Do you want to open an HP petrol pump dealership outlet in India? This article includes a step-by-step guide on how to open the HP dealership business with investment, cost, profit, licensing, and contact details.
The word HPCL stands for Hindustan Petroleum Corporation Limited. It is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra.
HP has about 25% market share in India among public-sector companies (PSUs) and strong marketing infrastructure. The company is ranked 367th on the Fortune Global 500 list of the world’s biggest corporations as of 2016.
The marketing network of HPCL consists of 21 zonal offices in major cities and 128 regional offices. Also, the company has a supply and distribution infrastructure comprising terminals, aviation service facilities, liquefied petroleum gas (LPG) bottling plants, lube filling plants, inland relay depots, retail outlets (petrol pumps) and LPG and lube distributorships.
Products for HP Petrol Pump Dealership Business
First of all, HPCL markets petrol through its retail pumps all over India. Its principal consumers are personal vehicle owners. Another popular product is diesel. Basically, the regular auto owners, transport agencies, industries, are the major consumers of diesel.
Additionally, HPCL is the market leader in lubricants and associated products. It commands over 30% of the market share in this sector. Some of the most popular brands of HP lubes are Laal Ghoda, HP Milcy, Thanda Raja, Koolgard, and Racer4.
Generally, the dealers have so many product options for selling form their outlets. It helps in increasing the profit and revenue earning both.
Locations for Setting Up HP Petrol Pump Business
Generally, the oil companies decide the location for the dealership after studying feasibility. Selecting the location includes an expansion plan earmarking the reservation category for each location.
Thereafter, HPCL releases advertisements for the locations identified. The candidates meeting the eligibility criteria mentioned in the advertisement can make an application in the prescribed format.
Finally, the selection committee calls the eligible candidates for interviewing and finalizing the dealer selection. HPCL gives preference to the candidates who are willing to transfer land on long-term lease /sale to HPCL.
How Much Investment you Need to Open HP Petrol Pump
Generally, the requirement of capital investment varies from location to location. Because it depends on the cost of land, the size of the plot, and facilities required to be developed to meet the requirement of consumers in the trading area of the outlet.
You will need to deposit a non-refundable application fee of Rs.100/- in respect of Rural ROs (Rs.50/- for SC/ST category locations). It is for Rs. 1000/- in respect of Regular ROs. (Rs.500/- for SC/ST category locations) in the form of demand draft of schedule bank only in favor of the Oil Company.
One applicant can submit only one application for one location. In case you submit more than one application, HPCL will consider only one application finally for the Draw of Lots / Bidding process. The non-refundable Application fee submitted by the applicant along with all other applications will not be refunded.
Special Preference for HP Petrol Pump Dealership
According to the Ministry of Petroleum & Natural Gas, oil companies provide reservation for various categories. This is a part of the marketing plan of HPCL.
Scheduled Caste(SC)/Scheduled Tribes(ST): 25%
Physically Handicapped Persons: 5%
Paramilitary/Police/Govt. Personnel: 8%
Defense Personnel: 8%
Freedom Fighters: 2%
Outstanding Sports Persons: 2%
Additionally, the company reserves 33% locations in each category for women belonging to that category.
After identifying the location for setting up a retail outlet/SKO-LDO dealership, HPCL releases an advertisement in the leading newspaper. Generally, the advertisement comes in one English and one Hindi/vernacular newspaper.
HPCL invites applications from candidates belonging to the category for which the location is reserved. From here, you can get the eligibility criteria, terms & conditions, and procedures.
You can apply only in the prescribed format for the locations advertised by HPCL. You will need to submit the completed applications to the concerned Regional Office within the time limit as stipulated in the advertisement. However, HPCL doesn’t accept any application unless they release an advertisement for a particular location. Hence, you can only apply when the company releases the advertisement sicking application for the HP petrol pump dealership.
You can search for the HP petrol pump dealership advertisement online.
Check the link http://www.hindustanpetroleum.com/retailpetrolpumpdealership.
Essential Requirements for Applying HP Dealership
- You must be an Indian citizen and a resident of India as on the date of the affidavit.
- Your age should be within 21-55 years (except for Freedom Fighters under CC2 category).
- You need a minimum educational qualification for rural dealerships 10+2 examination conducted by a Board/University and Graduation/ Chartered Accountant/ Company Secretary/ Cost Accountant/ Diploma in Engineering for urban dealerships. However, there are certain reliefs for candidates under the CC1 and CC2 category.
We hope, this detailed article will help you in getting HP Petrol Pump Dealership in your area.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.