PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION HMT LIMITED 1 Preliminary Information Memorandum (PIM) And Notice Inviting Tender And Request For Proposal (RFP) For Lease of Manufacturing, Assembly and Testing facilities Available at the Tractor Plant of HMT Limited at Pinjore On “As is where is” basis Transaction Advisor February 2019
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PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 1
Preliminary Information Memorandum (PIM)
And
Notice Inviting Tender
And
Request For Proposal (RFP)
For
Lease of
Manufacturing, Assembly and Testing facilities
Available at the
Tractor Plant of HMT Limited at Pinjore
On
“As is where is” basis
Transaction Advisor
February 2019
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 2
DISCLAIMER NOTICE
Resurgent India Limited (“Resurgent” or “Transaction Advisor”) has been retained as the advisor by the HMT
Limited (hereinafter referred to as "HMT" or "Company") for advising on and carrying out the process of “Lease
of the manufacturing, assembly and testing facilities of HMT Tractor Division available at Pinjore on an “As is
where is” basis (hereinafter referred to as the “Transaction”), pursuant to an agreement for engagement of
advisor dated 26th October, 2018. This Preliminary Information Memorandum (hereinafter referred to as the
‘PIM’) has been prepared by Resurgent for the limited purposes of providing certain information on tractor
division of HMT for enabling the recipients (hereinafter referred to as the ‘Interested Bidder(s) or “IB(s)”) to be
apprised of such certain basic details of tractor division of HMT prior to submission of the Request for Proposal
(as defined hereinafter “RFP”) in respect of the Transaction.
This PIM has been prepared for information purposes only, without any regard to specific objectives, suitability,
financial situations and needs of any particular person and does not constitute any recommendation and is not
intended to be the basis for participating in the Transaction, and should not be construed as an offer or
invitation to treat offers or the solicitation of an offer, if any, mentioned herein. The materials and information
contained herein are made available upon the express understanding that recipients will use them only for the
purpose set forth herein.
Neither the Company nor Resurgent, are required to or undertake to update this PIM. Resurgent has not
independently verified any of the information and data contained herein. It is for the recipients to do their own
due diligence. Neither the Company nor Resurgent (nor any of their respective affiliates, subsidiaries, advisors
and agents), (i) make any representations or warranties, express or implied, as to the accuracy, or completeness
of such information and data, (ii) take any responsibility for, or will accept any liability whether direct or indirect,
express or implied, contractual, tortuous, statutory or otherwise, in respect of, the accuracy, completeness,
authenticity, correctness and fairness of the information or for any of the opinions contained in the PIM or for
any errors or omissions or for any loss/damage be it tangible or intangible, howsoever arising, from the use of
this PIM and (iii) take any responsibility or accept any liability for any other written or oral communications
transmitted to the recipient by or on behalf of Company or Resurgent or any of their advisors in the course of
your evaluation of transaction involving the Company. Any liability or responsibility of the Company and
Resurgent and their respective advisors is, therefore, expressly disclaimed. Interested Bidder(s) should conduct
their own investigation and analysis in connection with the Transaction before submitting their Bids.
The Company reserves the right to change the procedures for pursuing the Transaction. The issue of this PIM
does not imply that the Company or Resurgent are bound to select an Interested Bidder for the Transaction and
the Company and Resurgent reserve the right to reject all or any of the Interested Bidders or their Bids pursuant
to the RFP without communicating any reasons whatsoever.
The PIM may include certain estimates, projections, statements, targets and forecasts with respect to the
Company/industry in which the Company operates and these are based on the various assumptions made by the
management, officers or employees of the Company and/or Resurgent. Actual results may differ materially from
these forward-looking statements due to various factors. Each potential bidder must seek its own advice from
professionals for any matters pertaining to or relating to the Company or the Transaction or for evaluating the
Transaction including with regard to legal, financial and taxation issues.
This PIM has been prepared by Resurgent based on information available from public sources and from the
Company, believed to be reliable to assist the recipients in making their own evaluation of Transaction and does
not purport to be all-inclusive or to contain all of the information that may be material to the recipients’
decision to bid for or enter into the Transaction.
