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Bharat Petroleum Corporation Limited (A Government of India Undertaking)

Invitation of Expression of Interest (EOI)

For

Study of Middle-East & North Africa (MENA) lube markets, associated regulatory & compliance framework and identification of Toll-Blenders for exploring localized sourcing option for MAK Lubricants.

EOI Ref. No – Exports.EOI.2013-14

Issued by

Manager (Exports)-Lubes Bharat Petroleum Corporation Limited Lubricants Business Bharat Bhavan-II, 4&6, Currimbhoy Road, Ballard Estate, Mumbai-400010

Important Dates: Last date and time for submission of EOI Document: 20.10.2014 by 3.00 PM

EOI document should be submitted in a sealed envelope super- scribed as: “Study of Middle-East & North Africa (MENA) lube markets, associated regulatory & compliance framework and identification of Toll-Blenders for exploring localized sourcing option for MAK Lubricants.”

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Index

Sr No Description Page No

1 EOI Document 03

2 Procedure for submission 04

3 Scope of work 06

4 Minimum Qualification Criteria 09

5 Form 1: General Information 10

6 Form 2: Credentials/ Past records 11

7 Form 3: Undertaking 12

8 Certificate for relationship with BPCL Directors

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9 Vendor Registration format 14

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EOI DOCUMENT Invitation for Expression of Interest (EOI) from professional firms with proven competency and experience in the field of market research, sourcing and regulatory and compliance frame work for lubricants in MENA region, which will help Bharat petroleum Corporation Limited (BPCL) to draw an entry strategy for select countries/ markets. Bharat Petroleum Corporation Limited (BPCL) is a USD 43 billion, state owned, fortune 500, oil refining and distribution major from India. We are having a strong downstream presence with pan India storage, distribution and robust marketing network of over 11000 Petrol pumps and LPG distributorships catering to over 250 million homes. Our Lubricants Business is the 4th largest in India in terms of sales volumes and its brand “MAK” is one of the fastest growing brands of Lubricants in India with a strong presence in both commercial and consumer segments. We have over 450 plus different lube oil grades meeting latest international specs and suiting to diverse automotive and Industrial applications. These grades are blended from world class Group II Plus & Group III base oils, manufactured at our state of the art Lube Oil Base Stock (LOBS) plant located at Mumbai. MAK Lubricants are presently marketed in SAARC countries namely in Nepal, Bangladesh and Sri-Lanka since last several years. With presence of dedicated distributor and development network, MAK is an established brand in these markets. MAK Lubricants aspires to enter in MENA region as well as consolidate our position in SAARC markets .In this connection BPCL proposes to engage the services of a professional firm for study of Middle-East & North Africa (MENA) lube markets, associated regulatory & compliance framework and identification of Toll-Blenders for exploring localized sourcing option for MAK Lubricants. This invitation is for submission of Expression of Interest (EOI) from the prospective professional firm as per the requirement detailed herewith, on or before 20.10.2014 at the following address:

Manager (Exports)-Lubes Bharat Petroleum Corporation Limited Lubricants Business Unit, Bharat Bhavan-II, 4&6, Currimbhoy Road, Ballard Estate, Mumbai-400010

Interested parties are required to submit duly self attested testimonials / documents, wherever necessary, to establish their credentials and competencies in conducting studies as per the scope of work. EOI documents to contain the following:

a. General information as per form 1 b. Credentials/ records as per form 2 c. Undertaking as per form 3 d. Certificate of relationship with BPCL Directors.

(Please use additional sheets wherever required to provide detailed information as sought) e. Vendor Registration details & NEFT mandate form dully filled and certified by your bankers

along with relevant certificates.

