MRF Tyre Dealership 2023 : How to Apply, Investment and Profit franchise at https://www.mrftyres.com/business-opportunities
MRF Tyre Dealership
In this article, we will give you detailed information regarding MRF tyre dealership. MRF also known as Madras Rubber Factory (MRF) .This article contains topic that related to MRF dealership, which includes MRF tyre dealership cost, profit margin, shop space required, licenses, and registrations etc.
Considering a Tyre dealership business? Opting for MRF Tyre dealership can be an excellent choice. This article delves into the process of acquiring MRF tyre dealership, the required investment, potential profits and margins, application procedure, necessary documents, and much more. Read on to discover valuable insights on starting your journey as an MRF Tyre dealer.
MRF Tyre, under the leadership of K. M. Mammen Mappillai, is an eminent Indian tire manufacturing company with its headquarters situated in Chennai, Tamil Nadu, India.
MRF Tyre Dealership
The company stands out for its extensive production of tires within the country and holds an impressive 14th position among the world’s largest tire manufacturing enterprises. MRF boasts an annual production of over 16.6 million tires, providing a comprehensive range of tire options for various segments. Their product lineup includes world-class radials for heavy-duty trucks, buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles, scooters, and auto-rickshaws. With a robust presence, MRF has established more than 5,500+ dealerships spread across India, catering to diverse customer needs.
Eligibility Criteria
- The applicant must have age of 21 years.
- Applicants should possess a minimum qualification of 10th standard.
- Candidates must have a clean record without any criminal cases.
- Applicants should demonstrate knowledge about the tire business.
Requirements
- Adequate investment capital.
- Sufficient space for the dealership.
- Essential documents for the application process.
- Staff members as required.
- Necessary equipment and optional vehicle.
Investment
- To initiate an MRF Tyre dealership, an approximate amount of INR 25-30 lakhs is needed.
- The scale of the dealership will determine the investment amount.
- Costs include shop or godown expenses, infrastructure setup as per company recommendations,
- equipment like computers, printers, and billing software, labor expenses, and vehicle cost if applicable.
- A security deposit ranging from 5 to 10 lakhs is also required.
Space Requirement
- A minimum space of 800-1200 sq ft is essential to begin the MRF Tyre dealership.
- For those planning to sell additional automobile accessories, more space may be needed.
- Allocated spaces include shop space (100-200 sq ft), godown (300-500 sq ft), and wheel balancing area (400-500 sq ft).
- However, the company permits wheel balancing only after working with them for 7-8 months.
Required Documents
Personal Documents:
- Identity Proof: Aadhaar Card, PAN Card, Voter Card
- Address Proof: Electricity Bill/Ration Card
- Qualification Certificate
- Photograph, Email ID, Mobile Number
- Current A/C and Cancelled Cheque
Property Documents:
- Shop Agreement / Sale Deed
- Rent Agreement
- No Objection Certificate (NOC)
Business Documents:
- GST Number
- Outlet Trade License
- Financial Documents
Profits & Margin
The profitability and margin of your MRF Tyre dealership are directly linked to your total sales. Achieving sufficient sales volumes will make you eligible for the company’s bonus schemes, typically starting after 6-12 months from the dealership’s commencement. Meeting the prescribed sales targets under these schemes can lead to substantial profits. The profit margin provided by MRF Tyre ranges from 4% to 8%.
For instance, let’s consider a scenario:
If you sell 50 units of four-wheeler tires daily (Supply + sale) at an approximate price of Rs 5,000/- per tire, the daily sales revenue amounts to Rs 2,50,000/-. With an 8% profit margin, the daily profit would be Rs 20,000/-.
Considering 28 working days in a month, the total gross profit for the month would be Rs 5,60,000/-. This potential profit demonstrates the financial rewards that can be achieved through successful sales and effective management of your MRF Tyre dealership.
Staff Required: Initially, a team of 3 members will be sufficient.
Expenditure
- Space Rent ₹90,000/- (Godown + Office Space)
- Manpower (3 Nos) ₹40,000/-
- Electricity ₹15,000/-
- Other Expenses ₹8,000/- Total Expenses ₹1,53,000/-
- Net Profit Per Month: ₹3,27,000/- (maximum profit)
How to Apply for MRF Dealership ?
To start the process of obtaining the MRF tyre dealership, the first step is to get in touch with your territory sales officer. You can easily obtain their contact number by filling out a query form.
To apply for the dealership, visit the official MRF Tyres website at https://www.mrftyres.com/contact-us, where you need to provide all the necessary details and submit the form.
Once you have submitted the form, you can expect a call from an MRF tyre executive within 24 hours. They will guide you further through the dealership application process and address any inquiries you may have.