Any corporation that owns and operates the gas stations is in the most lucrative business. Many people in our country believe the petroleum business yields many returns. With the rise in the number of vehicles on the road, there is an increasing demand for gas stations across the country. Every month, an Indian petrol station sells an average of 5 lakh litres of diesel and gasoline.
Essar Oil Limited is the largest publicly traded oil and gas business globally. It is now called Nayara Energy. Nayara Energy works with India's fastest-growing retail business network and the largest private-sector gasoline retail chain. Over 4,500 active locations are owned by the corporation, which is located across India. Essar petrol pump dealership cost is nominal as compared to other petrol pumps. Read the points below before you decide on getting an Essar petrol pump dealership.
Did you Know?
According to the size and amenities of the retail outlet, the investment prices can range from ₹ 50 to ₹ 70 lakhs for an Essar Petrol Pump Dealership.
Also Read: How to Open a Nayara Energy Petrol Pump Outlet?
How To Find The Location For Essar Outlet?
Essar Oil chooses locations for petrol and diesel retail outlets after undertaking the necessary feasibility analysis based on commercial reasons. One should understand that the viability of opening up a petrol pump is heavily dependent upon the number of vehicles in that area. After considering the geographical factors, one can narrow down on the location.
Eligibility Criteria To Start An Essar Oil Petrol Pump Dealership In India
The following are the requirements for starting an Essar Oil petrol pump:
- Any Indian citizen with a suitable piece of land who wants to lease it can apply for the dealership.
- If the applicant does not have property but wishes to buy or lease it to Essar Oil for a fuel station, he may apply for it.
Criteria for Land
- For building up an Essar Petrol Pump franchise, the land area must be greater than 800 sq. meters in a relevant town or greater than 1,200 sq. meters on the highway.
- To install a pump, the area must be levelled and developed.
- The Essar petrol pump franchise retail outlet land must be leased to the company for 29 years and 11 months, except in Tamil Nadu and Rajasthan, due to regulatory requirements in these states.
- The amount of the property and the type of retail business to be constructed may differ from one site to the next.
What is the Profit Margin in the Petrol Pump Business?
- The Essar petrol pump dealership's profit is straightforward and profitable, as it guarantees consistent operating earnings and returns on investment in the business.
- The lease rental will be paid for the time specified in the lease.
- The onsite and infrastructure development will have a performance return on investment of 5% each year. The standard costing is used to calculate investment on a normative basis.
- Compared to existing industry margins, the commission on actual sales is reasonable.
Also Read: How to Get Hindustan Petroleum Franchise?
How Much Does It Cost To Start An Essar Petrol Pump Franchise In India?
Selected bidders must pay for the Essar Oil petrol pump's construction and operations in addition to the site cost. Investments range from ₹50 lakhs to ₹70 lakhs on average, depending on the size of the rental facility and the features and services it offers. To set up the business, franchisees can opt for a business loan for petrol pumps.
Application Fee
Essar petrol pump dealership online applications cost ₹3 lakhs. The application fee is non-refundable once an appointment has been issued. The dealership application cost may get refunded in unusual circumstances if the government authority denies statutory approval for a legitimate cause. Essar Oil will make the final decision.
What Documents Are Required To Start An Essar Petrol Pump Dealership In India?
The following documents are necessary to obtain an Essar Oil petrol pump dealership:
- LOA (Letter of Appointment)
- Form of Expression of Interest
- Land Documents, such as the 7/12 extract and the sale deed
- Circle rate circular
- DD for the application
- Specific documents required to prove financial and business capability
- A sketch of the site and a photo.
License / Permission Required
To open an Essar Oil petrol station, the applicant must receive the necessary government clearances and licenses. Essar Oil will provide the necessary assistance in preparing applications in accordance with government rules and mandates. A standard set of licenses or permits is essential, as shown below.
- Non-Agricultural Conversion
- CCOE initial approval
- Forest NOC – In the case of forest land
- NOC from the District Collector, approval from the Public Works Department, approval from the Electricity Board, NOC from the Police Commissioner, and NOC from the Gram Panchayat, as required by the competent authorities
- Final CCOE License
- Retail Selling License - If applicable
- NH (National Highway) – Road permission
- Weights stamping
Essar Petrol Pump Dealership Application Procedure
Applicants who own a sufficient piece of land or are ready to invest in an Essar petrol station can apply in one of the following ways:
- By submitting an application via the company's website.
- By emailing marketing@nayaraenergy.com the facts of the land and your contact information.
- By submitting an Expression of Interest form to the divisional office concerned.
- Simply dial 022-71321122 to reach the franchise support.
Essar Petrol Pump Dealership– Online Application
You can get an Essar petrol pump dealership to apply online through their website. The online application process for Essar Oil petrol pumps or retail outlets is described below:
The candidate must go to the Nayara Energy website to apply for the Essar Oil dealership.
- Step 1: Click the 'Franchisee' option on the main page, and the link will automatically take you to a new page.
- Step 2: On the page, select "Apply Online Option." A franchise inquiry form for Essar Oil retail outlets will be shown.
- Step 3: Fill in your name, phone number, email address, and district information. The application form will then be sent to the divisional office after clicking the "Submit" button.
Essar Petrol Pump Dealership– Application via Divisional Office
The application process for an Essar petrol pump or retail shop dealership is explained below:
On plain paper, fill out the application form for an Essar Oil retail shop in the format ( format provided on the official website). The Essar divisional office must receive a completed application form with all necessary documents. Post this, your application is verified, and the Territory Sales Manager and Divisional Manager will take the discussion forward internally.
Conclusion
A widely held view among the general public in our country is that the petrol pump business is a prosperous venture with large earnings contributed by a significant portion of the entire community. With an increase in the number of vehicles on the road in the region, the need for fuel (both gasoline and diesel) has increased, which has, in turn, boosted the demand for gasoline pumps. According to the most recent figures, an average petrol station in India sells approximately five lakh litres of fuel, diesel, and petrol every month.
Essar Oil Limited is the world's largest publicly listed oil and gas company, with a market capitalisation of ₹16 billion. The company's name has been changed from Essar Oil to Nayara Energy. According to industry estimates, with the fastest-growing retail business chain in India, Nayara Energy has the most comprehensive private sector fuel retail network of any company in the country. This multinational firm has more than 4,500 operational stores spread across the country's entire landmass. More specifically, this post has covered the procedures that must be followed to start an Essar Oil Petrol pump dealership in greater detail.
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