 Welcome to another episode of Startup. Today we are going to discuss about a very interesting delivery opportunity and it is called a fuel delivery business startup. The first fuel delivery business startup in India was started as recently as 2016. So just for your understanding, we are going to talk about what exactly is a fuel delivery startup. A fuel delivery startup is essentially engaged in providing doorstep-reviewing services to its customers. Currently, fuel delivery startups are being used more in B2B use cases than in direct-consumer servicing. These fuel delivery startups provide convenience and save time particularly when you are ordering fuel in far-fetched areas where there are no ready petrol pumps available. However, one thing to note is that today by government regulations you can only do a fuel delivery startup with diesel because petrol has still not come under the regulation of the government for fuel delivery. So what is the size of the fuel delivery market? So broad estimates have shared that in India there are currently only about 60,000 gas stations which is way too less. Even a country like US has about 160,000 fuel stations. So this shortfall or gap of let's say 100,000 fuel stations that exist in India today are not easy to fulfill because economically it is very difficult to get the land procurement which is required for setting up new gas stations. In fact, a recent report by Crissel has said that there is room to do only about 30,000 gas stations that too only if throughput levels can be maintained. So opening a fuel delivery startup is certainly much easier as compared to starting a petrol pump in today's time. Plus the demand in the market for doing a fuel delivery startup is certainly very large. So who are your prospective clients today if you were to do a fuel delivery startup? Right from hospitals to apartments, schools, cabs, farming sector, tractors using diesels, generators used in industries in residential colonies, hospitals, schools. They all require diesel to function and therefore they can be your early startup customers for your fuel delivery business. The most important thing to keep in mind while doing this business is that you need to be fully aware about the rules and regulations set by the government. You need to first take an approval from the straight-run petroleum and explosive safety organization PISO for your startup. You will need to get all the proper licenses that are required for your company to start this business. The startup will also need heavy investment in the early days. You will have to invest in a mobile defense unit MDU or which is a specialized vehicle that is used to transport the fuel to your customers. Now let's say if your startup has a fleet of 100 MDUs then this is how the cost breakup will look like. One MDU can cost rupees 23 lakh rupees and the license cost per MDU for 10 years period is about INR 20,000. To do a fuel delivery startup you would either need to put up a website or a mobile delivery app where your customers will place order and also can track their fuel consumption and spending. Therefore your IT cost which includes the development of your front-end and back-end infrastructure will cost you about another INR 20 lakhs. Apart from this you will have a recurring operational cost per MDU, the mobile defense unit which will be about 60,000 rupees monthly. Needless to say that you will also be needing a professional GPS tracking system for all the fleet that you would have in order to make sure that your delivery is done in the most professional manner. Now the return on investment for one mobile defense unit will take you nothing less than 10 months. The delivery capacity per day of an MDU is about 15,000 litres and the margin as of now is about INR 1.20 rupees per litre. Once the government policy is put into shape this margin would probably go up to INR 2.10 per litre in the future. Fuel delivery is definitely one of the businesses to look forward to in the coming times. You want more information on this business? Look up at www.entrepreneur.com to get more ideas and also about startups who are already doing this business in India. We look forward to meeting you again with an other fresh and new opportunity right here on Start It Up. Thank you for watching our videos.