Auto LPG Dealerships has come a long way since 2002. Today we have 1100+ auto LPG stations across India spreading the message of green fuel and helping the nation to save on fuel cost and eliminating harmful emissions. Apart from public sector companies we have 15 plus different companies operating in auto LPG field today. You can see private operator’s auto LPG stations competing shoulder to shoulder at many places in most of the region. Petrol & Diesel prices are on upward trend and Auto LPG is a very resourseful, economical helping hand in dealing with rising petrol prices.
The most promising thing is mentioned here in the Chart below, A simple Price Comparison between Petrol & Auto LPG Prices in some major cities in India. This will give you a clear Idea on what could be the scope for this Business
Have it ever occurred to you that you can also get in to this business? When I was not in this field I used to think that it takes lakhs of rupees to open a fuel station, also it needs big land making the composite investment in to crores. So I dropped thinking about it. Do you have to believe this?
No, it doesn’t take crore of rupee to start a fuel station. With aggressive marketing strategy private marketers have come up a new method which offers a win win situation to landowners , entrepreneurs to open an auto LPG station. This is called as lease owned and company operated stations. In this arrangement company leases your land, sets up the auto LPG station with its own investment and shares the land rent to the landowner.
How do you know if your land is suitable for Auto LPG or not? You need to answer some questions to yourself
1) What do u think is the number of auto LPG vehicles/autos in your area?
2) How many auto LPG stations are there in 5 km radius of your land?
3) What is approximate traffic you get on road adjacent to your land?
• Talk to some auto drivers and find out if they need an auto LPG station in your area?
Watch the Details here:
Sample requirement of GOGAS a private brand of Confidence Petroleum India Limited who is running one of the largest chain of 125 plus auto LPG stations in 11 states of India. You can visit their stations in Bangalore, Hyderabad, Chennai, Nagpur and many other cities. www.gogas.co or 9371006020 is their customer care.
Requirements for this arrangement is primarily land at a good location &
1) You need to have a clear title land of size 100ft x 100ft …min 100 x 85
2) Land need to be adjacent or near the traffic.
3) Within 100 meter radius there should not be a place of worship, school, hospital.
4) Land should not have any over head electrical wires
5) You need to formally apply to Go Gas.
6) Upon receipt of your application a technical & Marketing team visits your land to check technical and sales feasibility.
7) Based on the same an MOU is signed between landowner and Go Gas for installation of Auto LPG bunk on your land.
Ofcourse this is just a starting point. After this a series of approval needs to be taken, permission to erect an Auto LPG station needs to be taken from PESO (explosives department), various state level and municipal level authorities to ensure a safe and secure Auto LPG station. On receipt of all government approvals the technical team starts the work of erection of the station. A team of civil, mechanical, electrical engineers work hard to set up state of the art auto LPG station. A typical installation time is 45 days to 60 days depending on certain conditions.
Fill this form here to contact GO Gas
Once the station is constructed it is inspected for one last time by the competent authorities and a license to start the station is granted to the station. Then the company arranges for LPG and thus sales starts. Marketing support, advertising and launch activities are done by the company and thats the start of the business for you. There are a few good thing about private sector auto LPg stations. First, the lease is for less years, in case of Go gas its 7 years. Secondly, there is no permanent construction in terms of a building on your land except for a service room. Thirdly land is properly maintained by laying paver blocks, fourth looks are ensured by canopy for the station which appreciates the land value, fifth is in case you want land back then it is easier as lease is for less years.
So if you have a land then time to get in to Auto LPG Business is now.
Don’t forget to click & Read our other buy recommendations here