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How to Get Nayara Petrol Pump Franchise? Cost, Fee, & Profit

Are you in pursuit of a highly profitable and secure business venture in India? Do you envision owning a business that is resilient to economic downturns and immune to weather conditions? Have you faced challenges in obtaining a dealership for renowned petrol pump brands like IOCL and HPCL?

If your answer is yes to any of these questions, your search may end here.

In an era dominated by food enthusiasts and a race among investors and entrepreneurs to secure food and beverage franchises, identifying a profitable venture from various industries can be a challenging task.

What if we told you that there is certainly an underlying business in India that not only grew exponentially and provided staggering return to its investors but also operates 24*7, 365 days a year.

Yes, it’s true! Nayara Energy has introduced its highly successful and sought-after petrol pump dealership program, providing a golden opportunity for aspiring entrepreneurs to enter the thriving Fuel and Energy industry. This program opens doors to individuals who have long dreamed of venturing into this dynamic sector.

In this comprehensive article, we’ll guide you through the process of owning a Nayara Petrol Pump Franchise, along with its costs, application procedure, and profit margin – and answer some of the commonly asked question on this chain.

Nayara Petrol Pump Franchise Opportunity
  • Company: Nayara Energy
  • Founded: 1989
  • Industry: Fuel and Energy
  • No. of outlet: Over 6000
  • Model: Franchise/Dealership
  • Area served: Nationwide
  • Franchise Fee: NA
  • Area Required: Min. 800 sq meter
  • Total Initial Investment: ₹80 Lakhs to 1 Crore

Overview of Nayara Petrol Pump Franchise

Overview of Nayara Petrol Pump Franchise
Overview of Nayara Petrol Pump Franchise

Nayara Energy, formerly known as Essar Oil, was officially founded in 1989, which initially started its operations in Oil exploration and production sector and gradually expanded its presence to over 6000+ locations across the cities in India.

Ever since its inception, Nayara energy has continued to expand its operations and enhance its product offerings thanks to its insane focus on sustainable growth strategy with customer-centricity approach and commitment to delivering high-quality fuel.

At present, Nayara’s petrol pumps are highly regarded as one of the leading players in the Indian oil and gas industry, earning a reputation on par with renowned brands like Indian Oil and Hindustan Petroleum.

Nayara serves millions of customers and makes a significant contribution to the nation’s energy security and economic growth.

In an industry typically dominated by government entities, Nayara has carved out a prominent position. With over 6000 petrol pumps operating nationwide and an additional 1200 petrol pumps in various stages of commissioning, Nayara has established a strong foundation.

In addition to that, Their ambitious plan aims to establish a robust network of 8200+ petrol pumps by 2024, strategically covering national and state highways, as well as rural areas will irrefutably create enormous opportunity for aspiring entrepreneurs to start their journey in Fuel and Energy industry with Nayara.

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The Journey of Nayara

We are all aware of the intense competition and challenges associated with entering the fuel industry.

However, when we assess the growth prospects and the significant market presence that Nayara has established since its inception, it becomes evident that there are strong growth opportunities for new entrants and its investors/franchise partner in the fuel industry.

Here, we are going to dive deeper into their journey;

  1. Originally, founded in 1969 as a privately-owned entity, and was known as Essar Oil or Essar Group among its consumers.
  2. In 1998, Nayara Energy embarked on its journey in the refining business by establishing its first refinery and continued to expand its operations through acquisitions and modernization efforts for next few years.
  3. Later, it also established strong retail presence by operating a network of petrol pumps across India that enabled Nayara to directly connect with consumers and cater to their fuel and energy needs.

Key Facts on Nayara Energy

Sr No.TypePrivate
1Trade NameNayara Energy,
Formerly, known as Essar Oil Limited
2IndustryFuel and Energy
3Founded1989
4Founders Or Parent CompanyRosneft (49.13%)
Kesani Enterprises Co Ltd and United Capital Partners (49.13%)
5Corporate HeadquartersMumbai, Maharashtra, India
6Number of locationsOver 6000+
7Area servedCountrywide
8ModelFranchise/Dealership
9Service offeringFuels like Petrol, Diesel, CNG
10Revenue₹120,004.80 Crore (2022)
11Websitehttps://www.nayaraenergy.com/

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What is the USP of Nayara Energy? | Benefits of Owning a Nayara Franchise

Owning a Nayara Petrol Pump Dealership

Undoubtedly, India’s fuel industry is growing at enormous pace making it one of the largest markets for petroleum products in the world.

