License, Investment and Space Requirements of Cement Dealership – Like every other dealership, a cement dealership involves the completion of several formalities. The investment amount is dependent on the brand of the cement. The amount could vary between ₹ 50,000 and ₹ 5 lakhs,
- Most of the top cement companies are known to return this amount with an applicable bank interest as well.
- Dealers are known to earn a margin of at least 8-10% of the retail selling prices.
- A minimum space requirement of 500 square feet is a prerequisite though it may vary according to the brand’s requirements.
Most of the documents required from several brands include:
Your GST number Ownership or rental premises Location of your commercial premises (where you propose to set it up) Details of other partners (if you plan to include partners) Details of taxpayer identification number (TIN).
Let’s study the requirements of some leading brands like Ambuja, Jaypee, and JK cement. Total investment required The above five brands ask for a security deposit that could vary between ₹ 1 lakh and ₹ 3 lakhs, If you find this amount too big, you can approach existing dealers and get associated with them.
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What is the profit of UltraTech Cement Dealer?
Profits and Margin in UltraTech Cement Dealership: – You can expect a profit of around 3% to 6% on sales. Your profit margin depends on the total sales you have made. If you are able to fulfill company’s monthly sales then you will be eligible for company bonus schemes.
What is the margin in UltraTech Cement?
UltraTech Cement Ltd (UCLQF) – 103.00 0.00 (0.00%) USD | OTCM | Dec 08, 16:00 View and export this data back to 2013.
| Date | Value |
|---|---|
| September 30, 2022 | 5.44% |
| June 30, 2022 | 10.45% |
| March 31, 2022 | 17.61% |
| December 31, 2021 | 13.15% |
| September 30, 2021 | 10.93% |
| June 30, 2021 | 14.39% |
| March 31, 2021 | 12.75% |
| December 31, 2020 | 12.92% |
| September 30, 2020 | 12.61% |
| June 30, 2020 | 10.35% |
| March 31, 2020 | 31.73% |
| December 31, 2019 | 6.82% |
| September 30, 2019 | 6.02% |
| June 30, 2019 | 11.22% |
| March 31, 2019 | 9.27% |
| December 31, 2018 | 3.61% |
| September 30, 2018 | 3.86% |
| June 30, 2018 | 7.10% |
| March 31, 2018 | 4.74% |
table>
UltraTech Cement Profit Margin (Quarterly): 5.44% for Sept.30, 2022
What is margin for cement dealership?
License, Investment and Space Requirements of Cement Dealership – Like every other dealership, a cement dealership involves the completion of several formalities. The investment amount is dependent on the brand of the cement. The amount could vary between ₹ 50,000 and ₹ 5 lakhs,
Most of the top cement companies are known to return this amount with an applicable bank interest as well. Dealers are known to earn a margin of at least 8-10% of the retail selling prices. A minimum space requirement of 500 square feet is a prerequisite though it may vary according to the brand’s requirements.
Most of the documents required from several brands include:
Your GST number Ownership or rental premises Location of your commercial premises (where you propose to set it up) Details of other partners (if you plan to include partners) Details of taxpayer identification number (TIN).
Let’s study the requirements of some leading brands like Ambuja, Jaypee, and JK cement. Total investment required The above five brands ask for a security deposit that could vary between ₹ 1 lakh and ₹ 3 lakhs, If you find this amount too big, you can approach existing dealers and get associated with them.
Who is the biggest supplier of cement?
A list of the world’s largest cement companies ranked by cement production in million tonnes
| Rank | Company | Country |
|---|---|---|
| 1 | LafargeHolcim | Switzerland |
| 2 | Anhui Conch Cement | China |
| 3 | CNBM | China |
| 4 | Heidelberg Cement | Germany |
How can I become a cement distributor?
Requirements – Not all companies need you to have an established related business. You just need to get your business registered with a TIN (Tax Payer Identification Number) and other requirements for running a commercial space in India. But if the company already has a cement dealer in your area, it may be difficult to get a franschise.
Which margin is best?
As a rule of thumb, 5% is a low margin, 10% is a healthy margin, and 20% is a high margin.
What is the cost of cement factory?
