Wednesday, July 16, 2008

S. JaganniVasan

"Your surplus asset or inventory is being searched by somebody right now. And it may fetch a good price. For example, a company had structural steel of about 1,000 tonnes lying idle for years, and it fetched a price equivalent to 80 per cent of brand new material. To the buyer also the deal was a 'win' because of zero waiting time."

S. JaganniVasan, Founder & Managing Director, Matex Net P Ltd (

July 16, 4.30 pm


Murali said...


Mr. JaganniVasan, Founder and Managing Director, MatexNet, holds a degree in B.E. ElectricalEngineering from Annamalai University and began his career as a Trainee for a transformer Company inChennai in 1980.Mr. JaganniVasan shifted to the U.S in 1989 and worked on a number of innovative projects involvingInventory Management Systems. He gained rich experience by working in companies such as IBISCorporation and ABL. Fresh from his experience in the U.S where he worked on inventory managementpackages, Mr. JaganniVasan felt that a modified system could help Indian industry get a grip on itsinventory and get a better value for its stock. Foreseeing the importance of a rich database in anincreasingly computerised business environment, he started JNN Matex in 1995 to offer specialisedDatabase Management Services for companies. Subsequently, in 1999 the company became web-centricand gained an equity partner ICF, Mauritius and was renamed MatexNet P Ltd.Mr. JaganniVasan has more than 23 years of experience in materials and technology. As ManagingDirector of the company, he focuses on the company's long-term growth plans. Mr. JaganniVasan hassuccessfully guided the company to adapt to online methodology and automation. His vision and foresighthas helped the company constantly innovate itself in the field of e-commerce.Mr. JaganniVasan has fostered close relationships with client firms and is familiar with their corporatecultures and requirements. He has also developed a vast network of corporate buyers and suppliers sincehe established MatexNet in 1995.A key speaker in seminars and discussions on e-commerce and Inventory Management, Mr.JaganniVasan is also a guest faculty at IIM, Bangalore and CII Institute of Logistics. In 2005 he wasselected as one of the panel members by Indian Institute of Management, Bangalore to present onlineplatform as a supply chain solution to the academic world. Mr. JaganniVasan is respected not only for hisprofessional brilliance but also for his integrity and visionary outlook.
Founded in 1995, MatexNet P Ltd., through its online and ground assets generates a powerful platformfor online sale of surplus and non-moving inventory, factory land and building, plant and machinery forcorporates or B2B customers. MatexNet has the sufficient software infrastructure and processes to assistcompanies in the management of their channel partners and it continues to innovate to suit therequirements of the market.MatexNet employs more than 125 people who are inventory / capital equipment / real estate experts withits headquarters at Bengaluru. In its initial years, it had branches in Chennai, Coimbatore, Cochin,Mumbai, Hyderabad, Kolkata and New Delhi. Currently the company has established a wider reach andnow operates out of a total of 28 locations across the country.MatexNet has in its fold more than 400 corporates and 3000 SMEs and traders along all verticals such asAuto, Chemicals, Logistics and Engineering. Some of the prominent clientele include L&T – ECC, Mico,Sterlite, National Mineral Development Corporation, EID Parry, Titan, Bharat Electronics Ltd, GatewayDistriparks Ltd, Container Corporation of India, Tamilnadu Newsprint & Papers Ltd., Chennai Port Trust,Tamilnadu Water Supply & Drainage Board, Aban Loyd, Karnataka State Police Housing Board,Hindustan Shipyard, Hindustan Newsprint Ltd, Suguna Poultry Farm, State Bank of India, Akai, Tanishq,Foodworld, Sterling Holiday Resorts, Maharaja Appliances etc.The e-commerce initiatives of the company are supported by a strong IT team that is engaged in evolvingInternet solutions to facilitate transactions and create software packages in-house and for clients.E-DISPOSAL DIVISIONThe E-Disposal Division is MatexNet's Core Division handling disposal of surplus raw material, by-products, allied products etc for large corporates and SMEs. MatexNet has powered unique OnlineLiquidation Programs to sell excess inventories utilizing the power of the Internet. Inventories arecategorized and offered online to buyers through an online auction which helps Sellers get maximumprice .The prospective buyers such as Channel partners, Direct Reseller Partners, Service Partners oreven End-users search through online catalogs and bid for the offered items. The online process ensuresthat Buyers across the country can participate in an auction irrespective of the place where the Seller islocated.Over the years Matexnet has acquired an in-depth experience in issues such as excess inventorymanagement and purchasing processes. This has enabled it to establish excellent relationships with itsclients, especially in the collaboration and vendor/supplier/customer relationship space.

