If you are searching for a business that will generate income throughout the year, then one of the best options would be to start a lubricant business in India. All sorts of machinery need on-time lubrication and proper maintenance for the long run and better function.
Is starting a lubricant business in India a good idea?
According to recent research, the business of lubricants in India will increase by 44% by 2035. Therefore, more investors are investing in the business as the profit is enormous in this model. The main reason for the huge profit is due to the increase in the number of commercial and passenger vehicles. In addition to this, the easier availability, the low cost, and the increased application of lubricants in various sectors are driving the lubricant market.
Now, let us discuss the steps you may follow to start a lubricant business in India.
Steps to starting a lubricant business in India
Formulate a business plan
The first step you must take before starting a lubricant business in India is to determine the type of lubricant you are going to sell and the type of shop you want to establish. Are you planning on opening a retail shop or in-house protection? If you are manufacturing lubricants, you have to know that the task is not going to be easy and you need proper knowledge and expertise.
As your production increases, It is necessary to hire experts. Then you have to decide whether you are planning for an online or an offline shop. The things you have to consider in the business planning groups are the size of the shop, your storage space where you will be keeping your goods, and how you will be delivering your products if you are going for an online business.
Finally, you have to create a business strategy. The plan will change accordingly as you grow in the marketplace. Hence, it is best to have Business Plan and Project Report made by professionals as it will also help you in getting a business loan.
Complete a thorough market research
Starting a lubricant business in India will not be easy and you have to conduct extensive research on how the market operates, the demands, and the supply chain. This business requires maintenance even if you are storing products in your warehouse. Additionally, if you are producing lubricants, you have to be aware of the materials, the safety precautions, and the rules and regulations of your local area.
Find a space to set up shop
The next step is to find a space for establishing your business. This step is necessary to help your business grow and get the most out of the business location. So, you have to find the correct place where motorbikes and motor vehicles travel daily.
Main expenses of starting up lubricant business in India
While strategizing your business plan, you have to take care of the capital. You need to know which things are necessary for your business and exclude unnecessary expenditures. Your capital would be required for the following things:
- Plant and machinery
- Building and godown
- pre-operative costs
This is one of the most important steps. You have to buy base oils and additives from various distributors. Additionally, you also need to find hydrogenated castor oil(HCO) and lithium. You will need various packing materials for delivering the final products.
Get hold of permits and licenses
It is completely illegal to start a business without a proper license and you may be penalized or be jailed for not following the rules. Here is a list of the licenses and registration which you will need to start a lubricant business in India:
- GST registration: To get a GST number for your lubricant business, you have to do GST registration.
- Trade license: After starting your business, you have to get a trade license for your business from the local authority.
- Trademark registration: This is the intellectual property registration that comes under the Trademark act of India and provides protection to your branding and business.
- ISO certification: ISO certification means that your business has developed, maintains, and continues to improve the business processes and it follows the standards set by ISO. Hence, ISO Certified lubricants can be sold easily.
Some of the other legal procedures that you must complete before starting the business are: Private Limited Company Registration and LLP Registration are the two most common business entities that might suit your needs to start a lubricant business in India.
Connect with the correct distributor
Make sure that your distributor can readily provide you with the supplies of raw materials and other products whenever necessary. If you are producing your product, you have to get hold of an agent who can supply you with high-quality raw materials and offer a good variety of products.
Hiring of staff
While establishing the business, you have to hire skilled and experienced workers for the smooth running of your business. You need to hire two types of staff members:
- One who would be in charge of manufacturing and producing your products
- The second type would be responsible for marketing your products.
Additionally, you also need to employ an experienced production manager along with a quality control specialist in the production department. In the future, once your business is running smoothly, you also need to hire expert marketing staff and a promotion and marketing team to establish your brand. You can also use Website Development to market your brands online.
The future of the lubricant industry is promising. Starting a lubricant business in India will not let you down, however, you need a robust setup. For help regarding company formation, online company registration, one-person company registration, and GST filing, you may contact us through our website.
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