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Procedure for submission of EOI

EOI document containing all information & supporting documents as mentioned above should be submitted in a sealed envelope clearly super scribing: “Study of Middle-East & North Africa (MENA) lube markets, associated regulatory & compliance framework and identification of Toll-Blenders for exploring localized sourcing option for MAK Lubricants.” EOI Ref no: Exports.EOI.2013-14. The EOI document should be deposited in the EOI box kept for the purpose at our office at the following address: Manager (Exports)-Lubes Bharat Petroleum Corporation Limited Lubricants Business Bharat Bhavan-II, 4&6, Currimbhoy Road, Ballard Estate, Mumbai-400010 Ph no – 022-22714137 (between 10.00 AM- 5.00 PM)

Detailed Procedure for Evaluation:

1. Every page and document of EOI submitted must have signature and seal by designated authority of the prospective party.

2. All the documents should be submitted in a proper manner with index for easy identification and evaluation.

3. Parties are required to submit documents/ information as per EOI requirements and should also be in a position to produce further information as and when required by BPCL.

4. Only competent parties, who fulfill the qualifying criteria as per point no IV shall participate in the EOI process. BPCL`s decision in this matter and any other matter relating to enlistment of parties shall be final and binding.

5. Interested parties may contact Manager (Exports)-Lubes, for any clarification over scope of work.

6. BPCL at its discretion reserves the right to verify/ re-verify the information submitted and inspect the party`s capabilities to confirm the data/ documents submitted.

7. BPCL reserves the right to reject any/all applications without assigning any reason thereof.

8. Short listing of the parties shall be based on the qualifying criteria supported by credential/ documents, competency for carrying out the scope of work etc as submitted with EOI documents.

9. Short listed parties may be required to make a detailed presentation on their experience/ capabilities and competencies at Mumbai.

10. Tenders will be floated to the shortlisted parties for awarding the study assignment.

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11. Based on technical and commercial terms and conditions, Non- Disclosure Agreement (NDA) will be signed with L-1 bidder selected through limited tender enquiry.

12. Response from any party to this advertisement does not guarantee selection of the party for participation in limited tender process.

13. All tenders will be floated on line thru E-tender route to the shortlisted parties for which all such parties are required to be registered in the E- tender portal for further bidding. All standard terms and conditions will be given in the Limited tender document.

14. For any query, please contact:

Manager (Exports)-Lubes Bharat Petroleum Corporation Limited Lubricants Business Bharat Bhavan-II, 4&6, Currimbhoy Road, Ballard Estate, Mumbai-400010 Ph no – 022-22714137 (between 10.00 AM- 5.00 PM)

Enclosures:

a. General information as per form 1 b. Credentials/ records as per form 2 c. Undertaking as per form 3 d. Certificate of relationship with BPCL Directors.

(Please use additional sheets wherever required to provide detailed information as sought)

e. Vendor registration format and NEFT payment mandate format.

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Scope of Work

MAK Lubricants, a strategic business unit of Bharat Petroleum Corporation Limited (BPCL), aspires to enter Middle East -North African (MENA) lubricants market. Accordingly MAK lubricants invites Expression of Interest (EOI) from professional firms with proven competency and experience in the field of market research, sourcing and regulatory and compliance frame work in MENA region, which will help BPCL to draw an entry strategy for select countries/ markets. BPCL would also like to explore sourcing of finished lubes on turnkey basis and as per given specifications through a Toll Blending arrangement and sell products to its distributors located across the markets of Middle East- Africa, Sri Lanka, Bangladesh markets. Key Objectives:

1. To seek clarity about market potential and its attractiveness for entry of MAK

lubricants in MENA region.

2. To seek clarity about business requirements, procedural formalities/ statutory

compliances required for Entering in to above markets for Lubes business.

3. To collate information about toll blenders for blending, filling, packing and supply of

MAK lubricants to the mentioned markets.

A. Scope for the Study for Market-

1. Market Potential for Lubricants, Oils, Greases, White oils.

a. Country wise lube potential: Details required for following countries:

UAE Oman Bahrain Qatar Egypt Saudi Arab Yemen Morocco

b. Product segment wise details – Automotive, Industrial, Process Oils

c. Growth rates in each segment.

2. Competitive landscape (Country wise)

a. No. of existing players, market share details.

