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Tamilnadu Tea Plantation Corporation Limited (TANTEA) ( A Government of Tamilnadu Undertaking) Invites

“Expression of Interest ”(EOI) for appointment as District Wholesale Dealers in Tamilnadu

1.Company Profile 1:1. Tamilnadu Tea Plantation Corporation Limited (TANTEA) is a Government of Tamilnadu Undertaking started during 1968 with a vision to rehabilitate Sri Lankan Repatriates trained in the fine art of tea culture under Shastri-Srimavo Pact. The Project was brought under corporate management and registered under the Companies Act 1956 on 22.08.1975 in the name of the Tea Plantation Corporation Limited. reaching out to new markets at home and overseas.

1:2. TANTEA has on its roll more than 6000 permanent workers, of whom 4500 are repatriates from Sri Lanka. TANTEA believes in labour welfare for which it provides Continuous gainful employment, Free housing, Free education in its own schools, Free medical attendance, Creche facilities, etc.

2.Tea Production 2:1. TANTEA is one of the biggest black Tea producer in from high quality clonal tea plantations spread over in Nilgiris and districts.

2:2. The clonal character and the elevation makes TANTEA teas bright and brisk. About 1.5 million kilogram of high grown Nilgiris orthodox tea and 10.0 million kilogram of mid- elevation CTC tea is produced every year in its 8 factories. Name of Location & A ltitude Type of Factory (M above MSL) manufacture Cherangode Gudalur (970) CTC Tiger Hill (1780) Orthodox Cherambady Gudalur (970) CTC Pandiar Gudalur (910) CTC Quinshola Kotagiri (1820) Orthodox Gudalur (970) CTC Lawson (1200) CTC Ryan Valparai (1200) CTC

3. The Market & TANTEA 3:1. TANTEA entered into retail marketing in a small way in 1980 and its tea has been gaining in popularity in the domestic market. While over 98% of tea produced is sold through e-auctions, efforts are now on to make garden fresh tea available in packets and pouches to the domestic consumer through more extensive retail sale.

3:2. TANTEA has developed the following brands:

- Tiger Hill Supreme (B.O.P. – Orthodox) Pure Broken Orange Pekoe grade from high grown clones known for flavor and aroma in the tea industry. - Kurinji Blend of TANTEA’s quality dust teas from both CTC and Orthodox. - Hotel blend A blend meant for price conscious large consumers like Industrial canteens, restaurants, etc. - Lawson Tea : B.O.P. a bolder CTC leaf grade from mid-elevation areas in Valparai known for flavour and liquor. - C.T.C. Leaf blend : A blend from the best of TANTEA’s CTC factories. - Orthodox blend: A blend from the best of TANTEA’s Orthodox factories. - White tea: A special type of tea made from selectively hand-plucked fresh growth buds of specific clones, being introduced by TANTEA. - Dip-tea: Premium Quality Tea Bags using the best of CTC & Othodox tea for flavour and newly introduced in the retail market.

3:3. TANTEA has taken up publicity work to promote its teas and its different brands were displayed at the prestigious Harrods store at during the Olympics 2012. TANTEA also participated at India foodex an International exhibition held at during the year 2012 and World Tea & Coffee Expo held at during February 2013.

4. The present endeavour 4:1. Having achieved the original objective of rehabilitating Sri Lankan Repatriates successfully and transforming the organization into a commercial venture, TANTEA has embarked on making its pure clonal tea available to the public in Tamil Nadu as well as in rest of India at a affordable prices.

4:2. To achieve the above goal TANTEA proposes to expand its retail network. Presently, T ANTEA ’s retail packets are being marketed by dealers to a small extent. Inspite of several desirable features of T ANTEA’s retail presence is not to the desired level due to inadequate publicity and retail network. The small dealers are unable to invest on publicity. Considering the above points it has been decided to appoint District Wholesale Dealers in all the Districts of Tamilnadu.

5. Scope of work and responsibilities 5:1. Each wholesale dealer will be allotted a well defined geographical area which will be a district or part thereof. This will be their primary area of operation. The wholesale dealers appointed will have the following responsibilities: (a) Creating demand through its business/marketing strategy (b) Arranging special promotional events at its own cost in consultation with and with prior approval of TANTEA(This may include participation in trade fairs, exhibitions, sales outlet , events etc.,) (c) Selling TANTEA products both directly as well as through sub-dealers or retail outlets, etc. (d) Maintaining supply of TANTEA products to various retailers and sub dealers or any other buyers including Central/State Government, Private institutions/colleges, Schools etc., (e) Achieving the targets fixed for sales and increasing sales volume and revenue generation regularly. (f) Submission of sales details in requisite formats alongwith list of retailers/sub- dealers to TANTEA every month (g) Complying with all applicable laws,bye-laws, rules, regulations, orders, directions, notifications, etc of the Government/ Court/ Tribunals

5:2. TANTEA would be responsible for ensuring that there is regular supply of adequate quantity of TANTEA products to the wholesale dealers as and when a requisition is received alongwith full payment. TANTEA will arrange for transport of its products to the wholesale dealers as per their requisitions to any location (not more than three) inside the District at TANTEA’S cost.

