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written by | June 29, 2022

How to Get an ACC Cement Dealership? Cost, Process, How to Apply

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The inception of the Associated Cement Companies Ltd. (ACC) dates back to 1936, and 86 years later, it is acclaimed as the primary manufacturer of cement as well as concrete. The company is acknowledged for the production of superior quality cement. It holds the record for being the first-ever cement company to adopt the initiative of community development. Its pan-India presence includes 17 modern factories, 90 ready-mix concrete plants, a vast network of more than 11,000 dealers and numerous zonal offices. Its goodwill and technology-backed services have resulted in many valuable associations, some of which include the TATA group as well. This award-winning organisation got associated with Switzerland’s Holcim Group in 2005. In 2015, the Holcim Group merged with the French industrial company Lafarge, renowned for its specialist services in concrete and cement. ACC’s association with two global giants helped strengthen its development in a more dynamic manner.

Did you know? ACC cement has more than 50,000 channel partners across India to cater to the diverse needs of its various clients?

Why Choose the ACC Cement Dealership?

The reasons for choosing an ACC cement dealership are wide-ranging. ACC cement is one of the oldest cement companies in India and holds an impeccable record of producing a cement of the highest quality. It employs state-of-the-art technology, which helps it to produce several quality cement brands. Its various technologies are in sync with international standards and totally eco-friendly. It is unique in its implementation of routine maintenance of all its plants to enhance its production efficiency. Its unswerving commitment to the protection of the environment is evident from its innovative initiatives. ACC cement commissioned a kiln at Wadi in Karnataka. This kiln has a capacity of producing 12500 tons per day (TPD), making it the largest in the world. From being endowed with the ‘Best Performer’ award in the cement industry to being rated as one of the best workplaces, ACC has also won Bronze at the 2022 ABBY awards. This impressive profile can make anyone desirous of wanting to become an ACC dealer. The investment amount is nominal, and the dealership profits are rewarding.

What Is the Total Space Required to Start an ACC Dealership?

The minimum requirement to set up an ACC cement dealership varies between 500-600 square feet. Most dealers like to trade with cement-related products as well, e.g. steel, paint or even floor and wall tiles. If you plan to do that, then you will require more storage space. The commercial premises should have a capacity to maintain at least 5000 kg of cement at any given point in time. The area of the office can range between 200 to 250 square feet, but the storage facility should be at least 500-600 square feet. You also have to consider ample parking space for the loading and unloading activities. The space should be accommodating without causing any damage to the storage.

Also Read: How to Set Up a Cement Dealership Business in India?

What does the Approximate ACC Cement Dealership Cost?

An ACC cement dealership cost can vary between 8 - 10 lakhs. However, this is dependent on the scale of the business you wish to set up. It could even be slightly less, i.e. 5 - 6 lakhs. The security deposit for such a dealership can vary between 2 - 3 lakhs. Some cash-rich dealers deposit an amount of 5 lakhs and avail of annual interest of 4-5% on the same. You cannot exceed the deposit amount beyond this. A simple apportioning of the said amount towards various operational areas is as follows:

  • Purchase of stock and inventory - 1 - 2 lakhs.
  • Interiors of the front office as well as storage shelves or compartments in the warehouse - 1 - 1.5 lakhs.
  • A month’s salary for at least 2 labour personnel for loading and unloading activities - 30000.
  • Rental amount (if you do not own commercial premises) – An initial advance/deposit as well as the rent for the first month or two months, depending upon the arrangement made with the owner.
  • A vehicle – You may require a vehicle. This depends on the arrangement you have with your clientele with regard to deliveries. You can insist on them coming to pick up their deliveries which will reduce your cost of investment in a vehicle. In case some buyers insist on you making a delivery to them, you will have to invest in a vehicle. This will increase the overall cost of investment.

What Is the Approximate ACC Cement Dealership Profit Margin?