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 3
The distributing/taking/sending/dispatching/transmitting of this document in certain jurisdictions other than the
Republic of India may be restricted or prohibited by law of such jurisdiction and persons into whose possession
this document comes should inform themselves about, and observe, any such restrictions. Publication of this
PIM by any entity other than Resurgent or the Company is strictly prohibited. The recipient shall be solely liable
and responsible for any dissemination, distribution, transmission or reproduction of this PIM. Any failure to
comply with these restrictions may constitute a violation of the laws of any such other jurisdictions for which the
recipient shall be solely liable and responsible. It is recommended that this PIM not be disseminated, distributed,
transmitted or reproduced. The logos and trademarks used in this PIM are owned by the respective owners and
are used for representation purpose only without any explicit permission of the owners.
This PIM is divided into chapters & sub-sections only for the purpose of reading convenience. Any partial reading
of this PIM may lead to inferences, which may be at divergence with the conclusions based on the entirety of this
PIM. Further, by accessing or reviewing a copy of this PIM, the recipient accepts the terms of this RFP, which
forms an integral part of this PIM.
All acts, deeds and things done or caused or intended to be done, by the Company and Resurgent hereunder are
based on and in reliance of your acceptance of the terms and conditions of this Disclaimer.
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 4
Table of Contents
SECTION 1: Preliminary Information Memorandum (PIM) ............................................................ 5
NOTICE INVITING TENDER AND REQUEST FOR PROPOSAL .......................................................... 13
SECTION 2: BIDDING PROCESS ...................................................................................................... 14
2.1 BRIEF DESCRIPTION OF BIDDING PROCESS .................................................................................................. 14
2.2 INSTRUCTION TO BIDDERS ............................................................................................................................... 17
2.3 ELIGIBILITY AND QUALIFICATION REQUIREMENTS OF BIDDER ........................................................... 20
2.4 SIGNING AND SUBMISSION OF BID ................................................................................................................. 22
2.5 OPENING AND EVALUATION OF BIDS ............................................................................................................ 24
2.6 PRE-BID CONFERENCE AND SITE VISIT ......................................................................................................... 26
SECTION 3: FORMATS AND APPENDICES ...................................................................................... 27
APPENDIX-I: LETTER COMPRISING THE TECHNICAL BID ....................................................................................... 27
APPENDIX-II: POWER OF ATTORNEY FOR SIGNING OF BID ................................................................................... 31
APPENDIX-III: DETAILS OF THE BIDDER ..................................................................................................................... 33
9 Date and time for opening of Financial Bid To be notified to the Technically Qualified Bidders
10 Issue of Letter of Acceptance (LOA) by HMT To be notified.
11 Acknowledgement of LOA by Selected Bidder. Within 07 (seven) days of issue of LOA
12 Security Deposit of 3 months advance Within 07 (seven) days of acknowledgement of
LOA
13 Joint Survey To be notified
14 Issue of offer of Possession by HMT To be notified
15 Signing of Agreement To be notified
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 17
2.2 INSTRUCTION TO BIDDERS
2.2.1 No Bidder shall submit more than one Bid for the Project.
2.2.2 The Preliminary Information Memorandum (PIM) for the Transaction is being provided only as a
preliminary reference document by way of assistance to the Bidders who are expected to carry out their
own surveys, investigations and other detailed examination of the Transaction before submitting their
Bids. Nothing contained in the PIM shall be binding on HMT nor confer any right on the Bidders, and
HMT shall have no liability whatsoever in relation to or arising out of any or all contents of
Preliminary Information Memorandum.
2.2.3 Notwithstanding anything to the contrary contained in this RFP, the detailed terms specified in the
draft Agreement shall have overriding effect; provided, however, that any conditions or obligations
imposed on the Bidder hereunder shall continue to have effect in addition to its obligations under the
Agreement.
2.2.4 The Bid shall be furnished in the format exactly as per Appendix-I i.e. Letter comprising Technical Bid
and Appendix VI i.e. Letter comprising Financial Bid. Bid amount shall be indicated clearly in both
figures and words, in Indian Rupees, in prescribed format of Financial Bid and shall be signed by
the Bidder’s authorised signatory. In the event of any difference between figures and words, the amount
indicated in words shall be taken into account.
2.2.5 The Bidder should submit a Power of Attorney as per the format at Appendix-II, authorising the
signatory of the Bid to commit the Bidder. Each page of the bid document submitted by the Bidder shall
be signed by the authorised signatory and stamped.
2.2.6 Any condition or qualification or any other stipulation contained in the bid shall render the bid liable to
rejection as a non-responsive Bid.
2.2.7 The Bid and all communications in relation to or concerning the Bidding documents and the Bid shall be
in English language.
