Starting an Essar Oil Petrol Pump Dealership in India

Essar Oil Limited is known as the largest public oil and gas company. Later on, it was renamed Nayara Energy. Nayara Energy deals with the fastest growing retail business network in India and has the most widespread private sector fuel retail chain. The company owns above 4,500 operational outlets that are spread across India. This article will give you an insight into the procedure for starting an Essar Oil Petrol pump dealership in detail.

The petrol pump business is one of the lucrative businesses that offer good returns. This is a popular perception among a considerable proportion of people in our nation. The rising number of vehicles all over the country has led to an increased demand for fuels and also has eventually increased the necessity for petrol pumps. The reports depict that an average petrol pump sells around 5 lakhs liters of fuel, diesel, and petrol every month in India.

Why Essar Oil (Nayara)?

The company owns more than 4,500 operational outlets spread all over India and over 2,600 outlets are at different stages of completion.
Nayara Energy fuel stations (Essar oil petrol pump) endeavor to spread itself to the length and breadth of the country – covering the national as well as state highways and also the rural areas.

How to identify the Locations for Essar Oil Retail Outlet?

Essar Oil (Nayara Energy) identifies it’s locations for the purpose of setting up Petrol or Diesel retail outlets, once they have carried out the necessary feasibility studies, based on commercial considerations.

Eligibility criteria for starting an Essar Oil Petrol Pump dealership in India

Eligibility criteria for starting an Essar Oil Petrol Pump are as follows:

Any Indian National who happens to have a suitable size of land and is willing to lease it to Essar Oil (Nayara Energy), is eligible to apply for the dealership.
In case the applicant does not own land but he is interested either in the purchase or wants to take the land on lease and further lease it out to Essar Oil (Nayara Energy) for the fuel station, is eligible to apply for Essar Oil Petrol pump dealership.

Criteria For Land

The size of the land needs to be more than 800 square meters in the concerned town or above 1,200 square meters on the highway for setting up Essar Oil Petrol Pump.
The land is required to be leveled and developed for setting up a pump.
The land that is identified for the Essar Oil retail outlet needs to be leased to the particular company for 29years, 11months, except in Tamil Nadu and Maharashtra (29years) and Rajasthan (19 years and 11months) because of the regulatory norms in these states.

Note: The size of the land, may vary from one location to another and the kind of retail outlet to be established.

Expected Profit Margin in Petrol Pump Business

Essar Oil dealership model is not only a simple one but also a lucrative one, as it ensures steady operating profits and returns on your investments.

The lease rental that is mutually agreed on for the period mentioned in the lease will be paid.
A performance-based return on investment at 5% per annum on the capital expenditure will be made onsite and infrastructure development. Investment is calculated on normative cost, based on the standard costing model.
Sales commission on actual sales is competitive if compared to the current margins in the industry.

Note: The payment of lease rentals and return on investment would be paid quarterly. But the sales commission, on the other hand, would be provided in the invoice when the product is billed to a retail outlet.

Cost of Starting an Essar Oil Petrol Pump in India

Besides the cost of land, chosen applicants have to invest for the purpose of construction and day-to-day operations of the Essar Oil petrol pump. The average cost of investment would be around Rs. 50-70 lakhs varying according to the size of the rental outlet and the amenities or services offered.

Application Fee

An amount of Rs.3 lakhs, needs to be submitted for Essar Oil Petrol Pump Dealership as an application fee.

The Application fee is non-refundable once the letter of appointment is issued. The dealership application fee may be refunded in an exceptional case if there is a valid justification in the instance of statutory approval being denied by the Government agency. It will be at the discretion of Essar Oil.