CEMENT PLANT
| Capacity | 500 MT/Day OR 10,000 BAGS/DAY | 476.00 Lakhs |
|---|---|---|
| Working Capital | 606.00 | 68.00 % |
| Break Even Point (BEP) | 35.00 % | 1307.00 Lakhs |
| Cost of Project | 1307.00Lakhs |
Why is cement in demand?
Cement demand seen to increase 10% this year 
Cement facility of Holcim Philippines. Online stockbroker Colfinancial.com said a resurgence of construction activity in the Philippines bodes well for a continued recovery of the cement industry. The online stockbroker said the construction industry’s momentum will continue this year as shown by available data to date.
Note that for the first nine months of 2021, the construction industry grew by 9 percent, a reversal compared to the 28 percent contraction registered in the same period in 2020. The growth in 2021 was mainly driven by public construction, which increased by 42.5 percent, as the government accelerated spending on infrastructure projects,” it said.
Colfinancial.com said infrastructure and capital outlays for public construction grew 38.1 percent in the first 10 months of 2021 and with infrastructure development a priority of the government, it is expected to be one of the drivers of this economic growth for the year.
- Note that this year’s infra budget allocation is at P1.2 trillion, 9.9 percent higher compared to last year’s allocation.
- In fact, the Department of Public Works and Highways even got the second highest allocation, next to the Department of Education, and higher than the Department of Health,” it said.
“We, however, expect a bit of slowdown in the second quarter as a result of the construction ban for the national elections in May. Recall that the construction ban will be implemented starting March 5 until May 8. Nevertheless, the ban applies to new projects only and so construction of existing projects should not be affected,” it added.
- Colfinancial.com said cement demand will then pick up by about 10 percent given the expected growth in the construction industry.
- We expect cement volumes to continue to increase this year.
- Moreover, the imposition of anti-dumping duties on imported cement should further boost demand for locally produced cement.
Recall that the Department of Trade and Industry slapped provisional anti-dumping duties on specific cement brands imported from Vietnam,” it said. Colfinancial.com said cements’ average selling price will also grow by 2 percent as cement companies pass on some of the expected higher input costs this year.
- Margin, however, may be slightly squeezed.
- We expect cement companies’ margins to slightly weaken this year due to higher input costs as mentioned above.
- Coal prices have already gone up since last year and cement companies do not have hedges for their requirements this year.
- In fact, coal price is currently at $203/ metric ton (MT), 48.5 percent higher compared to the 2021 average price of $136.7/MT,” Colfinancial said.
“Likewise, electricity rates have gone up putting additional pressure on costs. Note that fuel, which is mainly coal, and power account for 40 percent of cement companies’ cost of sales,” it added. : Cement demand seen to increase 10% this year
Is 20% a good margin?
What is a good net profit margin? – Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes have been deducted from a company’s total revenue. A good margin will vary considerably by industry and size of business, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high (or “good”), and a 5% margin is low.
What is dealer profit margin?
A dealer margin, or dealership profit margin, is the monetary difference between the invoice price, which is the amount that a dealership pays to acquire a vehicle, and the MSRP, which is the manufacturer suggested retail price – also known as the sticker price.
What is commission on cement?
Binani Cement MD Vinod Juneja said, ‘Dealers get an average commission of Rs 5-7 per 50kg bag of cement.
What is the profit potential of cement industry?
It was clear that the selected 12 cement industries recorded a good gross profit ratio during the study period except JK Cements (15.03) and Prism Cements (17.45). The highest average rate of return on capital employed was 33.89% in Shree Cements, followed by 33.31 and 33.22% in Ambuja Cements and ACC Cements.
Is UltraTech Cement debt free?
What Is UltraTech Cement’s Net Debt? – You can click the graphic below for the historical numbers, but it shows that UltraTech Cement had ₹116.8b of debt in September 2022, down from ₹140.4b, one year before. However, because it has a cash reserve of ₹29.1b, its net debt is less, at about ₹87.7b. NSEI:ULTRACEMCO Debt to Equity History November 27th 2022
Can I invest in UltraTech Cement?
Yes Securities : The brokerage firm has given a buy rating with a target price of Rs 230 per share and a time period of one year.
