Supply under Interim Arrangement

This agreement can only be executed if an Associate such as Dealer/Distributor/Retailer would like to commence work immediately after submitting the necessary documents with the Explosive department for their warehouse approval. This agreement will stand void as soon as the warehouse approval is received.

Advantages of starting to work immediately

  • An opportunity to survey the market and establish a customer base
  • Evaluate the potential of the business
  • Start earning from the very early days of the venture

In this arrangement, you

  1. Will act as a Customer Representative of the firm
  2. Can store up to 100 kg. LPG without license
  3. Must arrange a transportation to carry desired quantity of supply and return to the godown/plant allocated to you

Market Demand of LPG Cylinders

Government launched the “Give Up” subsidy campaign in March 2015 to reduce their expenses, regulate the market and help poor families. In 2019, Govt. took a decision to sell it’s entire 53.29 percent stake in BPCL to private players. This clearly shows that the government is making efforts to further open up the market for private players. In the near future, it is anticipated that the government will either fully remove the subsidy or make this industry a level playing field for everyone. This gives an opportunity to all the private players to start planning their entry in this regulated market.

Premier LPG is already a step ahead and has been running the operations since 1993. At this stage, it is a good opportunity for us to further establish our base in the market and remain ahead of our competitors and potential new upcoming players in the industry.

In the current business environment, our Associates can already start capturing various customer segments who will be interested in purchasing our product. Some of the examples are highlighted below:

  1. Small shopkeepers/restaurants/take-aways who are currently using domestic cylinders illegally for their commercial use
  2. Customers with high consumption (more than 12 cylinders annually)
  3. Customers who are either temporary residents/tenants OR does not have a permanent address proof and resorting to the black market
  4. Working professionals who would prefer an ease of delivery at their convenient time
  5. Daily wage earning labours who purchase mini cylinders from the black market at high price

Premier LPG is a one-shop solution for all the customers as we:

  • Have different sizes of cylinders i.e. 4, 12, 15, 17 & 33 Kg, meeting the needs of commercial, industrial and residential customers
  • Provide GST paid cylinders wherein GST can be claimed back by the commercial or industrial customer
  • Have no limit on the amount of refills in a year
  • Supply to anyone who can provide single ID proof
  • Deliver at customers convenient day and time including weekends
  • Have high availability of our product in the market due to our large network of distributors, dealers, retailers and mini-retailers accessible to everyone.

Meanwhile you are organizing all your resources needed such as warehouse, office location, office staff etc., you can use our assets. We will offer you:

  1. Connection @ Rs. 1000/- & balance in 12 installments with interest @ 10% per annum only. Refer to the Consumer loan scheme on our website.
  2. 50% contribution on the expenses of marketing and publicity i.e. stall, local TV Adv., pamphlets, posters etc.
  3. Training in all respects to the distributor/dealer/retailer & his staff at our office.
  4. To stop the illegal activities running in the area through association
  5. Distributor/dealer can order cylinders on rent from the company against the security deposit/bank guarantee.

An Associate’s Accountability

  • Take orders from the customers directly
  • Make all necessary arrangements to deliver the order to the customer at their desired location (home, shop etc.)
  • Collect payment from the customer
  • All Order bookings needs to be on the indent format (PF-5) in triplicate:
  1. 1st copy for warehouse in-charge
  2. 2nd copy for receiving as token of confirmation of the order placed
  3. 3rd copy for record
  • Order to be placed with full payment in advance at the warehouse, an evening before the customer delivery date by positively 6pm
  • Supply will only be made on receipt of original copy of indent
  • Record keeping of total cylinders with the Associate. This includes cylinders
  1. In circulation or transportation vehicle
  2. At customer’s premises
  3. Stored at Associate house/shop/vehicle

Please note, cylinders are not sold to anyone. Customer only pay the price of the gas they are consuming and receive the cylinders against refundable security. Please refer to the chapter of booking new connections for proper maintenance of record.

Profitability 

Given high market demand, we expect that you will be able to do the following ::

Monthly Sales

  • 10 domestic cylinders
  • 20 commercial cylinders

Target Sales :: 50 refills per day OR 1500 refills per month

As per our experience, each commercial customer on an average reserve

  • 2 cylinders
  • Refill each cylinder 5 times in a month

To be able to achieve monthly target sales of 1500 refills, an Associate will need approx. 150 commercial customers, who will on an average take 300 cylinders in total.

Profit margin on 1500 refills per month = approx. Rs. 27000/- per month. For details visit ‘projected profitability in customer representative’