written by Khatabook | January 4, 2022

Start a Reliance Petrol Pump Dealership Business

It is vital to generate money and maintain a decent standard of life. With work becoming scarce in the economy, starting a business is a good choice. But, the crucial question is, what business to start? Why not start with something that has been a success for decades, a petrol pump dealership? What could be better than having a reliance petroleum dealership?

According to a recent report, India has around 64000 fuel pump stations. As the Indian vehicle sector accounts for roughly 6-8% of the global market, a petrol pump business is always profitable. Reliance Petroleum Ltd. administers the petroleum business for Reliance, and it is one of the leading Indian companies. The company's headquarters are located in Ahmedabad, Gujarat. Currently, the corporation operates over 1300 retail locations throughout the country. Read this blog to learn how much a petrol pump dealership costs in India and how you may profit from it.

Did you know? A petrol pump dealer can make a commission of ₹3.54 per litre, making it a lucrative profitable business.

Why start Reliance Petrol Pump Dealership?

Reliance Industries Limited (RIL) is the country's first corporation to have a market valuation of $100 billion. The name Reliance is well-known in every corner of the country, and there is widespread brand loyalty among the general public. Reliance Petroleum Ltd.’s other noteworthy features include:

  • RIL is on the Fortune 500 list of firms.
  • RIL utilises the most advanced and cutting-edge state-of-the-art infrastructure and technology for everything.
  • The oil and gas industry's biggest player.
  • In their franchise, Reliance exclusively hires extremely experienced and skilled employees.

Investment required for acquiring Reliance Petrol Pump Dealership

Petrol pumps necessitate a large amount of space to establish as a business, as well as several continuing fees, and so on. 

  • To summarise, the average investment necessary to purchase a Reliance Petrol Pump dealership is approximately ₹70 lakhs. However, this does not include the cost of land or rent, which you may have to pay every month. 
  • You must pay a security deposit of ₹23 lakhs, which is refundable, as well as the signing fees, which are estimated to be around ₹3.5 lakhs.

Dealer Owned and Dealer Operated is the type of franchise offered by RIL. The dealer is responsible for all civil work at the outlet, including constructing the driveway, boundaries, canopy, facia, salesroom building, and employing employees. The owner should have the funds to purchase or rent the requisite land and invest in the construction of the gas station.

What are the requirements for establishing a reliance Petrol Pump Dealership in India?

Area

The location of the franchise outlet is critical. You have two options for where to install your outlet. These sites are typically outside the city, such as along highways. Because individuals can never find another petrol pump along highway routes, it is more profitable to open an outlet because it will draw more clients. The area necessary to set up a gas station on the highway is 800 square feet.

If you intend to open a Reliance petrol pump outlet in the city, you must establish in an area where there is no nearby petrol pump. As a result, it will bring in more customers. The entire area required is around 1500 sq. ft.

Required skills or experience

  • Employees should know about the products sold at the franchise location to pass on the correct information to customers.
  • The petrol attendant will be responsible for wiping automobile windshields, collecting payments from clients by whichever means of payment the customer prefers, and activating the fuel pump and filling vehicle fuel tanks to a specific level with either diesel, petrol, or gasoline.
  • Employees at Reliance Petrol Pump outlets should be well-groomed and friendly to clients and have good communication skills.
  • They should be able to work in a variety of shifts.
  • The gas station manager should be in charge of inventory and interactions with all vendors. He should also develop an employee timetable and oversee postal activities, among other responsibilities.
  • The outlet's proprietor should have a minimum 10th or 12th-grade pass certification.

Also Read: What are the 6 Profitable Dealership Business Ideas in India?

The condition of financing for the SC category in petrol pump dealership/petrol pump dealership notice 2020 has been eliminated under the new guidelines. The security deposit has also been decreased as a result of this. Aside from that, a 33% reservation has been established for women, with limited exceptions for freedom fighters.

  • You should be between the ages of 21 and 55.
  • Must be an Indian citizen with a minimum work experience of 10th grade (matriculation) and a 12th-grade pass to work at a fuel station in the city.

Training requirement

  • The station manager appointed at the dealership franchise outlet receives managerial and back-office training from RIL.
  • The franchise owner must follow the parent company's laws and regulations. As a result, the owner would receive the proper training so that they implement the same in the petrol pumps they operate.

Minimum staff requirement

The following staff is necessary because the petrol pump will be open 24 hours -

  • 3 gas station managers 
  • 8 pump attendants
  • 2 air pressure attendants are required.

Land Documents for Reliance Petrol Pump Dealership

  • The land paperwork should be complete, with the property's address and title written on them.
  • It's a good idea to make a property map.
  • If the land is currently used for agriculture, you will need to change it to non-agricultural use.
  • If you do not own your land, you will need to obtain a NOC (No Objection Certificate) from the landowner.
  • It is beneficial to you if there is water and electrical connection in the ground.
  • You cannot apply for a petrol pump if your land is in the green belt.
  • It is required to have a leasing agreement if your land is taken on lease.
  • The use of a registered sales deed or lease deed is required.
  • You can apply for a fuel pump if the land is in the name of your family member. You'll need a letter of authorisation and an affidavit.

