EOI No. 2013/IRCTC/Catering/EOI/Empanelment of Business Entity/ Advertising Agency EMPANELMENT OF BUSINESS ENTITY/ AGENCY

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1 Indian Railway Catering and Tourism Corporation Ltd (Govt. of India Enterprise Mini Ratna) Corporate office- 12 th Floor, Statesman House, Barakhamba Road, New Delhi Tel EOI No. 2013/IRCTC/Catering/EOI/Empanelment of Business Entity/ Advertising Agency EMPANELMENT OF BUSINESS ENTITY/ AGENCY (A) INTRODUCTION: IRCTC, a schedule B company, was setup to be an integrated provider of high quality travel, tourism, catering and hospitality services in the country for both Railway and Non Railway sector. IRCTC reports annual revenue of approximately above Rs 7000 Crore, of which the catering business accounts for nearly Rs 300 crore. IRCTC provides on-board catering services in about 41 trains including Duronto train, Rajdhani/Shatabdi trains and few mail/express trains besides managing more than 100 multi-cuisine food plazas/fast food units and also provides catering services in large Corporate and big Institutions viz. New Maharashtra Sadan, Ministry of Power, Yojna Bhawan, Nirman Bhawan etc. IRCTC internet ticketing has been one of the biggest success stories of e-governance in India and has recently achieved a record booking of over 5 lakh tickets in a single day. IRCTC offers a wide range of travel and tourism products and services to meet the requirement of different segments of tourists, thereby generating revenue of above 180 crores. The Corporate Office of IRCTC is located in Delhi and operations are managed from its 5 Zonal Offices in India. (B) NEED AND OBJECTIVES OF THE PROJECT Brand promotion through outdoor media is considered effective and relevant with the changing scenarios of time. Modern advertisers heavily invest in outdoor advertising to promote their brands. The oldest yet one of the most effective means of brand promotion, outdoor ads still recreate the magic of advertising through outdoor media and it is a more interactive medium to promote brands. Outdoor ads will always be in vogue as one of the effective means of brand promotion. To further support the above idea, advertisement on catering disposables and other items like paper cups, napkins, thermos flasks etc is an economical and strong medium for Brand visibility and effectiveness as during train journey, the passenger gets interactionn with the advertisement message on catering disposables for long duration repeatedly. Page No.1

2 Hence Indian Railway Catering and Tourism Corporation Ltd (IRCTC) intend to form a panel of Business Entity/ Advertising Agencies of repute, capable and interested to exhibit their message/products information through advertisement on sponsorship basis, on Catering disposables and other items viz. Paper Cups, Paper Napkin, Tray Mats, Staff uniform etc. used in departmental trains/units managed by IRCTC over its wide network. Scope of work: The Indian Railway Catering and Tourism Corporation, with its sheer size and scale of passenger traffic commands a large share of the Indian advertising market. To leverage this potential, IRCTC decided to enter sponsorship route where empanelled Business entity/advertising agency will be provided huge platform to exhibit their message/product advertisement by reaching to masses directly through advertisement on Catering disposables and other items (Paper Cups, Paper Napkin, Menu Card, Tray Mat, Snacks Wrapper, Cutlery Wrappers, staff uniforms etc), by entering into an advertisement agreement with IRCTC to supply catering disposables and other items carrying advertisement free of cost along with revenue sharing. Publicity through these outdoor formats is a conventional but an effective mean of spreading any message. These displays serve as a constant reminder to viewers and cater to both the literate and non-literate. Currently IRCTC is managing 41 trains including Rajdhani/Shatabdi, Duronto and Mail Express Trains, on Indian Railway Network. To cater the above, approximately Cr each of Paper Cups, Paper Napkins, Tray Mats and 1.7 Cr Cutlery wrapper, snacks Wrapper, etc. are required annually for providing onboard catering services to travelling passengers, thus giving ample opportunities to advertisers to showcase their advertisement message. IRCTC is also managing catering services at various locations over Delhi Metro Rail Corporation Network, large corporate and big institutions thereby providing ample opportunity to spread message widely through advertisement on catering disposables and other items. However, Scope of work related to Catering disposables and other items may increase/decrease as per actual requirement. Page No.2

