Last updated: March 2nd, 2023 7:35 PM

How to Start a Essar Oil Petrol Pump Dealership in India?

Petrol pump business is a lucrative business with good returns is an extensive perception among the significant proportion of total population in our nation. The emerging number of vehicles across the country has led to an increase in fuel (Petrol & Diesel) demands and ultimately increases the necessity for petrol pumps. According to the reports, an average petrol pump sells almost five lakh litres of fuel, diesel and petrol every month in India. Essar Oil Limited is largest public oil and gas company. Essar Oil has been renamed as Nayara Energy. Nayara Energy manages the fastest growing retail business chain in India with the most extensive private sector fuel retail network. The company has over 4,500 operational outlets spread across India. In this article, we look at the procedure for starting an Essar Oil Petrol bunk dealership in detail. Know more about Starting a Petrol Pump Business

Why Essar Oil (Nayara)?

• The company has over 4500 operational outlets spread across India and more than 2600 outlets at various stages of completion
• Nayara Energy fuel stations (Essar oil petrol pump) endeavour to reach the breadth and length of India - covering the national and state highways as well as the rural areas.

How to Identify the Locations for Essar Oil Retail Outlet?

Essar Oil (Nayara energy) identifies locations for setting up Petrol or Diesel retail outlets after carrying out the required feasibility studies and based on commercial considerations.

What are the eligibility criteria to start a Essar Oil Petrol Pump dealership in India?

Eligibility criteria for opening an Essar Oil Petrol Pump are listed below:

• Any Indian National who has a suitable land and willing to Lease it to Essar Oil (Nayara Energy) can apply for the dealership.
• If the applicant does not have land but interested either in buying or taking land on lease and further leasing it to Essar Oil (Nayara Energy) for the fuel station, can also apply for Essar Oil Petrol pump dealership.

Criteria for Land

• The size of the land should be more than 800 square meters in your town or above 1200 square meters on the highway to set up Essar Oil Petrol Pump
• The land should also be levelled and developed for starting a petrol pump
• Land identified for the Essar Oil retail outlet has to be leased to the company for 29 years, 11 months, except in Tamil Nadu and Maharashtra (29 years) and Rajasthan (19 years and11 months) due to regulatory norms in these states.

Note: The size of the land may vary from location to location and the type of retail outlet to be established.

What is the Profit Margin in Petrol Pump Business?

Essar oil dealership model is not only simple but also lucrative to ensure steady operating profits and returns on your investments.

• A mutually agreed lease rental on the land for the period of 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 which is competitive as compared to the current margins in the industry.

Note: The payment of lease rentals and return on investment (ROI) will be paid once a quarter. However, the sales commission will be given in the invoice when the product is billed to a retail outlet. Image 1 Essar Oil Petrol Pump Dealership

How much does it cost to start a Essar Oil petrol pump in India?

Apart from the cost of land, selected applicants need to invest for construction and day-to-day operations of the Essar oil petrol pump. The average costs of investment will approximately Rs 50 - 70 lakhs depending on the size of the retail outlet and the amenities or services provided.

Application Fee

A non-refundable amount of Rs.3 lakhs has to be submitted as application fee for Essar Oil Petrol Pump Dealership. 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.

What are the documents required to start a Essar Oil pump dealership in India?

Documents required for getting LOA of Essar Oil Petrol Pump dealership is listed below:    

• The application form -Expression of Interest (EOI)
• Land Documents including 7/12 extract and sale deed
• Circle Rate Circular
• Site Plan
• Photographs of the site
• Specific documents needed to establish financial and business capability
• DD for the application fee

License / Permission required

The applicant needs to obtain all statutory approvals and licenses from the Government to set up the Essar oil petrol pump. Due help will be provided by Essar Oil (Nayara Energy) to prepare applications in line with Government mandate and requirements. Listed below are some of the standard sets of license or permissions required. However, the list can differ from one state to another:

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

Essar Oil Petrol Pump Dealership Application Procedure

An applicant with a suitable land or his willingness to invest in an Essar fuel station can apply through the following modes:

• By filling the application form on the Company website link (Explained below)
• By sending the land details and contact details over an email to marketing@nayaraenergy.com
• By filling the EOI (Expression of Interest) form at the respective divisional office (Described below)
• By calling our franchisee helpdesk on 022-71321122

Essar Oil Petrol Pump Dealership – Online Application

Essar oil petrol pump or retail outlet dealership online application procedure is explained in detail below: For applying online for Essar Oil retail out the dealership, the applicant needs to visit Nayara energy webpage. Step 1: From the main page click on ‘Franchisee’ option, the link will redirect to new page. Image 2 Essar Oil Petrol Pump Dealership Step 2: In the new page, select Apply Online Option. Essar Oil retail outlet franchise inquiry form will be displayed. Image 3 Essar Oil Petrol Pump Dealership Step 3: Provide all necessary details such as Name, Mobile number, Email ID, State and District details. By clicking on the submit button, the application form will be forwarded to the divisional office. Image 4 Essar Oil Petrol Pump Dealership

Essar Oil Petrol Pump Dealership - Application via Divisional Office

Essar oil petrol pump or retail Outlet Dealership application procedure 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 in the official website. The applicant get the application form from the concerned divisional office. Note: In case of the partnership, each partner will have to provide a separate application form along with a different application fee as applicable. Filled application form along with supporting documents complete in all respects should be submitted to the Essar oil divisional office. The Essar oil divisional office details are given in the image attached here.   Image 6 Essar Oil Petrol Pump Dealership

Verification of Application

Once 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 Nayara representative within four days from the date of application. After the site visit, the detailed discussions on the lease rental will be carried out, and an agreement will be achieved.

Mutual Agreement

A letter of willingness for becoming a Nayara Energy ltd franchisee (Essar oil petrol pump dealer) and another letter confirming the agreement of rental and volume targets will have to provide by the applicant.

Application Fee Payment

The candidate will have to deposit a non-refundable application fee as mentioned above. The fee needs to be paid in the form of Demand Draft.

Get Letter of Appointment

Once the land, as well as the applicant, is found to be suitable, a Letter of Appointment will be issued (LOA). Know more about  PPetrol Pump License Eligibility

Get NOC

After receiving LOA, the applicant needs to obtain NOC. It is a document issued by the District Magistrate's office after getting clearances from all concerned departments. The NOC is a mandatory approval to start construction of Essar Oil Petrol Pump Fuel Station. For national highway site, NHAI approval is a must before you start constructing the Essar Oil Petrol Pump.

Time Frame

After the NOC and statutory clearances are received, 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 selected dealer has to develop the outlet as per requirements and standards specified by the Essar Oil Company. Essar oil (Nayara Energy) will provide following supporting to their dealer.

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