MatexNet,
a garage start-up that began operations with an initial capital of Rs.
20 lakh in 1998, and is, today, a leading cross - category B2B
player, is in talks with a London based, $2 billion global fund
operating in the stressed assets investment segment to form an asset
reconstruction company in India. MatexNet offers solutions to the
excess inventory problem that businesses face across industries,
through its four business divisions - excess inventory liquidation
(e-auction), e-tendering and e-procurement, e-barter and NPA (Stressed
asset) relocation.
Managing
Director S Jaganivasan, who co-founded the company with MatexNet
Director S Yogeshwaran, says the company's platform, which has put
through nearly Rs. 250 crore of annual sale transactions, is expected
to facilitate transactions, worth Rs. 2,500 crore by 2007. The market
for excessive inventory in the country (excluding NPAs of banks) is
estimated at Rs. 60,000 - 70,000 crore.
"Catching
the surplus inventory at the right time and identifying the correct
buyer can translate into the correct value for sellers," says Mr
Yogeshwaran. Therefore, right from elevators that a hotel wants to
dispose of or unclaimed cargo, such as Mercedes Benz cars, treadmills
and wastepaper to BEL's scrap valued at Rs. 1.73 crore, MatexNet
offers online B2B e-auctions for all. Interestingly, MatexNet even
helped a leading diamond studded jewellery brand barter a part of its
surplus stock for ad space in a regional magazine. The publication, in
turn, utilised the jewellery to market an attractive promotional
scheme to its distributors. In the last six months, companies have
bartered retail stocks worth Rs. 1 crore through MatexNet.
SBI has
appointed MatexNet to, not only resolve its NPAs but also co-ordinate
with debt recovery tribunals to liaison with them on legal issues. "To
address, its growing business, MatexNet plans to add another 31
branches to its existing 12 units by December 2007," Mr Vijay Angadi,
director, ICP Ventures and MatexNet's angel investor said.
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