Business Standard- 14 January 2002
Net4barter turnover to touch Rs 30 crore by March
Huge inventories need not be a headache for corporates
any more. They can simply barter their excess products/services
with another company through Net4barter, part of the
UK-based web solutions company — Net4India group.
In fact the company, has big expansion plans up its
sleeve.
With 700 clients already in its kitty and a B2B (business
to business) model, the company is eyeing to add another
150 clients to its portfolio by March 2002. Besides,
it is targeting a turnover of Rs 28-30 crore for the
financial year ending March, 2002. Though Indian corporates
are not familiar with the concept, worldwide it is a
$ one trillion business.
Net4barter, specialising in corporate barter, facilitates
corporates in getting rid of excess stock through cash
optimisation and makes promotional schemes and corporate
giftings easy even when there are recessionary trends
in the market. It claims to have pioneered the concept
of corporate barter in India.
How does the corporate barter work? Take a hypothetical
case. Suppose company A, a member of Net4barter and
a manufacturer of watches with excess stock wants to
sell the same to member B, which say, is a media house
running a promotion scheme for subscription. In that
case member B buys advertising space of the same amount
to promote its other products.
However unlike the traditional barter system, another
member say, x - a manufacturer of PCs may sell to member
y - a hotel in need of computers and may buy (even at
a later point) furniture from member z - a manufacturer
of furniture, z in turn will now have credit points
and can buy anything from the listed members with Net4barter
which acts as the principal in the transaction.
Says Rakesh Bhatnagar, co-founder & chief executive
officer: “The best part is that Net4barter helps
you stretch the value of your excess stocks as you get
to stretch the value out of the cash you save.”
Further adding that the corporate barter company helps
its clients use their under-performing assets to finance
all or part of the cost of products or services to acquire
the ones they require.
The company has already roped in a versatile client
base including Times of India, Hindustan Times, Magna
Publishing, United Television, Lashkara, Star Vijay,
Philips, Swatch, Archie’s Products, Radisson Hotels,
Modi Revlon, Timex Watches, Eureka Forbes, Hotel Nikko,
Singer, Jaipan Appliances.
Interestingly, according to Net4barter, Timex Watches
Co., was stuck with inventory worth Rs 30 lakh for six
months which it claims to have helped it move within
a month through corporate gifts and promotional schemes
being run by various companies and media houses.
Says Bhatnagar, “Our clients span across all industries
while media contributes nearly 40-60 per cent to our
annual turnover.” It is also planning to launch
in virgin markets, like the Middle East, to begin with
before moving on to the far east countries
