How to Start Cement Dealership? Cement Dealership Business Full Guide

How to Start Cement dealership business in 2021

Growing to the business opportunities and foreign direct investment in India the need for making its infrastructure and development look appealing and signifying the country’s capability highly depends on its construction which is not possible without, cement

The cement production reached 334.48 million tonnes in FY 2020, with India being the second largest producer of cement in the world contributed by the top 20 cement companies of India which account for 70% of of the total cement production.

So, how would you like to have one cement dealership of your own? Let’s see the hows and whys

License, investment and space requirement of cement dealership The licenses, investment and profits of a cement dealership depends on the company you are dealing with. These aspects for few of the top cement companies which you can deal with are.

Ambuja cement dealership/franchise

Ambuja cements Ltd are a part of the global conglomerate LafargeHolcim and is known for its tailor made cement products made to suit the Indian climatic conditions for hassle free, hike building solutions.

Cement Dealership
Cement Dealership

Investment required

Shop advance
Dealership advance – ₹1lakh – ₹2 lakh
Cost of initial stock – 400 Bags @ ₹1.5 lakh

Documents required

  • GST number
  • Land/rental detail
  • Marketing office location
  • Information about Co-partners
  • Application form from the official website of Ambuja cement
  • TIN number

ACC Cement dealership/franchise

It is India’s foremost manufacturer of cement and ready mixed concrete. It is an abbreviation for Associated Cement companies which is also registered as cement house.

Investment required

  • Deposit of ₹ 1 lakh
  • Space requirement of 500 sq ft
  • Documents required
  • GST registration
  • Lease/rental agreement
  • Standard dealership agreement

Documents required

  • GST number
  • Land/rental detail
  • Marketing office location
  • Information about Co-partners
  • Application form from the official website of ACC cement
  • TIN number

Ultra tech Cement

This company has the capacity of 102.75 million tonnes per annum of grey cement. It operates 20 integrated units, 26 grinding units, seven bulk terminals and one clinkerisation plant for grey cement. It is India’s largest manufacturer of grey cement.

Investment required

  • Security deposit: ₹10 lakhs
  • Space requirement: 3000 sq ft
  • Godown capacity: 5000 bags of cement
  • Documents required
  • Firm registration document (MSME registration)
  • GST registration
  • Land/rental agreement
  • Standard dealership agreement

UltraTech Cement dealership cost

The dealership cost depends on your initial stock. You can start your business investing from 1 lakh to 50 lacs. Well, starting business is not only getting product stock from the company but also it needs all necessary equipments. Like if you have your own place then you will save a good amount of money otherwise you have to pay for rented place. If you recruit people to deliver products to customers home then do you have to pay 5000 to 15000 for each employee. Later when your business grow fast and you need to stock more items then you may have to invest a little bit for your large Godown purpose.

What is UltraTech Cement franchise agreement ?

The company has not revealed its business agreement to the public. They only share agreement information when you get approved by their team. Most of the standard franchise agreement is between 3 to 5 years and maximum for 6 years. We can discuss more about it with UltraTech franchise authority. We have given the contact details at the bottom of this post.

Cement Dealership
Cement Dealership

How to get UltraTech Cement dealership in India ?

For getting dealership of UltraTech Cement either you can visit their head office address or you can visit their online website. After visiting website you have to follow certain steps to submit your franchise request to them. Below you can find step by step instruction which will help you to submit your franchise request easily.

Open any browser and search on Google with UltraTech Cement. At the very first result you will see they are official website :- Click on the link and you will be on UltraTech Cement home page. Now at top of the menu bar you will get an option contact tab.This contact tab lets you submit any query. Here in the contact form please submit the information which are mandatory.Now there is a drop down menu insight contact form. After clicking the drop down menu choose “dealership and retailers” option. As you are interested to take their franchise You need to choose that particular option.
When you submitted all information please verify and click on submit button.
Now your submission is successful and you have to wait at least 7 days to get a response from them.

JK Lakshmi cement Cement dealership in India ?

It is a part of an 132 year old JK organisation. It has an annual turnover of ₹40000 crore and a production capacity of 13.30 million tonnes of cement per annum.

  • Investment required
  • Security deposit : ₹5 lakhs
  • Documents required
  • GST registration
  • Land/rental agreement
  • Standard dealership agreement

Focus Target your consumers

Households: The households sector requires cement for the purpose of construction houses, floorings, walls etc
Interior designers: The interior designers are another target customer for this business because of their affiliation with contractors and architects for building office, exhibition and housing spaces
Construction industries : These require cement for the purpose of constructing large offices spaces, pavements, roads, railings etc
Architects: The architects in contract with clients and designers etc also require cement for the purpose of construction of partitions, ceilings, Walls etc
Retail shops: Your wholesale cement franchise could serve the small cement retail shops who could buy from you in bulk to cater to the regional specific demands
Government projects: The construction of railways pavements, airport runways etc also require cement for the purpose of water and heat resistant platforms

Business model and growth your dealership fast?

The business model of a cement dealership can be defined using these four variants

Value proposition: The value which a cement dealership business is likely to get to you is

  • Brand reputation
  • Large customer target markets
  • Bulk demand
  • Low investment prospects
  • Reasonable profit margin

Target consumers: The target consumer for this dealership business are

  • Household sector
  • Construction industry
  • Interior designers
  • Architects
  • Airports
  • Railways
  • Competitor review: The competition you will have is likely from the other cement dealership companies like
  • Jaypee cement
  • LNT cement etc

Marketing strategy: The marketing strategy that can be implemented by your business is

  • Hoardings and billboard advertising
  • Sales promotion through cash and bulk discounts
  • Google listings
  • Presence in Google local directories
  • Growth

The cement dealership business has the potential and has witnessed the following growth prospects

FAQ about Dealership

How much investment required for cement dealership ?
You need an Investment of 5 lakh to 6 lakhs rupees.

What is the minimum space required for the dealership ?
Minimum space required is 500 square feet

How to contact ACC cement ?
You can call their toll free number 1800 1033 444

What is the profit margin in Cement dealership?
You can expect a profit margin of 5% to 11%


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