r f q · transport agreements will be entered into at the sole discretion of nilon’s group. 6....

NILON’S ENTERPRISES PVT. LTD. RFQ (Request for Quote) for Road Transportation from Jalgaon

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NILON’S ENTERPRISES PRIVATE LIMITED

www.nilons.com

R F Q

(Request for Quotation)

RFQ Number

Supply Chain/NILON’S /02 Dated 09th

August 2014

Road/Rail Transportation

From Jalgaon

Confidentiality

This invitation to an offer is given in the understanding that the contents of this document will

not be divulged to any third party without prior written consent from

NILON’S ENTERPRISES PRIVATE LIMITED

http://www.nilons.com/


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Introduction

NILON’s GROUP

NILON’S ENTERPRISES PRIVATE LIMITED (A Flagship Company of NiLoN’s Group) is a processed food company Established in 1962 by late Shri S.B. Sanghavi. The Nilon’s group is one of the oldest ethnic processed food company in India. Nilon’s Group has emerged as premium processed foods group in the last 8 years with CAGR exceeding 50%. It manufactures pickles, papads, tooty-frooty, vermicelli, jams, sauces ketchup and spices. It has a formidable presence in the pickles, tooty-frooty and roasted vermicelli market. Its market share in organized pickles market exceeds 25% and is the largest producer of pickles in the country. Nilon’s brand is synonymous with quality. Nilon’s has embarked upon an aggressive plan to increase its market share in Pickles domestically. Nilon’s has strong distribution network comprises of over 42 Consignee Sales Agent, 8 own Depot, 2 C& F agents and more than 20 direct parties across the country and over 350 Sales personnel and over 3000 Distributors spread across the country, reaching over 3,50,000 retail outlets. For its requirements of outbound logistics originating from Jalgaon“Expression of Interest / Quotations” are invited from established road/rail transporters for various destinations. SANGHAVI FOODS PRIVATE LIMITED a sister concern of NILON’s Enterprises Private Limited is also engaged in the manufacturing of Processed Foods and having its Operations at Dambhurni and Musli in Jalgaon District. NILON’s Enterprises Private Limited together with Sanghavi Foods Private Limited is hereinafter referred to as “NILON’s Group”. Presently NILON’s Group has a fleet requirement of Minimum 10-12 Trucks per day which may increase in future. NILON’S ENTERPRISES PRIVATE LIMITED has authorized M/s e-Procurement Technologies Ltd., to conduct the online negotiations on its behalf and its Group Company SANGHAVI FOODS PRIVATE LIMITED. Accordingly,

1. Request for Quotes from interested Transporters, subject to acceptance of the terms and conditions of this RFQ, to be offered during the negotiation, as per schedule mentioned.

2. To participate in the negotiations, interested party are requested to submit this RFQ along with

refundable/adjustable Earnest Money Deposit (EMD) of Rs 100,000/- Only payable by Demand Draft in favour of NILON’S ENTERPRISES PRIVATE LIMITED payable at Jalgaon. EMD to all the unsuccessful bidders will be returned within four weeks from the date of auction. EMD will be returned back to successful bidders on receipt of the Bank Guarantee which is 1 % of the Order Value or Rs. 5 lakhs, whichever is higher and acceptance of the contract. In case of not abiding by the RFQ terms and conditions or failing to respect to bid price (Inordinate delay in starting the service, not providing the trucks etc) after the auction, the EMD will be forfeited.

3. NILON’S GROUP reserves the right to allow or disallow the Bidders to participate in selected Lots, without

assigning any reason whatsoever.

4. List of delivery destinations and the indicative volumes (per month) are given in Annexure 3 for 16 MT Capacity Trucks and in Annexure 4 for 9 MT capacity Trucks along with expected transit time.


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5. Indicative Price Bid Envelop - Bidder needs to submit their indicative price for 16 MT capacity trucks for each location mentioned in Annexure 3 and for 9 MT Capacity trucks mentioned in Annexure 4 - inclusive of all the applicable taxes, on their company's letter head with duly seal & sign in sealed envelope to the concern person along with the necessary documents at below mentioned address before 18/08/2014.

Mr.Shekhar Jhunjhunwala Asst. Vice President (SCM & Credit Control), Nilons Enterprises Pvt.Ltd. Sunderban Complex, 1st floor Survey No- 131/1A/5,Near Ganesh Temple, Balewadi Road, Baner. Pune-411045(M.S.) Tel.No-08600266375 / 02066807506 [email protected]

Only the selected Quotes will be invited for final e-auction, the rate finalized after e-auction will become the accepted rate for the particular destination, and the proposed business in such volumes will be offered to the willing Carriers and Transport Agreements will be entered into at the sole discretion of NILON’S GROUP.

6. The scope of the offered business in the routes, the indicative volumes, the contract period, payment terms, diesel price variation clause, the conditions to be met and the proposed draft agreement to be entered into are given along with this RFQ. Bidders are requested to closely study and understand the same before submitting their offer. However, please note these are not exhaustive and could be subjected to change.

7. DOCUMENTS REQUIRED FOR BIDDING & AGREEMENT

1. PAN

2. SERVICE TAX REGISTRATION CERTIFICATE

3. CERTIFICATE OF INCORPORATION & COPY OF MEMORANDUM & ARTICLES OF ASSOCIATION

(COMPANY), PARTNERSHIP REGISTRATION CERTIFICATE (PARTNERSHIP), PROOF OF

PROPRIETORSHIP FIRM (PROPRIETOR).

4. SHOP ACT LICENCE

Note: A certified true copy of the above documents will be required to be provided.

8. The Bidders are required to submit the following declaration and undertaking.

DECLARATION & UNDERTAKING

"I/we, _____________, have read all the contents of the RFQ and hereby declare that I/we all the

required approvals and permissions as required under the laws of the nation and respective states

to operate and provide transport / logistic services to Nilon's Group and that none of our licences

and/or permissions and all these approvals / permissions are valid as on date.

