Trading Module [ T - 1 ]
This is the model designed for those who are interested in entering into Defence business.
We have drawn lot of Orders for the supply of various critical items from Defence Sector favouring REGISTERED VENDORS. One has to start with being a SUB-VENDOR initially, since it requires previous experience to become a REGISTERED VENDOR for Defence Supplies directly. Depending on the funds allocated by SUB VENDOR (XYZ Company) the supply orders are drawn in favour of XYZ company from the REGISTERED VENDOR. Though the orders drawn are valued in multiples of Crores by the REGISTERED VENDOR from the END USER, we suggest you to go ahead with an investment of Rs. 50.00 lakhs to Rs. 1.00 Crore
Subsequently, the purchases shall be made by SUB-VENDOR (XYZ Company) from the FOREIGN SUPPLIERS or Representatives of Foreign Suppliers in India by taking the reference of the REGISTERED VENDOR and the goods are delivered to the END USER.
Promoting Traders to Participate in Active DRDO Tenders.
The mandatory requirement for starting this business:
The total gestation period is 120 days from the date of payment made to the supplier and the bills are realised on 121st day. Once after completion of 2 to 3 cycles the SUB-VENDOR (XYZ Company) is entitled for becoming the REGISTERED VENDOR. The ROI per cycle is about 18-20% and normally varies with the gestation period, type of material etc.
Note: Please refer to the following Videos and Sequential Operations involved in Executing Defence Order for details, wherein the SUB – VENDOR (XYZ Company) shall start from Point No:11 and ends up the transaction at Point No:25
(Process from Point No:1 to Point No: 10 has been already done, wherein the Orders are being drawn on the REGISTERED VENDOR)
Sequential Operations for Executing Defence Order
Interested in knowing the steps involved in getting a Defence Order?
We have prepared a process chart to help you understand the process.