3. Sectors to watch for in terms of growth, revenue potential, value realization.

4. Existing distribution channels, spread, depth across the market.

5. Prevalent technical specs, product portfolio in operations, packages available.

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6. Market operating Prices (MOPs) for leading brand/ packs – Segment wise details.

Prevalent dealer commissions, incentives.

B. Sourcing through Toll blender

On Procurement Side: Procurement of finished Goods from Toll Blender on turnkey basis.

1. Collation of information of Toll blenders meeting following pre-qualification criteria:

a. Having experience in toll blending operations – Min. 3 years.

b. Currently blending for reputed local and Multinational brands.

c. Having operational facilities to blend both Automotive and Industrial grades

meeting API and other global quality standards.

d. Having operational facilities to fill all types of small packs and drums.

e. Having regular and assured sourcing arrangements of all relevant types of Base

oils, Additives and packaging materials for blending lubricants.

f. Having testing, quality control and assurance facilities.

g. Having outbound logistics and product delivery facilities to Middle East

countries.

h. Whether any In house package design, mould and manufacturing facilities

available, same shall be given a preference.

C. Regulatory & Compliance framework

For procurement of lubricants from toll blender:

1. Applicable Taxes and duties on finished products procured locally from a toll

blender. Any duty / VAT setoff available on such sales?

2. How do we receive product from the Toll blender? How do we settle the claims of

blender, in US$ or in INR? Can we settle the claims from India? Any other country

outside India?

a. What are the associated taxes/ duties/ any service tax implications?

b. Any setoff available on the taxes paid on sale of finished lubricants?

c. Taxation rates/ implications on BPCL in a particular country / India.

d. Do we need an establishment to facilitate local buying of products?

e. How do we store the product? Do we need any storage license/ compliance?

For Sale of lubricants:

1. Applicable taxes/duties on sale of Finished Product- for the countries mentioned in para

1 A a.

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2. Any duties/ taxes levied on inter-country sales for ex. From UAE to Saudi…etc?

3. Statutory Requirements for doing Business in GCC & African countries.

a. Do we need to open an office/ establishment in every country to do business

there? If yes what is the procedure and what should be the ideal option in terms

of whether it is a Branch/ 100 % subsidiary / entity?

b. Typical time frame for the above options?

c. Tax implications for the branch/ entity in that country and India?

d. What are the personal income tax rates for employees? Can we employ locals on

contract basis?

e. What are the Licenses, permits, approvals if any from government, GCC, Local

bodies for sales, storage of lubricants? What are the charges?

f. Do we need any special approval for packaging/ labels? Any legal compliance

from local authorities like weights& Measures etc.

g. Do we need to register our Brand in every country, or single registration is

enough for entire MENA. What are the charges? Can it be registered from India?

h. Any other Business requirement to be complied.

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Minimum Qualifying Criteria

Sno. Document Yes / No Remarks

1 Is firm having presence in MENA Region?

Please attach self attested information on list offices, country of presence/contact details and any other infrastructure.

2 Is firm having relevant experience in market research, Sourcing and regulatory & compliance framework in the field of Lubricants for MENA region?

Please attach self attested list of Lubricants majors for whom similar study is conducted and when it was conducted.

3 Is firm having relevant experience in study of sourcing / toll blending operations for Lubricants in MENA region?

Please attach self attested list of Lubricants majors for whom similar study is conducted and when it was conducted.

4 Is firm having relevant experience in study of regulatory & compliance framework for lubricants sourcing and sale in MENA region?

Please attach self attested list of Lubricants majors for whom similar study is conducted and when it was conducted.

5 Minimum average turnover for last 3 years should be Rs. 10 Crores.

Please attach self attested copy of audited balance sheet, P&L account for last three financial years.

Other Conditions:

1. If selected, party should be willing to sign a Non Disclosure Agreement (NDA) with BPCL Lubes SBU.

2. The party should neither be a lubricant or additive manufacturing/marketing company, nor it should be owned by/ subsidiary of any lubricants or additive manufacturing/ marketing company.