I/we hereby further declare that I/we are regular in paying all statutory dues to respective

authorities which are collected / charged from/to our customer and undertake to provide

documents evidencing the same as and when required by Nilon's Group.

I/we hereby undertake to provide all the required documents, approvals, permissions, certificates,

etc. for the purpose of entering into agreement / contract with Nilon's Group.

The above declaration and undertaking is true and correct in all respect. If any information as

stated above is found to be wrong or misleading, we will be disallowed from the process of bidding

and Nilon's Group authorities will have full right and authority to take suitable action with respect to

the bidding process."


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Transportation Contract Requirement

I. JOB DESCRIPTION

Transportation of processed Food products from NILON’S GROUP, Jalgaon by road/Rail/container to various destinations across India as advised by NILON’S GROUP. The various loading points at Jalgaon are as per annexure-1

II. VALIDITY OF THE CONTRACT:

The contract shall be valid for One (1) year with effect from 1st September 2014 which can be extended further for

one year after mutual consent. However, periodic reviews shall be held with the transporters to discuss implications

of techno-economic factors such as tonnages to be transported, product mix, service levels, customer

requirements etc. The contract may be extended or renewed at the discretion of NILON’S GROUP after joint

deliberations.

III. PRODUCT- MIX

NILON’S GROUP's products are transported in 16 MT/ 9 MT truck or container in the form of rectangular cases (can be termed as). The carton weight and volume varies from SKU to SKU. The carton weight range from 15kg to 22 kg with average of 18 kg. The average carton dimensions are 500mmx300mmx180mm (Carton dimensions varies from the SKU to SKU).

IV. TONNAGE TO BE DESPACHED

Monthly dispatch volumes expected from NILON’S GROUP, Jalgaon to various destinations are shown in Annexure-3. The quantities mentioned are indicative only and do not amount to any commitment from NILON’S GROUP.

V. FLEET REQUIREMENT

1. Disclosure of current owned fleet and plan to purchase dedicated vehicles for this job should be provided to NILON’S GROUP, and the same has to be submitted along with signed RFQ and EMD.

2. Truck/ Container dimensions should be such that minimum 800 cartons can be fitted in a truck.

3. Vehicle age should not be more than 15 years and shall be free from all encumbrances. Encumbrances on the vehicle if any shall be fully complied at all times.

4. Vehicle’s owner must comply with all relevant Indian laws/acts/statutes before placing vehicles for transportation.

5. Transporters placing the vehicles must comply with all relevant NILON’S GROUP’s safety, quality and environment norms as communicated by NILON’S GROUP from time to time.

6. NILON’S GROUP reserves the right to inspect the vehicles placed for transportation and reject the non-compliant vehicles at any point of time.


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VI. SERVICE LEVEL REQUIREMENTS

1. Vehicle placement should be within 48hrs of issue of stock transfer order (STO) / delivery order (DO).

2. 100% materials must be delivered within the specified transit times (as per Annexure-3).

3. Quality of service delivered should be such that the material delivered to NILON’S GROUP’s stockyard/customers should be in the same condition as it was loaded at Jalgaon.

4. Transporters should ensure that materials are lashed and covered as per norms defined by NILON’S

GROUP before leaving the Factory until it reaches the consignee. Any deviation in product packaging / open cases / Leaking cases during loading at the loading points at Jalgaon shall be brought to the notice of the consignor immediately. Top and bottom Tarpaulin covering for all products is mandatory in all seasons.

5. The Transporters shall comply with all statutory compliance including the loading of the vehicles in

accordance with the prescribed statutory limit or as notified from time to time under the Motor Vehicles Act and the rules made there under or any other applicable provision. Transporters will be solely responsible for any violation of the same. Transporters are expected to place vehicles suited to the product weight and volume. Transporter shall strictly adhere to code of conduct as communicated from time to time.

6. Under normal circumstances, transshipment of any material en route would not be allowed. Transshipment

of material is allowed only if, there is a prior written or e-mail approval from Head (SCM) at the earliest.

7. Transporters should ensure that their adequate numbers of representatives are available for co-ordination with NILON’S GROUP during factory timings. Their representatives should be adequately trained and competent to carry out the duties and perform the function in relation to the provision of the services in an efficient, safe and environmentally conscious manner. They must be able to exit the vehicles from factory premises within 1hr after generation of all documents provided by NILON’S GROUP like waybill, invoice, etc. Representative should collect the revised/latest Code of Conduct, safety norms security norms, loading norms etc. from Head (SCM) and ensure compliance of the same.

8. Unless specifically asked by NILON’S GROUP, all cases have to be transported in direction mentioned on cases to prevent product damage during transit and handling, and follow lashing guidelines for all products as directed by Head (SCM).

9. Transporters shall inform Head (SCM), as well as the consignee within 24 hrs in the event of enroute

breakdown about the nature of breakdown and likely number of hours of delay for further delivery of the consignment. In case if expected delay is more than 2 days, Transporter shall arrange alternative vehicles at their own cost for dispatching the materials, subject to clause 6 above.

10. Transporters must ensure that they and their representatives comply with all the safety & security standards

defined by NILON’S GROUP.

11. Vehicles loaded with NILON’S GROUP material shall not carry any other material / third party’s materials. If found so, a penalty of Rs.25000/- will be levied on transporter. NILON’S GROUP. can also take severe action against Transporter.

12. Weekly and monthly tentative despatch plan for road transportation will be given by Head (SCM) office in advance to the transporters by e-mail to the email address of transporters as provided by them. This is expected to help the transporters in planning their fleet requirement in advance and place the right type and number of vehicles. However the transporters need to be fully guided by day-to-day gate pass balance so as to achieve 100% lifting compliance.

