Page 14 - MGMG JAN to JUNE-2018 FINAL

Financial Savings

Cement being the main material which got transacted over the platform so far, the prices fixed have been
Rs. 40 to Rs. 80 per bag lesser than the price fixed by State Governments in their SORs. A quick glance
on comparison of prices of cement in some states is shown below:

Figure 2: State wise comparison of prices in SOR vs INAM-Pro+

Considering Avg. savings of Rs. 50/- per bag, the total committed stock of 27 million tonne on INAM-
Pro+is likely to result into savings of at least 2700 Crore from Cement Industry.

Cement Stock on INAM-Pro+ (in MT) Saving/MT in ? Total Savings in ?
270 lakh (1MT = 20Bags) 2700 Crore

50 x 20 = 1000

Since Cement Industry is known for its cartels and price fluctuations rapidly in absence of regulatory
authority, CCI had imposed fines on several major Cement Sellers recently. But here we can see that in a
market economy, moral persuasion has proved more efficient than enforcement.

In addition, INAM-Pro+ platform has been designed to provide quotes before order finalization in each
category. It allows a Seller to customize quote for the Buyer depending upon location and order size
thereby providing best price. In case, Buyer does not like the price, he can cancel the order anytime
which has encouraged competition while providing transparency in prices. INAM-Pro+ helps Bidders
and Planners to regulate their cash flows by taking data driven decisions.

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