Starting supermarket in Chennai is very good business option and with High success rate and profitability, If you have good amount of investment, and desire to work hard at initial growth phase, then it is best option of business. Super market registration and launch On on average with variety of options in chennai requires 30 to 50 lakhs in chennai.
Positives of starting Super market in Chennai
- High success rate as major products sold in super market are essential commodities, and buying option cannot be postponed like television etc.
- High profitability provided all kinds of products like cosmetics, stationery, and fancy products are sold
- Easy availability of materials at competitive price, as Chennai is capital and trading hub of tamilnadu.
- Presence of high income group in Chennai provides opportunity to sell Unbranded prepacked groceries at good profit. This benefit may not be available to traditional grocery stores.
- Busy lifestyle makes buyer to prefer supermarket than traditional stores, supermarket reduce buyer time for purchase, because customer need not wait for his or her turn to place order with store keeper.
Registration required to start super market in chennai
Basic registration of supermarket business
Super market can be started in any form of business, normally super market is started like partnership business as it requires heavy investment and people with good source of fund prefers proprietorship. Choice of selection between different form does not gives additional advantage for running business, your customer wont care about it.
- Proprietorship registration
- Partnership registration
- Private limited company registration
Other legal registration required to start supermarket
- Fssai registration – Food safety State License ( Food safety guide )
- Trade License – To be applied with corporation
- Shop and establishment license if there is 5 or more number employees
- Fire Safety License
- GST Registration
- TAN number for TDS deduction and TDS return filing
Tips for super market startups
- Open current account in nationalized bank, if not possible open account with top 3 leading private banks
- Do not overstock, decide quantity to stock based on shelf life and supply constrains
- Top up stock in rack during afternoon time
- Do not fall prey to new products launched, there will be difficulty in supply from distributor, returns, regular supply, frequent change of distributor
- Have strict internal control for staffs for billing product addition, stock addition etc. This gives good discipline and does not gives staff opportunity for wrong doings.
- Income tax returns and GST return filing on time with proper compliance
- Accept loss in certain products to maintain its availability, in some products profit margins will be very less and you will face loss in damage etc, we need to maintain of these products to boost sales of other products.
Also read How to maintain supermarket tax and legal aspect after starting business
Where to get products in wholesale price ?
Get a products in wholesale is not a great deal considering competition and supplies from online vendors like udaan, amazon distribution, big basket etc. One of the famous and cheap source for purchasing pulses and cereals is annaiagro.com , you can get best price for dhall , rice, sugar, and other grains in chennai. Once you outlet is opened distributors floods up at the doors of the outlet to dump their products. Hindustan Unilever and other major company distributors will find you once the shop is opened and offer their products.