The growth of Nayara Energy in the fuel and energy industry has been fueled by various factors, including the ever-increasing population, the rising middle class with higher disposable income, the growing sales of automobiles, and a focus on infrastructure development.

  1. Countrywide presence:
    • Nayara is regarded as the fastest growing private fuel station network with over 6000+ retail outlets countrywide.
  2. Robust Expansion plan:
    • The chain has also planned to have a solid network of 8200+ petrol pumps by 2024, serving millions of customers across in the cities.
  3. Digital Fleet Program and reward opportunity:
    • Nayara Energy’s fleet program, FleetPlus is widely acknowledged as India’s first digital fleet program providing over 30000+ Transporters and 569000+ Drivers with value-added benefits and rewards on their mobile phones.
  4. Moderate initial investment:
    • Its flagship dealership/franchise program can be obtained by any aspiring entrepreneur with an initial investment of ₹80 Lakhs to over ₹ 1 Crores.
  5. Extensive training and support:
    • Nayara Energy offers comprehensive training and support to its franchisees, including assistance in site selection, Interior decor, and other necessary stuff.

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How much does Nayara Petrol Pump Franchise Cost?

Nayara Franchise Cost
Nayara Franchise Cost

The specific cost of owning a Nayara Fuel Station in India certainly requires a significant investment.

However, the cost of setting up a Nayara Petrol Pump dealership in India may depend on numerous factors, such as location, available land area, market potential, and other expenses related to the cost involved in obtaining an approval from local body.

Nonetheless, to become an approved Nayara Petrol Pump Franchise owner, one may require to invest at least ₹ 80 Lakhs to ₹ 1 Crore for a floor area of minimum 7000 – 10000 sq feet(either owned/leased space), which exclude the land’s cost.

In addition to that, Nayara Energy may also expect its franchise to have capabilities to invest more than ₹1 Crore to operate a petrol pump efficiently.

How much is Nayara Petrol Pump Franchise Fee?

Typically, running a petrol pump requires a substantial investment. However, Nayara Energy may not require a franchise fee from prospective candidates, although it may request a deposit fee ranging from ₹10 lakhs to ₹15 lakhs.

Furthermore, to qualify financially for Nayara Dealership, franchise candidates and their partners/investors should have a minimum net worth of ₹2 Crore with available liquidity of ₹ 1 Crore.

Additional Cost for Nayara

Typically, when owning and operating a petrol pump business in India, the franchisor does not usually impose any additional royalty or marketing fees. However, the franchisee may be expected to invest a certain amount for local marketing promotions in their neighborhood.

Type of FeeCost and Other Details
Franchise FeeNil
Licensing cost(rural)₹12 Lakh to ₹15 lakh
Licensing cost(urban)~25 Lakhs
Royalty FeeNA
Setup cost₹30 lakh to ₹40 lakh
Miscellaneous cost~₹10 lakhs
Net Worth₹ 2 Crore
Available liquidity₹ 1 Crore
Agreement PeriodN/A
Total Initial Investment₹80 lakh to ₹1 Crore

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How much is Nayara Petrol Pump Profit Margin?

Nayara Petrol Pump Franchise Profit
Nayara Petrol Pump Franchise Profit

The profitability of a Nayara fuel station will depend on certain factors, including location, station’s geography, customer’s footfall, and other business constraints. Moreover, it is worthy to mention that “LOCATION” plays a significant role in fuel station’ success.

To gain a better understanding of its profitability, we need to delve into the average sales and commission offered by the franchisor. Therefore, we will explain the profit margin using the following scenario.

Income from Sales of Petrol from Urban Area

Based on an average estimate and potential research, A Fuel station does an average sales of 3000 litres per day at National highway and 4000 litres per day in side the city, that may vary also.

