Essar Oil and Nayara Energy have entered into an agreement for the acquisition of the latter’s petrol pump dealership in India. The agreement provides for the transfer of 400 retail outlets and the support infrastructure to Essar oil.
The acquisition would further strengthen Essar Oil’s position as one of India’s largest players in the downstream sector. This article will provide an overview of the deal and its expected impact.
Overview of Essar Oil and Nayara Energy
Essar Oil and Nayara Energy are two leading energy companies in India. Essar Oil is a wholly-owned subsidiary of Essar Global – an integrated energy, infrastructure and services organization based in Mumbai. Nayara Energy is a subsidiary of global entities including Rosneft, The Trafigura Group, UCP Investment Group and other minority investors.
The combined entity of Essar Oil and Nayara Energy will offer energy solutions to customers across India through a network of retail outlets, commercial fuel outlets and aviation refueling services.
The company will have the capability to manufacture, refine and supply petroleum products such as petrol, diesel, kerosene and ATF across the nation, with access to dedicated supply sources for better availability year round.
Essar Oil has established itself as an industry leader in providing high quality petrol pumps across India. Their pumps are equipped with advanced technology like PPI (Point of Purchase Interface), that offers digital payments options such as debit and credit cards apart from cashless mobile wallet payments like PayTM. This ensures convenience while fueling up your vehicles.
Nayara Energy has also established itself as an industry leader through its extensive network ranging from 1200 retail outlets spread across 24 states to 1000+ commercial establishments all over India supplying industrial grade fuel for various industrial application needs.
Nayara Energy is known for its state-of-the-art storage facilities with sophisticated technology facilitating better customer service experience for its customers including corporations as well individuals alike.
With the combined knowledge, resources and locations at both entities disposal, prices can be fixed competitively giving greater value for money for all their customers.
All over India offering them reliable products or services on consistent basis surpassing any market standards depending upon local circumstances or weather conditions that prevail from time to time making them the most dependable service provider in the industry they serve who can meet customers’ expectations promptly without compromising quality standards
Benefits of the Essar Oil Nayara Energy Petrol Pump Dealership
The Essar Oil Nayara Energy Petrol Pump Dealership offers many benefits to the petrol pump owners. With this dealership, petrol pump owners can enjoy economies of scale, better pricing, and higher returns on the inventory purchased from Essar Oil.
This creates opportunities for increased savings and efficiency in operations since the owners are able to reduce their costs due to the discounts available.
In addition, petrol pump owners are given access to accurate information about their local markets and competitive activities-enhancing their ability to make profitable decisions in a timely manner.
The partnership also provides access to marketing support that includes brand recognition, loyalty programmes and customer service.
Through the partnership with Essar Oil Nayara Energy Petrol Pump Dealership, the owners can benefit from additional service guarantees like extended warranties, faster delivery times etc., thus providing peace of mind while running their pumps efficiently.
Furthermore, associating with a national brand such as Nayara Energy elevates their status among customers due to its renowned fame in India’s oil industry overall making it an advantageous proposition.
Therefore it is an excellent opportunity which has many benefits like cost-efficiency and faster delivery times which benefit dealers in both short-term as well as long-term investments thus ensuring success for them both now and in the years ahead.
Eligibility Criteria for Essar Oil Nayara Energy Petrol Pump Dealership
If you wish to apply for an Essar Oil Nayara Energy Petrol Pump Dealership, there are certain eligibility criteria that must be met. These requirements are in place to ensure that you are an experienced and prepared potential petrol pump owner. Let’s review the eligibility criteria for becoming an Essar Oil Nayara Energy Petrol Pump Dealer.
Financial Criteria
Essar Oil Nyara Energy Petrol Pump Dealership provides petrol pumps to those who meet their eligibility criteria. This criteria involves financial and other legal requirements. Potential petrol pump owners must demonstrate that they have the financial ability to support the dealership in addition to providing a safe and secure environment for customers.
The following information describes the financial criteria applicants must meet:
1) Security deposit: A security deposit of Rs. 5 lakhs is required at the time of applying for a dealership with Essar Oil Nyara Energy. This amount will be refunded when the dealer’s term ends or when it is expressly waived off by Essar Oil Nyara Energy at its sole discretion.
2) Investment capital: The management requires the dealership operators to make an investment in capital of at least Rs 10 Lakhs, which will be used for maintaining and purchasing inventory for dealing business, facilities & equipments, operating expenses etc.
3) Credit/Debit history: The applicant must provide credit/debit history documents clearly indicating good financial standing as well as satisfactory track records of previous credit/debit transactions with banks and other related parties over last three years if any.
4) Net Worth: Ownership should be able to demonstrate a net worth of minimum Rs 20 lakhs at any given point during the validity period of dealership with Essar Oil Nyara Energy before any renewal application etc is accepted by Essar Oil Nyara Energy team post initial evaluation.
Area Criteria for Essar Oil Nayara Energy Petrol Pump Dealership
An applicant applying for the ‘Essar Oil Nayara Energy Petrol Pump Dealership’ should meet certain area criteria before submitting an application. The applicant should:
-Have either a residential or a commercial property in the location selected for opening the petrol pump, to serve as the premises for setting up the petrol pump outlet.