13. Transporters shall provide information to Head (SCM) office about the next 3 days incoming vehicles in

advance.


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14. In case of direct dispatches, transporters shall update information of delivery within 24 hrs to Head (SCM) office by telephone or through email.

15. Transporters shall provide an exception e-mail report with reasons on daily basis to Head (SCM) informing consignments likely to be delayed beyond stipulated delivery dates along with revised firm committed dates.

16. All documents meant for customers should be carried properly in plastic folders.

17. The vehicle crew members (driver and helper) should be properly dressed at the time of loading and

unloading of material.

18. Drivers of all the vehicles shall have mobile number, and the said number to be given at the time of loading to the loading incharge of NILON’S GROUP.

VII. PERFORMANCE REVIEW: Performance of all Transporters shall be assessed on a monthly basis by Head (SCM). This shall be an important criterion for reallocation of share of business during the quarterly performance review. The rating shall be based on the following parameters:

1. Vehicle placement: This will be arrived at by calculating percentage of number of vehicles placement

within 24hrs against the issued tonnage. 2. Transit Time Compliance: This will be arrived at by calculating percentage of number of vehicles

reaching within transit time against the total number of deliveries made during a month. Transit time will be calculated from the date of Invoice to GRN date.

3. Quality of delivery: In case if there is no incident of damage, 100 points will be awarded otherwise zero.

The reporting date in our system will be considered as the date of event and noting on LR will be final and binding.

4. Safety Violation: In case of any accident of vehicles, 3 % from overall performance will be deducted.

Sr. No.

Parameters Weightage

(in %)

1. Vehicle placement (In percent) 70

2. Transit Time compliance (In percent) 20

3 Quality of delivery 10

Transit Time compliance will be calculated vehicle wise.

Swiping compliance percentage will be calculated on one swipe per day basis.

Own vehicles will be matched as per the list provided by the respective transporters


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Overall performance shall be calculated as per the following formula:

Overall Performance = 0.70* Score of Vehicle placement + 0.20* Score of Transit time compliance + 0.10*score of

quality of delivery (100/0) – (deduction due to safety violation if any)

A performance review of monthly rating will be held every three months. Based on the relative performance, Head (SCM) may alter the share of business and award a higher share of business to the superior performer(s) subject to transporter’s acceptance. Alternatively the share of business of transporters performing poorly may be reduced. All transporters performing below 70 % shall not be considered for upward review. In case if their performance is below 70% in three consecutive months, their contract may be suspended / terminated / reduced business share at NILON’S GROUP’s discretion. These performance parameters can be modified as and when required. NILON’S GROUP also reserves the right of removing transporter and/or adding of a new transporter in the list of approved Transporters by changing business share as and when required.

VIII. COMMERCIAL TERMS & CONDITIONS

A. BASIS OF FREIGHT RATES:

1. Nilon’s Group has 3 loading points at following locations :

a. Village Utran, Taluka Erandol, Dist Jalgaon (60 KM from Jalgaon towards Dhule)

b. Musali, Taluka Earandol, Dist. Jalgaon (20 KM from Jalgaon towards Dhule)

c. Sanghavi Foods Pvt. Ltd. Dambhurni, Taluka Yawal, Jalgaon (18KM from Jalgaon towards Taluka Yavel)

Musali comes on the way to Jalgaon – Utran, however Dambhurni is in opposite direction.

2. Currently most of dispatches are happening from single loading point only as mentioned above or from following combination of loading points:

a. From Utran and Musali both locations. b. From Musali and Dambhurni both locations.

3. If any dispatches shall happen from multi-location in following combinations of loading points by one

consignment: a. From Utran and Dambhurni both

b. From Utran, Musali and Dambhurni all three locations.

However, such cases are very rare and in such cases, NILON’S GROUP shall pay Rs. 1500/- in addition to the bidded freight for such consignment.

5. Unit for freight rates for the destinations listed in Annexure-3 & 4 will be Rs./Destination, and would be

inclusive of all applicable duties, taxes and levies / tolls, wherever applicable as on the date of finalization of rates except service tax and cess thereon.

6. The transporters have to place vehicles exactly as per specifications mentioned in the Tapal issued from time to time.


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a. Loading and unloading of materials shall be done by the Transporter. Loading Charge upto Rs.500/- and unloading charge upto Rs.800/-(Including Dala/Warai/Mamul) shall be borne by the Transporter.

7. In case if transporter has to deliver the materials to a location other than destination mentioned in

invoice, the payment will be made as per the certification by the respective Sales Manager (SO, ASM, RSM)/ Depot Incharge of NILON’S GROUP and duly endorsed by Head (SCM).

8. All transit risks shall be to the account of Transporters. NILON’S GROUP shall not be liable for any

damages to transporters or their vehicles.

9. NILON’S GROUP shall pay detention charges of Rs. 800/- per day for 16 MT and Rs. 600/- per day for 9 MT in following two condition, subject to the vehicle getting placed in the factory and /or Reaching at unloading point before 01.00 PM:

a. AT LOADING POINT: If the vehicle is detained in the factory beyond one working days; b. AT UNLOADING POINT: if the vehicle does not get unloaded on the same day it reaches

unloading point. Hence, if the vehicle is placed after 01:00 pm, then the placement shall be considered as if it was done on the next day only. If a vehicle is kept on hold for more than two working days then the detention charges applicable from 3rd day shall be 1200 for 16 MT and 900 for 9 MT will be applicable.

10. Any octroi/entry tax payable for inward material to a stock yard / consignee’s premises shall be paid for

by the consignee and shall be to the customer's account. Wherever the transporter is required to make payment for octroi/ entry tax, the same shall be claimed by the transporter from NILON’S GROUP based on invoices raised by them enclosing the original receipt issued by the respective octroi authorities and in turn certified by the respective Sales managers/ ASMs / RSMs/Depot incharge/ CSAs.

