You might be thinking of starting a new business , but the basic thought you might have in your mind is how much investment it would take or what product should we choose to start a new business . But in all cases , starting a new business is not so difficult and not so easier also , because if you have good knowledge of a particular product which you want to sell and you know your target audience to sell your product then you can win any situation within your business with the same product .
So , the priority of thought before initiating any business would be how much to invest and in which product to invest in to earn good money . In this post , you will get to know about a unique product with which you can start your business within low investment and the profit margin in this business is also so good .
Engine Oil Distribution : About Business
Engine is a heart of any vehicle , where engine oil is the blood of any vehicle . Where the engine pumps in a vehicle using the oil , the engine makes the vehicle run and keeps it maintained . Engine Oil business is the fastest growing business in India ,. because if you compare in any industry you will get to know that logistics and travel industry in India is on a boom . With over 50000 vehicle types all over world , engine oils comes in mutligrade setup where different oils are used in different appliances and vehicles depending on their viscosity level and their working structures .
Engine oil distribution is not only done in India , but is also done on a large scale in foreign countries where oil from a refinery is distributed to a brand owner where he could pack that oil in his own packaging and supply it at a price after including its acquiring cost + taxes and other logistic charges to the distributors from where it reaches the retail chain and finally reaches to consumer . Not talking about a wide range of engine oil products in this post , we have targeted only about 4T Bike engine oils which can be used in scooters , motorcyles and two wheeler vehicles .
Engine Oil Products
If you want to start Engine oil distribution business then you can simply start with 4T Oil where , you would be selling only two wheeler engine oil and your investment would be lower as compared to investment in other engine oil products or any other business. If you want to consider other engine oil products also then you can sell these grade of oils as per your finance budget :
Car Engine Oils
5w -30
5w -40
15w -40
These further comes into range of mineral oil , semi synthetic oil and fully synthetic oil ranges.
Tractor Engine Oils
In tractor range you can sell :
15w – 40
UTTO (Tractor Transmission Oil )
PST (Pump Set Oil )
Machine Engine Oils
For Machines you can sell
Hydraulic Oils 32,68,90,80w-90
Gear Oils (Ep -90 , 140, 220, 360 )
Grease (AP-3 , GEL GREEASE etc )
Auto Rickshaw / Taxi Engine Oils
For rickshaw and taxi ranges you can sell :
CNG 20W – 50
15W -40
15W – 50 etc
Bike Oils
4T 20W – 40
4T 20W – 50
4T 10W – 30
4T 15W – 50 (Bullet Bikes )
Profit Vs Risk
Engine oil business is highly profitable and risky as well . It is a fire business where you would be highly profitable if you have good investment at your hand to invest in oil , because sometimes in this business prices of oil hike overnight and in the international market the price of oils hike , then your stock oil price is automatically valued at a high price and you dont have to think much while investing in this business.
Considering the profit ratio , you can charge as high as 50% profit from the customer in this business of the price if you are direct dealing with the customer and making the last retail where your investment would be cashed immediately. On the other hand , if you want to start distribution system in Engine oil business then you have to invest atleast Rs 10 lakh in this business and you have to sell it at credit to most of the retailers, because it is purchased by the mechanic class where they dont have enough funds to invest in engine oils only so they always demand for big credit in this business and you have to provide oils at their door step to earn good profit as the competition in this business is also neck to neck .
Talking about Risk in Engine oil business , oil is something which if stored for a long time can either catch fire or electric shock where all your stock would be set on fire and all you stock would be lose in fire . So , your store house should be fire safe and should be well safe from all incidents . So , engine oil business is risky in terms of storing the goods and selling them at long interval.
Hope , you find this post interesting and informative . With this post , you get to know about how you can start engine oil business , how much would be the minimum investment and what is risk return in this business . If you have any queries related to this post , you can place your feedback comments in the comment section down below .