IM Negotiation Part

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Voltas offered EEL first preference among competitors because of long term supplier relationship.

And it wanted a better offer in terms of quoted price and delivery. Apart from that they also wanted the delivery to commence in four weeks, from date. At the rate of 2 3 motors per week, completing the order in 8 th week. Failing which penalty at 0.5 % per week would be levied on EEL. Freight and Transit Insurance was also to be covered by EEL, from their Mumbai factory to the Kolkata Factory of Voltas. They also required EELs assistance in the installation, warranty and after sales services. Voltas also demanded a discount of further 15% apart from the 20% discount offered in base price.

EEL agreed to meet the delivery completion date of 8 weeks, and the adjoining penalty clause of 0.5% per week on the undelivered goods, commencement of delivery from the 6th week, in 1 or 2 full truck loads to avoid damage in transit. They also agreed to bear the freight cost and the transit insurance but made it clear that it will have an impact on the quoted price. Warranty was offered for 12 months from date of installation or 18 months from date of dispatch, whichever is earlier along with free of charge installation assistance and service of motors within the warranty period. Focusing on the long term relationship, and partnering for mutual benefit they further agreed to a maximum of 12% discount that could be offered to Voltas.

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