How To Get Ambuja Cement Dealership, Cost, Profit| SkillsAndTech

How To Get Ambuja Cement Dealership, Cost, Profit| SkillsAndTech

Ambuja Cements Ltd, a member of Holcim – global leader in innovative and sustainable building solutions, is among the leading cement companies in India and is known for its hassle-free, home-building solutions. Its unique products tailor-made for Indian climatic conditions, sustainable operations and initiatives that advance the company’s philosophy of contributing to the larger good of the society have made it the most trusted brand in Indian cement industry.

What are the benefits of Ambuja Cement Dealership ?

If you talk about benefits,the company offers multiple features to their clients and dealers.

  • Leading cement company which has good dealership reputation
  • Easy dealership approval with simple documentations.
  • Huge earning opportunity and best product price.
  • They provide territory rights to boost sales.
  • 365 days support from the main helpdesk
  • You don’t need to put effort for marketing the newly launched products.The company does everything and invest on promotion.

How to select location for Ambuja Cement distributorship ?

Location is important factor for any business.Unlike any other business Ambuja does not have any location restriction.You can start Ambuja dealership business in city or village area.You just need sufficient space.We will be discussing more about space in next paragraph.

What Is Ambuja Cement Dealership Cost

You need approximately INR 5 to 6.5 lakhs to start an Ambuja cement dealership.

This amount may vary from one location to another. In tier 1 cities it would be a bit expensive compared to tier 2 and tier 3 cities.

Other factors like whether you have your own shop or not and your initial stock purchase quantity also alters the total cost.

Here is the break-down above said amount,

  • Dealership Security Deposit as DD -> 2 lakhs to 2.5 lakhs
  • Initial inventory purchase -> 1 lakh to 1.5 lakhs
  • Shop Interior and Warehouse -> 1 to 1.5 lakhs (racks, furniture, computer system & printer, Signage board)
  • Labour for loading and unloading (1st month salary) -> 25,000 (2 people)
  • Shop Advance + First-month Rent -> (extra – if you do not own a shop)
  • Vehicle for Delivery –> (Extra-If Required)

What Is Ambuja Cement franchise investment

The typical dealership fees is 1 – 2 lacks depending location.Now comes to shop setup in your area.You can purchase land for starting business or use your own land.If you have your own space , you would save land purchasing cost.

When your business place is ready,its time to stock the products.Initially if you stock 500 bags then approximate investment would be 1.5 lakhs.There are some additional costs like stuff salary 10,000 to 15,000 per month,godown cost and other maintaining cost.

What Is Profit Margin in Ambuja Cement Dealership

From Ambuja cement dealership you can expect a profit margin of 3% to 7%. 

Like any other cement dealership, if you make more sales, then you will be able to gain more offers and bonuses offered by the company. So, your profit margin is decided by the monthly sales you have made.

The company offers these bonuses & schemes 5 to 9 months after you have started your dealership. If you succeed in meeting those sales targets then you can expect up to a 7% profit margin.

Almost all cement companies offer special schemes like cash discounts, quantity discounts, product discounts, tour scheme packages, gold schemes, etc.

What Is Space required for Ambuja Cement Dealership

You require a minimum space of 600 to 1500 square feet carpet area to open a Ambuja cement dealership.

If you are planning to trade other building materials together with cement, then you may require more space. You can sell other building materials like tiles, steel, bricks, paints alongside cement.

Make sure that your shop has good connectivity & has enough parking space for trucks (for loading and unloading cement bags)

What Licenses and Registrations Are Required Ambuja Cement

These are the licenses and registrations required to open an Ambuja cement dealership in India.

  • Company Registration – Sole proprietorship/LLP/Pvt Ltd
  • Trade Licence – from your local municipality
  • Shop & Establishment Registration – from the state government
  • GST Registration
  • Previous bank statements/IT Returns – to check your financial background
  • Business Insurance – (not necessary)

What Documents Are Required for Ambuja Cement Dealership

  • Bank account number with first page details.
  • Pan card number
  • Aadhar card and voter card for address verification
  • Electricity bill
  • Business trade license from local authority and NOC certificate.

Franchise Agreement

You need to sign on franchise contract papers.It includes all terms and conditions towards running business.The standard agreement period is 3 to 5 years.You can select any of the time period.However,you can renew dealership agreement when it expires.

How to apply for Ambuja Cement Dealership ?

If you are interested to become part of Ambuja cement then follow the below instructions carefully.

  1. Visit Ambuja cement official website www.ambujacement.com and find out the option become distributor. They have inbuilt online application form.
  2. Now at the bottom of the page you need to fill basic details.These are : Full name ,Email address,District,City,contact number and message.
  3. After filling all the details click on submit button.
  4. The franchise team will verify your details and contact you accordingly.
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