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Old Diesel Generators Business in India
With over 45 years in marine and industrial power plants, I’ve seen how profitable the old diesel generator business can be.
Starting such a business might seem straightforward, but many stumble due to the lack of expertise in identifying the right diesel generators that match customers’ needs accurately. Recommending the wrong machine can lead to a loss of trust and credibility among customers. Another mistake some people make is only caring about selling once, which can hurt the business’s success in the long run
Understanding the details and focusing on what customers need will be important for success in this unique field.
Business Categories of Old DG sets
- Stockist of Old Diesel Generators
- Brokers of Old Diesel Generators
Stockist of Old Diesel Generators
Being a stockist of old diesel generators involves purchasing these generators from various sources. These sources include land industries, where well-maintained generators of different ranges are available for reasons like enhancing in-house power capacity, installing captive steam turbine power plants, or due to industry closures.
Another source is marine industries, specifically shipbreaking yards. Diesel generators from ships, particularly emergency generators with low running hours and good maintenance, are great to procure and sell. The best time to get these generators is right after the ship docks in the shipbreaking yard.
Stockists have different ways of running this business:
- Advance Deposit and Buyer Search: They pay a security deposit to the seller and then find buyers in the market. If they can’t find a buyer in the agreed time, they take the generator to their yard for storage.
- Repair and Maintenance: They can repair and maintain the generators in their yard, increasing their value. After repairs, they sell them at higher prices.
- Part Sales: If a generator isn’t in good condition, it can sell its parts to other owners with similar machines or even to shipping companies, as getting new parts takes time.
This business involves careful sourcing, maintenance, and strategic selling to make the most out of old diesel generators.
Mandatory requirement of stocking the Diesel generators
- Must have enough is to stock the generators.
- Loading and unloading facilities.
- Suitable covered maintenance space with an EOT crane for the maintenance and handling of heavier parts.
- Spares stocking room.
- Expert maintenance personnel.
- An attractive proper website for conducting international business.
- Skilled person to handle international requirements through the website.
- A mini workshop with suitable facilities to carry out the maintenance of engine parts. The workshop should have all the special tools required for the proper maintenance of cylinder heads valve seat grinding facility, Cylinder liner honing, Piston repairs, Fuel Injection system testing facilities, dismantling, and assembly devices.
- Good packing and forwarding facility.
- Suitable license from the Government to conduct national and international business.
- Should be financially sound to purchase the old Diesel generators and new spare parts as and when an opportunity arises.
- Should register the business with the business directories like in India it is India Mart Business directory.
Brokers of Old Diesel Generators
This type of business owner looks for the customer’s requirements in the land industries and assists the purchaser in purchasing the diesel generators. Brokers work on a commission basis and take commissions from both parties. Very important point for observation on the business of old diesel generators
The honest broker with good knowledge of Diesel generators helps the customers in the purchase of good-condition Diesel generators.
These brokers are always on the lookout for the sale of generators in industries and customers in need of second-hand Generators.
Brokers help the customers dismantle the Diesel generators from the old location and erect and commission the same at the new customers’ site.
This is a good business for individuals who have good knowledge of Diesel generators and are unsound financially. After the installation, one can take the operation and maintenance of the installation. Helping the customer in the spares procurement can get them a good commission.
Many business owners fail due to a lack of knowledge in this field. This type of business has a limited scope due to its non-stocking capacity.
Conclusion
Stockists, those who sell these generators, play a big role. They check generators, fix them up, and sell them smartly. Making customers happy, keeping things good quality, and building trust are all very important.
If you want to start a business or already have one, you can learn from all of this. Knowing the different kinds of businesses and how to do them well can help you in the old diesel generator market. If you use what you’ve learned and care about what your customers need, you can do really well.
FAQ on ” Old Diesel Generators Business in India”
Q: What is the potential of the old diesel generator business in India?
A: The business holds significant profit and growth opportunities
Q: Where can one find well-maintained diesel generators?
A: Sources like land and marine industries offer suitable generators.
Q: Is success in this business only about buying generators?
A: No, the stockists’ role involves assessing, repairing, and starting selling.
Q: Who can benefit from insights about this business?
A: Aspiring entrepreneurs and existing business owners can gain valuable knowledge.
