Introduction: Oil And Petrochemical Manufacturing
Thinking of doing an oil and petrochemical manufacturing business in India but don’t know where to start? Well, you’re not alone in the race. As India is the third-largest consumer of oil in the world, aside from the fact that oil also comes under its economy’s eight core sectors, having a petrochemical manufacturing business seems a very lucrative idea. And, with the rising demand for oil & petrochemical products day by day, anyone can say that it holds a very promising future as a business venture. But as profitable as it seems, we can’t deny that starting it in India demands a lot of careful planning and research on your part, just like any other business.
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Reading this article will help you understand the significance of the oil and petrochemical business in India and the strategies that you can surely consider to establish one.
Read Our Blog: How To Start Petroleum Oil Refinery In India
Significance of Oil and Petrochemical Manufacturing Business In India
- Ensure an Adequate Supply of Energy
Just imagine what would happen if India failed to ensure enough energy supply for its people and industries. Well, the damage would be unthinkable. Fortunately, such situations have never become a reality for us and the credit for that goes to the oil and petrochemical industries, which fulfill a major portion of the country’s energy requirements.
- Provide Employment
Irrespective of whether you’re a skilled worker or an unskilled one, you’ll always find job opportunities in the petrochemical industry. Even today when the economic situation around the world is in chaos due to covid and recession, we find millions of people working in this industry, making it a major source of direct and indirect employment.
- Crucial For Overall Industry Growth
There are an end number of businesses that are highly dependent on the oil and petrochemical manufacturing industry for their day-to-day operations as it provides them with their raw materials, including chemicals, plastics, fertilizers, etc.
- Generate Massive Revenue For the Government
When it comes to the revenue of the Indian government, the oil and petrochemical industry works as a “never-ending treasure” because of the taxes it pays, which include excise duty, GST, customs duty, and many more.
- Build Infrastructure
No one can deny the part oil and petrochemical manufacturing businesses play in the development of infrastructure in India. From building storage facilities, pipelines to the transportation infrastructure, the industry heavily invests in the growth of the country’s economy.
Key Steps to Start an Oil and Petrochemical Manufacturing Business in India
- Do A Comprehensive Research on The Market
Not only the oil and petrochemical business, but any other business category requires proper research on the market, such as what the present situation is or what the possibilities are for the near future. Therefore, the first task you need to take care of is to analyze the demand for your products out there in the market and the competition you may face. Here, you can gather information regarding recent market trends, find the potential customer base, and accordingly devise a “tough to track” pricing strategy for your products.
- Pick a Business Niche Out of the Oil and Petrochemical Industry
It wouldn’t be wrong to say that dealing in all the oil and petroleum products is not only risky but also quite next to impossible as their list is quite long. Therefore, you have to select a particular business niche that matches your expertise and resources. For instance, a Greenfield project is something where you can begin everything from scratch or can easily acquire an already existing facility to save both effort & time. Here, the option to get into a partnership with a business that’s doing the same thing & planning to scale its reach would also be quite viable.
- Look for the Ways To Get Funding For Your Business
Starting an oil and petrochemical manufacturing requires massive investment on your part, therefore, you better find funds to run its everyday operations effectively. If your business strategy is solid, any investor would be happy to back your business and fund it or you can also go to banks & financial institutions to get loans. Fortunately, the Indian government also provides a number of subsidies and grants to people who’re in the initial phase of their business and require financial support.
- Apply for the Required License and Permits
At the same time, don’t forget to go over the regulatory compliance requirements that you must follow while doing an oil and petrochemical business in India. You’d be required to apply for many licenses and permits. The best you can do at first is to get your business registered with the Registrar of Companies and obtain a TAN (Tax Account Number) and PAN (Permanent Account Number). The government also requires you to get other regulatory approvals as well, including environmental clearances.
- Build Infrastructure and Gather Workforce
Now that you get the required funding and business licenses & permits, the next turn is the working infrastructure that you have to develop for your business. These can be in the form of manufacturing setup, state-of-the-art equipment & machinery, or storage facilities. You also need to gather a team of both skilled & unskilled workers and train them so that they can effectively do their work and give high productivity using the machinery.
- Develop a Marketing Strategy
It doesn’t matter what you make if you fail to sell it and that’s why developing a marketing plan, especially when the industry is oil & petrochemical, is quite crucial as the competition level you find there may be cutthroat. Analyzing the recent market trends can be a good start here. You can identify the customer base to target and then make them aware of your products through strong promotions & advertisements. To extend your reach and customer base, you can also think about strategies for building a strong distribution network.
With this article, we have tried our best to include all the necessary points that you can consider while starting an oil and petrochemical manufacturing business in the country of India. In case you still have any queries or need more information regarding the oil and petrochemical industry, the best option is to refer to the website of Corpseed and get it sorted.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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