Modalities for Operating Bulk Marketing Services

Directorate of Marketing Khadi & Village Industries Commission Ministry of MSME (Govt. of India) Gramodaya" 3 Irla Road, Vile Parle (W), Mumbai-4000056 Tel. Fax 022-26716680 Website: www.kvic.org.in e-mail: [email protected] Date of Advertisement : 25.2.2016

ECO-FRIENDLY KHADI NOW AVAILABLE IN BULK AT YOUR DOORSTEP

Khadi & Village Industries Commission (KVIC) under Ministry of MSME, Govt. of India generating employment through Khadi and Village Industry’s programs is looking for Corporate Organizations as well as Bulk Consumers for purchase of Khadi fabric & Khadi garments products either for distribution under CSR or for uniforms of their employees or for free distribution as corporate Gifts .

Khadi and Village Industries Commission is generating employment through Khadi & Village Industries Programmes. The Khadi and Village Industries production is more than Rs. 27,000 Crore and providing employment opportunities to 1.34 Cr. persons.

To market Khadi and Village Industries products, like Khadi garments, fabrics , made up of cotton, wool, silk , KVIC has opened special helpline for bulk supplies at Mumbai and Delhi. Please contact for bulk purchases (not less than Rs. 50,000/= per consignment), to Shri Ram Narayan , e-mail:- [email protected] , Phone:- 09665840278, Land line number:-022-26716680 for Mumbai and Shri Anirudh Chowdhary , email:- [email protected] , Phone :- 09351394143 , Land line:- 011-23411651 for Delhi.

Conditions:

1. Applicant should purchase goods worth at least Rs.50,000/-. 2. Supply initially will be from KGB, New Delhi . 3. The Bulk purchases shall be utilized for own consumption. 4. Khadi Mark registration is mandatory if any value addition is done on Khadi fabric and to resell it. 5. Trade discount to be offered to bulk Purchasers shall range from 10% to 15%. 6. Directorate of Marketing shall charge 3% Royalty on all Transactions. 7. Mode of payment shall be 100% advance through RTGS in favor of “ Bulk Marketing Account”. For detailed terms & conditions kindly visit KVIC website at www.kvic.org.in .

DY. DIRECTOR I/C (MARKETING) Modalities for operating bulk marketing services

Background –

Definition of bulk buyer –

There are many corporate organizations as well as bulk consumers who require large quantities of Khadi & Village Industries products either for distribution under CSR or for uniforms of their employers or for free distribution as corporate gifts during the Diwali, New Year and other special occasions. Such bulk buyers are not permitted to resell the product but use it for their own consumption.

At present there are no dedicated helpline/service available for catering to bulk supply of Khadi & Village Industries products. It is therefore been decided to introduce dedicated helpline at Mumbai and Delhi in the first phase for providing support for Khadi fabric and ready-mades. This will be a pro-active service manned by efficient officials/outsourced persons who will run helpline on business model.

Models –

(i) Supply –

Supply initially will be from Khadi Gramodyog Bhavan, New Delhi which has a large supply base already identified in terms of more than 400 suppliers consisting of Khadi institutions and REGP/PMEGP units. Further, the Khadi Bhavan has an adequate godown stocked with inventory and could immediately respond to the demand of bulk purchase promptly.

In the 2nd phase it is proposed to involve all the departmental sales outlets to join the sourcing which would be zone wise. Good and capable Khadi institutions will be empanelled with the supplying departments and sales outlets who will be marketing their products to bulk consumers.

The products selected for Bulk marketing are restricted to only Khadi products fabric and garments in phase-I. The 1st Phase shall be for a period of 6 months to one year after which Village Industry products shall be introduced under Bulk marketing.

