Here am going to explain the steps and guidelines on how to start as a DANGOTE CEMENT Distributor in Nigeria. But before I start doing that, let me explain little about DANGOTE CEMENT.
Dangote Cement Conpany is a fully integrated cement company and has projects and operations in Nigeria and 14 other African countries; Dangote Cement’s current total production capacity in Nigeria from its three existing cement plants namely Obajana (10.25MMTPA), Ibese (6.0MMTPA) and Gboko (4.0MMTPA) is 20.25MMTPA.
The Obajana Cement Plant (OCP) located in Kogi State is reputed to be one of the single largest cement plants in the world with a combined capacity of 10.25MMTPA.
A fourth line which add 3.0MMTPA to the existing capacity will bring the total capacity of Obajana to 13.25MMTPA by 2015.
Dangote Cement Conpany is also the biggest quoted company in West Africa and the only Nigerian company on the Forbes Global 2000 Companies.
CEMENT – NIGERIA
Obajana Cement Plc, Kogi
Benue Cement Company, Benue
Dangote Cement Works Ltd, Ibese
Combined Capacity : 20 million Mtpa
Lagos Cement Terminal
Port Harcourt Cement Terminal
Onne cement terminal
Aliko Inland cement terminal
Continental Cement terminal
Combined Capacity: 9 million Mtpa
CEMENT – AFRICA
Senegal 1.5 million MTpa
Zambia 1.5 million MTpa (Green-field projects)
Tanzania 1.5 million MTpa
South Africa 2.2 millon MTpa
Congo (Brazzaville) 1.5 million MTpa
Ethiopia 1.5 million MTpa
Cameroun (Grinding) 1.5 million MTpa
Ghana 3.0 million MTpa
Sierra Leone 0.5 million MTpa
Ivory Coast 1.0 million MTpa
Liberia 0.5 million MTpa
Single largest cement plant in Africa with a capacity of 5.2 million MTpa (additional capacity of over 5 million MTpa planned)
Vertical roller mills for energy, efficient grinding of raw material and clinker.
Gas pipeline of approx. 90 km length for the supply of natural gas to cement plant and power plant from Ajaokuta to Obajana (capacity -96,000 cu.m /hr.)
Power plant of capacity 135 mw – gas / diesel based
How To Start as a DANGOTE CEMENT Distributor in Nigeria
1. Distributor – You need to fulfill certain simple requirement to become Dangote Cement Distributor. In effort to ensure distribution of cement all over Nigeria, Dangote Cement is currently seeking credible distributors form any part of Nigeria. In this regard, credible means, individuals who owns a registered company that is, whose business is registered with the Corporate Affairs Commission of Nigeria.
To qualify to apply as Dangote distributor, you need to put the following things in place:
Register your company with Corporate Affairs Commission
Once you have your company registered which is very simple to do and requires just little amount of money. You will spend about N50,000 plus, that is if you are doing it by yourself. When you have that sorted out, the next is to open a corporate account in any Nigerian bank with the company name.
Open Business Account in any of the Nigeria Banks of your choice
To open a business account in Nigeria, you would require a clearance from EFCC’s Special Control Unit against Money Laundering (SCUMIL) to ensure that you wouldn’t carry money go hide in oversea.
After that, you go to Federal Inland Revenue to get Tax Identification Number (TIN) which shows that you are willing to pay tax.
These are the two major requirement for opening business account in Nigeria, the bank will tell you other things you need to do. Within moments after you’ve provided all what is of you required, your account will be open. Then you get reference letter from the bank and proceed to Gangote.
Dangote Registration Requirements
Please ensure that you have the soft copy of the following documents before you begin Application:
1. Certificate of Company Registration from the Corporate Affairs Commission
2. Application Letter to become a distributor
3. Scanned copy of the Bank reference letter
4. Passport Photograph of the company’s Proprietor/MD
5. Passport Photograph of the company’s Representative
48 hours registration period guaranteed
Minimum purchase of one trailer i.e 600 bags monthly on cash & carry basis
No Application/Registration deposit required
If you supply 10 Trailers within any period of time, you are going to be smiling home with N1.5m to N3million depending on the method of supply.
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Other Logistics You Need to Put in Place!
Whale House – Except you have standby customers you want to supply, you need a secure place to house your product. Get a whale house or any big shop that can accommodate minimum of 600 bags.
Some but theirs in open place and cover it with tarpaulin for safety but that depends on the quantity you are buying, if you are buying very large quantity, you’d need to get a big whale house.
Arrange for Supply Vehicle – If you can buy yours, that would be nice. In fact, it is another business on it’s own – whenever your customer buys, you’ll supply them and make extra money from the transport and load fee. You can use it as marketing tool to sell faster than others by offering free delivery to customers buying certain quantity.
If you can’t buy yours, just arrange for regular customer who would be assisting you get the cement to the final destination.
Apart from these two, there is no other much things to worry about. Get down to business and starts making money asap.
2. Retailers – A retailer don’t need to go through all these process of application. Once you have your money, you are good to go.
Go to the nearest depot and buy your cement and begin to sell. Each bag of cement you sell, you make profit of N250 – N300 which a good deal considering that you do nothing more than go carry your cement.
You need to have a shop by the roadside or near new site where building projects are ongoing in number.
Many people sell as retailers even without a shop especially those that leave near the road. All you need to do is to raise up the ground a bit with blocks and cement, plaster the ground and put some container woods.
You can build iron protector around it if the place is unsecured to avoid thieves visiting at night.
One thing very good about cement business is that a single customer could buy hundreds of bays sometimes, giving you instant profit without breaking sweat.
Note: We used Dangote as study case in this article. However, there other great cement companies out there. If you think the process of distributorship application is more simple and straight forward in your company, write detailed article about doing business to you and send to us. I’ll be glad to publish it here with a bottle of coke.