Hello Friends! Today we’ll discuses about the HP Lubricants Distributorship, that how you can apply for the HP Lubricants Distributorship, Advertisement, Investment, Documents & Licence, Profits and requirements and many more in this article.
Table of Contents
HP Lubricants Wiki
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- HP Lubricants is Hindustan Petroleum Corporation Limited’s (HPCL) umbrella brand for manufacturing and marketing various lubricants and specialty products.
- HP Lubricants is India’s largest lubricant marketer.
- More than 350 grades of lubricants, specialties and greases manufactured in state-of-the-art blending plants spread across India.
- HP Lubricants find applications in automotive, industrial, mining and construction, agriculture, fishing, defence and railways among others.
- It is trusted brand in India.
- It provide good profits and margin.
HP Lubricants Benefits
This is highly confidential information. Because this company had not disclosed it. You can only know about this after applying for the franchise. All this will be discussed when the basic criteria are met and fulfilled. You can know the procedure as follows.
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HP Lubricants Cost
Provision of minimum* financial requirement for operating the Distributorship :
As mentioned earlier, an applicant has to be able to provide minimum* of Rs 50 Lakhs (For locations with expected volume of > 15 KL per month) and Rs 25 Lakhs (For locations with expected volume of up to 15 KL per month) in working capital on continuous basis for operating the Distributorship. In order to establish this, the applicant has to produce details along with specified documentary evidence as per below format:
*Note: The above is minimum requirement for meeting the minimum volume criteria for the location. In case of further growth in market potential, the distributor is expected to increase the working capital as per requirement.
|Fund Type||Fund Details||Amount (Rs. Lakhs)||Attachment|
|Liquid Funds||Liquid Funds (Savings /Current|
Account / FD/RD/ / Matured PF
account (PPF/EPF) / Any other
without mandatory lock-in period
or with lock-in period having
maturity period within 60 days
from the date of advertisement)
|Documents of ownership|
|Other than Liquid|
|Un-encumbered Fixed Assets for raising LoansLoans from Family members|
with commitment letter & details of assetsCommitment Letter from
Bank/Financial Institution with
Loan amountAny other funds viz.
Trade with documentary
ownershipAppendix A4Appendix A5Documents of ownership
HP Lubricants Requirements
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- Proper Space(Shop/Godown)
- Proper Investment
- Equipment for the office
- Vehicle Required(Tempos / Trucks)
- Manpower Required
Eligibility Criteria For HP Lubricants Distributorship
Who can apply?
An applicant can be an individual, a proprietorship firm, a partnership firm, a registered co-operative society or a Limited company (both public and private).
The eligibility criteria for starting Indian Oil Petrol Pump Dealership retail outlet is explained in detail below:
- Should have Indian Citizen.
- Applicants should have not less than 21 years and not more than 60 years.
- Minimum pass in Matriculation(10th).
- An applicant can be an individual, a proprietorship firm, a partnership firm, a registered co-operative society or a Limited company (both public and private).
- Have an experience of managing a Distribution Network in the field of Lubricants / FMCG / Tyres / Batteries / Auto Spares or any other related business.
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- Applicants should have capability of managing sales force, ability to generate leads, selling skills, technical competence, etc.
- Applicant should not have any criminal record.
- Candidates who have their own Lubricants or Greases manufacturing facility are not eligible to apply.
HP Lubricants Profit
Franchise revenue depends on a wide range of factors, as does profit. How much money you can make from any franchise depends on a number of specific factors such as franchise location, labor costs, commercial lease rates and a number of other factors.
LOI & Responsibility of the Distributor:
- Applicant, who is finally selected for the Lubricants Distributorship, will be issued a letter of intent (LOI) on a) physical verification of all original documents as were submitted with the application form and b) submission of interest-free security deposit of Rs 2.0 Lakhs in the form of a local DD payable to HPCL. This security deposit to be submitted to HPCL within 30 days from the date of intimation letter for LOI. The candidate is expected to fulfill all LOI terms within 45 days of the date of LOI, like:
- Facilities / Manpower
- Arrange for Bank Guarantee of minimum Rs 5.00 Lakhs or Interest-free security deposit of minimum Rs 5.00 Lakhs in the form of a Demand Draft payable in favour of Hindustan Petroleum Corporation Limited (pl. refer draft LOI)
- Statutory requirements like GST registration and other requirements as per Government guidelines
- Any other requirement as per selection guidelines or as decided by HPCL from time to timeIn case LOI holder is unable to fulfil any of the LOI terms, the LOI will stand withdrawn and the candidate will forfeit the security deposit. Then the second empaneled candidate will be considered for issuance of LOI.
- As per the LOI terms, once all requirements are fulfilled within stipulated time from the LOI date, the security deposit of Rs 2.00 Lakhs will be refunded to the The candidate will then be issued a letter of appointment (LOA) for HPCL Lubricants Distributorship. The letter of appointment specifies the target for the Distributor as per following template:
Note 1 : In case LOI holder is unable to fulfil any of the LOI terms, the LOI will stand withdrawn and
the candidate will forfeit the security deposit.
Note 2 : As per the LOI terms, once all requirements are fulfilled within stipulated time from the LOI
date, the security deposit of Rs 2.00 Lakhs will be refunded to the candidate. The candidate will then be issued a letter of appointment (LOA) for HPCL Lubricants Distributorship.
- The agreement will be for a period of 5 Years wherein during the initial first year if the Distributor is unable to meet at least 50% of its assigned target then HPCL will terminate the Distributorship Agreement forthwith.
- The agreement can be renewed for further period of 5 years basis the Distributor fulfilling performance standards set by HPCL from time to time.
- The distributor will be provided standard billing software (currently Tally) which the Lubricants Distributor must use for every transaction pertaining to the Distributorship.
How to Apply For HP Lubricants
To get the franchise first you have to fill the form. Then the company officials will contact you for further details. After that you you can open this franchise.
Is it profitable or not?
Ans: It is fast moving consumer good products, so there is fewer margins but your sale is too high. So, obviously you can make more profit from this business
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So far we have shared the basics for this franchise. It is the most profitable franchise. You will never doubt your decision to start this franchise. Go ahead and achieve your goal. If you find more information please feel free to share with us. Share your thoughts and we will definitely contact you with new franchise and opportunities. Stay Tuned for more franchise. Thank you
Disclaimer: The information given in this article like investment may vary from place to place, so we are not sure about the investment part.
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