5:3. On receipt of monthly sales details in requisite format commission as applicable (after deduction of taxes etc.,) would be paid to the wholesale dealer.

5:4. TANTEA shall fix the targets for each area every quarter ( 3 months). Minimum monthly target for sales would be 2000kg to begin with.

5:5. TANTEA intends to provide to its agents, dealers or any other marketing organization as decided by the Corporation, marketing tools like product presentations, publicity materials, quotations, customized product mix, product comparisons, etc. as it deems fit from time to time.

6. Eligibility Criteria 6:1. All reputed wholesale dealers, proprietorship firm, partnership firms and company of Indian origin fulfilling the following minimum criteria are eligible to apply.

6:2. Turn over :- Turnover is defined as sales proceed as per audited P&L account, submitted for last two financial years. A copy of income tax return should also be submitted alongwith audited P&L account. It should beRs. 10 Lakhs for each territory. 6:3 Experience:- Interested party must be dealing in sales, marketing/ distribution of beverage/food products or FMCG or other goods for at least the last: a. 3 years for class A territory (Coimbatore) b. 2 years for other territories 6:4. Space :- Interested party must ensure office space (carpet area) of size 200 sq.ft. and own storage/godown facilities to store TANTEA products.

6:5. Those interested may apply in detail explaining their experience in marketing tea and similar products and the infrastructure facilities available. The applicant is expected to enclose authenticated documents supporting the above claim.

6:6. Those barred from marketing the products of Government and Public Sector Organizations will not be eligible to participate in this EOI. The declaration to this effect should be furnished by the applicant.

7. PROPOSAL SHOULD CONTAIN THE FOLLOWING (Checklist) 7:1. a) Attested copy each (i) of VAT/CST/Service tax registration number of PAN/GIR number b) An undertaking in the format enclosed regarding eligibility and to abide by all the terms and conditions stated in this EOI and in agreement to be executed. c) Certified copies of audited revenue accounts showing income from similar activities. d) Other documents in support of financial strength of the firm e) EMD in the form of DD alongwith the EOI & other documents as per checklist. Rs. 2 Lakhs for A class territory(, Coimbatore, ) Rs.1Lakh for other territories

7:2. Every additional document submitted and every page of the EOI document shall be duly signed by the authorized signatory as a token of compliance and acceptance of all terms and conditions.

7:3. EOI applications received without DDs /Receipt for payment towards the cost of EOI document and EMD will be rejected.

8. Submission of EOI : 8:1. The EOI document alongwith annexures can be downloaded from the website www.tantea.co.in and same can be submitted after duly filling and enclosing necessary documents alongwith DD for sum of Rs.100/- only in favor of TANTEA, Coonoor or it can be obtained from TANTEA (Registered Office), TANTEA Complex, Coonoor during working hours on payment of Rs.100.

8:2. Separate EOI form for each district should be submitted, if applicant wants to apply for more than one district if eligible.

8:3. Interested parties may submit their Expression of Interest (EOI), in a sealed envelope superscribing each envelope with “EOI for Appointment of District Wholesale dealers in Tamil Nadu for______district” to the Managing Director, Tamilnadu Tea Plantation Corporation Limited, Registered Office, TANTEA Complex, Coonoor on or before 3:30 p.m on 08.03.2013. The parties should take care of submitting the EOIs properly filed.

8:4. TANTEA will not be responsible for non-receipt of response to EOI within the specified date and time due to any reason including postal holidays or delays. However, in case the specified last date of submission of EOI is declared a holiday, the EOI application s will be received till the specified time on the next working day. Fee paid for EOI Document is neither transferable nor refundable.

9. Opening of EOI 9:1. EOI shall be opened area wise as per schedule attached (Annexure B) , in the office of the TAMILNADU TEA PLANTATION CORPORATION LIMITED (Registered Office), TANTEA Complex, Coonoor – 643 101, The Nilgiris, Tamilnadu, India.

10. Process of selection 10:1. Each EOI shall be assessed for the suitability as wholesale dealers by Selection committee formed by TANTEA for the purpose. Criteria would be experience of the applicant, turnover, availability of space, previous sales record/achievement, etc.

