Getting orders or making initial breakthrough in the government sector is most difficult task.As i have told in my last blog that because of economic slowdown in the market we have decided to enter into the government sector but soon we found out that it is very difficult.I told my owners that we should start with Haryana Vidyut Nigam since we had the set-up in Faridabad which is in Haryana itself.So we went there but the officials told us that have you done any project of 25 crore or more in any government sector? Although we had done several projects in the private sector of this scale but rules are such that you must have done projects of this scale in government sector which we had never done.The other factor was that your company must have ISO CERTIFIED which again we had not done.
So we decided that first we should get the ISO MARK and only then we will try for government orders.But getting this certificate is very difficult since rules are such that your workers should have some basic technical knowledge and to train old uneducated workers and expect them to adapt to changes required so suddenly who are habitual in working in a particular way is expecting too much.If we had followed the right procedures then it would have taken years to get this ISO mark so we have to bribe the officials to get the certificate.
After getting the ISO MARK we went to bid for tenders of Haryana Vidyut Nigam which is based in chandigarh.After two or three visit i came to know that we are much more capable in comparison to the companies who are getting the tenders and i told my MD that if they can get and deliver 35 crore worth tenders of sub-stations then there is no reason why we can not do that.Only problem was how to make the breakthrough?
Again we had to bribe the junior official with food,drink & money.After lot of persuasion and bribe they told us to fill the tenders and they also told us the rates required to be filled and they also told us that two tenders you will not get the order and have to forfeit your EMD.We took the risk and after two tenders we managed to get the third order worth Rs. 35 crore for supply of sub-stations.We had to spend lot of money to bribe the officials but finally it was worth it since you get very good rates in government sector in comparison to private sector where you have to give very competitive rates.The profit margin was approximately 25 to 35%.
Now after making initial breakthrough in government sector we got several orders in UP,MP,MAHARASHTRA VIDYUT NIGAM with the reference of this order and within two years we were able to book orders worth Rs.400 crore while our capacity was just 100 crore/annum.
So we decided that first we should get the ISO MARK and only then we will try for government orders.But getting this certificate is very difficult since rules are such that your workers should have some basic technical knowledge and to train old uneducated workers and expect them to adapt to changes required so suddenly who are habitual in working in a particular way is expecting too much.If we had followed the right procedures then it would have taken years to get this ISO mark so we have to bribe the officials to get the certificate.
After getting the ISO MARK we went to bid for tenders of Haryana Vidyut Nigam which is based in chandigarh.After two or three visit i came to know that we are much more capable in comparison to the companies who are getting the tenders and i told my MD that if they can get and deliver 35 crore worth tenders of sub-stations then there is no reason why we can not do that.Only problem was how to make the breakthrough?
Again we had to bribe the junior official with food,drink & money.After lot of persuasion and bribe they told us to fill the tenders and they also told us the rates required to be filled and they also told us that two tenders you will not get the order and have to forfeit your EMD.We took the risk and after two tenders we managed to get the third order worth Rs. 35 crore for supply of sub-stations.We had to spend lot of money to bribe the officials but finally it was worth it since you get very good rates in government sector in comparison to private sector where you have to give very competitive rates.The profit margin was approximately 25 to 35%.
Now after making initial breakthrough in government sector we got several orders in UP,MP,MAHARASHTRA VIDYUT NIGAM with the reference of this order and within two years we were able to book orders worth Rs.400 crore while our capacity was just 100 crore/annum.
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