Background
Government of India initiated a transformative project to develop New Generation Energy-Efficient Vande Bharat Train Sets with a Concentrated Power System. This venture involved a Manufacturing cum Maintenance Agreement aimed at bolstering India's rail infrastructure. To achieve this, the government decided to undertake a competitive bidding process for selecting suitable bidders. An Indian conglomerate, recognized for its leadership in the manufacturing sector, expressed keen interest in participating in this process and sought specialized transaction advisory services to strengthen their bid. Primus Partners Pvt. Ltd. was engaged by the conglomerate to provide end-to-end transaction advisory services to ensure their competitive edge in this significant endeavour.

Our Approach
Primus adopted a systematic approach to deliver high-quality transaction advisory services tailored to the conglomerate’s requirements. The team ensured that the deliverables were aligned with the Government of India’s expectations while supporting the conglomerate in crafting a compelling bid. Key elements of the approach included:

1.    Stakeholder Engagement
Primus initiated detailed discussions with key stakeholders to refine the bid submission in alignment with technical and contractual criteria.
2.    Vendor and Pricing Analysis
Engaging with potential stakeholders and vendors, Primus conducted an in-depth analysis to estimate the pricing of trainsets.
3.    Strategic and Operational Planning
The team assisted the conglomerate in devising a manufacturing strategy to determine appropriate costs, pricing mechanisms, and supply chain management. A high-level maintenance strategy was also developed to optimize operating expenditures for the project's lifecycle.
4.    Infrastructure Assessment
An assessment of required upgrades at government manufacturing units and trainset depots was undertaken, along with an evaluation of associated costs.
5.    Consortium Structuring and Financial Viability
The team identified the most viable structuring options for the Joint Venture consortium and prepared a robust financial model to assess financial viability, incorporating NPV, IRR, Payback Period, DSCR calculations, and sensitivity analysis.
6.    Bid Preparation and Management
Comprehensive bid management support was provided, including preparation of pre-bid queries, determination of bid price range, and end-to-end bid preparation and submission.

The Benefits
Primus’s expertise and comprehensive advisory services enabled the Indian conglomerate to present a strong and well-structured bid for the Indian Railways project. The benefits achieved included:
•    Development of a robust financial model, ensuring accurate assessment of project viability.
•    Effective stakeholder engagement, aligning the conglomerate’s bid with the Government of India’s requirements.
•    Strategic manufacturing and maintenance planning, optimizing cost-efficiency and operational effectiveness.
•    Seamless management of the entire bidding process, from pre-bid preparation to final submission.
Through this engagement, the Indian conglomerate significantly enhanced its readiness to compete in the transformative initiative of manufacturing New Generation Energy-Efficient Vande Bharat Train Sets, contributing to the modernization of India’s railway infrastructure.