Franchisee Help desk

Q:    What are the returns can I expect after becoming an Essar Oil Dealer?

Ans: Returns are purely performance based. We have sales commission on the actual sales of petrol and diesel which means the more you sell the more you earn. We also have a performance-based return on investment @ 5% p.a. on the investment made onsite and infrastructure development. Investment is calculated on normative cost, based on the standard costing model. The payback period varies from case to case and is reflection of your involvement and interest in the business. We have success stories of dealers receiving their entire investment in the period of 1-3 years.

Q:    What is the average investment in developing the retail outlet and the TAT?

Ans: Apart from the cost of land which varies, the average cost of investment is approx. 50 - 70 lakhs depending on the size of the RO and the amenities/ services provided. Once the NOCs and statutory clearances are received the outlet can be set up in an average time of 2-3 months

Q:    If I am making all the investments, what does Essar do?

Ans: Your feeling is genuine, however we have heavily invested in the refinery & the supply chain and providing you best-in-class products. We believe in your expertise of running a retail outlet and hence are providing you with best-in-class commission as well, while the control and ownership of the RO remains with you. So some years down the line when your fuel station has become a landmark in your town or your area, the valuation will definitely increase and so will your reputation because you will be providing quality products to your consumers. Such equity is priceless!

Q:    What will be the quality of fuel supplied to me by Essar?

Ans: Our products always meet the relevant BIS specifications. In our refinery we produce high quality Euro IV and V grade products keeping in mind best-in-class global standards.

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