Industry: Jute
Geography: Birlapur, West Bengal
Client: Birla Corporation Limited
Challenge:To sell the de- commissioned 2 x 4.5 MW captive power plant at the right market value, to a credible buyer, through transparent mechanism.
Solution:1) VJ had prior experience and expertise in dealing with sale of de-commissioned thermal power plants across India.
2) VJ did a thorough inspection of the de-commissioned Captive power plant and provided a price estimation to Birla Corporation, based on which the reserve price was arrived at.

Results: The de-commissioned captive power plant fetched a H1 quote of INR 2.083 crores and this quote was approved by Birla Corporation Ltd.

The Client:

Birla Corporation Limited is the flagship Company of the M.P. Birla Group. Incorporated as Birla Jute Manufacturing Company Limited in 1919, it was Late Mr. Madhav Prasad Birla who gave shape to it. As Chairman of the Company, he transformed it from a manufacturer of jute goods to a leading multi-product corporation with widespread activities.

The Business Challenge:

1. Birla Corporation Ltd wanted to sell their old decommissioned captive power plants to conduct this auction.
2. Birla Corporation Ltd wanted the best possible price for the assets through a transparent pricing mechanism.
3. Birla Corporation Ltd did not have a repository of prospective buyers across India and they had no expertise in determining the market value for the de-commissioned thermal power plant.

The Solution & Strategy

1. VJ had prior experience and expertise in dealing with sale of de-commissioned thermal power plants across India.
2. VJ did a thorough inspection of the de-commissioned Captive power plant and provided a price estimation to Birla Corporation, based on which the reserve price was arrived at.
3. Offline and Online marketing initiatives was adopted by VJ for reaching out to prospective buyers across India.
4. 17 buyers from PAN India ensured their participation in the forward auction.
5. An online sale event was held among the eligible buyers and the H1 price was arrived through forward auction.