The Hindu Business Line : US co Active International, AerenR join hands

"Corporate trading is a mainstream tool being used by several Fortune 500 companies across the world. We plan to earn Rs 50 crore in the Indian market within the first two years through."

New Delhi , Sept. 20

The US-based Active International, a global corporate trading firm, has entered into a joint venture with the Delhi-based infrastructure development company, AerenR Enterprises to introduce the business model of corporate trading to the Indian market under the aegis of Active International India.

"Corporate trading is a mainstream tool being used by several Fortune 500 companies across the world. We plan to earn Rs 50 crore in the Indian market within the first two years through corporate trading," said Mr Alan Elkin, Chief Executive Officer, Active International.

Though corporate trading has its roots in the barter system, it is a more sophisticated version of it. Typically, Active International India purchases a non-moving inventory from its client at a wholesale value with a trade credit. In return, the client will have to purchase goods or services such as advertising, freight or transport from Active at the client's own established rates and terms, using the trade credit obtained from Active in place of cash. As a result, the entire system allows companies to recapture wholesale value for its non-moving inventories that would not have been possible if the company liquidated the inventory at market value.

Active International India is in advanced stages of talks with about 40 domestic companies. Amongst the global clients of Active International are PepsiCo International, Kodak and Ocean Spray.

More Stories on : Alliances & Joint Ventures | Business Models

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page