-The minimum land requirement for constructing the petrol pump outlet is approximately 2400 sq. mtrs. The applicant must possess such land of their own or must be able to arrange it through leasing/renting, etc.
-The locality chosen by the applicant should have a population of at least 5000 – 10,000 people and/or 1000 vehicles passing by per day, as per official records.
-Special attention should be paid to adequate parking space near the proposed site of construction. It is desirable to have enough but limited space availability covering 50 – 70 sq mtrs corresponding to 1 pump only including additional provision of payment kiosk etc.,
if feasible within available space limits, so that customers can park comfortably while fueling up and repaying conveniently since cash payments will be made by majority of customers and based on projected average sale which could go up from time to time depending upon customer needs at this OMC retail outlet
Infrastructure Criteria
Infrastructure is a key requirement for any potential buyer entering the fuel retail business. As part of the eligibility criteria, applicants must be able to ensure that they have access to appropriate infrastructure and resources to build their own petrol pumps or acquire existing ones.
An essential step towards gaining a dealership. The infrastructure requirements depend upon the type of fuel the applicant wishes to sell: petrol, diesel, or both.
For Petrol Pump Dealerships:
-The property should be at least 5 marlas or 500 sq ft with clear ownership title and legal permission for petrol pump activity.
-Applicants need to provide evidence of this land having sufficient water available throughout the year, apart from other facilities as defined by OMCs like sufficient fire extinguishers, etc.
-The Buyer must also declare their financial capacity to build the required retail outlets with necessary pumps and other fixtures independently or take over existing pumps. Financial proof shall include at least 3 years historical turnover/profits along with a net worth proof document issued by Chartered Accountant (CA).
For Diesel Pump Dealerships:
-The property should have an open frontage of at least 30 ft (minimum) from any public/state highway on which dealers intend to install diesel dispensing pump/tanker filling facility along with minimum 3 m2 open space in front and 5 m2 open space on 2 sides away from road boundary wall if any).
-Applicants need to provide evidence of having sufficient water available throughout the year, apart from other facilities as defined by OMCs like adequate fire extinguishers and manned security booths etc.
-The Buyer must also declare their financial capacity to build the required retail outlets with necessary pumps and other fixtures independently or take over existing pumps. Financial proof shall include at least 3 years historical turnover/profits along with a net worth proof document issued by Chartered Accountant (CA).
Process for Applying
Becoming a Essar Oil Nayara Energy Petrol Pump dealership requires a few steps. These steps are important to understand in order to make sure you have the right documents and qualifications in order to apply for the dealership.
The entire process can take several months, so it’s important to be aware of the steps and get them in order as soon as possible. This section will discuss all of the steps in detail.
Document Requirements
To apply for a Dealership with Nayara Energy, applicants must submit their documents as per the List of Requirements given below. All documents should be uploaded along with the online application for Dealership.
List of Requirements:
-PAN Card
-Voter’s ID / Aadhaar Card / Driving License
-Passport Size Photos (as specified)
-Permanent Address & Office Address Proof (as specified)
-APL Form 16A Bank Statements last 6 months Bank Statement with Bank Seal
-Cheque leaf (optional)
– Infrastructure / Premises Documents (as specified)
Application Process for Essar Oil Nayara Energy Petrol Pump Dealership
The process for applying for a Essar Oil Nayara Energy Petrol Pump Dealership involves a few simple steps which must be completed to be eligible for consideration.
The first step is to fill out an online application form via the Essar Oil Nayara Energy official website or download it and submit it by post or email. The application must include full details such as name, contact information and background experience.
Once the application is received, a representative from Essar Oil Nayara Energy will review it. After successful screening, the dealership aspirant will then be invited for further rounds of assessment, of financial and business due diligence (business plan preparation etc.) along with submission of all other documents as specified in the agreement form, to ascertain eligibility.
Upon approval after due scrutiny, aspirants are notified through their registered email id/phone number about their successful qualification selection as ‘dealership aspirant’.
During this stage, prospective aspiring dealer is called into Etna Training Program (ETP). This program is designed to train aspiring dealers on business etiquettes & ensure that they are well-equipped on safe operations & customer service before opening a dealership.
On successful completion of ETP program and payment of security deposit/fee as mentioned in dealership agreement form within prescribed time frame, Aspiring Dealers can begin operations under their retail outlet name subject to completion & clearance of all mandatory formalities by authorities & customer inspection with NOC’s within defined time frame.
Conclusion
As a conclusion, it can be said that Essar Oil Nayara Energy is an excellent partner to engage as partner for a petrol pump dealership in India. The company has an established customer base, an attractive presence in the oil and gas industry and strong customer service policies in place. In addition, their commitment to expansion makes them an ideal choice for those who want to become dealers of their products and services.
This can result in numerous benefits such as increased profits, customer gratification, brand visibility and market insight that enable entrepreneurs to be competitively successful. Based on these reasons, Essar Oil Nayara Energy is a reliable corporate partner to engage as your petrol pump dealership.