2.2.8 This RFP is not transferable.
2.2.9 In computing the Net Worth of the Bidder under Clauses 2.3.1(d), the Net Worth of their respective
Associates would also be eligible as hereunder.
For purposes of this RFP, Associate means, in relation to the Bidder, a person who controls, is controlled
by, or is under the common control with such Bidder (the “Associate”). As used in this definition, the
expression “control” means, with respect to a person which is a company or corporation, the ownership,
directly or indirectly, of more than 50% (fifty per cent) of the voting shares of such person, and with
respect to a person which is not a company or corporation, the power to direct the management and
policies of such person by operation of law.
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 18
It is clarified that a certificate from a qualified external auditor who audits the book of accounts of the
Bidder shall be provided to demonstrate that a person is an Associate of the Bidder.
2.2.10 The following conditions shall be adhered to while submitting a Bid:
(a) Bidders should attach clearly marked and referenced continuation sheets in the event that the
space provided in the prescribed forms in the Annexes is insufficient. Alternatively, Bidders may
format the prescribed forms making due provision for incorporation of the requested
information;
(b) information supplied by a Bidder must apply to the Bidder or Associate named in the bid and
not, unless specifically requested, to other associated companies or firms; and
(c) in responding to the RFP submissions, Bidders should demonstrate their capabilities in
accordance with Clause 2.3.
2.2.11 Notwithstanding anything to the contrary contained herein, in the event that the Bid Due Date falls
within three months of the closing of the latest financial year of a Bidder, it shall ignore such financial
year for the purposes of its bid and furnish all its information and certification with reference to the 3
(three) years or 1 (one) year, as the case may be, preceding its latest financial year. For the avoidance of
doubt, financial year shall, for the purposes of bid hereunder, mean the accounting year followed by the
Bidder in the course of its normal business.
2.2.12 All documents and other information supplied by HMT or submitted by a Bidder to HMT shall remain or
become the property of HMT. Bidders are required to treat all information provided by HMT as strictly
confidential and shall not use it for any purpose other than for preparation and submission of their Bid.
HMT will not return any Bid or any information provided along therewith.
2.2.13 The Bidders shall be responsible for all of the costs associated with the preparation of their Bids
and their participation in the Bidding Process. HMT will not be responsible or in any way liable for
such costs, regardless of the conduct or outcome of the Bidding Process.
2.2.14 It shall be deemed that by submitting a Bid, the Bidder has:
(a) made a complete and careful examination of the bidding documents;
(b) received all relevant information requested from HMT;
(c) accepted the risk of inadequacy, error or mistake in the information provided in the bidding
documents or furnished by or on behalf of HMT relating to any of the matters referred to in
this clause;
(d) acknowledged and agreed that inadequacy, lack of completeness or incorrectness of
information provided in the bidding documents or ignorance of any of the matters referred
to in this Clause shall not be a basis for any claim for compensation, damages, loss of
profits etc. from HMT, or a ground for termination of the Lease Agreement;
(e) acknowledged that it does not have a Conflict of Interest; and
(f) agreed to be bound by the undertakings provided by it under and in terms hereof;
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 19
2.2.15 HMT shall not be liable for any omission, mistake or error in respect of any of the above or on account of
any matter or thing arising out of or concerning or relating to RFP, including any error or mistake
therein or in any information or data given by HMT.
2.2.16 Verification and Disqualification
2.2.16.1 HMT reserves the right to verify all statements, information and documents submitted
by the Bidder in response to the RFP and the Bidder shall, when so required by HMT,
make available all such information, evidence and documents as may be necessary
for such verification. Any such verification, or lack of such verification, by HMT shall not
relieve the Bidder of its obligations or liabilities hereunder nor will it affect any rights of
the HMT thereunder.
2.2.16.2 HMT reserves the right to reject any bid and appropriate the Bid Security if:
(a) at any time, a material misrepresentation is made or uncovered, or
(b) Bidder does not provide, within the time specified by HMT, the supplemental information
sought by HMT for evaluation of the Bid.
Such misrepresentation/ improper response shall lead to the disqualification of the Bidder. If such
disqualification/ rejection occurs after the Bids have been opened and the highest Bidder gets
disqualified/rejected, then HMT reserves the right to annul the Bidding Process and invites fresh Bids.