3 Eligibility Criteria:- 1. A) The applicant Advertisement agency: 1. Should be an Individual/Firm/Partnership or a company registered under the Companies Act s Agency Empanelled with DAVP or having accreditation of Indian Newspaper Society (INS) will be preferred. 3. Agency should have at least two years of professional experience of advertising work. (Enclose copy of purchase orders). 4. Balance Sheet and P/L account certified by the CA for last two years along with firm s background. 5. Copy of acknowledged Income Tax Return (ITR) for the last two financial years. 6. PAN No 7. Service Tax and Vat registration as applicable. 8. Professional experience of creative campaigns undertaken in social sector advertising will be preferred. 9. Must have experienced and qualified staff capable of handling the campaign work in professional manner. B) The Business Entity wishes to advertise products through IRCTC: 1. Should be an Individual/Firm/Partnership or a company registered under the Companies Act s Balance Sheet and P/L account certified by the CA for last two years along with firm s background. 3. Copy of acknowledged Income Tax Return (ITR) for the last two financial years. 4. PAN No 5. Service Tax/Vat registration as applicable. Page No.3

4 Format of EOI application is placed at Annexure A List of documents to be enclosed with EOI application is placed at Annexure B EARNEST MONEY The participating Business entity/advertising agency have to submit the earnest money of Rs.25,000/- (Rupees Twenty Five thousand only) in the form of demand draft favoring IRCTC Ltd. payable at New Delhi. The EMD of the unsuccessful Business entity/advertising agency will be refunded without interest within 120 days of the opening of the applications. However the EMD of the successful Business entity/advertising agency will be kept as performance security deposit with IRCTC which will be refunded after the successful completion of the empanelment period. Interested Business entity/advertising agency fulfilling the above mentioned criteria may send their applications along with their details, List of documents mentioned at Annexure B and draft of EMD of Rs.25,000/- (Rupees Twenty Five thousand only) by post/hand/courier in a sealed envelope marked EMPANELMENT OF BUSINESS ENTITY/ADVERTISING AGENCIES so as to reach on or before ( up to 1500 hrs) on the below address. GGM/DCS, IRCTC, - 12 th Floor, Statesman House, Barakhamba Road, New Delhi Tel: , , Note: - 1. Business entity/advertising agency fulfilling the above mentioned criteria would be short listed on the basis of their experience, Track record, background and the quality of the previously undertaken works. Short listing of the Business entity/advertising agency would be entirely at the discretion of IRCTC. Successful Business entity/advertising agency will submit their offer for various campaigns to IRCTC for approval. 2. IRCTC reserves the rights to cancel the empanelment process at any time without assigning any reason. 3. Application received without the submission of supporting documents and draft of EMD of Rs.25,000/- (Rupees Twenty Five thousand only) would be summarily rejected. 4. Application received after the last date and time shall not be entertained. IRCTC shall not be responsible for postal delays/loss. 5. Empanelment would be valid for a period of two years. Page No.4

5 6. Empanelment does not guarantee that the work will be provided to the agency necessarily. The empanelment of the agencies /Firms will be governed by the following terms and conditions:- 1. Product sample i.e. Paper cup, Tray Mats & other catering material will be approved by IRCTC with regard to the quantity, quality and capacity of the product as well as the branding/advertisement. 2. New Delhi or any other place/places as decided by IRCTC will be centre point/points for supply from where further distribution will take place as per requirement and within time limit. IRCTC decision in this regard will be final and binding. 3. The branding share for message/display will be 70:30 for advertisement & IRCTC respectively. The message advertisement to abide by the laws / instructions as released from time to time by Government of India. 4. Service tax /any other applicable tax would be borne by the empanelled agency. 5. The empanelled Business entity/advertising agency will supply catering disposable and other items carrying advertisement to IRCTC, free of cost along with revenue sharing on sponsorship basis. 6. The message through advertisement should not be socially offensive and should be in keeping with public morality. Advertisements regarding intoxicants, cigarettes, bidis and other tobacco products are strictly prohibited. The colour scheme of the advertisement should be aesthetically appealing. Page No.5

6 Annexure A (To be submitted on Letter head) Group General Manager/DCS Indian Railway Catering and Tourism Corporation Ltd 12th Floor, Statesman House Building New Delhi. Subject: Expression of interest for empanelment of Business entity/ advertising agencies for advertisement on catering disposable and other items used by IRCTC on sponsorship basis. I/We (name of the authorized signatory) on behalf of (name of the applicant) offer our interest for empanelment for advertisement on catering disposable and other items used by IRCTC on sponsorship basis by entering into an advertisement agreement with IRCTC to supply catering disposables and other items carrying advertisement free of cost along with revenue sharing. I/We hereby bind myself/ourselves to complete all the formalities from time to time as required after the empanelment. a) I / We hereby understand that the submission of expression of interest does not guarantee empanelment. b) I / We solemnly declare that to the best of my/our knowledge and belief, the information given in this application form and the annexure and statements accompanying are correct, complete and truly stated and also that we shall be bound by the acts of my/our duly constituted attorney. c) I/We further understand that in case of any information submitted by me/us is found to be incorrect, IRCTC will have the rights to annul the empanelment and agreement(s), if any, with immediate effect. d) IRCTC and its representatives are hereby authorized to conduct any enquiries or investigations or seek clarifications or verify any statements, documents and information submitted in connection with this expression of interest. e) It is understood that this is not a tender form but empanelment process and no business is guaranteed by IRCTC, post empanelment. f) I have understood all the contents and terms and conditions of above Expression of interest and accept to abide by the same. Page No.6

