Transcript Document

Dairy Trade India
TM
Online Auction platform: Dairy Commodities
For Indian Dairy Growth
Now Technologies Pvt. Ltd.
Year 2015
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A transparent and reliable
e-commerce platform,
facilitating delivery based
trade in dairy commodities
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Present Scenario:
• Sellers and Buyers - limited access to each other
• Trade by one to one interaction
– Or through middlemen
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Missing simultaneous multiple options
No price benchmarking
Did I pay/ get right price?
Lacking: Transparency, Reliability, Repeatability
No Visibility of trends
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Facts and Figures:
• Milk production 132 million tons
• Valuing Rs. 330,000 cr./ yr. (US$ 54Bn @ Rs. 25 liter)
25% Loose
45% Local
Consumption
30 %
Processing
& growing
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Facts and Figures:
Dairy Organized Sector Rs. 100,000 Cr./ yr.
(US$ 17 bn)
Goes of Pasturized
liquid milk sale
13%
Goes for powder
making
20%
67%
And growing 13% p.a.
Goes for other
products
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DTI: Operating Process
• Only for Registered Sellers and Buyers
• Sellers: Dairy companies with processing plants
• Products:
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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
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DTI: Operating Process
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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• Bids once submitted can’t be withdrawn / edit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
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• Trade confirmation: Offered price = Bid price
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 3rd 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
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DTI: Salient Features
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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
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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
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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
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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.
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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
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DTI: Fee structure
• Applicable to Sellers
–One time registration fee
–Yearly subscription fee
–Transaction Fee Rs. X / kg
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DTI Team:
• Board of Directors
– Sarad Garodia
– Dr. Mahendra Mehta
• Chief Executive Officer
– Sarad Garodia
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Team Leader Finance
Auction Manager
Customer Support Managers
IT Team
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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:
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Decide its role
Frame rules
Help in Dispute resolution
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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
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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
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E-auction:
Raw chilled milk!
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Thank You
Contact us:
Mail: [email protected]
Visit: www.dairytradeindia.com
Call: +91 9673331992
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