11. Transporters will have to give the services of Double delivery to Existing destination and New

Destination within 50 kms from Existing Destination at the additional freight of Rs. 2000/- in addition to freight charge of Existing destination.

12. Transporters will have to give the services to new destination within a state. The following methodology

for freight calculation shall be followed:

a) Shortest distance of new destination from Jalgaon shall be calculated by referring National/State highways as appearing in Motoring Guide of India (Edition 2003).

b) Existing destination (as per Annexure-3&4) nearest to the new destination is to be considered as reference destination for mapping.

c) To arrive at applicable rates for new destination, the distance of new destination from Jalgaon shall be multiplied by Rs/Km of reference destination. This additional KM (Distance of new destination – Distance of nearby destination in KM) * 2 (for return freight of additional distance) shall be multiplied by the RS/Km. This shall be rounded off to the nearest whole number.

d) NILON’S GROUP would consider the national/state highways for distance calculation and the distance figure calculated by NILON’S GROUP shall be final.


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B. REVISION OF FREIGHT RATES DUE TO DIESEL PRICE VARIATION:

Freight rates finalized will remain fixed, firm & binding for the entire period of the contract except for variation on

account of changes in diesel price. Freight adjustment on account of diesel price variation would be done as

indicated below:

1. Diesel price at Jalgaon as applicable on date of implementation of contract will be considered as base price.

2. Diesel price applicable at Jalgaon will be considered as reference price for freight review.

3. Freight rates shall be reviewed every Month and shall be made effective from 1st day of the following month for suitable adjustment due to weighted change (increase/ decrease) in diesel price with respect to the base price.

4. The freight rates will be considered for revision if weighted average diesel price at Jalgaon for the preceding three (3) months period or part thereof is beyond +/- 2.5 % from the base price. For any change in diesel price up to +/- 2.5%, freight rates would not be revised any time during the contract period. Diesel component as a percentage of freight rates will be 38%.

5. The new rates of each destination would be rounded-off to the nearest integer and shall be made effective from the 1st day of the month. The new rates so finalized shall remain effective till next revision.

6. The methodology of adjusting freight rates is shown in annexure-5:

C. BONUS / PENALTY PROVISIONS:

Following bonus/penalty provisions would be in force during the tenure of the transportation contract:

1. Reward: The Transporters achieving the following in performance and safety would be considered for a reward after a 12 month period:

1.1 Performance: Overall performance must be greater than or equal to 90% in all the 12 months. The value of the reward would be 5 % of their bill values for the 12-month period.

2. Late delivery: For delay in delivery compared to the stipulated Transit time, there shall be a provision of

penalty as mentioned in the table below:

Delay (in Days) Late Delivery Penalty from the date of invoice (Rs/MT/day)

0 to 1day NIL

2 to 4 days 20

5 to 7 days 40

8 to 10days 60

> 10 days Material value may be deducted as per the advice of Head (SCM) and after

the delivery of the material the same will be refunded within 14 days.

However the penalty @ Rs.80 /ton/day will be applicable.

Late penalty will be automatically deducted from the transportation bills. In the case of force majeure, this penalty can be put up for consideration to grievance committee of NILON’S GROUP for waiver if it is informed within two days of the occurrence of force majeure cases and submission of proper evidence of occurrence within 7 days.

3. Indemnification: Transporters will be solely liable and responsible for any violation of any statutory provision including that mentioned in the above clause V1-6 as well as breach of any terms and condition of this Agreement and shall indemnify NILON’S GROUP against all claims, demand made and / or any penalty / interest imposed by any authority or claimed by any third party/customer on NILON’S GROUP including all expenses incurred or to be incurred or loss suffered by NILON’S GROUP due to breach of any terms and condition by transporter under this agreement.


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Notwithstanding to the aforesaid violation, NILON’S GROUP reserves the right to collect / gather information in any manner, which it may, deems fit and monitor on a periodic basis towards the compliance of the above by the transporters. In case of non-compliance by the Transporter, NILON’S GROUP may take appropriate punitive action for any such breach / violation of the terms and conditions of this Agreement, against the Transporter after serving due written notice in this regard. NILON’S GROUP’s decision in this regard shall be final and binding on the Transporter.

4. Improper / Inadequate covering: All materials require proper and effective tarpaulin covering throughout the year. Violation on this account will attract a penalty of Rs 5000 per incident

5. Risk-purchase

If the transporter fails to lift the material within 48 hr of STO/DO issuance, NILON’S GROUP shall be at liberty to engage any other agency including existing transporters (road/rail/container) to transport the material by any mode of transportation at higher rates. The calculation of risk purchase are as follows:

a) For any diversion before 48 Hr = No deduction. b) For any diversion between 48 HR and 96 HR = Differential cost1 c) For any diversion after 96 HR = Differential cost 1+ (10 % of Contracted Freight)*(Number of days #-4)

If the transporter place the vehicle after 48 hours of STO/DO issuance, then transporter have to pay ‘Delayed placement Charges’ at the rate of Rs. 800/- per day for next two days and Rs. 1,200/- from third day onwards. This shall be applicable for 16 MT trucks. In the case of 9 MT trucks the amounts shall be Rs. 600/- and Rs. 900/- respectively. However, the Company can go for open market as per the clause above.