7 The following person(s) may be contacted for any information or clarifications relating to his application: Name: Designation: Telephone: Mobile: I/We do hereby confirm that I/we have the necessary authority and approval to submit this expression of interest for providing the above services at IRCTC units. Thanking you Yours sincerely (Authorized Signatory) Name Designation and seal Page No.7

8 Annexure B Details to be given on letter head along with EOI Check list (Documents to be submitted along with the application for Empanelment) S.No. Requirements 1. Name and address of the Advertising Agency/Firm 2. EMD ( Details) 3. Document in support of technical criteria as applicable as per page no.3 Document Submitted( Yes /No) Placed at S.No. Note: The last date of submission of application is (by 1500 hrs). Page No.8

9 Disclaimer This Expression of Interest ( EOI ) is being issued by the Indian Railway Catering and Tourism Corporation Limited ( IRCTC ) for the purpose of providing certain information to the Applicants to participate in the Process to empanel qualified applicant for the purposes of short listing of Business Entity/advertising agencies of sponsorship of catering disposable products over IRCTC network. The information contained in this EOI is being provided by IRCTC for the limited purposes of enabling the Applicants to submit a response to this EOI for undertaking the Project and for no other purpose. In no circumstances shall IRCTC, or its respective advisors, consultants, contractors, servants and/or agents incur any liability arising out of or in respect of the issue of this EOI. The information contained in this EOI or subsequently provided to applicant(s), whether verbally or in documentary or any other form, by or on behalf of the IRCTC or any of its employees or advisors, is provided to applicant(s) on the terms and conditions set out in this EOI and such other terms and conditions subject to which such information is provided. This EOI is not an agreement or offer by the IRCTC to prospective Applicants or any other person. This EOI includes statements, which reflect various assumptions and assessments arrived at by the IRCTC in relation to the Project. Such assumptions, assessments and statements do not purport to contain all the information that each applicant may require. This EOI is a summary of available information and no reliance shall be placed on any information or statements contained herein, and no representation or warranty, expressed or implied, is or will be made in relation to such information and no liability is or will be accepted by IRCTC, its respective advisors, consultants, contractors, servants and/or its agents in relation to the accuracy, adequacy or completeness of such information or statements made nor shall it be assumed that such information or statements will remain unchanged. Each applicant should therefore, conduct its own due-diligence, investigations and analysis and should check the accuracy, adequacy, correctness, reliability and completeness of the assumptions, assessments, statements and information contained in this EOI and obtain independent advice from appropriate sources. This EOI may not be appropriate for all persons, and it is not possible for the IRCTC, its employees or advisors to consider the investment objectives, financial situation and particular needs of each party who reads or uses this EOI. Nothing in this EOI shall be construed as legal, financial or tax advice. IRCTC will not be liable for any costs, expenses, however so incurred by the Applicants in connection with the preparation or submission of their Bid. IRCTC reserves the right to amend this EOI or its terms and any information contained herein or to cancel the process or altogether abandon the Project at any time by notice, in writing, to the Applicants. IRCTC also accepts no liability of any nature whatsoever whether resulting from negligence or otherwise howsoever caused arising from reliance of any applicant upon the statements contained in this EOI. Page No.9

10 IRCTC may, in its absolute discretion but without being under any obligation to do so, update, amend or supplement the information, assessment or assumptions contained in this EOI. No person other than the following authorized person of the IRCTC, has been authorized by IRCTC to give any information or to make any representation not contained in this EOI and, if given or made, any such information or representation shall not be relied upon as having been so authorized. All representations/queries etc pertaining to the this document may be addressed to:- Group General Manager/ DCS, IRCTC Corporate Office, 12th Floor, Statesman House, Barakhamba Road, New Delhi Tel: Laws of the Republic of India are applicable to this EOI and subject to the Jurisdiction of Courts situated at Delhi. Page No.10