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indian AUTO gas
Company Ltd.
 
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Commercial LPG Cylinder
Cutting Gas
Pipe Gas
The products scheduled to be supplied are:
  • Auto LPG
  • Bulk Industrial LPG
  • Packed Commercial LPG in cylinders
  • Lubricants
  • Reticulated LPG System.
  • Citygas
Products proposed for future
  • Cutting Gas
  • Hydrogen.
LPG MANUFACTURING
Our LPG manufacturing capacity is 72000 MTPA. With the help of our R&D team we manufacture different type of LPG with different calorific value as per the need of consumer. We manufacture LPG in both IS 4576:1999 and IS 14861 : 2000 standards. Our raw materials will be sourced from Gas Authority of India Ltd (GAIL). Our bottling capacity is 5000 cylinders of various cylinders per day.
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PACKED LPG CYLINDERS
Indian Autogas Company Ltd is a public limited company based at Chennai. We are the pioneers in Auto LPG industry, with industry experience for more than 16 yrs, managed by professionals and technocrats. We have our offices at Chennai, Bangalore, Hyderabad, Jamshedpur and New Delhi and planned to expand to other states also soon. Our manufacturing plant has the capacity for manufacturing and bottling of LPG in the name of SMAT GAS in various sizes of cylinder.
We supply LPG for commercial, domestic, Industrial and cutting gas in cylinders and supply LPG in bulk trucks for industries and housing complexes by piped LPG in the brand name “SMAT GAS”. Our bottling capacity is 5000 cylinders per day.
LPG Manufacturing:
Our LPG manufacturing capacity is 7200 MTPA. With the help of R&D team we manufacture different type of LPG with different calorific value as per the need of consumer. We manufacture LPG in both IS 4576:1999 and IS 14861 : 2000 standards. Our raw materials will be sourced from Gas Authority of India Ltd (GAIL).
LPG in Cylinders:

cylindersLPG Cylinders are available in 12, 17 and 33 Kg for various uses and the LPG is manufactures in-house so that we promise prompt supply of best quality LPG to our business partners – distributors and dealers. We supply safer LPG to the domestic customers and high calorie (high heat) LPG to industries and commercial users.
Our production capacity in Chennai Plant is 3000 cylinders per day on single shift basis.

Standards & Certifications
The product supply by the company will be of good quality and will satisfy all the norms of the Bureau of Indian Standards as mentioned in the LPG Control Order.cylinders

  1. Rated by MDRA as NO.2 – Satisfactory.
  2. The LPG is supplied as per IS 4576:1999
  3. The LPG cylinders supplied with the IS 3196 (Part 1) 2006
  4. The LPG Cylinders Stock Point – as per Gas control order and CCOE norms.

MARKET:
cylindersThe LPG market is increasing every year by 11%. As per the present Govt policy, Govt will supply only 12 cylinders per house on subsidized price along with Aathar Card and the subsidy will be credited in the Bank account of consumer. Previous to this change in policy, Govt oil companies supplied one 14.2 Kg cylinder for every 20 days with subsidy (i,e) 18 nos of 14.2 Kg cylinders in a year. So now an average every family need to buy 7 Nos of 12 Kg cylinders without subsidy.
In the commercial sector like hotels, restaurants and factories, we can see the usage of 14.5 kg domestic cylinders illegally  instead of using 19/17 kg commercial cylinders. This will be stopped automatically the supply tied up with Aathar Card and bank account of the consumer. And for these commercial institution, they have to buy commercial LPG  only.
The industries and hotels that used mostly 14.2Kg subsidized cylinders have to buy LPG cylinders without subsidy now.
Based on the above policies of Government the SMAT gas business will get momentum from April 2012.

This is the right time to grab the opportunity.
BUSINESS OPPORTUNITY
We are offering the opportunity to you to be a part of SMAT GAS Family, we are providing two types of opportunity
  1. State wise master Franchisee
  2. Area wise Dealers.

BUSINESS MODEL
SMAT GAS will be supplied to the consumer through the authorized area wise dealer. The Master Franchisee will facilitate the supply to the dealer by providing clean logistics etc.
Process of selection of Dealer
After receipt of application from the applicant, a team of executives will inspect the dealer and the site for the godown. On convincing about the godown land,  a personal discussion to know about each other and the business model, profitability etc. of the business, will be arranged in our office or Master Franchisee’s office with prior information. If the applicant is selected then Letter of Intent (LOI) will be issued with important  conditions of business. If applicant agreed and acknowledge the Letter of Intent (LOI), the business agreement will be signed with the applicant. Before signing of the agreement the applicant shall to pay the agreement charges and advertisement charges to the Company / Master Franchisee.

Minimum Requirements:

Discription Dealers
Investment in Rs  
Application Rs 2000/-
Application Processing Fee Rs 10000/-
Agreement charges Rs 2,00,000/-
Advertisement material charges Rs 1,00,000/-
Empty Cylinder Deposit (approx.) Rs 7,20,000/- (400 Nos cylinders)
LPG charges As per the market rate on date of dispatch from company’s stock.
Local certification Dealer’s scope
LPG Godown Immediately needed
LPG accessories Company will supply
Land requirement for Godown 22m x 19m
Size of Godown 6.0m x 8.5m
Min stock of Connection 50 Nos in each size
Min stock of Refill cylinder 400 Nos in total
Retail Trade License Yes
VAT registration Yes
Weights and measures stamping in weigh scale Yes
LPG Godown license Yes
Payment Advance
Payment mode RTGS / NEFT
Delivery period For the first load within 30 days, for successive loads within 7 days of receiving the payment in our bank
Leaflet 500 copies will be given on free of cost further copies if needed will be at cost of distributor.
Customer application Company will supply
Business card, Deposit receipt book, bill book 1 box of 100 nos will be given without charge further cards if needed will be at the cost of dealer
Uniform for delivery boys 2 sets for 6 months for 1 delivery boy

Main Office Specification

S.No Description Qty
1. Computer P4
2. Printer/Scanner 1 No
3. 24 hours Internet connection 3G Broad Band connection
4. Table 1 No
5. Chairs 3 Nos
6. Fixed Telephone Line 1 No
7. File rack 1 No
8. Stove, burner, regulators, display 1 No
9. Tricycle 1 No
10. Delivery boy 1 No
11. Manager 1 No
12. Customer service 1 No
13. Office Name Board Design will be by company
14. Stamped Weighing Scale 100Kg capacity 1 No
15. Fire extinguisher 10 Kg 1 No
16. Display Board consist of Stock, MRP, remarks, weekly holidays, working hours, TIN No 1 No
17. Office Colour Code As per drawing & Colour Code supplied by company
Special features of SMAT GAS business:-
  • Higher Margin to the Distributors.
  • Best Technology and Equipment
  • Training to Distributors.
  • Dealer network all over the country
  • Transfer of cylinder facility at major part of India
  • Best Logistics Planning for supply
  • Lesser Investment
  • Cordial Contacts
  • Prompt after Sales Service
BREAKEVEN POINT - Dealer
Investment
Agreement Fee 2,00,000/-
Advertisement Fee 1,00,000/-
Construction of an LPG Godown 5,00,000/-
Investment on stocks 16,50,000/-
Total requirement 24,50,000/-
Expenses
Interest for investment @ 13% 3,18,500/- per annum
Office Expense 6,00,000/- per annum
Total 9,18,500/-
No of cylinder sales to reach breakeven is (9,18,500 / 350 days /17 Kg /Rs 3 per Kg) =52 cylinders per day.
LPG SUPPLY CHAIN
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