Government Contract in India – This is how you win it

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LI Ping HR Director / BHS Corrugated Machinery(Shanghai) Co.Ltd

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M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.

Falk Tzchichholz Sales Manager Export / Kjellberg Vertrieb GmbH

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With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary

Andreas Dauerbock Quality Assurance / Voestalpine Grobblech GmbH

BIS registration project
The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India – with the expert’s advice you will need.

Rajesh Nath Managing Director / VDMA India Services Pvt Ltd German Engineering Association

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India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows – Maier+Vidorno is a competent partner to efficiently set up and run business.

Bjoern Becker Export Sales / Jumo GmbH & Co KG

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The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India – and provides hands-on solutions.

Rene Pluss CFO, Member of the Board / Regent Beleuchtungskorper AG

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Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.

    Winning government contracts in India

    Winning a Government contract in India is comparatively easier now. Under Prime Minister Modi, India is experiencing a massive transition. Through various government programs, such as Make in India, 100 Smart Cities and Digital India, billions are being invested in improving India’s infrastructure. From a spanning metro network to the deployment of fibre optics, from technical traffic solutions to clean energy sources, the possibilities are endless. For these big undertakings, India is keen on foreign knowledge and technology. Foreign investment in India has therefore also been steadily increasing since 2014. Companies from all over the world are hoping to get a piece of the pie from the growth on the subcontinent. But how do you win such a sought-after government tender as a foreign company?

    ‘You win a tender with 3 crucial ingredients’

    In recent years, Joeri Aulman has been successful in obtaining government contracts in India. He is a project manager and airport developer for Naco, a division of Royal Haskoning DHV in the field of airport consultancy. First and foremost, our market entry was fortunate. We stepped in 2005, right at the time when the first round of airport privatization started in India. That turned out to be perfect timing.”

    But the good references from local business contacts got the ball rolling for Naco.”On the recommendation of an existing client, we were allowed to present to the Indian party. That presentation was focused and, very importantly, not meticulous. Despite our knowledge and experience, we were humble, and that was the key to success.” According to Aulman, the combination of smart timing, excellent references and modesty in presenting your plan are therefore the three crucial ingredients for winning tenders in India. “Over the past 15 years, we’ve learned that if one of these three ingredients is missing, we miss out on the job right away.”

    Not only does India benefit, but there are also interesting opportunities for Dutch companies.

    According to the Indian ambassador to the Netherlands, Venu Rajamony, it is not only the case that India can benefit from Dutch expertise in areas such as agriculture, water and waste but there is also a lot to be gained for Dutch companies in India. “We are the fastest growing, large economy in the world with a young population and a growing middle class. Competitive Dutch companies that enter India with long-term planning are going to benefit from the country’s rapid developments and expanding consumer market.”

    For companies looking to win contracts from the Indian government, Rajamony has some advice. “To stand a chance, it helps if  Dutch parties collaborate with an Indian partner. In addition, companies increase their chances if they produce part of their technology in (make in India), use Indian raw materials for this (source in India) and hire Indian personnel (hire in India). This not only corresponds with numerous government objectives, but it also lowers the cost of Dutch technology, which is generally expensive. Dutch companies must realize that India is a highly competitive market. Companies from all over the world subscribe to Indian tenders.”

    There are hundreds of tenders open as part of the Smart City mission.

    Six tips to win tenders in India to keep those foreign competitors out of the running with ease in the battle for an Indian government contract, keep the following points in mind during your preparation:

    1. Right Timing & plan ahead 

    Timing is key, but you can’t start building a network early enough. In other words, you’ll be late if you don’t start creating a network until the demand for your items starts to rise.

    1. Use references actively  

    India is a network economy par excellence: relationships are crucial. So don’t hesitate to approach your local Indian Embassy for help if you get stuck with permits and the like. Their network is vast, and they can often provide clarity. In addition, the following applies: seeing is believing. Those who have previously delivered good work on another project in India have an advantage.

    1. Be specific, but humble  

    While India is in severe need of state-of-the-art technology in a variety of fields that does not mean that foreign companies can be meticulous, condescending. A foreign company in India is guaranteed to fail if it adopts this mindset.

    1. Work with an Indian partner.  

    As mentioned, India is a network economy, so local collaboration rapidly increases your chances. Those who don’t have the right entrances will usually balk at government tenders. An Indian partner knows his way around the Indian bureaucracy.

    1. Make, hire & source in India  

    The Indian government faces the immense task of providing work for hundreds of millions of young Indians. Logically, companies that create jobs in India, directly or indirectly, have an edge in tenders. So put yourself in the shoes of Indian officials.

    1. Understand your market value  

    It’s preferable to begin thinking in terms of the Indian market and modify your proposal to the price/quality level required by the Indian government. Do you lack a thorough understanding of your industry and how to best position yourself in the Indian market? Contact our experts, we will conduct customized market research and give you concrete suggestions for the right next steps.