cities are always more expensive than Tier-2 and Tier-3 cities.
- The security deposit for the dealership - is ₹2 - ₹3 lakhs.
- Purchase of inventory - ₹1 - ₹2 lakhs.
- Interior furnishing of the office and storage facility of the warehouse - ₹1 - ₹2 lakhs inclusive of a computer and other requisite stationery.
- Salaries of at least 2 employees for unloading and loading the cement bags - ₹25000.
- Rent deposit and advance rent for 2 months – If you take up premises on rent.
- Vehicle for delivery of the cement and other products – If some of the retailers insist on you making the delivery.
- Insurance for the commercial premises – Optional.
Also Read: How to Get an ACC Cement Dealership? Cost, Process, How to Apply
Approximate Profit Margin One can make by Setting Up an Ambuja cement Dealership?
The profit margins are rewarding but dependent on your efforts as well. The average profit margin can vary between 3 and 8% on the total sales you make. You can earn about ₹10 to ₹25 on the sale of a cement bag. Dealers are expected to make a sale of at least 5,000 kg per month. If you exceed the required volume of sales in a month, the company provides you with various bonus schemes. These come into effect only 6-8 months after you start your dealership. Once you exceed the sales targets expected of a dealership, you can enjoy a consistent margin profit of 8%. In addition to this, the company is known to reward successful dealers with a range of discounts in the form of quantity, product as well as cash discounts. You also become eligible for various gold schemes as well as tour scheme packages. You save a lot of advertising and marketing expenditures as the brand is known to be very aggressive in its advertising initiatives. This becomes very supportive for all the dealers.
How Much Space Is Required for an Ambuja Cement Dealership?
- The space required by dealers is dependent on the size of their business operations. If you are keen to start with trading only in cement initially, you will require at least 600-750 square feet as well as parking space outside for the loading and unloading of the cement.
- If you plan to start your business selling both cement as well as the other products of Ambuja cement, you will require larger premises of at least 1500 square feet. This will be able to accommodate the company’s other products like bricks, paint, and tiles, among others.
- You must ensure that your premises are in a feasible location that is easily accessible by customers.
How Does One Acquire an Ambuja Cement Dealership?
There are two ways for a person to obtain details for starting a dealership.
- Visit the official website of Ambuja Cement, i.e., www.ambujacement.com. Explore the website and find out the section that states ‘business enquiries or dealership.’
- Once you click on that, you will be furnished with an online application form.
- Key in all the details that are requested in the form
- Review the details before submitting the form
- The concerned personnel will validate your details
- Once they approve of your details, they will contact you on how to move forward.
You can call their toll-free number, i.e., 1800-223-010 and ask for the department which manages dealerships. You can also request the contact details of the zonal sales manager. You can then connect with the person and discuss your dealership plans in detail.
Cement is one of the most indispensable products of every construction project. This includes national highways, airports, residential housing, gated colonies as well as commercial complexes. India stands tall on a global platform as the 2nd largest cement manufacturer, with many leading brands contributing to the country’s export demand. Most of the leading brands are reputed for their excellent quality of cement as well as their numerous initiatives of sustainability and home-building solutions. The increasing demand for this product has made many individuals keen to set up a franchise of leading cement brands. This article gives you an insight into the process involved in obtaining a dealership for Ambuja Cement which is one of the most trusted cement brands in India.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.