Petroleum Product Company Investment Opportunity in Kandla, India

- This business specializes in importing bitumen from Dubai and distributing it across India through efficient logistics handled by third-party logistics (3PL) providers, utilizing Mundra Port.
- Revenue trend: The business has experienced substantial growth, increasing its revenue from INR 22 crore four years ago to INR 32 crore three years ago, indicating a strong market presence and demand for its products.
- Financial performance: The wholesale nature of the business generates high revenue; however, profit margins are relatively thin with an EBITDA margin of approximately 3% in gross profit and 1.5% in net profit.
- Product offerings: The primary product is bitumen, which is a crucial material used in the construction industry for creating high-quality asphalt and as a waterproofing agent for various structures, including roofs, basements, and dams.
- Market demand: Peak demand for bitumen occurs during the summer months when construction activity rises, while sales significantly decline in the winter season, reflecting the seasonal nature of the business.
- Compliance: The company is fully compliant with governmental regulations, possessing necessary certificates such as GST registration, Certificate of Incorporation, and Import Export Code (IEC), which affirms its legitimacy and operational capability.
- Small team: With a dedicated team of five employees, the business operates efficiently, and it is able to generate high revenue with this team due to the wholesale nature of the business.