The profit margin is dependent on the total amount of sales you are able to achieve success. You can easily enjoy an average profit margin of 3-8% on the total sales you make. One of the outstanding features of such a dealership is the number of bonus schemes associated with it. If you exceed the number of sales expected of a dealer, you become entitled to various bonuses. However, this applies to a dealership at least 6-12 months after starting their association as a dealer with ACC cement. Some of the highly rewarding incentives include bulk discounts on the volume of cement you sell, discounts on products, cash discounts, gold schemes as well as tour scheme packages for dealers. These incentives boost dealers' confidence and motivate them to enhance their marketing and sales efforts.

Also Read: Know About India's Top Ten Cement Companies

Documents and Certificates Required for an ACC Cement Dealership?

The primary documents and certificates required for an ACC cement dealership include the following:

  • Details on the registration of your company – Whether it is a partnership, LLP or a proprietorship
  • Sale deed – If you have purchased the property
  • Rent agreement – If you have rented the premises
  • Trade license
  • GST registration
  • Shop & Establishment registration – This is issued by the state government
  • Bank statements of the last six months – These statements could be of your current or savings account
  • Details of income tax returns of at least the last 3 years
  • Business insurance – This is optional and not binding
  • Personal ID details – PAN card, Aadhaar card as well, as Voter ID card
  • Proof of residential address – You can furnish an electricity bill or even details of your ration card
  • Qualification details – These can include academic or any other business experience certificate
  • Photographs – 2 Nos. or more, if required
  • Personal contact details – Mobile number, email id,
  • A cancelled cheque – Nos.1
  • No-objection certificate

How Can One Acquire an ACC Cement Dealership?

  • You can procure an ACC cement dealership either by making contact with the territory sales manager or person-in-charge of that zone. You can obtain the contact details from the official website, i.e., https://www.acclimited.com/.
  • You can call the sales manager, discuss your business intentions and then meet him in person. The sales manager will guide you through the entire process of setting up an ACC cement dealership. The person will make a thorough survey of the location of your premises to ensure that there is no other ACC dealer within a distance of 2-3 kilometres.
  • Once your details are validated, and the premises are considered feasible, the person assists you with the final process of making the agreement.
  • In case you are not able to establish contact with anyone, you can also call their toll-free number, i.e., 1800 1033 444, for more assistance.
  • You can also visit the official website to apply online for the ACC cement dealership (https://www.acclimited.com/).
  • Once you log in, you will have to provide all the requisite information requested on the application form.
  • Review the details before submitting the form.
  • You will receive a call from their support service personnel, which will help you understand the entire process.
  • Once the agreement has been made, ACC cement personnel will furnish you with the requisite training. This includes one of their sales personnel working in close coordination with you. This continues for at least a month.

Also Read: How to Start a Cement Brick Manufacturing Business?

Conclusion:

ACC cement is renowned as one of the most quality cement brands in India. It is a part of the global Holcim group and is renowned for its many initiatives toward building an environment-friendly economy. Its dedicated efforts have made it the recipient of many noteworthy awards like the Indo-German Greentech Environment Excellence, Vishwakarma Rashtriya Puraskar award for safe mining, National award for exceptional performance in agricultural and rural development, Indira Priyadarshini Vrikshamitra award for outstanding work in the protection of the environment as well as the FICCI award for pollution control. A revered cement company by all standards, its extensive network, performance, high-quality cement, and cement-related products have earned it a place of pride in the cement industry. 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.

FAQs

Q: What is the approximate cement dealership profit a dealer can make?

Ans:

The cement industry is one of the most profitable and growth-oriented industries. A dealer can make an approximate profit of 8% to 10%.

Q: How much does a cement dealership cost?

Ans:

The cost of a cement dealership can vary between 3 - 6 lakhs. It depends on the size of your commercial premises, the inventory, the initial salary payable to at least 2 staff members, as well as investment in a vehicle. If you do not own the premises, you have to consider the rental cost as well.

Q: What is the profit margin in a cement dealership?

Ans:

The profit margin in cement dealerships can vary between 8% and 10%. You can earn more profit if you make an increased amount of sales. The profit margin differs across the various cement brands.

Q: Is cement distributorship a rewarding business?

Ans:

Yes, a cement distributorship is a highly rewarding trade option. Cement is a key component of almost every infrastructure project in the country. A lot depends on the cement brand and the scale of the business you wish to set up. Your dedicated efforts will help you earn a good margin of profit depending on the brand in question

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.