| Eligibility criteria |
An experienced professional who wants to be an entrepreneur and have ambition to establish the business of LPG/Auto LPG in the designated ‘Zone’. |
| Business Model |
A joint venture (LLP company) will be formed with PLL’s associate concern S.O. Gas Products Pvt. Ltd., MSME company of 1984 with equal partnership. |
| Investment |
Total investment in the business required about ₹. 5.00 crore (₹ 5 crore) (2.5 crore from each partner) for setting up bottling plant, office infrastructure, stock and working capital required for the LPG business. Investments for auto LPG shall be borne by the company.
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| Franchisee Fee |
To be paid solely by the Franchisee (LPG) with mutual understanding depending on the zone within one year of signing the agreement. Rs. 25 Lac to be paid upfront at the time of signing the agreement as security deposit. |
| Infrastructure |
Minimum an office set up (well-equipped office of 93 sq. mtr. area (1000 sq. ft.) approximately. |
| Land requirement |
Land minimum 3 acre (12041 Sq. meters) for bottling plant of 100 MT storage capacities, covering up to maximum 250 km. radius. (In case the company already has an operational bottling plant in the zone then land is not required.) |
| Jurisdiction/area |
250 km. radius of bottling plant |
| Statutory requirement |
All Local requirements to be fulfilled as required for the designated zone. |
| Rates |
Change as per International market every month in line with the PSU companies, keeping in mind that presently parallel marketers are not eligible for subsidy in domestic cylinders and they have to pay custom duty also. Refer customer price list on website. |
| Responsibility |
To run the profit sharing partner office completely for establishing, developing, running and maintaining the complete network of the company for LPG and Auto LPG Business on the guidelines of the company efficiently, with the help of the associate company in a transparent manner. |
| Margin |
50: 50 profit in line with the LLP after deducting 10 % Royalty to PLL on the profits of the full business of the zone for the LPG Business. For Auto LPG: 5 % commission in case of investment made by the associates for CODO & DODO and ₹ 1.00 lac for each for COCO site finalized at good location. ₹. 0.50/- (fifty paisa only) per liter on the sale of Auto LPG from ALDS new in his zone.
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Projected return per annum |
Depending on the volume created in his area, minimum guarantee of Business Associate’s terms income and minimum 18% return after expenses on the working capital invested. Income from bottling plant is mentioned in respective head. |
| Extra Income |
By adding Transport (primary and secondary) for getting bulk LPG from import facility to plant by tankers and distributing of cylinders to associates from plant. |