6. Damage to consignment: In cases of damage to the consignment, joint inspection will be done by NILON’S Officials and Transporter or their representative. After the joint assessment, damages up to the value of Rs 15000/- will be recovered by NILON’S GROUP from Transporters. And if damages are more than 15000/- Nilon’s will raise claim with the insurance company and transporter shall complete procedures up to raising of the said claim. However Rs 15000/- plus 5% of damage cost will be deducted for any damages above Rs 15000/-. For joint assessment the transporter will be informed 48hours in advance and in case if transporter or their representative doesn’t report, the assessment of damage done by ASM/RSM/ Depot Incharge will be final and binding. It will be the transporter’s responsibility to arrange the vehicle within 24 hours at his own expense and deliver the stock at the nearest possible point where insurance survey can be performed. . Freight for this vehicle shall not be payable to Transporter

7. Loss to consignment: For lost consignments, the invoice value shall be debited to the transporter and in addition, no freight shall be paid to the Transporter.

8. Loss / wrong delivery of Documents: There would be penalty on the transporter of Rs 2000/- or the actual penalty levied by the statutory authorities, whichever is higher, for any instance of loss of documents and Wrong Delivery of document (e.g. wrong vehicle no. in way bill of other party etc.).

Adequate care shall be taken by the transporters to ensure cautious carriage of documents in transit since

these would be ownership documents along as prescribed under the law, which are very important for

subsequent transactions. The procedure to be followed for tackling any situation of a lost legal document shall

be as follows: -

Transporter would immediately inform the ASM/RSM/DEPOT INCHARGE in writing about the loss of legal document with a copy to Head (SCM).

Transporter would immediately lodge an FIR and furnish the original of FIR to the Depot Incharge in case of stockyard despatches and to the customers in case of direct despatches. The Depot incharge would intimate the jurisdictional appropriate authority regarding the loss of document and obtain acknowledgement in writing.

If the defaulting transporters do not comply with the requirements mentioned above within 10 days of incident, an amount equivalent to the local VAT may be recovered at per the advice of Head (SCM) from the bills of the

1 Differential cost = Diverted Freight cost – Contracted freight cost.

# Number of days -3 = Days counting start after the three days from the date of gatepass issuance to the diversion date.


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Transporter. However the amount so recovered shall be refunded on completing the above formalities within the stipulated time as defined by statutory authority.

9. Unauthorized Transshipment: Unauthorized transshipment of material will attract a penalty of Rs. 5000/- per incident.

10. Violation of Safety, Security, Quality & Environmental Norms: In case of violation of any safety/security/quality/environmental norms, the penalties (including suspension/blacklisting) will be applicable as per the NILON’S GROUP rules circulated from time to time.

E CERTIFICATION OF RECEIPT OF MATERIAL

In case of direct dispatches to customers, the receipts will have to be certified by the customers and the scanned copy of LR will be sent to ASM/RSM through mail for approval. GRN will be raised by the Chief

Distribution Co-ordinator based on the certification of receipts by the customer and ASM/RSM. In case of Stock transfer to the stockyards, the transportation bills shall be certified on the bill format by the respective authorized signatory of NILON’S GROUP, who will also raise the GRN.

F SUBMISSION OF BILLS

Transporters will submit the complete data of freight bills for a month to Head (SCM) office along with the Original LRs for payments.

G PAYMENT TERMS

All Payments would be made within 30 days from the date of submission of bills, duly supported by consignment receipt note, to Chief Distribution Co-ordinator, Jalgaon.

H SECURITY DEPOSIT:

Successful Transporters will arrange to furnish a bank guarantee of 1% of order value or Rs 5 lakhs whichever is higher from any of the Nationalised bank/Scheduled Banks (approved by RBI) in favor of NILON’S ENTERPRISES PRIVATE LIMITED in the format enclosed as Annexure-5, directly from their banker to be sent to Head (SCM), NILON’S ENTERPRISES PRIVATE LIMITED, General Office Building, Commercial Centre, Jalgaon which should be valid till the validity of contract plus six month claim period.

IX. GRIEVANCE HANDLING:

There is a “Grievance Redressal Committee” formed by NILON’S GROUP to handle the grievances of the transporters. Transporter’s genuine claims pertaining to waiver of penalty, deduction on account of shortage, accidents etc, which are not clearly defined in the specification, may be put up to this committee. Transporters must put their written request within a month from the date of delivery otherwise their request will not be entertained. NILON’S GROUP will endeavor to hold this meeting atleast once in a month for expeditious settlement of claims. A system will be designed to capture the cases, which are repetitive/ frequent in nature and later on these cases will be resolved by Head (SCM) without referring it to the Grievance Redressal Committee.

X. COMPLIANCE TO SAFETY, ENVIRONMENTAL, QUALITY & STATUATORY NORMS:

1. All Transporters must comply with the NILON’S GROUP’s Safety and environmental standards and all

transporters shall obtain a copy of E&HS of NILON’S GROUP & abide by the same. 2. All representatives of transporter who enter NILON’S GROUP should undertake appropriate induction and

training programmes in respect of the relevant safety and environmental standards as may be required from time to time.


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3. All vehicles should comply with the safety and environmental standards as well as statutory norms at all points of time during the tenure of the contract.

XI. CODE OF CONDUCT

The successful Transporters will sign the “Code of Conduct” formulated by NILON’S GROUP. In case of

violation, the penalties (including suspension/blacklisting) will be applicable as per the NILON’S GROUP rules

circulated from time to time.

XII. CONFIDENTIALITY OF INFORMATION.

During the tenure of the agreement & thereafter, any information and data exchanged (like freight, price,

quantity, product-mix, etc) furnished by NILON’S GROUP to transporters shall be treated as strictly confidential

and shall be used by transporters only for performing contractual obligations under this contract.

XIII. TERMINATION OF CONTRACT:

1. Termination for cause: NILON’S GROUP will monitor the performance of transporters regarding material / fundamental obligations (including COC, safety etc.) and in case, if the transporter fails, a caution notice will be issued to them for improvement. Subsequent to issue of caution notice, if the transporter’s performance does not improve within a month, NILON’S GROUP may terminate this agreement with a 30 days notice in writing. NILON’S GROUP shall have the authority to invoke the Bank Guarantee and forfeit the said amount. In the event of such termination transporter shall not claim any compensation / damage from NILON’S GROUP towards loss of business / profit.

