Franchise FAQ

FAQs
Any Indian National who has a suitable plot of land and is willing to lease it to Nayara Energy is eligible. In case the applicant does not have a plot of land, but is interested either in buying or taking land on lease and further leasing it to Nayara Energy for the fuel station, can also be considered to be appointed as a franchisee.
The identified plot of land is assessed for its business potential by Nayara Energy. The applicant is also screened for financial capability & business acumen. The necessary land documents and personal information is to be submitted to Nayara Energy for a review. Once the land and the applicant is found suitable, a Letter of Appointment (LOA) is issued.
Yes, a non-refundable amount of INR 3 Lakhs has to be submitted as application fee.
The application fee is non-refundable once the LOA is issued. It may be refunded in exceptional cases and only if there is a valid justification, such as a statutory approval being denied by a Government agency. The refund will be at the discretion of Nayara Energy.
Apart from the land, the selected franchisee has to invest in the construction and day-to-day operations of the fuel station. The cost of constructing a retail outlet is approximately ₹70 lakhs – ₹1 crore.
The applicant has to obtain all required statutory approvals and licenses from the government to set up the retail outlet. Due help will be provided by our divisions to prepare applications in line with the government mandate and requirements.
Apart from the cost of land, the average investment is approx. ₹70 lakhs - ₹1 crore depending on the size of the retail outlet and the amenities / services provided. After the NOC and statutory clearances are received, the retail outlet can be set up in about 3 months.
The application form - Expression of Interest (EOI) has to be submitted to Nayara Energy along with land papers and specific documents required to establish financial and business capability. DD for the application fee is also to be submitted with the EOI. The Territory Sales Manager and Divisional Manager will guide the applicant.
The prices of both petrol and diesel are comparable to market prices. The prices are revised in line with changes made in the market.
Supplies are made from Nayara Energy’s refinery, its own depots and coastal terminals. We have tied up with over 40 PSU locations to ensure seamless supply to our franchisee network.
Listed below is the regular set of permissions required. However, the list can be different from one state to another:
  • NA (Non- Agricultural) Conversion
  • CCOE (Explosives Department) initial approval
  • District Collector NOC, Police commissioner NOC, approval from PWD, Electricity board, Gram panchayat etc. depending on the requirement by the competent authority.
  • Final CCOE License
  • NH (National Highway) – access road permission. If applicable
  • Forest NOC – In case of forest land
  • Retail Selling licence wherever applicable
  • Weights and Measures stamping
Land identified for the retail outlet has to be leased to the company for a period of 29 years and 11 months, except in Maharashtra and Tamil Nadu where the requirement is 29 years and Rajasthan where it is 19 years and 11 months due to regulatory norms.
Our dealership model is not only simple but also ensures a steady operating profit and return on investments. You could earn:
  • A mutually agreed lease rental on your land for the period of the lease
  • A performance-based return on investment @ 5% p.a. on the capital expenditure made onsite
  • Competitive sales commission on the quantity of fuel sold
The lease rental and return on investment (ROI) is paid once a quarter. However, the sales commission is given in the invoice when the product is billed to your retail outlet.
Our research indicates that fuel retail outlet business is a long-term business and it takes time to stabilize. In Maharashtra & Tamil Nadu, the period of lease would be 29 years and in Rajasthan it will be 19 years and 11 months due to local regulatory norms. In the other states lease period is 30 years.
There is no exit policy and de-leasing of land is not permitted. Individual cases are reviewed by the management and the best possible solution is suggested to each franchisee.
Yes, there is a termination clause which applies when the franchisee compromises on company standards and / or violates rules applicable to the petroleum industry.
We have a set of appointed vendors and orders need to be placed with them for engineering fuel tanks, dispensing units etc. In case of civil contractors, the franchisee is free to appoint anyone of his / her choice. However, all branding and construction guidelines need to be adhered to.
We have a dedicated team of engineers and representatives across our divisional offices who extend their complete support in construction of the petrol pump and ensure it is being setup as per company mandate.
Our business model is different. We believe in your ability to construct the retail outlet economically and in a short period of time. Nayara Energy will provide all technical and networking guidance during the construction, training for you and your staff on retail operations and offer attractive commission and incentives to perform better. The model ensures that the control and ownership of the RO remains with you. Nayara Energy also gives you a return of 5% p.a. on the normative cost of investment made in constructing the outlet. This pay-out is unique in the oil industry and makes the proposition more lucrative for you.
Our products always meet the relevant BIS specifications. In our refinery we produce high quality Euro IV and V grade products keeping in mind best-in-class global standards.
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