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Successful Auction Of Obsolete Spares (Lying for 20 years) For BALCO

case-studies

BALCO had given a mandate for selling obsolete items worth Rs 30Lacs lying at a remote place in Korba for around 20 years. This was a pilot preceding other auctions amounting to total sale of Rs 214.7 Lacs

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Industry: Aluminium
Geography: India
Client: Bharat Aluminium Co. Ltd. (BALCO)
Problem: Inventory Of Obsolete Spares lying idle for 20 years
Solution: eSale of Obsolete Spares
Results: An 14% increase over the expected price

The Client:

Bharat Aluminium Co. Ltd. (BALCO) is a Public Sector Undertaking (PSU) and plays a pivotal role in the Indian Aluminium Industry. It was the first integrated Aluminium Industry in India.

The idle asset under sale:

valuejunction was approached by BALCO to sell obsolete items worth INR 30 Lakhs lying at a remote place in Korba, Chattisgarh, for more than 40 years.

The Business Challenge:

  1. Inventorize the spares as per market requirement
  2. Locate actual users for these obsolete spares
  3. Generate interest amongst actual users & stockists to participate in online event

The Solution & Strategy

valuejunction met the challenge head on in a systematic, efficient & innovative matter. They designed a solution to get a fair price for the items. They first understood the application and alternate usage of these spares from the maintenance personnel. On the basis of this data the industry segments for usage of these spares were identified. A team was sent to the identified industry segment locations and a market campaign was conducted to identify the actual users and stockists. These actual users and stockist were convinced to participate in online event by giving visibility of the assets and making the sale terms friendly. They also prioritized the auction of fast moving materials for faster and effective word of mouth marketing. Lot wise selection for auction was carried out depending on the product movement and category.

Results & Achievements:

BALCO received significant benefits due to valuejunction's assistance. Some marked ones were:

  1. Good Price Realization: The team has been able to sell the material as a pilot in more than INR 30 Lakhs
  2. Successful Pilot Project: Through various marketing and operational strategies, the team was able to auction off the material in a record time of 2 months
  3. More Client Mandates: After this successful pilot, valuejunction received additional mandates worth INR 214.7 Lakhs