Documents Required for the Procedure

Documents required for getting LOA (Letter of Appointment) of Essar Oil Petrol Pump dealership are as follows:

Expression of Interest (EOI) application form
Land Documents that include 7/12 extract and sale deed
Circle Rate Circular
DD for the application
Site Plan
Particular documents required to establish financial and business capability
Photograph of the site

License / Permission Required

The applicant is required to obtain all statutory approvals and licenses from the Government to set up an Essar Oil petrol pump. Required help will be offered by Essar Oil (Nayara Energy) to prepare applications in line with Government requirements and mandate. Following is a certain standard set of licenses or approvals that are required. But, the list may differ from state to state:

Non-Agricultural (NA) Conversion
CCOE (Explosives Department) initial approval
Forest NOC – In the case of Forest Land
District Collector NOC, approval from PWD, Electricity Board, Police commissioner NOC, Gram panchayat depending on the requirement by the competent authority
Final CCOE License
Retail Selling license -If applicable
NH (National Highway) – access road permission (If applicable)
Weights and Measures stamping

Essar Oil Petrol Pump Dealership Application Procedure

An applicant who owns a suitable size of land or is willing to invest in an Essar fuel station can apply through the modes listed below:

By filling the application form that is present on the Company website
By sending the details of the land and also contact details via an email to [email protected]
By filling the Expression of Interest (EOI) form at the concerned divisional office
By simply calling the franchise helpdesk on 022-71321122

Essar Oil Petrol Pump Dealership – Online Application

Essar oil petrol pump or retail outlet dealership online application process is explained below:

For applying online for Essar Oil Retail out the dealership, the applicant is required to visit the Nayara Energy webpage.

Step 1: From the main page click on the ‘Franchisee’ option, the link will automatically redirect to a new page.

Step 2: Choose “Apply Online Option” on the new page. Essar Oil retail outlet franchise inquiry form will be displayed.

Step 3: Fill in all the required details like your name, mobile number, Email ID, State, and district details. Then click on the “Submit” button, the application form will be forwarded to the divisional office.

Essar Oil Petrol Pump Dealership- Application through Divisional Office

Essar Oil petrol pump or retail outlet dealership application process is explained in detail below:

The application form for Essar oil retail outlet can be submitted on plain paper in the prescribed format as given on the official website. The applicant can get the application form along with a different application fee as applicable.

Filled application form along with required documents complete in all respects must be submitted to the Essar oil divisional office.

Verification of Application

After the application is received, the Territory Sales Manager and Divisional Manager will discuss with the applicant for further processing.

Site Visit

The site visit will be conducted by a Nayara representative within 4 days from the date of application. After visiting the site, detailed discussions on the lease rental will be carried out, and an agreement will be achieved.

Mutual Agreement

A letter of consent for becoming a Nayara Energy ltd franchise (Essar oil petrol pump dealer) and another letter confirming the agreement of rental and volume targets would be provided by the applicant.

Application Fee Payment

The candidate would have to deposit a non-refundable application fee as described above. The needs to paid in the form of a demand draft.

Obtain Letter of Appointment

After finding a suitable land as well as an applicant, a Letter of Appointment will be issued (LOA).

Get NOC

Once you get the LOA, the applicant is required to obtain NOC. It is a document that is issued by the District Magistrate’s office after getting clearances from all concerned departments. The NOC is a compulsory approval to start construction of Essar Oil Petrol Pump Fuel Station.

Time Frame

Once you obtain the NOC and statutory clearances, the Essar oil petrol pump can be set up within three months.

Support From Nayara Energy or Essar Oil

In Essar Oil petrol pump (Nayara Energy’s) dealership model, the chosen dealer has to develop the outlet as per requirements and standards specified by the Essar Oil Company. Essar Oil (Nayara Energy will offer the following support to their dealer:

Technical and Engineering guidance as per industry mandates to set-up your retail outlet.
Launching robust technology initiatives like retail automation, consumer & dealer mobile apps, etc.
Design and branding support to enhance the visibility and, look and feel of your outlet as per our retail guidelines
Periodic promotional activities and schemes to create awareness and increase business at your retail outlet.
Detailed training for forecourt sales staff to make sure smooth operations at the retail outlet.

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