"We are an infomediary - very strong on content." - Rohan Ajila

What exactly is a B2B market place and how exactly does it help to

improve a business venture?

indiamarkets is a business-to-business enabler starting from being a

provider of matching suppliers and buyers using the Internet as the medium. We look at the

requirements of buyers and match them with the suppliers we have. Starting from the

initial process of matching the buyers and sellers together to being an interactive

platform for buyers and sellers, we conduct auctions, introduce buyers to companies, etc.

Indiamarkets essentially helps businesses of any kind make quick and effective decisions.

We are a B2B across about 28 verticals. We are not a specific vertical

exchange like a chemical exchange or an automobile exchange, we are an aggregation of all

these verticals. We are a company that really leverages the Internet but are conservative

enough to understand that this is India. So we need to invest a lot in the infrastructure;

we are a B2B infrastructure, a B2B marketplace, the B2B enablers or even the B2B trainers

in whatever the context.

You referred to Indiamarkets having 28 verticals. What do you mean by

horizontals and verticals?

Well, it really depends on the context. We (indiamarkets) are a

horizontal vertical i.e. we have not zeroed in exclusively on any one particular vertical.

By vertical in our context, I mean an industry. Say, in our site if you go into the

chemicals menu we are across the verticals. At the same time, under the same category, one

can also get into various sections like textiles, engineering, etc. Now I would say that

this makes us a horizontal vertical.

How many businesses are currently registered with indiamarkets.com?

Currently we have about 40,000 businesses registered with us and the

traffic at our site is really high as more than 2000 companies visit us everyday.

Isn’t the cost factor a big deterrent when it comes to small

enterprises wanting to join the marketplace?

The basic activities you need for registering at indiamarkets is

provided free of cost from our side. For example a stock form or a catalog is free, then

we ask the company if they would like it to be enhanced, put a task number, give a

financial rating, scanning of photographs, etc. We charge them for all that. We also have

this e-business center package, once you have this package you can go to any of our thirty

e-business centers anywhere in the country which means you really do not need an office.

We also have something called the buyer posting for the buyer community at

Indiamarkets. After using our solution, whatever they are procuring or buying, we start an

auction process to ensure that they get the product at the cheapest price.

All this is aimed at smaller businesses coming forward to make use of

the marketplace and enhancing their businesses.

Awareness and usage of the Internet in small towns is less. What is the

mindset of business people there? Are they hesitant to accept the concept of virtual

marketplaces?

The fact is that within a year of our launch we were about 40,000

companies strong. So yes, people are receptive towards this concept. People want to come

in and sell their product. In auction inventory alone about half a billion dollars had

been put up online. The numbers are increasing. They want to test it, feel it, figure it

out, see how it works, etc. There is a huge value proposition for people in the

non-metros, in the semi-urban areas. These people can make their products but they do not

have an effective marketing platform. We provide a medium, which provides that access.

What precisely happens when a person registers his company with

indiamarkets.com?

In the beginning there is a basic free listing, if he comes in as a

seller he registers himself and puts his products up. As a buyer, he could walk up and say

I want x tons of steel, we would ask him if he is interested in making a bid for it; so he

looks at the cheapest supplier, someone who offers good steel for a good price and he buys

from him.

We have something called a used and surplus inventory. Someone might

have machinery that he doesn’t need anymore; he puts it on auction on the surplus

inventory side or the used machinery side.

We also have something called businesses alliances and contract

manufacturers. Say, some company is on the lookout for people to invest in his company, or

provide him some sort of technology transfer, he can register in the business alliance

listing. So we bring the buyers and sellers together.

We are an infomediary - very strong on content. On our site we

have listed all the State trade policies. You can go to each of the industries and find

out what is the supply or demand. The idea is to provide all the information so that the

company can make a very judicious decision.

Since the functioning of a marketplace involves immense data

transaction, are you equipped with adequate security solutions for the site?

We are getting into closed loop solutions where people are starting to

use our solutions for transactions. We have got all the security necessary for a good

security solution. We have just started on the online process of documentation. A lot of

transactions are still done offline.

How does Indiamarkets get its investments and who are you partners in

this venture?

Currently, E. M. Warburg, Pincus and Co. are our investors. Being one

of the largest private equity companies in the world, they have invested in companies like

Bharthi, Rediff, HDFC, etc.

We are also the business to business part of BPLNet so we are a part of

the ISP of BPL too. Our partners are really strong and are going to be here for the long

run.

What do think are the impediments you faced while setting up a virtual

marketplace?

Infrastructure is an impediment you face when you get into it and also

when you are in it. I think India, as a business community is very entrepreneurial, so the

challenge really is that you need to show and convince them about the value of something.

The challenge really is that potential customers you are addressing really understand and

appreciate the services that you are providing.

Any advice you would give for businesses seeking a slot in the

marketplace?

Nobody invests in anything anymore until they perceive a value. What I

really would want to tell people is ‘do not get into any of these things assuming

there is an exponential growth.’ It is a great time for India because one of the

disadvantages we always faced was the lack of information and now this medium (the

Internet) has changed all that. The means of communication have taken a leap and we need

to be optimistic. As for the Internet, it is just the beginning, there is a lot more to

explore and use it for developing our businesses.