Skarphed Finman IMF LLP

In their own words

Diesel Distribution and Supply Business Plan Industry Overview India is third largest consumer of Petroleum Products in world. The consumption is increasing rapidly in this sector. Diesel distribution and supply business is classified under the Fuel Dealers industry and players in this industry sell Diesel, Petrol, CNG, LPG, Kerosene, Aviation Fuels, heating oil, propane and other fuels directly to end users. Related companies also deliver heating oil, propane and other fuels, such as auto – gas and kerosene, to domestic and commercial premises. Please note that the Fuel Dealers industry has moderate barriers to entry. Entrepreneurs that intend entering the industry must gain access to reliable sources of fuel for distribution. They also need to attract a customer base. New operators will lack economies of scale because they have few customers when first entering the industry. If customers are geographically distant, transportation costs may be prohibitive due to high per-unit expenses. Since the industry’s products are substitutable, operators have to differentiate themselves through service and efficiency. The Fuel Dealers industry is a thriving sector of the economy of India.In FY 2019 Diesel consumption india was approximately 9.84 Cr. Kl and the industry generates this sale with help from more than 65000 registered and licensed fuel dealers (diesel distribution and supply) in the country. The industry is responsible for the employment of over 7 Lacs people. Experts project the Fuel Dealers industry to grow at a 3 percent annual . Some of the factors that encourage aspiring entrepreneurs to start a diesel distribution and supply business is the fact that the market is growing rapidly in the India and it is not seasonal. That makes it easier for entrepreneur who are interested in the business to come into the industry at any time they desire; the entry barriers might be high but that any serious – minded entrepreneur can comfortably raise the startup capital even if it means collecting loans from the bank. There is a huge opportunity in this sector as bulk consumers have to arrange for themselves for purchase of Diesel which evolve on one side dedicated manpower and additiobal costs on other side there may be adulteration and pilferages too. The inherent danger to public while transportation of inflammable material in plastic containers always there. Over and beyond, the Fuel Dealers industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business as long as they are able to obtain the required license and permits; you can choose to start on a small scale and supply on a community level or you can choose to start on a large scale with distribution network spread across key cities all around the India.

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