From spectrum to media rights, mjunction brings in transparency & efficiency in sale of diverse assets
The Ministry of Railways asked RITES, a Government of India enterprise under the aegis of Indian Railways, to construct a new workshop for freight wagon repairs and overhaul. In order to do so, RITES had to sell the decommissioned plants and machinery of East Central Railway, which were located at Rohtas Industries at Dalmianagar in Bihar. Nearly 60 different kinds of plants such as cement, paper, power and chemicals – were located over 160 acres. These were set up between 1940 and 1980, and had been lying idle since 1984.
This is where mjunction, India's largest B2B e-commerce company, stepped in, helping RITES to sell the decommissioned plants and machinery through a transparent e-auction mechanism. The e-auction fetched a record selling price of Rs 94.3 crore.
For mjunction, RITES is just one name in its entire repertoire of clients who it has helped with sale of a diverse array of stressed and idle assets, decommissioned plant units and scrap.
mjunction MD & CEO Mr Vinaya Varma said, “Our objective is to obtain the best market price for our customers for their obsolete assets. In order to ensure that, we have a pan India database of credible buyers. For efficient operations, we are digitally connected to all of them so that we can reach them whenever required at the shortest possible time.”
Steel mills, power plants
mjunction has sold steel mills for SAIL and fetched good prices from buyers even at a time the steel market was going through a rough phase and the prices of ferrous and non-ferrous materials were on the decline.
For English Indian Clays Ltd (EICL), in Haryana, mjunction sold its decommissioned biomass power plant. Gujarat State Fertilizers & Chemicals Limited (GSFCL) sold its 25 MW co-generation power plant along with all electrical, accessories and IG equipment.
For all of them, the transparent and efficient process that mjunction deploys is the clincher. Add to that mjunction's rich domain knowledge, huge database of buyers spread over multiple categories, and valuation services make it a one-stop organisation for such sale events.
Diamonds, Vehicles & Foodgrains
While it may seem that diamonds, vehicles and foodgrains have nothing in common, the one common thread that binds them is that mjunction can help sell all. On one hand, mjunction has sold 75,635 carat of diamonds like Individual gems, Packet gems, off colours and Dark brown gems worth more than Rs 100 crore plus, to more than 100 buyers on behalf of NMDC. On the other, it has helped the Calcutta State Transport Corporation (CSTC) sell 59 of its condemned vehicles to buyers all over India at Rs 1.02 crore, also marking its entry into the transport category.
For Food Corporation of India (FCI), it has sold 19.12 lakh tonnes of wheat and rice for Rs 3975 crore in FY18 and 45.83 lakh tonnes of wheat and rice for Rs 9300 crore in FY19 so far.
mjunction's vast area of expertise is not restricted to only these.
A significant milestone in mjunction's journey has been the telecom spectrum auction that it conducted for two consecutive years for the Department of Telecommunications, Government of India. It used the Simultaneous Multiple Round Auction (SMRA) methodology – an internationally well accepted and complex methodology - to conduct e-auction. By successfully managing this complexity, first in 69 offerings across 4 bands and 22 circles in 2015 and then in 126 offerings across 7 bands and 22 circles in 2016, mjunction proved its strength in conducting such high value auctions.
The then Telecom Secretary, Mr J.S. Deepak, went on record saying that the “auction system worked flawlessly.”
On behalf of NTPC limited., mjunction has conducted e-auctions for selling around 15,000 FGD Gypsum worth Rs 3.09 crore in Vindhyachal, Madhya Pradesh and other various scraps like Ferrous, Non-ferrous, Machinery and Electrical worth Rs 20.88 crore in Odisha, Uttar Pradesh, Madhya pradesh, Kerala, Bihar, West Bengal and Tamil Nadu.
Media Rights for Cricket
Stepping into a brand new arena altogether, mjunction began FY18 with the Board of Control for Cricket in India (BCCI) using e-auction for the first time for the award of media rights for all non-IPL matches of the Indian cricket team in India. After intense bidding spread over three days, for BCCI, the final consolidated bid stood at Rs 6138 crore.
BCCI CEO Mr Rahul Johri has said that the board will be earning Rs 46 crore per match for the first year, Rs 47 crore per match for the second year, Rs 46.50 crore per match for the third year,
Rs 77.40 crore per match for the fourth year, and Rs 78.90 crore per match for the fifth year.
Rajya Sabha member Mr Subramanian Swamy had said in his petition asking for e-auctions for media rights: “e-auctions ensure greater process control, increased transparency, shorter lead times and generate an extremely competitive price discovery environment resulting in substantial gains for the seller.”
With this bidding platform, the first ever e-auction for a major sporting property, mjunction helped bring in transparency and capture the market price for professional sports, a new and uncharted segment. With cricket media rights attracting international attention, mjunction has played a key role in designing and implementing a fair, transparent and equitable solution.
What does mjunction do?
For each of the diverse categories, mjunction designs customised and unique e-auction solutions. For instance, when the product is a giant plant, the process includes inspection, inventorying and valuation of that. Based on the report, the evaluation is done as per client requirements. Online marketing of the plant helps mjunction reach out to clients, buyers and potential buyers.
Interested buyers are trained by mjunction for their seamless participation in the e-auction. The security of buyers and seller is ensured by monitoring and facilitating the onsite inspection of potential buyers and collection of pre bid security from intending buyers. Once the auction is conducted, the reports are shared with the clients to ensure transparency.
mjunction stepped into the international markets when it successfully sold ferrous and non-ferrous scrap to buyers in the Middle East for its client RAK Ceramics. In the United Kingdom, mjunction has completed valuation and e-selling of used and surplus rolls & bearings for TATA Steel UK.
mjunction is geared to enter more new areas of operations which were in need of bringing in efficiency and transparency using futuristic technology such as Artificial Intelligence, Robotics Process Automation and Machine Learning, Mr Varma said. One of the new areas which mjunction is looking at is sale of land and real estate, he informed.