(ii) Business help lines – The business help lines will have a database of product wise suppliers, prices and estimated lead time for deliveries and also features of the product. Once an email is received from bulk buyer, the helpline will send an acknowledgment of the enquiry along with the details of the product, price, features, expected delivery time and request for advance payment to be made by RTGS in favor of Khadi Gramodyog Bhavan, New Delhi “Bulk Marketing Account” which will be opened at KVIC, Central Office, Mumbai and also send Performa invoice. On receipt of the payment the helpline will immediately place indent on the Khadi Gramodyog Bhavan, New Delhi for supply and also issue an acknowledgement and order confirmation by mail to the bulk buyer clearly indicating the estimating delivery period. The concerned Khadi bhavan will supply the material through couriers and also send necessary documents like invoice, delivery challan etc, copy of the same will also be forwarded to the business helpline for record. The business hipline will also take up any issues of after sales complaint and also have a system to obtain feedback from customers by mail after the transaction is completed.

(iii) Trade discount/offer/ bulk discount – Khadi Gramodyog Bhavan will work out the trade discounts to be offered to the bulk purchaser of Khadi fabric which could range anyway from 10% to 15%.

(iv) Definition of bulk supply – Bulk supply is defined as a minimum order/supply of Rs. 50000/- in one lot will be termed as bulk order.

(v) Product to be handled –

(i) Khadi designer and fashion garments (ii) All types of Khadi fabrics of cotton, polyvastra, silk and wollen. (iii) Khadi made items like bags, folders, carpets, bedsheets, curtains, towels. (iv) Khes, Daris, Shawl, quilts, blankets etc.

(vi) Royalty to be charged – 3% Royalty to be charged as IRG by Directorate of Marketing on all the transactions from KGB.

(vii) Status of Khadi mark – The supply will be from departmental sales outlets of KVIC who are already having Khadi mark registration. Since the bulk buyers are purchasing the material from the departmental sales outlets and are using it for their own consumption under Khadi mark is not required to be taken by them. Khadi mark will be required in case they do value addition with the Khadi fabric and resell it. In such cases taking Khadi mark registration will be mandatory for which they need to apply separately to Dy. CEO (Marketing), KVIC.

(viii) Transportation and delivery of material – Khadi Gramodyog Bhavan, New Delhi will empanel a National level courier who will implement the transportation of the material to the bulk buyer all over the Country.

(ix) Undertaking - The bulk buyer is not required to give undertaking that the Khadi material being purchased is for their own consumption and not for resell. The condition is to be mentioned in the invoice and order confirmation. The proforma Invoice to be issued to the bulk buyer require vetting of Directorate of Legal in terms of ensuring that the purchase is not for resale but for own consumption.

(x) Empanelment of supplying institutions – All the departmental sales outlets of KVIC will prepare database of supplying institutions and units along with their product details, supply capacity, email id, lead time involved, minimum bulk size etc as applicable, name of the secretary, marketing manager, mobile number etc. The supplier will have to get empanelled with the concerned Bhavan and registration charge for the same will be levied by the bhavan for this purpose towards IRG. Each institution will also be provided a code number by Bhavan for monitoring purpose. The empanelled institutions will give an undertaking for quantity supply of Khadi and for timely deliveries, failure to meet this commitment will make the institutions liable to be delisted from supply.

(xi) Mode of payment – The bulk buyer will have to make advance 100% payment through RTGS in favour of “Bulk Marketing Account” against Performa invoice of business helpline.

(xii) Catalogue making:-

Detailed catalogue is to be prepared for this purpose by the respective Bhavans along with suppliers data base which should include supplying capacity, price, delivery period etc, address, phone , e-mail, fax of the Institution, mobile number of person to be contacted etc.

(xiii) Penalty for failing to supply:-

Institutions who fail to supply ordered quantities or default in the quality will not be desisted, a penalty also as deemed fit by KVIC shall be levied towards the damages in terms of reputation and brand equity of Khadi.

(ix) Khadi Mark:-

Bulk Buyers who do value addition with the Khadi fabric and resell , for them it will be required to obtain Khadi Mark for which a time period of 30-40 days maximum will be provided by KVIC.

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