India is the second-largest producer of cement in the world. The increasing development of national highways, housing, as well as commercial space has brought about a colossal demand for cement. This increasing demand has caught the attention of many international cement brands who have expressed a keen interest in stepping into Indian territory. The production of cement is expected to increase to 550 million tons by 2025 from the prevailing capacity of 294 million tons. Ultratech is the flagship cement company of the Aditya Birla Group. It is among the largest cement companies in India and largest manufacturers of white cement in India, and the largest manufacturer of grey cement and ready mix concrete. Ultratech is known for its commitment towards providing superior quality cement. This aggressive player acquired the assets of the Jaypee Group in 2017 as well as the cement business of Century Textiles Ltd. The company continues to experience high and consistent demand from almost every mammoth project in Tier 2 and Tier 3 cities of India. These industries include infrastructure projects like irrigation, the urban housing market, national highways, airports, metro rail as well as railways.
Did you know? UltraTech is the only cement manufacturer in the world that has a capacity of more than 100 million tons in a single country
Why Choose UltraTech Cement Dealership?
Setting up a dealership or becoming a distributor of an esteemed company is always rewarding. Some of the reasons to decide on an UltraTech cement dealership are as follows:
- UltraTech is an award-winning cement company and has a global presence in countries like Bahrain, Sri Lanka as well as the UAE
- Its one lakh channel partners have enabled it to expand its reach to almost 80% of the country. It markets white cement under the name, ‘Birla White”
- It is the largest manufacturer of concrete in India and employs innovative technology and concepts to meet the demands of new-age constructions. Some of these include products which are scientifically engineered
- Its highly professional customer care personnel help dealers with their operations until they have mastered the ropes
- The company helps dealers with all requisite marketing aids like promotional banners to boost their business
- The range of products is diverse and of superior quality.
- A dealer can make a profit margin of almost 9-10% on the sale of its products.
- UltraTech Building Solutions, one of its pioneering concepts, is the first retail chain in India that furnishes optimal solutions to home builders. This has 2,500 stores throughout India.
- Its corporate social responsibility (CSR) activities involve promoting healthcare, community infrastructure, education and developing the lives of the less privileged. There are almost 2.1 million Indians across 500 villages who are recipients of its CSR initiatives.
Also Read: Know About India's Top Ten Cement Companies
Licenses and Registrations Required
As is mandatory with all business deals, a dealership of UltraTech cement first requires the details of your PAN and Aadhar cards. In case you do not have a PAN card, you can visit the official website of the National Securities Depository Limited (NSDL) to file an online application. In addition to these the following documents are obligatory to acquire an UltraTech dealership.
- Company registration – Is it a partner, proprietorship or Limited Liability Partnership (LLP)
- A license for trading in cement – The local municipality furnishes this
- Commercial shop & establishment – The State government provides this
- Sale deed or rent agreement
- GST
- Bank statements – Of the last six months
- Income Tax returns – Of the last three years
- Proof of residence – Electricity bill
- Personal details – email id, mobile phone number.
How Much Does an UltraTech Cement Dealership Cost?
The dealership cost for UltraTech cement is totally dependent on the scale of the business you wish to start with and the amount of stock for the same. It also depends on the city where you wish to set up the dealership. A Tier 1 city will always be more expensive because the real estate rates are higher, as is the cost of living. The larger the scale, the more space you will require. A large-scale dealership will also involve more stocks, at least 2-3 staff members and other expenditures like basic furniture for the storefront and shelf storage or compartments for the cement. If you store other products of UltraTech, you will have to make arrangements for their storage as well.
- The investment amounts for a medium-sized office and storage facility like a small warehouse will require an amount that can vary between ₹6 and ₹8 lakhs.
- Security Deposit for the dealership – ₹2 - ₹2.5 lakhs. If you have financial reserves, you can make a security deposit of ₹5 lakhs as well. The benefit of this is that UltraTech will pay you an interest of 5-6% per annum on this amount.
- Purchase of stocks - ₹1 - ₹1.5 lakhs.
- Interiors of the shop and warehouse - ₹1 - ₹1.5 lakhs.
- Salaries for one month for at least 2 staff members for unloading and loading activities - ₹30000.
- Salary for an office boy - ₹6000-₹7000 per month, in case you need to travel for business purposes.
- Advance payment for rent – If you do not own a place.
- Vehicle for transport of cement and other related products – If required.
- Other expenses – a computer, internet connection, electricity and water supply.
What Is the Profit Margin One can Make with an UltraTech Dealership?
The approximate profit margin that you can earn through an UltraTech dealership varies between 3-8%. Profit margins are totally dependent on the volume of sales. The more the sales, the more the profit. An UltraTech dealership enables you to sell other products of the organisation as well. The approximate profit margin of selling its products can help you earn at least 9-10%. There is a huge demand for UltraTech products, and you can sell them to various retailers to supplement your profit margins. The company is known to reward its successful dealers with very handsome bonuses. You can boost your sales with some marketing initiatives of your own by promoting it online or through inserts in the local newspaper.
How Much Space Is Required to Set Up an UltraTech Dealership?
The amount of space required will be in accordance with the size of your business. UltraTech allows its dealers to also trade in its various products like iron rods, tiles, paint, bricks, and even steel, among many others. If you are keen to sell their products as well, you will require premises of at least 1500 square feet. If you plan to start the dealership with only cement, you will require a space of at least 700- 850 square feet. You will have to consider the parking space in front of your commercial premises. This area should be comfortable for loading and unloading the cement bags. The premises should be convenient and comfortable for all to move around with ease.
Also Read: Ways To Start A Successful Cement Brick Manufacturing Business - Tried & Tested!
How to Get an UltraTech Cement Dealership in India?
You can approach the company for a dealership by applying online or meeting the concerned authority offline.
Online:
- Visit the official website of the company i.e., https://www.ultratechcement.com
- On the home page, you can either click on the ‘contact us’ tab and key in your query or browse their landing page to discover the ‘dealership and retailers’ section. Click on that and go through all the details. Key in all the details in the form that is provided to you. Review the details again before submitting the form. Their approval process takes at least 7-8 working days. Once your details are validated and they approve of your application, you will be contacted by the concerned personnel who will be able to guide you through the entire process.
Offline:
- You can make initial contact on their toll-free number, i.e., 1800-210-3311. You can explain your request to meet with the zonal or sales manager. Once you get the details, you can connect with the person and take the discussion forward
- The concerned zonal or sales will pay a visit to your premises, inspect the warehouse to understand if your premises meet the necessary requirements for starting a dealership
- If the UltraTech representative finds the premises feasible, your application gets approved
- This approval also depends on how much experience you have in the cement industry, your prior business experience as well as the number of other UltraTech dealers in the vicinity. There has to be a distance of at least 2-3 kilometres between any 2 dealers for each to make their business profitable.
Also Read: How to Set Up a Cement Dealership Business in India?
Conclusion:
This article takes you through the process of obtaining a dealership for UltraTech cement. This cement company has the largest footprint in India and delivers to an overseas market as well. It has made a commitment to producing carbon-neutral concrete by the year 2050. A dealership with a company that is renowned for its superior quality cement is bound to reap profits. However, dealers have to also make dedicated efforts to ensure a steady activity of sales. The company is reputed for its rewarding treatment of its dealers.
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