BIDASS - An Organized Effort Offering a Key Price Advantage to SMEs | SupportBiz

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BIDASS - An Organized Effort Offering a Key Price Advantage to SMEs

Tags: BHEL, components
BIDASS is the classic example of how an organized attempt can bring in a significant price advantages for small and medium businesses on a long-term basis.

To tell the story in a nutshell, BIDASS has a 27-year long track record of providing consumables used for fabrication and machining at very competitive prices to its members involved in fabrication works of public sector power giant Bharat Heavy Electrical Limited (BHEL).

Founded in 1984, BIDASS Industrial Services Association has grown over the years to be a 400-member strong organization today, and all of its members are equipment suppliers of BHEL. With members being customers to BIDASS, the organization buys consumables in bulk, especially welding electrodes and paints, directly from manufactures and distributors and sell them to its members at a very cost friendly price. “At a time when the biggest challenge ever to SMEs is to address the high cost of manufacturing components, we purchase components in bulk and sell them to our members with a meager profit margin of 2.5-3 percent,” said V. Sivamani, President, BIDASS. “With such a system, we eliminate the different distributor layers, which results in a significant price advantage for our members,” he added. The profit generated from the sales is used for the administrative needs of the association.

A not-for-profit organization, BIDASS sources the components from markets in the northern part of the country as well as from Chennai. The components are usually bought on a 30-day credit system from manufactures. “Last year, the organization had a turnover of Rs 40 cores. Although business was dull during a major portion of the year, we hope to reach the same sales figure this year too as BHEL orders are slowly picking up now,” Sivamani said.

Activities at BIDASS is run by an elected board of directors who relentlessly works towards coordinating the programs of the BHEL small scale industries and act as a common forum for their benefit. As most of its directors are veterans in the field of engineering manufacturing, BIDASS has been successful in providing cost-effective and quality products to its members.