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Online Auction platform: Dairy Commodities For Indian Dairy Growth Now Technologies Pvt. Ltd. Year 2015 Dairy Trade India TM 1.

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Presentation on theme: "Online Auction platform: Dairy Commodities For Indian Dairy Growth Now Technologies Pvt. Ltd. Year 2015 Dairy Trade India TM 1."— Presentation transcript:

1 Online Auction platform: Dairy Commodities For Indian Dairy Growth Now Technologies Pvt. Ltd. Year 2015 Dairy Trade India TM 1

2 A transparent and reliable e-commerce platform, facilitating delivery based trade in dairy commodities 2

3 Present Scenario: Sellers and Buyers - limited access to each other Trade by one to one interaction – Or through middlemen Missing simultaneous multiple options No price benchmarking Did I pay/ get right price? Lacking: Transparency, Reliability, Repeatability No Visibility of trends 3

4 Facts and Figures: Milk production 132 million tons Valuing Rs. 330,000 cr./ yr. (US$ 54Bn @ Rs. 25 liter) 4 45% Local Consumption 25% Loose 30 % Processing & growing

5 Facts and Figures: 5

6 DTI: Operating Process Only for Registered Sellers and Buyers Sellers: Dairy companies with processing plants Products: – Skimmed Milk Powder (SMP) – Unsalted and Salted Butter – Whole Milk Powder (WMP) – Ghee (15 kg tin packing), – Dairy Whitener, – Lactose and Whey Powder Price and Quantity offered by Seller: – Starting price – Month wise quantity in different lot sizes – Can review price downward basis counter offer received 6

7 DTI: Operating Process Every Tuesday of month 11 am to 01 pm 2 rounds of 60 minutes each (55 minutes bidding) Bidder selects Supplier, Product, Delivery month & Quantity Bids: Only of price Qualify bid/ good till: – End of round/ End of auction Bids once submitted can’t be withdrawn / edit Bidders can outbid each other or own bid by offering higher price Trade confirmation: Offered price = Bid price 7

8 DTI: Salient Features: Pre auction session during 10:30 to 11:00 am All transactions for physical delivery. Delivery offered for : – Auction month, next month and option of 3 rd month Auction results: On website same day Bidders’ identity: Undisclosed till trade confirmation Price discovery basis demand supply situation through Online price negotiation mechanism Unique proprietary auction platform 8

9 DTI: Salient Features FSSAI specified products only Can offer product with Multiple specifications Seller approves/ can block unknown bidders Seller can’t bid for own product Trade between known parties only Sellers’ identity is known to Bidder Bidder identity undisclosed (during event) Trade confirmation by DTI post event Sales Contract between Seller and Buyer 9

10 Advantage: Simultaneous access to multiple sellers/ buyers Transparent: Open Tender System Price Discovery: Supply/ Demand driven Real-time trade confirmation to participants Neutrality: Independent auctioneer Helps Production and sourcing planning 10

11 Advantage: Buyer Registration: Simple and online Zero cost: No registration fee, no transaction cost Dedicated desk: In case of technical difficulty Identity disclosure: Only to successful Seller Buyer offers and decides his purchase price 11

12 Advantage : Seller Adds value to business: – Image building – Branding – Reliability – Awareness creation Low on cost / Cost reduction in long run Decides prices basis market demand /supply scenario. 12

13 Value added services: After event support service to participants Data analysis and trending for participants Summarized trade results to subscribers Dairy Industry latest news under one roof 13

14 DTI: Fee structure Applicable to Sellers – One time registration fee – Yearly subscription fee – Transaction Fee Rs. X / kg 14

15 DTI Team: Board of Directors – Sarad Garodia – Dr. Mahendra Mehta Chief Executive Officer – Sarad Garodia Team Leader Finance Auction Manager Customer Support Managers IT Team 15

16 DTI: Advisory Board To form advisory board representing Dairy industry: – 2 members from participating Seller – 2 members from participating Buyers – 2 institutional members/ trade representative Advisory board with DTI will: – Decide its role – Frame rules – Help in Dispute resolution 16

17 Dispute Resolution: DTI liaise to resolve through dedicated mangers Seller – can block defaulting Bidder from bidding Bidder - has choice not to bid for defaulting Seller Repeated failures: – 2 default incidences– disqualify for 3 months – Default > 2 times – disqualify for a year unless proposed to reinstate by the party on the other side – After one year re-qualification: reprocessing from beginning 17

18 SWOT: Strength : Transparent and robust system driven eauction process Weakness: Unorganized and fragmented industry Opportunity: Filling the major gap existing in dairy commodity trade by proving simultaneous access to multiple sellers / buyers Threat: Members failure to honor transactions committed 18

19 E-auction: Raw chilled milk! 19

20 Thank You Contact us: Mail: Visit: Call: +91 9673331992 20

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