10:2. Those fulfilling the minimum eligibility criteria with reference to experience, turnover, sales records and managerial capacity would be assessed with reference to points I to V above. If an applicant provides/submits incomplete/misleading/ambiguous information on any of the factor(s), it shall be awarded lowest possible score against that factor for the purpose of evaluation apart from other action such as penalty/forfeiture of EMD/Security Deposit. Based on the evaluation, invitation may be given for short-listed applicants to appear for interview & presentation with reference to their business/marketing strategy and expression of interest to become District wholesale dealers in marketing TANTEA products. Material deficiencies in providing the information requested may result in rejection of the proposal.

11. Requirements after EOI approval 11:1. After final selection the selected applicant has to enter into an agreement with TANTEA on mutually accepted terms and conditions and the EOI terms and conditions will form part of the agreement. TANTEA reserves the right to forfeit EMD in case of failure to execute agreement or any violation of conditions of EOI document by selected applicant.

11:2. TANTEA reserves the right to revise some sections of sales & distribution policy according to change in business. TANTEA shall notify all such changes to the approved dealers. The dealer will be assumed to be in agreement with revised norms unless notified to TANTEA in three week's time. Any party who wishes to discontinue the agreement due to such change in policy can do the same by providing a 90 days notice to TANTEA.

11:3. The dealership is awarded for a period of 2 years with condition that appointed wholesale dealer may be subject to termination for violation of the guidelines.

11:4. Security deposit of Rs.3 lakhs for class A territory and Rs. 2 lakhs for other territory should be paid in the form of DD or at par cheque in favour of TANTEA at the time of execution of agreement. E.M.D. can be adjusted for the purpose of Security Deposit.

11:5. TANTEA reserves the right to increase the amount of Security Deposit at any time in its sole discretion with reference to any/some/all dealers.

11:6. TANTEA reserves the right to forfeit/adjust/apply the said Security Deposit amount in full or part satisfactions of any sums due from the dealer to TANTEA at any time or for violations with reference to EOI document/agreement. Wholesale dealer(WD) shall continue to be liable for balance, if any.

11:7. No interest will be paid on the Security deposit. Tea would be supplied against part of the Security Deposit as per the request of the Wholesale Dealer.

11:8. TANTEA reserves the right to reject any application for any reason, without liability, the information provided by the applicant/ gathered by TANTEA shall become TANTEA' s property even if application is rejected and can be used by TANTEA in any manner, it deems fit.

11:9. The decision of TANTEA will be final and binding.

11:10. The present dealers will continue to operate with existing dealership commission. However, they can draw their requirement from District wholesale Dealers.

11:11. Commission to the District Whole Sale Dealers:

Sl.No. Volume of Tantea Commission% retail sale per month (Subject to terms and conditions) 1 up to 500 Kgs 20% 2 501 to 750 Kgs 22 % 3 751 to 1500 Kgs. 25% 4 1501 to 2400 Kgs. 27% 5 2001 to 5000 Kgs. 30% 6 5001 Kg and above 33%

For Hotel blend, the maximum Commission is restricted to 25% Details Hotel Kurinji Lawson CTC Orth BOP Dip Blend (500 (250 Leaf odox (500 tea (1 kg) gm) gm.) (250 blen gm) (50 gm) d(50 gm) 0 gm.) M.R.P. 175.0 108.00 67.00 58.0 142. 168. 36.0 0 0 00 00 0 Dealer’s 148.7 91.80 56.95 49.3 120. 142. 30.6 Price 5 0 70 80 0 inclusive of VAT 5%

1. The minimum commission to dealer is 20%. The commission based on the volume of sales will be increased / paid at 22%, 25%, 27%, 30% and 33%. 2. For Hotel blend, the maximum Commission is restricted to 25%.

11:12. The District wholesale dealer should pay the commission to existing dealers at the rates Tantea is now paying to the above dealers.

11:13. TANTEA reserves the rights to seek/verify financial details from dealer/applicant's Bankers/credit providers and any another sources so as to carry out other verifications

11:14. Storage space or godown should be insured against all risks.

11:15. Dealing should be with registered buyers of tea who have no record of violations with reference to Tea Board guidelines or any trade malpractices.

11:16. TANTEA reserves the right to blacklist an applicant or selected wholesale dealer for a suitable period (as deemed fit by TANTEA) in case it fails to abide by the terms and conditions of EOI document or agreement or fails to honour its proposal in totality.