3. None of the part/ full time director/ partner/ proprietor/s of the party should be on board of any other lubricants/ additive manufacturing /marketing company.

Please note: The party needs to meet the above minimum qualifying criteria/ other conditions, failing which EOI received from the party will be rejected.

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Form 1: General Information

1. Name of the party (In capital letters) :

2. Contact Details

Registered Office Indian office

Address

Telephone No

Fax No.

Email

3. Persons to be contacted for clarifications :

Name Designation Telephone No Remarks

4. Total No of Employees as on date:

i. Administrative : j. Professional : k. Total :

5. Nature of firm : Partnership/Private Limited/Public Ltd/ MNC

6. Year of Establishment :

7. Service tax registration No :

8. PAN No :

9. VAT Registration No :

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10. Whether firm is registered under Indian companies act :

11. Any assignment/ study done for BPCL or its group companies in the past, if so please specify the details.

12. Annual turnover for last three financial years :

(Copies of audited balance sheet, P&L account for the last three financial years to be attached)

13. Following Self attested documents to be attached

a. Registration certificate under companies act. b. PAN Card c. Service tax registration d. VAT registration

Form 2: Credentials / Performance Records.

Sr No Requirement Party`s Comments

1 List of major clients for whom the lubricants study executed in MENA region during last 5 years

2 Current lubricants related project in hand in various countries

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Form 3: Undertaking

(To be submitted on party`s letter head) I/ We hereby undertake that the statements made herein/information given in the Form 1, Form 2 & Form 3, referred to above are true in all respects and that in the event of any such statement or information being found to be incorrect in any particular, the same may be construed to be a misinterpretation entitling BPCL to reject/ disqualify my/our offer/proposal. I/We further undertake as and when called upon by BPCL to produce, for its inspection, original(s) of the document(s) of which copies have been annexed hereto. The above declarations are given in accordance with EOI conditions. (Authorized signatory) Name / designation of the signatory along with seal) Complete name and address of the party Note – The signatory should not affect any variation in the text of declaration. Declaration in any other form shall not be acceptable and shall render party disqualified.

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Certificate (To be submitted on party`s letter head)

I/ We certify that –

1. I/We am/are not related to any of the Directors of BPCL.

2. I/We am/are partners of a party in which any other partner/s is related to BPCL Director.

3. I/We are not partner/s of a party in which any other partner/s is related to BPCL Director.

I/We also certify that M/s ………………………………………………. (Name of the party with which contract is being entered into) does not have a partner, who is Director of BPCL or his relative. Signature Seal

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Vendor Registration format. The following details required on the 'Company`s Letter Head' duly signed by an authorized signatory. Please do not omit any of the mandatory details mentioned below. 1. Address 2. Telephone Nos. 3. E-mail id 4. CST No. 5. VAT No. 6. Pan No. 7. Excise details 8. Service Tax details 9. TDS details 10. Incorporation certificate of the Company 11. Cancelled cheque 12. NEFT Form. 13. Any other taxes to be deducted In case of certificates to be uploaded, grateful if the same is sent duly scanned IN PDF FORMAT.

National Electronic Fund Transfer (NEFT) Mandate Form (Mandate for receiving payments through NEFT from Bharat Petroleum Corporation Ltd)

1 Vendor Name

2 Vendor Code

3 Permanent Account Number (PAN)

4 Particulars of Bank Account

A. Name of the Bank

B. Name of the Branch

C. Branch Code

D. Address

E. City Name

F. Telephone No

G.NEFT IFSC Code

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H. 9 digit MICR code appearing on the cheque book

I. Type of Account (10/11/13)

J. Account No.

5 Vendor’s e-mail id

6 Date of effect

We hereby declare that the particulars given above are correct and complete. If the transaction is delayed or lost because of incomplete or incorrect information, we would not hold the company responsible. ___________________

Signature of the Vendor

Bank Certificate

We certify that ____________________ has an Account No _______________ with us and we confirm that the details given above are correct as per our records. Date: ____________________ Place: Authorised Official of Bank

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