How to win a tender in India
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Under Prime Minister Modi, India has embarked on a major upgrade of the country. Through various government programs, such as Made in India, 100 Smart Cities and Digital India, billions of dollars are being invested in improving India’s infrastructure. But how do you win a government tender in India as a foreign company? We share 6 tips.
‘You win a tender with 3 crucial ingredients’
Joeri Aulman has successfully secured government contracts in India in recent years. He is a project manager and airport developer for Naco, a division of Royal HaskoningDHV in the field of airport consultancy. “First of all, we were very lucky with our market entry. We entered in 2005, exactly at the time that the first round of privatisation of airports in India started. That turned out to be perfect timing.” But the good references from local business relations really got the ball rolling for Naco. “On the recommendation of an existing client, we were allowed to present ourselves to the Indian party. That presentation was goal-oriented and, very importantly, not patronising. Despite our knowledge and experience, we were modest and that was the key to success.” According to Aulman, the combination of smart timing, excellent references and modesty in the presentation of your plan are the three crucial ingredients for winning tenders in India. “Over the past fifteen years, we have learned that if one of these three ingredients is missing, we will miss the contract.”
Interesting opportunities for foreign companies
According to the Indian ambassador to the Netherlands, Venu Rajamony, there is a lot to be gained for foreign companies in India. “We are the fastest growing, large economy in the world with a young population and a growing middle class. Competitive foreign companies that enter India with a long-term plan will benefit from the rapid developments in the country and the expanding consumer market.”
Rajamony has a few tips for companies that want to win contracts from the Indian government. “To have a chance, it helps when parties work together with an Indian partner. In addition, companies increase their chances if they produce part of their technology in India (make in India), use Indian raw materials for this (source in India) and hire Indian personnel (hire in India). This not only ties in with various government objectives, but also reduces the cost price of often expensive foreign technology. Foreign companies must realize that India is an extremely competitive market. Companies from all over the world are applying for Indian tenders.”
Six tips to win tenders in India
To easily sideline those foreign competitors in the battle for an Indian government contract, you should keep the following points in mind during the preparation:
1. Timing: plan ahead
Timing is essential, but you can’t start building a network early enough. In other words: if you only start building a network when the demand for your products starts to increase, you’re too late.
2. Use references actively
India is a network economy par excellence: relationships are crucial. So don’t hesitate to contact the Indian embassy in your country for help when you get stuck with permits and the like. Their network is large and they can often provide clarity. In addition, seeing is believing. Those who have previously done good work on another project in India have an advantage.
3. Be specific, but modest
India may be eager for state-of-the-art technology in all kinds of areas, but that doesn’t mean that foreign companies can be patronizing, condescending or arrogant. With such an attitude, a foreign company is doomed to fail in India.
4. Work together with an Indian partner
As mentioned, India is a network economy, so local cooperation significantly increases your chances. Those who do not have the right contacts will usually be turned down in government tenders. An Indian partner knows their way around the Indian bureaucracy – the Dutch party does not have to waste valuable time on that.
5. Make, hire & source in India
The Indian government is faced with the immense task of providing hundreds of millions of young Indians with work. Logically, companies that create jobs in India, directly or indirectly, have an advantage in tenders. So put yourself in the shoes of Indian civil servants.
6. Understand your market value
Leave your European mindset at home and adjust your bid to the price/quality level that the Indian government is looking for. Do you not yet have a good insight into your sector and how you can best position yourself on the Indian market? Contact our experts, we will conduct a customized market research and give you concrete suggestions for the right next steps.