In-state or National Highway sales
Cost and its entityDetails on its cost
Average estimated Sales/day3000 Litres/day
Commission/litres₹3
Commission earned for per day of sales3000*3 = 9000
Total Commission earned per month9000*30 = ₹2.7 lakhs
Total Gross Profit₹2.7 Lakhs
Inside City sales (For City Side)
Cost and its entityDetails on its cost
Average estimated Sales/day4000 Litres/day
Commission/litres₹2
Commission earned for per day of sales4000*2 = 8000
Total Commission earned per month8000*30 = ₹2.4 lakhs
Total Gross Profit₹2.4 Lakhs

The estimates and profit margin mentioned above pertain to petrol. However, the income from diesel can be calculated accordingly, considering an average sales volume of 4000 litres per day.

Income from Sales of Petrol from Rural Area

Based on an average estimate and potential research for rural areas, A Fuel station does an average sales of 2000 litres per day at State highway and 3000 litres per day in side the city, that may vary also.

In-state or State Highway sales
Cost and its entityDetails on its cost
Average estimated Sales/day2000 Litres/day
Commission/litres₹2.25
Commission earned for per day of sales2000*2.25 = 4500
Total Commission earned per month4500*30 = ₹1.35 lakhs
Total Gross Profit₹1.35 Lakhs

Income from Sales of Diesel from Rural Area

Cost and its entityDetails on its cost
Average estimated Sales/day3000 Litres/day
Commission/litres₹1.5
Commission earned for per day of sales3000*1.5 = 4500
Total Commission earned per month4500*30 = ₹1.35 lakhs
Total Gross Profit₹1.35 Lakhs

Based on the cost breakdown and profit analysis provided, it is reasonable to anticipate a gross profit margin ranging from ₹2.5 lakhs to over ₹5 lakhs from operating a Nayara fuel station business.

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How much does a Nayara Petrol Pump Franchise Owner Make?

Undoubtedly, owning a petrol business entails substantial operating costs, including expenses such as employee salaries, rent (if not owned), electricity and water supply, and other miscellaneous expenses. These costs may vary depending on the primary location of the business.

To delve further into Nayara fuel station profit margin, let’s consider a total revenue of over 6 lakhs for an urban area and around 4.5 lakhs for a rural area.

Expenses or Cost involvedUrban AreaRural Area
Estimated Revenue/Month₹ 6 Lakhs₹ 4.5 Lakhs
:Gross Profit₹ 6 Lakhs₹ 4.5 Lakhs
Employee Salary(At least 8-10)₹90,000₹70,000
Rent₹80,000 – ₹ 1 Lakh₹50,000 – ₹70,000
Electricity & Water₹30,000₹20,000
Miscellaneous exp.₹25,000₹15,000
:Net Profit₹3.55 Lakhs₹2.75 Lakhs

Based on the cost breakdown/cost cut and profit analysis provided, it is reasonable to anticipate a Net profit margin ranging from ₹2.75 lakhs to over ₹3.55 lakhs from operating a Nayara Fuel station business.

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What are the requirements to apply for a Nayara Petrol Pump Dealership?

  1. First and most important – One should have the required funding to partner with a Nayara Energy, and one should be ready to invest anywhere between ₹80 Lakhs to ₹ 1 Crores, or even further depending on the model chosen location.
  2. One should have a space of minimum 8000 sq feet to 14000 sq feet(owned/leased space) for city side and highway area respectively.
  3. Interested applicants are advised to dedicate themselves to the Nayara Energy business and follow the company standards and maintain their legacy.
  4. Interested applicants must undergo and complete the necessary training program offered by Nayara Energy’ team and should possess the ability to build and manage a team.

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Area requirements for Nayara Petrol Pump Dealership

To be considered for a Nayara petrol pump franchise, the land to be leased must meet specific criteria set by the corporation. Landowners must meet the following requirements for their land:

  1. Land Size:
    • The minimum land size required for leasing and constructing a fuel pump is 8500 square feet in urban areas and 13,000 square feet on highways. This ensures that there is sufficient space for the pump and its associated facilities.
  2. Accessibility and Development:
    • The potential land should be level and ideally located in a commercial or developed area, making it easily accessible to vehicles. This ensures convenience for customers and efficient operations for the petrol pump.
  3. Lease Duration:
    • Landowners are expected to lease their land to Nayara Energy for a specific duration. In most cases, this is 29 years and 11 months. However, it’s important to note that the lease duration may vary depending on the state. For example, Tamil Nadu has a lease period of 29 years, Maharashtra has 19 months, and Rajasthan has 11 months of lease period.

