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The central government of India and the various state governments release wine shop tenders. Prices of these wine tenders differ according to the scope of work. Here is more about wine shop tenders in India, evaluation process and pricing.

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Tenders

Wine shop tenders in India

As mentioned earlier many state governments periodically announce a tender process for new licenses of liquor shops. For example, in August 2023 the Government of Telangana announced a tender process for new licenses of wine shops for two years. Generally, such licenses are valid for a specific time period, for instance, two years and have a per annum license fee that depends on the location and the area’s population.

What is the e-tender process for wine shop tenders?

Step 1: The state government releases a tender notice.

Step 2: Bidders submit tender responses within the stipulated timeframe.

Step 3:  After the due date of bid submission is passed, the tender evaluation process begins.

Step 4: The tender evaluation process takes place mainly in three stages – pre-qualification stage, evaluation of technical bids, evaluation of financial aspects, and so on.

Step 5: Finally, the state government announces the winning bidder and the contract is awarded.

How to apply for wine shop tenders?

You can apply for wine shop tenders in the following ways. Here are the steps:

Searching for wine shop tenders

You can search for a relevant business tender. You can subscribe to Tata nexarc Tenders. You will be able to receive alerts regarding tenders relevant to your business. Select the ones you want to participate in. Explore now.

Alternatively, you can also visit the relevant state’s e-tendering portal, for example:

Browse through all relevant tenders

Once you find wine shop tenders matching your needs, check the eligibility criteria and due dates. Before preparing your tender response, ensure that you meet the eligibility criteria. Read about the profit margin and other financial aspects.

For example, Telangana state had initiated wine shop tender notification for new liquor shop licenses in August 2023 wherein the profit margin for ordinary category liquor is 27% while the premium category is 20%.

Making a checklist

Making a checklist of all the documents and licenses you need is key to winning the wine shop tender in India. Some of the common documents you may require for a wine shop tender are:

  • Scanned copy of the Tender Fee and Earnest Money Deposit (EMD)
  • Copy of PAN card
  • Digital signature certificate
  • Address proof of the business
  • Proof of turnover for the specified period
  • Scanned copy of GST returns for the specified period
  • Tender pricing document mentioning the tender price quote
  • Proof of previous relevant experience, etc.

Note: A list of documents required for tender changes as per the scope of work of each tender. Hence, it is best to read the tender notification carefully.

Prepare quotation

Prepare your quotation carefully. Make sure your quote is competitive enough to win a contract for the tender. Simultaneously, it needs to be sustainable for your business. Consider all expenses needed to run the business and quote the price accordingly.

Final submission

Review your prepared quotation and documentation before you finally submit it. This will help you to identify errors if any and correct them before final submission.

Challenges in the wine shop tenders

Here are some of the common challenges that you might face while bidding for wine shop tenders:

High competition: You might witness high competition while bidding for wine shop tenders. The wine and liquor market is considered to be bigger and more competitive. This makes it challenging to stand out in the competition and win the contract. Therefore, it is important to analyse the competition and bid accordingly.

Previous experience: For many tenders, relevant previous experiences are needed for participation. If you are a startup or have no relevant previous experience, you may not be able to participate in the bid. Even if you do, your bid will be rejected in the qualification stage. This will result in a loss of EMD or tender fee.

Financial requirements: You need to read the entire tender notification carefully to understand the eligibility criteria. The financial requirements for the wine shop tender can be substantial and you will need to adhere to the same to participate.

Time constraints: Like all other tenders, you may face time constraints while bidding for a wine shop tender. You need to implement the tender response strategy and work collaboratively with your employees to meet timelines.

Documentation: Wine shop tenders usually require relevant documentation and licenses. Lack of documentation is one of the critical issues that MSMEs face. Therefore, check beforehand if you have all licenses and other required documentation.  

Conclusion

According to Statista, revenue in the alcoholic drinks market is calculated to be $46.6bn in 2023. Furthermore, the market is expected to grow at 7.33% CAGR between 2023-2028. Such statistics make it a lucrative business. Therefore, wine and liquor shop tenders can be a profitable opportunity for any business owner. You need to spot the relevant tender to participate. Here are some closing tips for you to participate in the wine shop tender:

  • Always read the eligibility criteria carefully. Do not participate if you don’t meet the criteria.
  • Make a checklist of all the documentation you require.
  • Prepare a to-do list along with timelines. This will help you to pay EMD and tender fees on time.
  • Consider all expenses while you prepare a quotation.