Worldwide industrial growth has resulted in the growth of global industrial machinery market by 3.4% in 2010 to reach a value of $363.1 billion. It has performed well over recent years, with the exception of 2009 when the market fell into double-digit decline. The market rebounded in 2010 and a phase of recovery is anticipated to continue, with moderate growth forecast up to and including 2015 (See Table 1).

With increase in manufacturing zones to boost the country's economy, there has been a distinct rise in the manufacturing of machinery in India over the past few years. But with the globalisation of businesses and increase in demand, machinery manufacturing in India alone cannot cater to the growing need. Import of machinery is also gaining popularity these days. But with every purchase of new machinery, disposal of the old machinery puts the company in a quandary. The manufacturing company will always seek for the best value for the machinery in the shortest possible time and a transparent and competitive route makes the entire process worthwhile.

In India, industrial growth is majorly driven by the Engineering sector, which is the largest in the overall industrial sectors. This sector can be broadly categorized into heavy engineering and light engineering. The engineering industry in India manufactures a wide range of products, with heavy engineering goods accounting for bulk of the production. Most of the leading players are engaged in the production of heavy engineering goods and mainly produces high-value products using high-end technology. Most of these machineries have very high resale value. (See Table 2 above).

User Segments

The major end-user industries for heavy engineering goods are:

• Power
• Infrastructure
• Steel
• Cement
• Petrochemicals
• Oil & gas
• Refineries
• Fertilisers
• Mining
• Railways
• Automobiles, and
• Textiles, etc.

Light engineering goods are essentially used as inputs by the heavy engineering industry.

Machinery for disposal can be divided in two major categories. These include used/serviceable machinery scrap; used/unserviceable machinery scrap. The first category of scrap is bought mostly by machine refurbishers and used machine dealers. These are bought by the dealers at a higher price than the second group buyers and the organization/client get a better price realization for the material. On the other hand the second category of material is mostly bought by scrap dealers who sell off the machine piece by piece separately according to the ferrous or non-ferrous content.

The industries using heavy engineering goods churn out high volumes of machinery scrap at a continuously growing rate. Ranging from chokes to dozers and cranes, disposing off the scrap is becoming a priority for the companies for various reasons like reducing space constraints and realizing the best possible price. To top it all, companies have time constraints. They have to get rid of the huge machinery scrap in a very short period of time.

Trans-national Sale of Used Machinery

India's small & mid-size enterprises import large number of machinery from various developed nations for either to bring new technologies or reduce cost of operation. Mostly textile, construction, mining and process plant machineries are imported. Due to lack of infrastructure and knowledge, many of the enterprises fail to get the best price for the machinery. A comprehensive web portal, where buyer and seller from machinery industry, around the world would meet to finalize the transaction in a competitive environment, would help enterprises to take judicious decision, thus bringing efficiency and transparency in the system.

Y-O-Y Data on 2nd Hand Machinery Imports and Domestic Production

See Table 3 above

Import of second hand machinery saw a major increase in 2007-08.

Information technology has given a whole new dimension to metal scrap selling and disposal through online channels. With the online platforms, scrap machinery disposal has never been easier. Material details can be easily uploaded on a website for interested buyers who can then bid for the material from any corner of the country or the world. A common auction platform has made selling of machinery scrap a smooth and transparent process, thus giving the client/organization better price realization through pan country participation.

Valuejunction, one of the SBUs of mjunction services limited, creates incremental value for assets, provides value addition through a blend of Domain Knowledge, Strategy, Processes, and Technology.

The e-Selling model of valuejunction works as an 'asset disposal model' for clients enabling higher price and buyer discovery bringing in more efficiency, transparency and convenience at each stage. valuejunction recognizes that sale of asset is always unique - there is no single solution. As each situation has its own specific requirements, valuejunction offers a tailored service to achieve optimum results. The online forward auction services of valuejunction today encompass a range of services (extending beyond managing an online auction engine) that leverage market intelligence to provide end-to-end services that optimise objectives of clients that valuejunction partners with. Having started off with selling machinery for the steel giants SAIL and Tata Steel, over a period of time valuejunction now offers services to other large organisations like Tata Power, L&T, Tata Chemicals, Adani Power, JSPL, JSW Steel, NDPL, WCL, SCCL and more to its growing repertoire. Till date it has sold machineries of various categories ranging from dumpers, dozers to furnaces and succeeded in exceeding clients' expectations in more ways than one including price factor and service delivery. With selling more than 150 kinds of machines, the list is huge. valuejunction has been catering to huge manufacturing organizations, power sector companies and collieries selling various non-performing assets and machineries.

Machineries sold on a regular basis include: compressors, excavators, conveyor, forklifts, cranes, furnaces, dozers, lathes, drills, pay loaders, dumpers, tippers, transformers and towing equipment. With the continuous growth in power, manufacturing and other sectors, the eSelling of machineries and scraps is destined to grow at a faster pace in the years to come.