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Wednesday, Aug 25 1999
The utility of the Internet is vastly increasing, and industrial units in the country now use it to dispose their machinery and various assets courtesy, www.auctionindia.com, the country's first website for auction and sale of industrial assets such as machinery, plant or total factories and businesses. The website has been hosted by Cyber Commerce, an associate of Cybernet Software Systems, Inc. USA.
The website presently offers free listing to buyers and sellers of plant, equipment, machine, whole factory or business, and provides free access to all users who can go through the offers listed and make their choices. One feature that makes the website stand out is that the service can be availed even if the user does not have a computer, through fax or other modes of communication. C E Karunakaran, Managing Director, Cyber Commerce said that the site has, within a few weeks of starting listed more than 500 machines and dozens of total manufacturing lines and business.
"The website seeks to bridge the gap that occurs today whenever any business group wishes to sell its surplus or used machinery or any other kind of assets. The exposure is limited to press or journal advertising, physical auctions or local brokered deals, none of which fetch the desired realisation, as information is hardly conveyed to the most fruitful targets. The website ensures efficient communication between the holder of an investment asset and its most suited user", Karunakaran explained.
Currently, only brokered sales are done but Karunakaran maintained that the auction mechanism would be operational within a short period. "We have some legalities involved and are on the verge of completing the same", he added. All that an interested party wanting to sell assets has to do is to pass through a criteria as fixed by the company hosting the site before putting up details of the assets to be sold. A legal agreement has to be entered into as per the rule of the land.
The hosting company has tied up with value approach agencies, throughout the country, for instance ITCOT in Tamil Nadu, evaluates the assets for the sake of the buyer. The information of the valuation is also hosted on the Net. "This would ensure that the buyer gets the right information before going in for any buying. The independent appraisal of valuation ensures transparency and this is what the website aims at", Karunakaran added.
An escrow account with a participating bank will ensure the functioning of the auction mechanism once it is operational. The company, according to Karunakaran, is in negotiation with some banks for taking up the activities of the escrow account, where the successful bidder will have to pay up the amount that will eventually go to the seller. According to Karunakaran, the Internet auction will be kept open on the site for a few days during which time bidders can visit the site and place the bids competitively, the bid history and the current highest bid will always be seen on the screen. Bidders can also ask the site to bid on their behalf up to a predetermined value, he added, stating further that such auctions can also be carried out along with sealed tender procedures. The auction mechanism is carried out by a proven auction software developed by Cybernet Software Systems, which is currently being used by Internet Auctioneers International Inc., San Jose USA to auction off used laboratory equipment. In addition to conducting auctions of its own, the company offers its auction platform for any business to conduct its own auction for any product or service. |
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