2. Termination for convenience: NILON’S GROUP may terminate this agreement upon serving 30 days prior written notice to the transporter without assigning any reason.

Transporter may also terminate this agreement upon serving 45 days prior written notice to NILON’S GROUP without assigning any reason. In such an event, transporter shall pay an amount equal to the bank guarantee furnished against this agreement as compensation to NILON’S GROUP

3. Termination in case of bankruptcy / insolvency/ winding up: If the transporter becomes insolvent and bankrupt or faces with winding up proceedings by appointment of official liquidator, NILON’S GROUP is at liberty to terminate the contract forthwith without assigning any reason. In such cases NILON’S GROUP shall have the right to receive damage/compensation from the transporter, but not including consequential damages/losses.

XIV. FORCE MAJURE:

The failure or delay by the Transporter to perform any obligations under this agreement solely by reason of Act

of God, acts of government, riots, wars, revolt, fire, flood, sabotage, terrisiom or other causes beyond its

reasonable control (“Force Majeure”) shall not be deemed to be a breach of this agreement. Transporter failing

to perform its obligation due to the reason of Force Majeure shall serve notice in writing to NILON’S GROUP of

such Force Majeure as soon as possible within 3 (three) days after its occurrence. Transporter failing because

of Force Majeure to perform its obligation will, upon the cessation of Force Majeure, take all reasonable steps

within its power to resume, with the least possible delay and comply with its obligations.

XV. ARBITRATION:

a) All disputes and/or differences that might at any time arise by and between the parties hereto or in relation to or

touching upon any aspect of this agreement shall first be settled mutually by negotiations between themselves.

b) In case no agreement can be arrived at within the period of 30 days from the date of raising the dispute in writing by any party, the dispute or difference shall be referred to a Sole Arbitrator, if both the parties agree upon the same. In case it is not agreed to, the dispute or differences will be referred to three arbitrators, each party appointing one on its behalf and the two arbitrators so appointed by the parties shall, before entering upon the reference, appoint the third arbitrator who shall act as the presiding arbitrator. The provisions of Arbitration and


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Conciliation Act, 1996 and the amendments made from time to time and the rules prescribed there under shall be applied. The venue of arbitration shall be at Jalgaon, Maharastra, India.

XVI. JURISDICTION:

NILON’S GROUP and Transporter hereby agree that any dispute or difference of any nature in this agreement, whether implied or explicit, shall be adjudicated by upon by a competent Court at Jalgaon, in the State of Maharastra. The applicable laws of India shall be binding between parties.


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ANNEXURE-1

DISPACTH UNITS: At present, we have the following dispatch units in and around Jalgaon:

1. Utran Plant

2. Musli Plant

3. Dambhurni Plant

Kindly note that any dispatch units may be added or closed in future.


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ANNEXURE-2

PRODUCT VAR IETY OF NILON’S:

1. Pickles

2. Tooty Fruity

3. Vermicellis

4. Ketchups and Jams

5. Sauces and Vinegar

6. Papads

7. Instant Mix.

8. Spices

9. Any other Product which shall be introduced in future.

For more detail on product range and brand please visit webpage www.nilons.com.

http://www.nilons.com/


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ANNEXURE – 3 for 16 MT Capacity Trucks

STATE DESTINATION Vehicles per month

Distance From Jalgaon in KMs

GUJARAT Ahmedabad 7 to 10 600

GUJARAT Rajkot 4 to 6 765

GUJARAT Morbi 1 775

MAHARASHTRA BasmatNagar 1 340

MAHARASTRA Pune 3 to 4 410

MAHARASTRA CSD - Sewri 2 to 4 421

MAHARASTRA CSD - Mazgaon 1 to 3 424

MAHARASTRA Mumbai (BHayendar)