E-PROCUREMENT DIVISIONMatexNet's E-Procurement Division is involved in conducting online receipt of quotes and regularReverse Auctions for procurement of inventories and services. Through a unique online program, acompany purchasing products or services can obtain quotes from various Sellers across differentlocations, resulting in the lowest cost possible. Several Reverse Auctions that have been conducted haveproved conclusively that organizations can have substantial savings in their procurement costs by optingfor E-Procurement. The division has conducted Reverse Auction for materials ranging from CorrugatedBoxes to Chemicals such as Caustic Soda and Liquid Chlorine, products such as Desktops, servicessuch as transportation, construction etc.Now expanding to:USED MOTORS DIVISION & SURPLUS RETAIL DIVISIONThe Used Motors Division deals with the online sale of Used Motors segment across the country and isexpected to gain 20% market share. MatexNet helps IT and BPO companies to find a better value /realisation for the thousands of vehicles replaced periodically, which are deployed for commuting theiremployees. Specialised in vehicle e-trading, this division is engaged in bringing together the sellers andbulk buyers of commercial vehicles, farm equipments, two-wheelers etc from across the country to acommon platform thereby saving considerable time and effort for the clients.The company’s Surplus Retail Division enables Manufacturing companies, Wholesalers, Distributors,Dealers, Retailers and Importers to buy or sell products in bulk across various product categories to awider market reaching more buyers. Here auctions start at a minimum Reserve Price for a fixed quantityabove which the buyer can place his bid. Items available in the Buy Now category are available for saleon a first come-first serve basis, at the price shown against the product. Where multiple quantities ofvarious models of a single product are available, Bid & Win will help the buyer bid for required models atrequired quantities. Products displayed on the portal can be used for resale, cross-promotions orcorporate gifting. The portal will enable corporate to make bulk purchase of products at reasonablyattractive prices.
Rishikesh Karra
Account Executive
Good Relations India Pvt. Ltd.
New No.151 (Old No.124),
1st Floor, Valluvarkottam High Road,
Chennai - 600 034
Telephone : 4264 0303 / 0404
Fax : 4263 8128
Mobile : +91 97910 12253
E-Mail :

Murali said...

date23 July 2008 10:45
subjectQuestions for an email interview - JaganniVasan MatexNet

Here are a few questions for a possible email interview (with a focus on the Accountancy page):

1. How did this idea come up? Selling of scrap/ 2nd hand assets does not sound fanciful and not easy business either. How did you go about acquiring customers and building credibility for the business? Can you take us through the early days in this business and the journey to building a successful brand?

2. Don’t you foresee that continual improvements in supply chain practices, coupled with the adoption of JIT (just in time) inventory methodologies, can possibly eliminate inventory buildup and the problem of surplus inventory?

3. What are the product lines/verticals that you are focusing on currently? How do you go about choosing new verticals in this space? What are the drivers in this business?

4. How important is the role of technology in your business?

5. You seem to have focused on south market so far. Are there plans to make MatexNet a national player? How easy is geographic expansion in this kind of a business? How important is knowledge of the local market?

6. What is the thought process behind your expansion into online sale of 2nd hand motor vehicles? There are already well known and established brands in this space, which have built strong relationships with customers. What are your plans to take on competition in this space?

7. What has been the progress over the last year on your targeting the banking space? What is MatexNet’s specific role in its relationship with banks? How many banks have you signed up so far? Are you also targeting multinational banks?

8. Can you describe how you deploy reverse auction in services?

9. Are there new verticals you are looking to expand into this year?

10. What is the revenue model of MatexNet? Also, do you have a long term agreement with clients or is it a one off exercise for a particular transaction only, in which have you to go after new customers on an ongoing basis? Can you give us an indicative value of the transactions MatexNet would have put through over the last year?

11. What is your current employee strength? What is the typical employee profile in your organisation? Are there plans to expand the employee base?

12. How are you currently funded? What are the investment plans for MatexNet? Are you looking at external funding this year?

13. Any other points of interest.