Reliance Petrol Pump Dealership Documents Required

  • Expression of Interest Form (EOI)
  • 7/12 extract and sale deed are included in the land documents
  • Current Circle Rate 
  • Site layout.
  • Photographs from the location
  • To show financial and business capability, specific documents are required
  • For the application cost, please send a DD

Reliance Petrol Pump Dealership Legal License and Permission Documents

  • NOC for a District Collector and a Police Commissioner.
  • Approval from PWD, Electricity Board, and Gram Panchayat.
  • CCOE License in its final form

(CCOE or Chief Controller of Explosives, is the approver)

  • National Highway Sanction.
  • A forest department NOC is required if the land is in the forest.
  • A retail license is optional.
  • Stamped weights and dimensions.

Process of applying for a Reliance Petrol Pump Dealership

Follow the steps outlined below to obtain a Reliance Petrol Pump Dealership:

  • First, go to the reliance petrol pump official website (www.reliancepetroleum.com), where you will find all relevant information about the application.
  • It is necessary to complete the Reliance Petrol Pump Application Form. To fill out this Reliance Petrol Pump Application, you must have the relevant paperwork on hand and provide information to the company to open a Reliance petrol pump.
  • After that, you must apply for a reliance petrol pump, which requires you to provide your name, phone number, email address, state and city names, and so on.
  • After viewing the company's form, the respective department from Reliance will contact you directly.

Loan to Open Reliance Petrol Pump

Don't panic if you want to build a Reliance Fuel Pump Dealership but can't afford to invest due to a lack of funds. Bank loans can be used to open and expand petrol pumps.

Restaurants and other amenities are now offered at petrol pumps. For this type of activity, it is simple to obtain a loan. The location determines the cost of starting a gas station. If the petrol station is to be opened in a city, the cost will be determined by that; however, if there is a metropolitan region, the cost will be different.

A hypothetical example is used to demonstrate the economics of owning a petrol pump.

Petrol Pump X has a total investment of ₹70,00,000

Monthly expenses are those that are incurred regularly.

Monthly wage for 10 workers Equals ₹2,00,000

The monthly rent for 1000 square feet of land is ₹2,00,000.

Monthly miscellaneous expenses = ₹30,000

Total monthly costs = ₹4,30,000

Earnings are calculated every month.

If 50 clients come in every day to get their vehicles' fuel tanks filled with petrol, the average cost per day is ₹15,000 ( 1 person spending ₹300).

As a result, the monthly money collected from petrol is 15,000*30 = ₹4,50,000.

If 30 customers fill their vehicles' fuel tanks with diesel daily, the average cost per day is ₹4500 (1 person spending ₹150).

As a result, the monthly income collected from petrol is 4500*30 = ₹1,35,000

In a month, the total income earned is ₹5,85,000

(₹5,85,000 – ₹4,30,000) = ₹1,55,000 profit

Your entire investment of ₹70,000 will be repaid in 40 to 45 months.

A new fuel pump franchise's overall success and profitability are determined by several factors:

  • Location
  • The distance between this petrol station and the others in the area
  • The size of the gas/fuel station
  • Maintaining top conduction of the petrol pump 
  • Adequate advertisement 
  • Other features such as offering discounts

In addition to the criteria above, the parent company's brand value/identity influences profitability. Your franchise location must have a strong brand image that provides clients with value and quality assurance.

Reliance Petrol Pump Dealership Contact Number & Details

  • Company Full Name: Reliance Petroleum Limited
  • Industry: Petroleum and Natural Gas
  • Founded Year: 2008
  • Founder: Mr Mukesh Ambani
  • Headquarters: Ahmedabad, Gujarat, India
  • Parent Company: Reliance Industries Limited
  • Reliance Petroleum Dealership Contact Details – 1800223023 (24×7 Services)

Also Read: How to Apply for the Best Business Loan in India? - Types of Govt. Loan Schemes

Conclusion

You don't have to pay a royalty fee or a commission to run a dealership. Therefore, it's a very successful venture. Aside from the services recommended by Reliance, the dealer has the option to choose their own services. It is one of the main reasons why the Reliance Petrol Pump dealership is preferred and considered a profitable business. Moreover, it's an established name, so such a dealership can prove to be a significantly profitable business. 

Check out the Khatabook blog for more business and finance ideas, as well as the latest news related to GST, MSME and more.

FAQs

Q: In India, how much money does a petrol pump owner make?

Ans:

In India, starting a petrol pump is a high-investment business idea. Still, it is also a very profitable one, With petrol pump owners making around ₹3.5 lakhs monthly profit if they can sell 400000 litres of petrol at a commission rate of 3.0/litre.

Q: What are the essential requirements for operating a retail outlet dealership?

Ans:

  • Infrastructure facilities include developed property with a boundary wall, tanks, a dispensing unit, signage, automation, a sales office, a storeroom, a toilet, an electrical room, yard illumination, a generator/inverter, and so on.
  • Customer-friendly amenities include clean drinking water, well-kept toilets, a telephone, and so on.

Q: How do I apply for reliance petrol pump online?

Ans:

You can visit the site at https://www.reliancepetroleum.com to apply online.

Q: What kinds of inspections can I do to ensure that the product quantity is correct?

Ans:

You can go to any of Reliance petrol pumps and ask the manager to do the following checks on the product quantity:

  • Request a Measurement test.
  • Once the nozzle is removed from its boot, verify if the ticker has been reset to zero on the dispenser unit.

Q: Is it profitable to own a petrol pump?

Ans:

As we all know, a petrol station is open 24 hours a day, seven days a week, and you may easily make a profit of 2 to 2.5 rupees per litre on petrol and ₹1.80 to 2.40 rupees per litre on diesel. The profit ranges from ₹1 to 2 lakh rupees per month.

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