8 to 10 410

MAHARASTRA Nagpur 4 to 5 430

MAHARASHTRA Goa 1 800

KARNATAKA Bangalore 8 to 10 1115

UTTARAKHAND Jwalapur 3 to 4 1255

JHARKHAND Ranchi 4 to 6 1275

JHARKHAND Dumka 2 to 3 1594

MADHYA PRADESH KATNI 1 725

MADHYA PRADESH Indore 6 to 8 275

MADHYA PRADESH Jabalpur 6 to 8 630

MADHYA PRADESH Gwalior 2 to 3 770

MADHYA PRADESH Bhopal 6 to 8 440

UTTAR PRADESH Lucknow 8 to 10 1050

UTTAR PRADESH Agra 2 to 3 880

UTTAR PRADESH Kanpur 5 to 8 950

UTTAR PRADESH Bareilly 3 to 4 1100

UTTAR PRADESH Ghaziabad 4 to 6 1080

UTTAR PRADESH Varanasi 4 to 6 1150

UTTAR PRADESH Gorakhpur 3 to 5 1250

RAJASTHAN BHILWARA 1 TO 2 640

RAJASTHAN UDAIPUR 0 645

RAJASTHAN Jaipur 10 to 14 830

RAJASTHAN Bikaner 0 to 2 1050

RAJASTHAN Kota 0 to 2 600


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RAJASTHAN AJMER 0 to 2 800

KERLA Cochin 0 to 2 1665

ANDHRA PRADESH Hyderabad 4 to 7 650

PUNJAB Jalandhar / Mahilpur

3 to 4 1475

PUNJAB LUDHIANA 2 to 3 1400

PUNJAB Sempla Chunni 1 1350

PUNJAB Amritsar 0 to 4 1485

HARYANA Gurgaon 5 to 7 1120

HARYANA ROHTAK 1 1090

HARYANA AMBALA 1 to 2 1275

DELHI Delhi 8 to 10 1100

HIMACHAL Parwanoo 3 to 4 1340

J&K Jammu 2 to 3 1670

J&K Srinagar 2 to 3 1920

ORRISA Cuttack 9 to 14 1260

ORRISA Rourkela

1165

ORRISA Behrampur 2 to 3 1230

ORRISA Barpali 3 to 4 950

ORRISA Jeypore 1 to 2 980

BIHAR Patna 6 to 8 1400

BIHAR Muzaffarpur 3 to 4 1550

BIHAR RAXUAL 2 to 3 1500

WESTBANGAL Siliguri 6 to 8 1930

WESTBANGAL Kolkata 10 to 14 1550

ASSAM Dalgaon 8 to 10 2400

CHATTISGARH Raipur 16 to 20 750

CHATTISGARH AMBIKAPUR 1 1070

CHATTISGARH Korba 1 924

TAMILNADU Chennai 5 to 7 1270


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ANNEXURE 4 FOR 9 MT CAPACITY TRUCKS

STATE DESTINATION Vehicles per month

Distance From Jalgaon in KMs

GUJRAT Ahmedabad 1 to 2 600

GUJRAT Morbi 1 775

GUJRAT 680

MAHARASHTRA Jogeshwari 2 to 3 412

MAHARASHTRA Bhayander 4 to 6 413

MAHARASHTRA Nasik 3 to 5 247

MAHARASHTRA Aurangabad 3 to 5 158

MAHARASHTRA Kolhapur 3 to 6 590

MAHARASHTRA Pune (Wadki) 8 to 12 393

MAHARASHTRA Mumbai- Prabhadevi

1 430

MAHARASHTRA Mumbai- CSD,SEWARI

1 TO 2 410

MAHARASHTRA Goa 1 to 2 800

KARNATAKA Bangalore 3 to 4 1115

KARNATAKA Mysore 0 to 2 1117

KARNATAKA MANDYA 0 to 1 1170

RAJASTHAN Bikaner 1 to 2 1050

RAJASTHAN Kota 2 600

ANDHRA PRADESH

Hyderabad 1 TO 2 650

ANDHRA PRADESH

Ankapalli 2 to 4 1175

ANDHRA PRADESH

ICHCHAPURAM 1 1250

ANDHRA PRADESH

Guntur 3 to 4 880

ANDHRA PRADESH

Tirupati 0 to 1 1160

PUNJAB SEMPLA CHUNNI 1 1350

PUNJAB CHANDIGARH 1 1320

DELHI Delhi 1 TO 2 1100

UTTAR PRADESH GHAZIABAD 1 1080

TAMILNADU Chennai 2 to 3 1270

TAMILNADU HOSUR 1 1160

TAMILNADU VELLORE 1 1220

TAMILNADU MADURAI 1 1550


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ANNEXURE – 5 : Diesel price variation methodology

The methodology of adjusting freight rates is shown below:

A) Suppose, prevailing diesel prices at JALGAON on due date of submission of quotation is

Rs.45.00/litre. And the freight charge for example Pune is Rs.15000/-

B) The diesel price at the time of revision of rates is Rs.50.00/litre.This implies 11.11% increase in diesel

price.

C) Revised freight rate to destination Pune will be calculated as:

Rs.15000 + 15000*38%*11.11% = Rs.15627/-

D) The new rates would be made effective from the 1st day of the following month.


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ANNEXURE – 6

FORMAT FOR BANK GUARANTEE FOR SECURITY DEPOSIT

NILON’S ENTERPRISES PRIVATE LIMITED, Niloln’s House”, N. H. No.6, Jalgaon - 425002 Dear Sirs, This DEED of Guarantee is made on ………….day of …………….by ….(bank’s name) ………….. Constituted under Banking Companies (Acquisition and Transfer of undertaking) Act 1980 having its H.O. at …………….and branch office at …………………..(hereinafter called the ‘SURETY’ which expression shall wherever the context so admits include its executors administrators and successors) in favour of NILON’S ENTERPRISES PRIVATE LIMITED Ltd., a private Limited Company incorporated under the Indian Companies Act 1956 having its registered office at Survey No. 131/1A/5, Sunderban Complex, Balewadi Road, Baner, Pune – 411045 (hereinafter referred to as ‘NILON’S ENTERPRISES PRIVATE LIMITED’ which expression shall include its executors, successors and permitted assigns) WHEREAS NILON’S ENTERPRISES PRIVATE LIMITED has awarded the job of transporting FMCG Material from Jalgaon District, Maharashtra (name of stock points) to various destinations to M/s. ……………………….. full address………(hereinafter called the ‘Transporter’ which expression shall include its executors, administrators and successors in interest) by the Transportation Agreement executed on …………...(date of Agreement) AND WHEREAS as per the said contract the Transporter is required to transport the goods referred to in the contract belonging to NILON’S ENTERPRISES PRIVATE LIMITED from ……..(names of stock points) to various destinations and give safe and satisfactory delivery of the same promptly as per the contract at destinations. AND WHEREAS as per the terms and conditions of the said contract the transporter is required to furnish a Bank Guarantee for a sum of Rs………………( Rs. 1% of order value or Rs 5 Lakhs whichever is higher ) as security for safe handling and delivery of the goods entrusted to it by NILON’S ENTERPRISES PRIVATE LIMITED under the contract to be kept valid till ………(date) ………….as stipulated in the said contract. AND WHEREAS the Bank ……………………… at the request of the transporter has agreed to stand as surety on behalf of the transporter and execute this Guarantee for the satisfactory performance of the Transporter in regard to the said contract. NOW THEREFORE, THE DEED OF GUARANTEE WITNESSETH AS FOLLOWS:-

1. In consideration of what is stated above, the surety hereby guarantees that the Transporter will duly comply with all their obligations under the said contract in accordance with the terms and conditions there of for the safe and prompt transportation of the goods belonging to NILON’S ENTERPRISES PRIVATE LIMITED and delivery of the same at the required destination without any loss or damage, failing which the Surety does undertake and assure to pay to NILON’S ENTERPRISES PRIVATE LIMITED, on demand such amount or amounts as the surety may be called upon by NILON’S ENTERPRISES PRIVATE LIMITED to pay, but no exceeding in the aggregate, the said sum of Rs………………( Rs. 1% of order value or Rs 5 Lakhs whichever is higher ).

