Door To Door Diesel Delivery Business Opportunity
Dear Businessman,
We bring you an exciting Business Opportunity Across India, the Oil Marketing Companies are HPCL, BPCL, and IOCL. They have invited an expression of interest for a door-to-door diesel delivery business. This business opportunity is very much for you with a small investment and is a highly profitable business opportunity. If there are such parameters or points in your surroundings where you can supply diesel or resell it, the important aspect here is that the Ministry of Petroleum implemented this scheme as a startup in 2020.
IOCL and HPCL have invited an expression of interest if you are interested in doing this business. That is, HPCL, BPCL, and IOCL have invited an expression of interest from startup-registered applicants for doing the business of reselling diesel through door-to-door step models. The important aspect here is that the delivery of petrol is not included; only the reselling of diesel will be done.
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Key Parameters:
Some Key Parameters are following :
1 Eligibility :
- Only Startups that are registered with the Department for Promotion Of Industry and Internal Trade,(DPIIT) can apply. Startups must have a registration certificate from DPIIT.
- You can register as a partnership firm, LLP, Private Limited Company or One Person company. If you have a startup registration you can apply. If you are new you need to set up your firm and register it as a startup to participate.
2 Application Period :
Applications are open until 19 August 2024.If your startup registration is not completed by then you can still submit an application as a registered entity.
3 Application Fee :
The Application Fee is Rs 10000 +18% (GST) = Rs 11800. This fee is non-refundable. Interested applicants must pay this fee to submit their applications.
4 Submission Process :
Applicants should be submitted digitally through the respective company portals or procurement portals using a Digital Signature.
5 Selection of Oil Company :
You need to select one or more of the oil marketing companies (HPCL,BPCL or IOCL). You can apply to multiple companies, but separate applications are required for each.
6. Mobile Dispenser Capacity:
- Mobile dispensers can range from 3,000 liters to 6,000 liters in capacity. You can apply for a maximum of four mobile dispensers per application.
- For instance, if you apply to IOCL and wish to have dispensers with a 6,000-liter capacity, you can apply for up to four dispensers, covering a total of 24,000 liters of diesel supply.
- You can enter this business with a maximum of 12 vehicles and a capacity of 6,000 liters each, supplying up to 72,000 liters of diesel per day.
Model Details:
1. Submission and Documentation: After submitting the Expression of Interest (EOI) and selecting the company, you need to provide the quantity of mobile dispensers and allied documentation, such as startup registration, PAN, GST details, and other required certifications.
2. Provisional Agreement: Upon successful verification, a provisional agreement will be executed with you. This agreement will include key parameters such as supply locations and pricing.
3. Agreement Terms: The provisional agreement will be valid for 10 years. During this period, the company will authorize you as a licensed dealer for diesel supply.
Permanent License and Supply Locations:
1. Permanent License: Once you successfully complete the provisional agreement, you will be granted a permanent license by the company. This license authorizes you to sell diesel products and operate as a licensed dealer.
2. Supply Locations: Supply locations are critical for your business. Each company has authorized depots across the country where diesel is stored and supplied.
Options for Supply Locations:
1. Authorized Supply Depots: You can choose from the company’s authorized depots where diesel is supplied in large quantities. These depots are designed to handle substantial diesel volumes, ensuring efficient supply for your business.
2. Authorized Retail Outlets: Another option is to select from authorized retail outlets where diesel can be uplifted. These outlets are equipped to handle diesel storage and can transfer diesel to your mobile dispensers.
3. Company-Owned Retail Outlets (Coco Model): Another option is to select from the company’s own retail outlets, known as the Coco model. These outlets are managed directly by the company and can also serve as a source for diesel supply. For this option, you need to secure a consent letter from the Coco outlet and include it in your EOI application.
Pricing Models and Profit Margins:
1 Pricing Determination: The pricing for diesel will be determined during the agreement phase with the company. The company will specify the rate at which diesel will be supplied to you and the expected market price.
2 Negotiation Tips:
- When negotiating with the company, it is crucial to assess the demand in your area. A higher demand can give you leverage in negotiating better pricing and profit margins.
- The EOI does not specify net margins; these will be negotiated and decided upon during the agreement stage with the company.
- Important Notes:
- Ensure you gather as much information as possible about supply locations and pricing models.
- The final profit margin will depend on your negotiations with the company based on the demand and supply conditions
Important Aspects:
1 Calibration and Construction: You have 45 days to purchase the vehicle, have the tanker constructed, and ensure its calibration according to norms.
2 PESO Licensing: During this period, you need to obtain a licensing permit for the vehicle. If you are handling diesel or petrol delivery, you must comply with licensing requirements.
3 PESO Legal and Statutory Requirements: You need to obtain a certificate related to statutory metrics from Naaptol, and you must ensure that all applicable taxes (like VAT or GST) are addressed.
4 Safety and Insurance: Ensure that the fire-fighting equipment, electric systems, and insurance for the vehicle are properly arranged.
5 Verification: The company will verify that the mobile dispenser you have prepared meets all norms and that all licensing requirements are in place.
According to our market research, you can easily set up a 6,000-liter tanker in the range of ₹25 to ₹30 lakhs, prepared as per SOP (Standard Operating Procedures) norms. After that, for working capital requirements, if you have a 6,000-liter tanker, you will need approximately ₹6 lakhs. Based on market conditions and the credit terms you plan to offer, you can easily assess and manage your investment.
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I m interested
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I m interested
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I interested this business
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I am interested in coco dealer ship
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Das
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Margin
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I m interested
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I am inrested
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Sir I am interested to doing this business please give me your contact number
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