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e-auction of Idle and Obsolete Assets

Technology and Innovation are the new drivers of growth in the manufacturing sector in India. The manufacturing sector grew by 6.9% during the period 2018-19. Manufacturing industry contributed 26.9 % to the GVA during the period 2018-19. Large companies from the manufacturing sector in India are on a constant evolution mode taking on their global competitors through low wages structure and the use of innovative technology in their manufacturing processes.

The renaissance of technology and its affordability has redefined the necessity of modernization in the manufacturing sector. The advent of scientific advancements has created a necessity for organisations to constantly innovate and invest in new technologies, where obsolete assets will have to be disposed at the right time to avoid distress or slump sale in the future.

When large capital expenditures are incurred by adding fixed assets, either they are installed in a new geography or the existing setup is discarded to make way for plant and machinery with latest technology. After assets cross their ideal economic lives, they become inefficient and contributes to increase in cost of production in manufacturing sector. The monetisation of old/obsolete/ idle assets at the right price is a very significant decision that aids organisations to reduce large cash outflows.

The modernisation of existing metal plants, mining capacities, cement plants, utilities and telecom infrastructure in India provides a unique opportunity to e-auction service providers in collaborating with companies in disposing their old/idle/obsolete assets at the best price through a transparent process. Erstwhile manual processes of selling Idle and Obsolete Assets were time consuming constrained by location, unable to fetch the right price and could not identify credible buyers. e-auction service providers like mjunction has stepped in with an efficient e-solution for disposal using their experience and domain expertise. The service generally starts with onsite inspection, inventorying, segregation and estimation. All of these culminate into an online sale to qualified and credible buyers, which fetches the optimum price of the asset. A team of experts focusses on selling large assets including idle and obsolete assets, scrap and hazardous materials across industries. Customised solutions are provided depending on the category of materials and the geography where it is sold.

Inspection and estimation services includes visiting the plant locations, separating the items into scrap, assets that can be refurbished, unused assets and hazardous items. This also involves inventorying the assets and sorting them into various categories based on its type and usage. This not only helps to recognize the life cycle time of the machineries but also identifies the hazardous items included in lots. Hereafter, a selling strategy is devised and customizations are made to extract the best prices from the market.

It is imperative that organisations sell their Idle and Obsolete Assets at a competitive price in the shortest possible time and for this, they need to choose the right partner with a credible solution, which not only helps in the discovery of the best price within the optimal time but also ensures hassle free transactions for maximum satisfaction.

Authored by

Mihir Gandhi

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