Summary of terms for distributor
Eligibility criteria Person aged minimum 18 years, educated, having good reputation in the market.
Financial requirement Initial Rs.4,00,000/- (Rupees four lac) only
Infrastructure Well-equipped office & MMV (Medium Motor Vehicle)
Godown duly approved and licensed by Explosive Deptt.
Security Deposit Rs.1 lac against 5% simple interest per annum on maturity.
Franchisee fee ₹. 50,000/-(Rupees fifty thousand) only one time with security deposit.
Terms of appointment Three years with the provision for further renewal by mutual consent.
Jurisdiction/area One district or in city with mutual consent
Quantum of business 20,000 domestic connections & no limits for commercial/industrial supply.
Statutory provision Shop establishment, GST registration, Local, if any.
Rates Changed as per the international market every month.
Refer customer price list on website.
Procurement Procurement from plant
Supply Delivery of cylinders to the dealers/retailers/mini retailers/consumers at doorstep
Maintenance of stock Stock for 3 day’s supply & 20 new connections
Return on investment Connection: Domestic- Rs.480; Mini- Rs. 318; Commercial- Rs. 240
LPG: Rs. 6 in big cylinder & Rs. 7 in mini cylinder
Initially: Rs.8.04 Lac
Regular: Rs. 76.83 Lac PA
Support from company
  1. Training to sales representative, accountant, clerk and any other staff appointed by the distributor free of cost at business associate/company’s office.
  2. Provides office/printed stationery at reasonable rates if desired by the distributor.
  3. Provides advice for approval/license of godown or any other help in completing the formalities free of cost or can provide consultant for the same on reasonable rates.
  4. 50% share of the salary/expenses/incentive of business consultant, freelancer, liasioning assistant and surveyor engaged on the terms laid down by the company to establish and develop his business as well as for publicity in his area.
  5. Allows distributor to recommend dealer, retailer, mini retailer and customer representative in his area on the terms and conditions framed by the company.
  6. Loan to consumer for connection @ Rs. 1000/- only on submission of documents mentioned in the consumer loan scheme.
  7. Allows distributor to search the industries for providing gas bank in any area at very reasonable terms against the commission in installation and refill.
  8. Provides cylinders in 50% security where distributor provides free of cost in commercial and industrial units.
  9. Supports in arranging funds from the banks/financial institutions against collateral for construction of godown, purchase of cylinder and vehicle for loading unloading & working capital.
Publicity Share basis with company & associates
Submission of report/returns Submit periodical reports/returns to the company
Surrender of association 3 months’ notice in writing but not before one year.
Arbitration clause In case, any dispute arises between the parties, it will be referred to the sole arbitrator appointed by managing director of the company and jurisdiction will be Delhi only.
Miscellaneous provisions The acceptance or rejection of the application is at the sole discretion of the company.
The company reserves the right to change, amend, add or delete any/all clauses
All disputes are subject to jurisdiction of Delhi courts only
FAQ (Q-42 to 46) Distributor Detailed terms & conditions Projected profitability Step by step action Application form