2. The surety hereby guarantee to NILON’S ENTERPRISES PRIVATE LIMITED due performance and observance by

the Transporter of the terms and conditions of the said contract. The surety further undertakes that this Guarantee shall


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be kept valid and binding on the bank from the time this Guarantee is given until the safe and satisfactory receipt of the goods by NILON’S ENTERPRISES PRIVATE LIMITED at the required destination as provided in and according to the terms and conditions of the said contract and the liability of the Surety hereunder shall not be impaired and / or, discharged by any extension of time or variations or alterations made, given, considered or agreed with or without the Surety’s knowledge or consent by or between the parties to the said contract.

3. We the surety, also agreed that we shall not revoke this guarantee during the currency of this Guarantee herein given or during the period of its extension if any.

4. On account of the non-fulfillment of the contractual obligations by the Transporter under the said contract, which fact it

is not obligatory on the part of the NILON’S ENTERPRISES PRIVATE LIMITED to establish under the terms of the Guarantee, we the surety will, on simple demand from NILON’S ENTERPRISES PRIVATE LIMITED, pay to NILON’S ENTERPRISES PRIVATE LIMITED, the said amount of Rs………………( Rs. 1% of order value or Rs 5 Lakhs whichever is higher ) as indicated in Terms and conditions and specification above without demur and without requiring NILON’S ENTERPRISES PRIVATE LIMITED to invoke any legal remedy that may be available to them to compel us the Surety to pay the same even if the Transporter considers such demand of the NILON’S ENTERPRISES PRIVATE LIMITED as unjustified.

5. Notwithstanding anything to the contrary, the NILON’S ENTERPRISES PRIVATE LIMITED’s decision as to whether

the transporter had made any default or defaults or committed a breach of the Contract and the amount to which the NILON’S ENTERPRISES PRIVATE LIMITED is entitled by reasons thereof, will be binding on us and we shall not be entitled to ask NILON’S ENTERPRISES PRIVATE LIMITED pay the sum forthwith without any objection or query.

6. The decision of the NILON’S ENTERPRISES PRIVATE LIMITED that any sum has become payable shall be final and

binding on the Surety.

7. This Guarantee shall be in addition to any other security or guarantee whatsoever that NILON’S ENTERPRISES PRIVATE LIMITED may now or at any time in any way have or shall arrange in relation to the Transporters obligations / liabilities under and / or in connection with the said contract and NILON’S ENTERPRISES PRIVATE LIMITED shall have full authority and liberty to take recourse to or to enforce this guarantee in preference to those other security or securities or assurance, as its sole discretion.

8. The Guarantee shall not be determined or affected by the liquidation or winding up, dissolution, or change in the

constitution of or insolvency of the Transporter but shall in all respects and for all purposes be binding and operative until payment of all sum of amounts payable to NILON’S ENTERPRISES PRIVATE LIMITED in terms hereof, are made.

9. The amount stated in any notice of demand addressed by the NILON’S ENTERPRISES PRIVATE LIMITED to the

Surety as liable to be paid to NILON’S ENTERPRISES PRIVATE LIMITED by the Transporter or as suffered or incurred by NILON’S ENTERPRISES PRIVATE LIMITED on account of losses or damages or costs, charges or expenses shall, as between the surety and NILON’S ENTERPRISES PRIVATE LIMITED as the case may be, be conclusive and payable by the Surety to NILON’S ENTERPRISES PRIVATE LIMITED in terms there of forthwith.

10. Our liability under the Deed of Guarantee is restricted to a sum of Rs……………… (Rs. 1% of order value or Rs 5

Lakhs whichever is higher). The Guarantee shall remain in force up to ………(date)…….from the date of this Guarantee and in case the goods under the said contract are delivered safety to the satisfaction of NILON’S ENTERPRISES PRIVATE LIMITED in accordance with the said contract at any time earlier and the contractual obligations on the part of the Transporter have been fulfilled, the Guarantee herein will expire on the date of issues of a Certificate of satisfactory completion of the job by NILON’S ENTERPRISES PRIVATE LIMITED in favour of the Transporter. Unless a claim under the guarantee is lodged with us within three months from the date of expiry of this Guarantee your rights under the Guarantee shall be forfeited and we shall be relieved and discharged from all liability hereunder.


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11. All the claims under this Guarantee must be presented to …………………… We the surety further guarantee not to revoke this Guarantee during its currency except with the prior consent of NILON’S ENTERPRISES PRIVATE LIMITED in writing.

“Notwithstanding anything contained herein:

i) Our liability under this Bank Guarantee shall not exceed(Rs.1% of order value or Rs 5 lakhs whichever is higher )

ii) This Bank Guarantee shall be valid up to ……….(date)……… and

iii) We are liable to pay the guaranteed amount or any part thereof under this Bank Guarantee only and if you serve upon us a written claim or demand on or before…………(date)…….., date of expiry of Guarantee i.e. ……(date)……...

IN WITNESS WHEREOF THE SURETY has executed this deed of Guarantee on the date month and year

hereinabove mentioned.

Witness attesting the For & on behalf of

Signature of the executants

of this document, …………………………

Banks name

1)

2) Manager / Agent