Distributor Appointment Letter Format

Sample Template Distributorship authorization Covering Letter format on Request Application of Dealer / Customer as per company’s agreement,  Terms & Condition in India in word/ .doc

April 29, 2013

Anil Steel Trading Pvt Ltd.
14/5 K N Road
Bhubaneshwar – 762 415

Dear Mr. Anil Jain

Sub : Distributorship of Shakti HR Coils for Orissa 

This has reference to the discussion we had with you on the above subject and further to your letter dated 16.03.2013. As discussed we hereby confirm you the following:

We hereby appoint you the Distributor for selling SHAKTI HR Coils in the state of Orissa.  The operation should start w.e.f 1/5/2013.

You have to sell HR Coils for Rupees 500 lacs monthly on an average during the first six months to make the distributorship viable. The target shall be reviewed on time to time & the same will be fixed accordingly.

For Direct supply by RSL to any specific customers in your region due to some reason, ORC (Over Riding Commission) will be passed on to you.

Anil Steel Trading Pvt Ltd. (ASTPL) will be responsible for all the Sales & Collection activities related to SHAKTI HR Coils business in Orissa. RSL will supply the materials to you against orders as per the agreed terms & conditions (refer RSL marketing policy).

RSL will provide all Marketing support to you. ASTPL also should be responsible for putting Sales Person in specific areas to achieve the budgeted target.

ASTPL will give refundable Security Deposit of Rs 40.00 lacs to RSL in two installments of Rs 20 lacs each. 10% interest on security deposit per annum will be given to you.

You have to maintain a minimum stock as decided from time to time in your godown in Bhubaneshwar to ensure smooth supply to local dealers/customers etc. Please send us your godown details for our necessary records.

The necessary sales orders for the month to be forwarded to our Branch Office before 25th of previous month with tentative delivery schedule to ensure timely supply from RSL.

We now request you to send us your requirements for the month of May 2013. You are also requested to report to our Branch Manager- Mr. Ajay Rout on daily basis to ensure smooth functioning of operations.

Hope the same is in line with your requirements. Please feel free to revert for any clarifications. The formal distributorship agreement will be forwarded to you shortly.

Thanking You,

Yours faithfully,
For Rocket Sales Ltd.

Neetu Singh
GM – Commercials


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