2.2.17 In case it is found during the evaluation or at any time before signing of the Agreement or after its
execution and during the period of subsistence thereof, that one or more of the eligibility and /or
qualification requirements have not been met by the Bidder, or the Bidder has made material
misrepresentation or has given any materially incorrect or false information, the Bidder shall be
disqualified forthwith if not yet appointed as the Lessee by entering into of the Agreement, and if
the Selected Bidder has already entered into the Agreement, the same shall, notwithstanding anything
to the contrary contained therein or in this RFP, be liable to be terminated, by a communication in
writing by HMT to the Selected Bidder or the Lessee, as the case may be, without HMT being liable in
any manner whatsoever to the Selected Bidder or the Lessee. Moreover, HMT shall be entitled to forfeit
and appropriate the Bid Security and Security Deposit if any, as mutually agreed genuine pre-estimated
compensation and damages payable to HMT for, inter-alia, time, cost and effort of HMT without
prejudice to any other right or remedy that may be available to HMT under law.
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 20
2.3 ELIGIBILITY AND QUALIFICATION REQUIREMENTS OF BIDDER
2.3.1 For determining the eligibility of Bidder the following shall apply:
(a) A Bidder shall not have a conflict of interest (the “Conflict of Interest”) that affects the Bidding Process. Any
Bidder found to have a Conflict of Interest shall be disqualified. In the event of disqualification, HMT shall be
entitled to forfeit and appropriate entire value of the Bid Security (the “Damages”), without prejudice to any
other right or remedy that may be available to HMT under the bidding documents and/or the Agreement or
otherwise. Without limiting the generality of the above, a Bidder shall be deemed to have a Conflict of
Interest affecting the Bidding Process, if:
(i) The Bidder or its Associate (or any constituent thereof) and any other Bidder or any Associate thereof
(or any constituent thereof) have common controlling shareholders or other ownership interest;
provided that this disqualification shall not apply in cases where the director in direct shareholding of
a Bidder or its Associate thereof (or any shareholder thereof having a shareholding of not more than
25%(twenty five percent) of the paid up and subscribed capital; of such Bidder or Associate, as the
case may be) in the other Bidder or its Associate, is not more than 2 5% (Twenty five percent) of the
subscribed and paid up equity share capital thereof; provided further that this disqualification shall
not apply to any ownership by a bank, insurance company, pension fund or a public financial
institution referred to in section 4A of the Companies Act, 1956/2013. For the purposes of this Clause,
indirect shareholding held through one or more intermediate persons shall be computed as follows:
(aa) where any intermediary is controlled by a person through management control or otherwise, the
entire shareholding held by such controlled intermediary in any other person (the “Subject Person”)
shall be taken into account for computing the shareholding of such controlling person in the Subject
Person; and (bb) subject always to sub-clause (aa) above, where a person does not exercise control
over an intermediary, which has shareholding in the Subject Person, the computation of indirect
shareholding of such person in the Subject Person shall be undertaken on a proportionate basis;
provided, however, that no such shareholding shall be reckoned under this sub-clause (bb) if the
shareholding of such person in the intermediary is less than 26% of the subscribed and paid up equity
shareholding of such intermediary; or
(ii) a constituent of such Bidder is also a constituent of another Bidder; or
(iii) such Bidder or its Associate thereof receives or has received any direct or indirect subsidy, grant,
concessional loan or subordinated debt from any other Bidder or its Associate, or has provided any
such subsidy, grant, concessional loan or subordinated debt to any other Bidder or its any Associate
thereof; or
(iv) such Bidder has the same legal representative for purposes of this bid as any other Bidder; or
(v) such Bidder, or any Associate thereof, has a relationship with another Bidder, or any Associate
thereof, directly or through common third party/ parties, that puts either or both of them in a
position to have access to each other’s’ information about, or to influence the bid of either or each
other; or
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 21
(vi) such Bidder or any Associate thereof has participated as a consultant to HMT in the
preparation of any documents, design or technical specifications of the Project.
(vii) Such Bidder or any Associate thereof has appointed any official of HMT, advisors of HMT for the
Transaction, within a period of 1 year from the signing of Agreement with that Bidder.
Explanation:
For purposes of this RFP, Associate shall have the same meaning as assigned to it in clause 2.2.9..
(b) A Bidder must be a private limited company or public limited company registered under Companies Act
1956 or 2013 or a Limited Liability Partnership (LLP) incorporated under the Limited Liability Act 2008.