12. Indemnification

12:1. The successful applicant will be required to sign agreement with TANTEA, which would, inter-alia, include the following: -

The Wholesale Dealer agrees to protect, defend, indemnify and hold harmless TANTEA and its employees, officers, directors, agents or representatives from and against any and all liabilities, damages, fines, penalties and costs (including legal costs and disbursements) arising from or relating to:

a) Any breach of any statute, regulation, direction, orders or standards from any governmental body or agency, b) Any breach of the terms and conditions in the agreement by the wholesale dealer; c) Any claim of any infringement of any intellectual property right or any other right of any third party or of breach of law; d) Any claim made by any third party arising out of the use of the products and arising in connection with interruptions in supply or degradation of tea, etc after supply to TANTEA’s customers caused solely by the dealer. e) The dealer will comply with all the laws, directives, guidelines etc. of the land where located and shall be fully responsible for the same. The dealer will indemnify TANTEA for any liability arising out of non compliance of the same.

This clause shall survive the termination or expiry of the contract.

13. DISCLAIMER: 13:1. The EOI request is not the subject of any process contract or any contractual obligation between Tantea and the applicant or potential applicants. At any time prior to the last date for receipt of EOI applications TANTEA may, for any reason, whether at its own initiative or in response to a clarification requested by a prospective applicant, modify the EOI Document.

13:2. Any modifications which may became necessary as a result of the pre-bid queries shall be made by TANTEA exclusively through the issue of an Addendum/ Corrigendum on the website and such amendments shall be binding on the applicant. The Tendering Authority shall be free to amend the documents as per requirements. The notice of change, if any, will be made available on the website as well as communicated through email to all applicants whose email addresses must be made available to TANTEA \. No other communication may be made in this regard

13:3. In order to provide prospective Bidders reasonable time in which to take the amendment into account in preparing their Bids, the purchaser may, at its discretion, extent the last date for the receipt of EOI applicatios.

13:4. Without limiting its rights in law or otherwise, TANTEA reserves the right at its absolute discretion, to accept or reject any EOI application, to abandon any part or whole of the process without giving prior intimation to the applicant or potential applicants.

13:5. The Managing Director, Tamilnadu Tea Plantation Corporation Limited, Tantea, Coonoor has the right to accept/reject any/all application in part or in full without assigning any reason. Merely expressing the interest does not confer the right of participating in the EOI/selection process.

13:6. TANTEA shall not be bound to give reasons for any decision made under this Clause and its decision will be final and binding on all respondents to this EOI.

ANNEXURE A

Please fill up the following information: (only those relevant to you)

1. Profile of the Agency Name of the Company Company/Business Registration No. Address of Registered Office Location/addresses of Branch Offices Location of own godown*

Year of incorporation Company Turnover (2009/2010/2011) No. of years of experience * in Sales and Marketing of: (i) Beverages (ii) Other food items (iii) Other FMCGs (iv) Others[other than (i) to (iii) above] Name of Contact Person and contact details VAT Registration No. * CST No. if any* Income Tax PAN No. : (copy of the current income tax return certificate & PAN card to be attached) Sales record and achievement Other relevant information You may add any other information/documents you wish as annexure SALES RECORD/ ACHIEVEMENT

Sl.No. Name of product/ brand Increase in volume of sales of product (in percentage and quantity)

2009 -2010 2010 -2011 2011 -2012 1 2 3 4 5 6 7

ANNEXURE B SCHEDULE FOR OPENING OF EOI FOR WHOLESALE DEALERS FOR DISTRICTS IN TAMILNADU

1. 17. SALEM 2. COIMBATORE 18. SIVAGANGAI 3. 19. THANJAUVUR 4. 20. TRUVANNAMALAI 5. DINDUGUL 21. 6. 22. THIRUVALLUR 7. KANCHEEPURAM 23. THOOTHUGUDI 8. 24. 9. 25. 10. 26. 11. 27. VILLUPURAM 12. 28. 13.NILGIRIS 14. 15.PUDUKOTTAI 16.

ANNEXURE C FORMAT FOR UNDERTAKING TO BE SUBMITTED ALONGWITH EOI APPLICATION ON COMPANY LETTERHEAD

This is to certify that M/s ………………………..( the applicant for the EOI of TANTEA) fully meets the eligibility criteria mentioned in this EOI.

2. M/s ………………………..neither the firm nor individual employees of the firm have been barred from marketing the products of Government and Public Sector Organizations

4. Having gone through the terms & conditions of the EOI, i t is hereby undertaken to comply with all the terms and conditions of this EOI and to successfully and timely carry out the entire scope of work mentioned in the EOI to the satisfaction of TANTEA as well as comply with the terms and conditions of agreement if selected .

Date Signature of Authorized Signatory Place Name of Authorized Signatory Stamp Contact details of Authorised Signatory :- Address, Phone No. , Mobile No., FAX No.

Please enclose Letter of Authorisation from Owner/Head of Firm/Company if applicable