By adhering to these criteria, Nayara Energy ensures that the selected land meets the necessary requirements for establishing a successful petrol pump franchise.


Documents required for Nayara Petrol Pump Franchise

  1. Land Documents – Sale deed/Agreements
  2. Filled application form, if not applied online.
  3. Original Firm documents like GST and more.
  4. Income tax return for last two years
  5. Personal documents like Aadhar Card/ Pan Card
  6. Address proof
  7. NOC from government entity

To get the updated required documents, you can directly connect with Nayara.


** Impact of EV industry on Nayara Petrol Pump business **

Without a doubt, India’s status as a developing economy, coupled with the increasing income of middle class family and their purchasing power, indicates a promising future for the fuel industry.

As more fuel-based vehicles enter the market in the coming years, the growth prospects for Nayara Energy and its petrol pump franchise are expected to soar. This presents a golden opportunity for entrepreneurs to capitalize on the rising demand and establish a successful business in the fuel industry.

While numerous business opportunities exist, the Nayara Petrol Pump Franchise offers distinct advantages. Unlike traditional retail businesses, the fuel retail industry benefits from the constant demand for fuel, ensuring a steady flow of customers and revenue. Moreover, Nayara Energy’s established presence and support systems provide a competitive edge in the market.

Certainly! Despite the impressive growth of the electric vehicle industry, the fuel industry is expected to remain dominant for the foreseeable future. This makes the Nayara Petrol Pump Franchise a compelling choice, offering stability and profitability in an evolving market.

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How to Apply for Nayara Petrol Pump Franchise?

Owning and operating a Nayara Petrol pump may require a moderate capital that may offers an impressive gross profit margin. Additionally, the Nayara Energy chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.

One can avail this franchise using below mentioned steps;

  1. To get this franchise, one can directly navigate to its official website by clicking on the highlighted link.
    • Fill in the details like Name, Email ID, Phone Number, State and district. One can also connect with them at below mentioned number;

Phone number : 09575795330 Or 1800 1200 330( Monday to Saturday 9 AM to 12 AM)

Franchise form: Attached for reference


Final Takeaway – Conclusion

Undoubtedly, investing in or owning a Fuel station based franchise can offer numerous benefits and advantages to the franchisee owner.

Furthermore, with the promising growth prospects and a moderate investment that offers a healthy profit margin, aspiring franchisees may find it appealing to explore the opportunity of opening a Nayara Petrol Pump in their respective areas.

Currently, the chain operates more than 6000 locations across the country and grants immense potential to a new franchisee entrant to grasp a prominent player in the Fuel and Energy Industry.

With an Initial investment of ₹80 Lakhs to ₹1 Crore, the Nayara Energy chain may offer an outstanding profit margin to its stakeholders and one may anticipate an exceptional net profit margin of over ₹2 lakh per month. Nevertheless, Interested applicants are advised to speak to 4-5 Nayara Petrol Pump outlet owners before applying for its franchise.

The Bottom line – In case you are interested in the Fuel and Energy industry and want to take advantage of the opportunity with a moderate investment, you can apply for a Nayara Fuel Station in India.

So, what are you waiting for? Go and start your entrepreneurial journey with Nayara!!

Good Luck!! Happy Franchising!!

Want To Explore More? Then Check Out Below Franchising Opportunities.

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FAQ

  1. How much does it cost to Start a Nayara Petrol Pump Dealership?

    The initial investment required to set up a Nayara Petrol Pump fuel station will be around ₹80 Lakhs to ₹1 Crore for a land area of at least 8500 sq feet.

  2. Is Nayara Petrol Pump Franchise Profitable?

    Absolutely! With careful selection of the location and dedicated management, the Nayara Petrol Pump outlet owner can expect a decent monthly profit margin ranging from ₹2 lakhs to ₹2.5 lakhs.

  3. Is Nayara and Essar Same?

    Certainly! Essar Energy, a renowned energy company, has rebranded itself as Nayara Energy. The name “Nayara” signifies a new era and promising prospects in the energy industry.

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