Detailed terms & conditions for mini retailer

1) Eligibility criteria

The applicant should have shop or space in existing shop/house and good reputation in an the market having provision for displaying the company’s sign board. The shopkeeper selling parts and accessories of the kitchen will be preferred.

2) Financial requirement

Initial Rs. 10,000/- (Rupees ten thousand) or more as per requirement. For details, refer to projected profitability.

3) Infrastructure

There is no need for office & godown. The applicant can do business without godown by keeping 100 Kg. LPG at his shop/room.

4) Security deposit

Rs. 10,000/- (Rupees ten thousand) against 5% simple interest per annum at the time of maturity of agreement.

5) Franchisee fee

The Mini Retailer will pay Franchisee fee ₹. 5,000/- (Rupees five thousand) only one time with security deposit.

6) Terms of appointment

Three years with the provision for further renewal by mutual consent. The renewal will be at the sole discretion of the company. The company will have a right to terminate the agreement earlier, if violation of any of the contractual terms is brought to its notice, and in that case, his security will be forfeited.

7) Jurisdiction/Area

One bazaar or locality prescribes by the company with mutual consent.

8) Quantum of business

1000 mini connections. There will be no limit on commercial/Industrial connection/supply booking. However, the company can appoint other retailers in the area if retailer cannot cover the total area properly. As per company policy, there are no restrictions for any retailer/agent/company for supply of the product for commercial/industrial purposes anywhere, and in that case, mini retailer of the area will have no claim of any margin/remuneration.

9)  Statutory provision

The company has complied with mandatory requirements required for LPG business as per gazette notification no 293 dated 24th May 2000. He will comply with applicable statutory requirements i.e. shop establishment, GST registration and insurance of the stock in trade, etc.. He has to get approval of godown from zonal office of the explosive deptt. of his area. However, the copies of following documents will be provided by the company for display at his shop:-

  1. Mini retailer certificate;
  2. Copy of gazette notification issued by the Govt. of India allowing LPG business to parallel marketer;
  3. Copy of valid rating certificate issued by ICRA to the company as per provision in the Act by the Govt. of India;
  4. Copy of valid licenses of plants of company issued by the Chief controller of Explosive, Nagpur.
  5. Copy of agreement executed with the company on stamp paper of Rs. 100/- (Rupees one hundred) only containing detailed terms & conditions duly notarized from the “Notary Public”.

10) Rates

The rate of LPG will be changed as per international market every month. The circular will be issued by the company by 1st of every month. The other items will also be sold as per rates fixed by the company from time to time. Changes, if any in rates will be communicated by the company in advance. Issue of circular at the address or email given by the mini retailer will be sufficient to implement the rates of supply. The rates will be charged applicable on the date of supply from plants/distributor/dealer’s godown. Refer customer price list.

11) Procurement

He will place an order to the distributor/company one day advance with payment if order is exceeds Rs. 10,000/- (Rupees ten thousand) only.

12) Supply

He will issue the mini connections from his stock & book connections and refills for domestic, commercial, industrial use on phone or personally from consumers at his shop. In the evening at 6.00 P.M., he will inform its requirements to the dealer/distributor with copy for information to the company, as per his convenient mode of communication. Supplies will be made at his shop from distributor/dealer’s godown next day in the morning against receipt of cash payment/demand draft against supply after deduction of his margin and he returns the empties of previous day supply. He will give supply to consumer from his shop. If consumer requires delivery at his place against reasonable delivery charges/fixed by the company, it will be his responsibility to send supply at his place. The material will be supplied on the rates fixed by the company. The cylinder will be issued to consumer on security voucher from the subscription voucher book issued by the company after fixing his rubber stamp.

13) Maintenance of stock

He has to maintain stock for refill of mini cylinders as per requirement with minimum 03 mini connections subject to the condition that the quantity of stock should not exceed 100 kg. One connection means, one cylinder with gas, regulator & pipe or stove.

14) Return on investment

The margin on the product will be as under:-

On sale of mini cylinder connections & Booking  of  domestic connection : Rs. 200/- each
Booking  of  commercial connection : Rs.110/- each
Sale of refill in mini cylinder : Rs. 05/- (Rupees five only) per kg.
Booking of refill in big cylinder : Rs. 02/- per kg.

15) Support from the company

Company will support in following manners:-

  1. Training at business associates/company’s office.
  2. Provide printed stationery at reasonable rates, if desired by the associates.
  3. 50% share of the salary/expenses/incentive of 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.
  4. Loan to consumer for connection @ Rs. 1000/- only as per terms of consumer loan scheme.
  5. Help in lodging complaints/ FIR against the illegal traders through association.

16) Publicity

  1. Initially, publicity material as per list enclosed will be supplied by the company to the mini retailer along with first order at concessional rates against the payment made by him as publicity expenses. Indent for further requirement should be made by the mini retailer to the company with payment. For details, refer to our guidelines for publicity in our website under head “publicity”.
  2. He can arrange further local publicity including cable TV in consultation with the PRO/BDM as per policy of the company. The company will reimburse 50% of the expenses on such advertisement if he got approval from the Head office of the company in writing.
  3. The company will also provide maximum support in organizing road show, public campaign and exhibition in his areas. The mini retailer has to lift the sufficient quantity of material as prescribed by the company to meet the demand of consumer during campaign/exhibition in his area.
  4. National & zonal level publicity, national newspaper, T.V., hoardings on highways etc. will be arranged by the company as and when company felt the need of it.
  5. However, he cannot compel the company for any type of publicity. Even at his cost, he cannot make any publicity without permission of the company.

17) Submission of report/returns

He will submit periodical reports/returns required by the company from time to time.

18) Surrender of association-ship

Either party shall give at least 3 months’ notice in writing in case it wants to dissolve the agreement before maturity but not before the period of one year from the date of agreement. The notice to be given to either party shall be deemed to have been served if sent by registered post at the address entered in this agreement or the changed address duly communicated. In case of notice prematurity, no interest on security deposit will be given.

19) Arbitration clause

In case, any differences or dispute arises between the parties, it will be referred to the sole arbitrator to be appointed by managing director of the company. The arbitration proceedings shall be governed by the provisions of arbitration and conciliation act as applicable at the prevailing time. Language of the proceedings shall be in English and venue for arbitration shall be in Delhi. The decision of the arbitrator will be binding on both the parties. Courts of Delhi only shall have jurisdiction to adjudicate upon the findings of sole arbitrator.

20) Miscellaneous provision

  1. These are general terms and conditions; the contract/agreement executed between the parties after negotiations shall be final and have an overriding effect on these general terms and conditions.
  2. These terms and conditions may be changed, altered, modified depending upon the change in governing rules and regulations issued by the Government of India from time to time.
  3. The acceptance or rejection of the application is at the sole discretion of the company. After rejection, no correspondence will be entertained in this regard.
  4. The company reserves the right to change, amend, add or delete any/all clauses at any time without prior notice.
  5. All disputes are subject to jurisdiction of Delhi courts only.

He will return the duplicate copy of these detailed terms and conditions duly signed in token of acknowledgement and acceptance to the company.

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