Irrespective of the complexity of the business model be it public or private sector essential marketing policy and current implementation becomes the life line of every organization. LUN's nature of bussiness always brings a challenge within itself as in most of the cases both private and public sectors are involve. Hence everyday starts with a new challenge and thus met with due success

     MPLUN has accomplished recognition for supplying quality products at a reasonable rate all over the State. Often, finalization of specifications of various products is done based on the feedback available from both domestic / international standards. For rate finalization, marketing has been focusing on the aspects like segmentation, cost estimation, tendering e-valuation of tenders and sample received. State Government has reserved 149 items under the Store Purchase Rules for exclusive purchase through the Nigam looking to its expertise, a number of non-reserved items, such as Computer Peripherals and Software, Communication System and Equipments, Office Automation Equipments, Home Appliances, High-tech Medical and Laboratory Equipments etc. are also being procured by the Government Departments. Transparency is the watch word in the procurement process. The rates are finalized by the Marketing Committee comprising of senior officers of Purchasing Departments and Technical experts. The specifications and rates are finalized after critical evaluation. To maximise the transparency system, all tenders are invited on e-tendering basis. The system ensures standardization in specification and uniformity in prices round the year throughout the State of Madhya Pradesh and an assured demand for SSI products. Purchase procedures have been further decentralized to facilitate smooth execution of supplies at the district level. Approximately 2000 SSI units are engaged in manufacturing different items, such as Chemicals, Drugs and Pharmaceuticals, Engineering, Electrical & Electronic Components, Pipes & Fittings, etc. and are getting marketing assistance through Nigam.


MPLUN is the premier marketing and procurement undertaking of Madhya Pradesh Government, topping a turnover of Rs. 11000 Crores in the year 2012-13 is striding ahead with innovative initiatives establishing and sustaining a strong enterprising foundation on the pillars of transparency, accessibility, profitability and technology, MPLUN is fully poised to serve the State better, and has started executing bid projects such as construction of Prefab and installing shelters, supplying Computers & Peripherals under e-governance Programme to 22000 villages, etc. The thoughtfully implemented e-procurement portal is a definite step that will enable organizations to procure wide ranging commodities with significant cost, time and competitive advantages.


MPLUN has been vigorously pursuing a policy aimed towards providing assistance and protection to SSI units of the State. To fulfill these objectives, the Government has reserved 149 items under the M.P. Store Purchase Rules for exclusive purchase through MPLUN. The Nigam is fully conscious of its dual role of acting as Central Purchase Agency on behalf of the State Government and the vital role, it has to play by providing marketing assistance to the SSI units of the State. MPLUN is marketing various items to Government Department. Marketing Scheme is a voluntary Scheme for SSI units, approximately 3500 units participate in the tendering activity of MPLUN. Over a period, MPLUN has matured into efficient marketing organization and has acquired necessary expertise in this field. In the marketing assistance scheme, the goods supplied through MPLUN are subject to pre-despatch third party inspection by various reputed inspection agencies such as DGS&D, RITES, SGS and IRS etc. Some of the items are also inspected by the Technical Wing of MPLUN. Procurement is a convenient process for the Purchasing Department as they have to only place their indents on MPLUN eliminating the cubersome process of tendering and saves lot of time and money. Apart from this, the User Departments are getting identical materials of uniform quality at uniform rates, throughout the State. MPLUN is neither a User nor a Supplier, it is working as an impartial and independent agency for enforcement of Government Policies. The system of MPLUN has been applauded by the Estimate Committee of the 7th Lok Sabha (14th report) for the States also.


1. Introduction:-

Laghu Udyog Nigam Limited was established in 1961 under the Companies Act as Government Undertaking. In the year 1978, with the objective of providing marketing assistance to State SSI units, Store Purchase Rule for M.P. Government was amended and it was made mandatory for State Government Departments to procure material from M.P. Laghu Udyog Nigam as per the reserve list mentioned in the Store Purchase Rules.

2. Objectives:

i) To provide marketing assistance to SSI units,
ii) To supply material to various Government Departments on competitive rates and specified quality within the time limit,
iii) To provide quality services to the supplying unit and Purchasing Department.

3. Benefit for Purchase through LUN to the Purchasing Deptt.:-

i) Purchasing Department gets material of specified specifications,
ii) Uniform specifications and rates throughout the State,
iii) Competitive rates due to invitation of Centralized Tenders through e- tendering,
iv) Saving of time, labour and money for the Government Deptt. in inviting tenders and finalization of rates,
v) Total transparency in finalization of rates and supply of material as per provision of Stores Purchase Rules,
vi) Material supplied through MPLUN is subjected to pre-delivery inspection by Third Party.

4. To the Government:

i) Due to competitive rates saving to the State Government,
ii) Promoting industrialization in the State,
iii) By placement of order on State SSI units, State Government gets substantial revenue by way of VAT,
iv) Implementation of State Government Industrial Policy.

5. Benefit to SSIs:-

i) Preference in Government Purchase - no need to participate in the tender throughout the State,
ii) Centralized Marketing Facility.

6. e-tendering:-

i) All tenders are invited on e-tender basis,
ii) The process of rate finalization through e-tendering ensure transparency and finalization of competitive rates,
iii) On e-portal, information pertaining to rate contract etc. is available to User Depts.

Procurement business in last 5 Years

(Rs. in crore)

S.N Year Business
1 2008-09 841.05
2 2009-10 591.92
3 2010-11 594.97
4 2011-12 585.76
5 2012-13 690.38