Industry: IT- Communications
Geography: India
Client: Tata Sky
Problem: Sell 20 lakhs units of Mpeg2 Set-Top Boxes
Solution: eSale of Mpeg2 set-top boxes as eWaste
Results: The auction, conducted within 6 days, successfully sold the Set-Top Boxes for INR 20 crores

The Client:

Tata Sky is a JV between the TATA Group and STAR. Tata Sky is a leading Direct-to-Home (DTH) service provider in India.

The idle asset under sale:

valuejunction was approached by Tata Sky to sell 20 lakh units of MPEG2 set-top boxes. Tata Sky was replacing the MPEG2 set-top boxes which could only receive a limited number of channels with MPEG4 set-top boxes which could handle more number of channels for all their subscribers.

The Business Challenge:

1. The set-top boxes could only be sold as eWaste.
2. The set-top boxes could be sold to only eWaste recyclers with available finance and the capacity to lift the material with 15 days
3. The set-top boxes once sold had to be lifted from 43 locations across India
4. Tata Sky wanted all 20 lakh units to be sold to a single buyer to enable easy coordination and payment

The Solution & Strategy

valuejunction met the challenge head on in a systematic, efficient & innovative matter. They first enlisted interested eWaste recyclers with a capacity to finance the buy of 20 lakh units of set-tops (having EMD of INR 1 crore) and with the ability of lifting the material from across all locations within 15 days. Within 6 days of receiving the mandate, the team at valuejunction conducted the auction with 5 eWaste recycling bidding to buy the set-top boxes.

Since the set-top boxes to be sold as eWaste was auctioned on a per kg basis. A price of INR 86/kg was achieved through the auction and the entire consignment was for a total value of INR 20 crores.

Results & Achievements:

Tata Sky received significant benefits due to valuejunction’s assistance. Some marked ones were:

1. Good Price Realization:There was a good price realization for the Set-Top Boxes. Price achieved through the e-auction was INR 20 crores.
2. Fast Turn-Around Time and Hassle Free Sale:The entire sale process was completed within 6 days.