The chemical industry comprises two basic business models - manufacturing and selling. Chemical product manufacturing requires reasonable investment. If you are aiming to earn money from a chemical manufacturing franchise in India with a minimum investment, you can go for a franchise or company dealership opportunity. Here in this article, we will focus on 5 profitable chemical franchise opportunities available in India.
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There are three main characteristics of the chemical industry: It is fast-growing, diversifying, and contributes approximately 3% to the GDP. In terms of size, it ranks 12th in the world and third in Asia. Moreover, it consists of both large and small manufacturing facilities.
What is the Concept of a Franchise?
A franchise or franchising is a way of distributing services or products involving a franchisor, which establishes the brand’s trademark or trade name as well as a business system and a franchisee, who pays royalty fees and an initial fee for being given the right to do business using the franchisor’s brand name and system. It is a contract binding the two parties, and this contract is called the “franchise”. However, the franchise also refers to the actual business conducted by the franchisee operates.
There are two types of franchising relationships. Among them, Business Format Franchising is the most common one. In this franchise, the franchisor provides the franchisee with its trade name, services and products and, most importantly, an entire system to operate the business. The franchisee receives site selection and development support, training, quality control, operating manuals, brand standards, marketing strategy and business advisory support from the franchisor.
Another kind of franchising is Traditional or Product Distribution Franchising which is much larger than business format franchising in terms of total sales. Traditional or product distribution franchising can be of many types, such as franchising related to gasoline, bottling, automotive and other manufacturing industries.
Chemicals are everything that can be felt, seen, touched or tasted. Some chemicals can be harmful, while others can be useful. Chemicals can be used to store food, clean clothes, purify water, cure diseases, and prevent decay in the human body. Products such as polymers, dyes, chemical additives etc., have a strong Indian market hold. Therefore, starting a chemical franchise can be profitable if you tie up with the right brands.
Various companies offer franchise opportunities in texture paint, chemicals, natural dyes, activated carbon, natural rubber, synthetic rubber, silica gel, organic acid, cleaning chemicals, waterproofing chemicals, rubber products, powder coating chemicals etc. You can also go for a manufacturing franchise, fertiliser franchise etc., to earn maximum profit from the chemical distributorship. This sector is an ideal one to invest in as different studies show it will grow at the rate of 11-12% within the next three years.
List of Some Chemicals to Start a Franchise Business
Here is a list of some chemical categories to start off as a chemical manufacturing franchise in India-
- Chemical Agents
- Detergent powder and cakes
- Paint and Allied Products
- Soap and Handwash
- Industrial Chemicals
- Glue and Gelatin
- Industrial Gases
- Chemical Reagent
- Powder Coating Chemicals
- Flavours and food additives
- Perfumes and fragrances
- Rubber and Rubber Products
- Gum and Gum Products
- Chemical Supplies
- Silica Gel
- Soil Conditioners
- Textile Chemicals
- Detergent Raw Material
- Plant Growth Regulator
- Water Treatment Chemicals
- Cleaning Chemicals
Things to Consider Before Investing in Chemical Franchise Business
Before buying a franchise, you should consider some of the factors like-
- Understand your budget, including paying for the location, staff, materials etc.
- Research your market and its demands.
- Inquire about Brands and compare franchise opportunities with other brands in the market.
- Conduct thorough research about the franchisor
- Research the Demand for the Product in your selected location and see if your target audience is interested in the product.
- Research your Competition and reconsider your choices of investing if many businesses in your selected region are investing in your franchise chosen.
- Build your Business Plan.
- Consider Cash Flow Projections.
- Calculate Manpower.
- Consider the quality of Training and Support.
- Compare the Franchise fees and Royalties.
- Consider the Growth Opportunities.
- Follow the rules, regulations, guidelines and restrictions.
Also read: How to Grow Your Business? 10 Key Steps
List of 5 Profitable Chemical Franchise Opportunities
Here is a list of 5 chemical franchise opportunities that can benefit you.
The paint industry is quite profitable in India since this product has both industrial and domestic customer bases. Asian Paints holds the top position in this industry. As a part of its business expansion plan, Asian Paints has opened dealership opportunities that are quite lucrative. Asian Paints is a multinational paint company based in Mumbai.
The company deals with the manufacturing and selling of paints, products involved in home decor, coatings and bath fittings. The company also provides consulting services to their customers for an easier selection of products. Established before the independence of India, the Asian paints group currently operates in 19 countries with subsidiaries, namely APCO, Berger, Scib Paints, Taubmans, PPG Asian Paints, Sleek Kitchens, Kadisco etc.
The Asian Paints dealership is advantageous as the product portfolio has a wide range of paints for various purposes, enhancing the possibility of making lucrative revenue. Brand visibility, brand equity, low-cost investment and other favourable options make it easier to apply for the dealership opportunity and earn profits.
IFFCO represents Indian Farmers Fertilizer Cooperative Limited. It is a multi-state cooperative society dealing with manufacturing and marketing fertilisers. IIFCO fertiliser franchise has its head office in Delhi, promoting distributorship opportunities in Delhi. Also, IFFCO is the largest fertiliser company in India and holds approximately 29% market share in complex fertilisers and 19% market share in Urea.
Fertiliser distributorship is profitable as you get incentives and cash discounts from the company added to the dealer commission. IFFCO accepts applications in a particular format from interested individuals across the nation.
Pidilite Industries Ltd
The Pidilite Industries franchise is popular in the industry of craftsman products and industrial speciality chemical items. The craftsman products franchise has found success in India and is also accepted globally. The Pidilite Industries franchise exports the industrial chemical range, namely organic pigments for painting, ink and paper manufacturers globally. Brands of the Pidilite Industries craftsman items franchise under the publications category such as Fevicraft, Fevicryl Range, Fevicol Furniture Book and many more.
1939 established TCL or Tata Chemicals Limited has now become a global enterprise focusing on chemicals, consumer products and crop nutrition. It is the world's second-largest soda ash or sodium carbonate producer. TKS store brand looks after the supply of certain key Agri inputs across different categories to augment the value of the offering to the peasants. Launched in 2006, this initiative has noticed tremendous popularity among both the farmers and the franchisees due to its superior quality and higher profitability.
Another great industry to start a dealership business or a chemical franchise in India is the cement industry. India is the second largest cement-producing nation in the world, and the real estate, infrastructure and construction sectors are the major consumers of cement in our country.
If you want to form a distributorship for cement products, the Ultratech dealership can be your go-to option. You can contact the area office to be informed about the vacancy. Generally, the cost of starting a dealership varies considering different aspects like location, brand and the covered territory. If you start your business in small towns and rural areas, you can easily start with a minimum investment of INR 10 Lakhs. Some popular cement brands are Ambuja, UltraTech, Shree, ACC, Ramco, Binani etc.
Hopefully, this detailed list of chemical franchise opportunities will help you with distributorship business opportunities in India.
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