Public Sector Undertakings (PSEs) & Government owned entities (i.e. where Central or State government
ownership is 51% or more) are not eligible to participate in the Transaction.
(c) Bidder must preferably be engaged in business of manufacturing or assembling or testing of products /
equipments pertaining to Capital Goods Sector or Auto Sector for a period of at least three years.
(d) The Bidder shall have a minimum Net Worth¥ of Rs. 20 Crores (Rupees twenty crore only) at the close of
the preceding financial year§. Certificate from its statutory auditors certifying the net worth of the Bidder,
as at the close of the preceding financial year, and also specifying that the methodology adopted for
calculating such net worth shall be submitted.
(e) The Bidder shall have minimum Net Cash Accrual# of Rs. 5 crores in each of the last 3 financial years ending
on 31.03.2018. Certificate from its statutory auditors certifying the Net Cash Accrual of the Bidder, for each
of the 3 years ending on 31.03.2018 and also specifying that the methodology adopted for calculating such
Net Cash Accrual shall be submitted.
(f) The Bidder must not have been blacklisted or been barred by any agency of the Central Government, State
Government, any statutory Authority or any Public Sector Undertaking as the case may be, from
participating in any Bid.
$ “Net Worth” shall mean the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated loses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write back of depreciation and amalgamation ¥ “Capital Goods” means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technological upgradation or expansion § In case a Bidder has issued any fresh Equity Capital during the current financial year, the same shall be permitted to be added to the Bidder’s Net Worth subject to the Statutory Auditor of the Bidder certifying to this effect. # Net Cash accrual shall mean Profit after Tax plus non-cash expenses for the year under consideration.
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION
HMT LIMITED 22
2.4 SIGNING AND SUBMISSION OF BID
2.4.1 The Bid shall be signed in indelible blue ink by the authorised signatory of the Bidder. All the alterations,
omissions, additions or any other amendments made to the bid shall be initialled by the person(s) signing
the bid.
2.4.2 Documents Comprising the Technical Bid:
(a) Copy of the proof of payment towards the cost of RFP process.
(b) Appendix-I (Letter comprising the Technical Bid) including and supporting certificates / documents.
(c) Power of Attorney for signing the bid as per the format at Appendix-II;
(d) Details of bidder as per the format provided in Appendix-III.
(e) Declaration as per format provided in Appendix-IV.
(f) Bid Security of Rs 10 Lakhs (Rupees Ten lakh only) in the form Bank Guarantee in the format at
Appendix-V from a Scheduled Bank or by way of NEFT to the specified account of HMT.
(g) Statutory Auditor’s certificate certifying the net worth and net cash accruals.
(h) Copy of Memorandum and Articles of Association, if the Applicant is a body corporate, and if a
Limited Liability Partnership (LLP) then a copy of its partnership deed;
(i) Copies of Bidder’s duly audited annual report along with balance sheet and profit and loss statement
for preceding 3 years.
Documents Comprising the Financial Bid
(j) Appendix-VI (Letter comprising the Financial Bid)
2.4.3 The documents listed at clause 2.4.2 shall be submitted as follows:
Envelope 1: Envelope 1 should contain all the originally signed documents (as listed in clause 2.4.2) and
should be sealed and duly superscribed as “Technical bid for lease of the manufacturing, assembling and
testing facilities of the Tractor Division available at Pinjore on an “As is where is” basis (“the Transaction”)”.
Envelope 2: Envelope 2 should contain only the Financial Bid as per the format provided at Appendix-VI
and should be sealed and duly superscribed as “Financial bid for lease of the manufacturing, assembling
and testing facilities of the Tractor Division available at Pinjore on an “As is where is” basis (“the
Transaction”)”.
Both the envelopes shall clearly indicate the name and address of the Bidder.
Sealed Envelope 1 and sealed Envelope 2 shall then be placed in a third envelope (“Envelope 3”), which
shall be sealed and duly superscripted as “Bid for lease of the manufacturing, assembling and testing
facilities of the Tractor Division available at Pinjore on an “As is where is” basis (“the Transaction”) and
shall clearly indicate the name and address of the Bidder.
2.4.4 The envelope shall be addressed to the following officer and shall be submitted at the respective address:
ATTN. OF: Joint General Manager (CP&AM),
HMT Limited, HMT Bhavan, No.59, Bellary Road,
PIM & RFP FOR LEASE OF MANUFACTURING FACILITIES OF HMT TRACTOR DIVISION