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ITC Franchise Cost – How much Investment is Required to get an ITC Franchise

ITC Franchise Cost – How much Investment is Required to get an ITC Franchise

By Startup Authority

A brand that currently brings products that are used from day to night by every household. Yes, it is a company that has had a wonderful journey since 1910 with its headquarters based in Kolkata which is ITC. Imperial Tobacco Company (ITC) is India’s first tobacco company that was incorporated on Aug 24th, 1910. It was in 1913 when the company started its first cigarette factory in Bangalore. By the year 1925, ITC set its foot in the packaging and printing business.

The journey till the year 1975 was all about acquiring because in 1975 the company entered into the hospitality business by once again acquiring ITC Welcome Group Hotel Chola. In the year 1996, ITC was doing enormous business in the country and also hosted the Cricket World Cup in the same year. By the year 2000 arrived the company made its way into clothing, stationery products, and gifting businesses. 

Some Facts About ITC Franchise

  • ITC’s strong foundation was unbeatable back then and even today. The company gained the market not just by its primary tobacco business but by acquiring and expanding into different services.
  • ITC’s initiatives turned big during the years back then. The company had worked with several top brands like Nokia, Colgate Palmolive, Tata Tea, and many more. Currently, ITC is known to be India’s most sophisticated packing house.
  • ITC’s venture into the luxury hospitality business was a standout opportunity for its massive business. ITC has set a bar for luxury hotels with four brands namely ITC Hotels, Luxury Collections, Welcome Hotels, and Welcome Heritage. The company manages more than 100 hotels in more than 70 destinations.
  • The company is one of the leaders when it comes to reducing carbon emissions. The company is consistently working towards expanding its positive carbon footprint through energy conservation and the use of renewable sources of energy. It is only company in the world to be 15 years carbon positive. 
  • ITC innovative idea in agriculture was all about helping about 4 million farmers with E-Choupal by providing them with internet access. This initiative was primarily introduced so that to empower farmers to improve the quality of agricultural goods. 
  • ITC has no owner. ITC is a professionally managed company with 0% promoter holding.

ITC Franchise: Franchise Opportunities At ITC

ITC franchise opportunities or distributorship has been offered to interested people so that they can be a part of the company and start their business. However, there are some requirements that you would have to fulfill in order to get the dealership from ITC. Make sure you visit the official website of ITC to know more about such details. Some of the notable requirements are:

  • You should be at least above 25 years. The company is not considering young candidates who are inexperienced.
  • Must have experience in FMCG sector
  • Must purchase a commercial vehicle for distribution service 
  • Godown area required (1500-4000 sq ft and office area 100 sq ft)
  • Manpower required (accountant, marketing manager, driver, loader & unloader)
  • Basic infrastructure (computer, printer, equipments, CCTV, table, chair)
  • Shop Act License
  • FSSAI
  • GST Number
  • Gumasta License

Read more: How to get Okaya Electric Scooter Dealership?

Is ITC Franchise Profitable?

ITC offers a 4-10% profit to its distributors. The product range of ITC is massive and every household needs most items that the company offers. In case you are eligible and you are able to setup ITC’s distributorship then it will definitely be a profitable business. As far as the profit of the company goes then that too is a huge amount because of the rise in demand for its products and also because for its high consumption rate. 

According to the official website, ITC has revealed that as per reports on March 31st, 2022 they had made gross sales value of INR 90,104 crores. The net profit, on the other hand, during the same time period was INR 15,058 crores. It can be assumed that getting its distributorship will be a profitable business. 

ITC Franchise Cost

ITC’s distributorship cost could vary depending largely on the number of products that you wish to distribute among retailers. Also, in case you are opening up a godown in a village then it would be less as compared to opening up in a city. The location is also one of the biggest factors that would determine the franchise cost of ITC. 

You should also know that ITC will not ask you for any kind of deposit while opening up its distributorship. If you wish to take the distribution for all products from ITC then the investment could be around INR 1 crore to INR 1.5 crore. 

  • One could start a business with an initial stock purchase of INR 15-20 lakhs. The amount will depend on your investment benchmark and the level that you wish to open the distributorship.
  • Basic infrastructure could cost you around 1.5 lakh
  • The commercial vehicles could cost you around 10-20 lakhs
  • Working capital 5-10 lakhs

Total investment would come to around 40-50 lakhs approximately.

https://www.youtube.com/watch?v=5FvZe21q6y8
ITC Franchise

Documents Required for ITC Franchise

  • ID Card/Residential Proof (Pan Card, Voter Card, Aadhaar Card, Ration Card, Electricity bill)
  • Rent Agreement (In case your office is on rent)
  • Shop Act License
  • FSSAI
  • GST Number
  • Gumasta License

How To Apply for ITC Franchise?

The application process for the distributorship program of ITC happens completely online from the official website of the company. Mentioned below are the proper steps that you could follow for the application process.

  • Visit the official website of ITC
  • On top of the website you may see a option tab called ‘Businesses’
  • Once clicked on that you would have to click on FMCG that appears after clicking.
  • Below you will see the products which ITC offers for distributorship program
  • Look for the contact information and then you would have to contact for ITC distributorship 
  • The process may take some time but you will be able to receive solid details from the ITC area managers.

Application Process for ITC Franchise

The application process is not exactly through the official website but you can connect with an ITC area manager to get the full application process details. This is because they will be constantly in touch with the company as they may have regular meetings which will be enough for you to get updated news from them. However, you can also connect with a manager or someone from the concerned authority and get the details for the application process of getting the franchise or distributorship program from ITC.

Contact Details for ITC Franchise & Dealership

ITC is available on social media platforms like Twitter and other platforms. The company has got an official page where people can raise queries after filling up a form online. The form includes basic details that you would have to fill in with a proper section for your query to be filled in.