The Hindu : Business : Active, AerenR form JV

Online edition of India's National Newspaper
Thursday, Sep 21, 2006
ePaper

Business

Business

Active, AerenR form JV

Special Correspondent

NEW DELHI: The U.S.-based Active has joined hands with the real estate developer, AerenR Enterprises, to introduce innovative business model of corporate trade in India.

"The joint venture firm will provide corporate trading as well as innovative marketing and business solutions to companies across India,'' company's CEO Alan S Elkin told media persons here on Wednesday.

Corporate trade aims at assisting business to restore lost value to their underperforming assets, Mr. Elkin said.Elaborating on the concept, he said: "We acquire under performing assets our clients are holding and pay for them, usually at their original book value, in the form of a trade credit. The client use that credit to help pay for media, goods and services they may otherwise have to pay for with all cash.''

In talks with 40 cos.

However, in the beginning, the company would give only trade credit for advertisements in India. The joint venture, named Active International India, is in talks with about 40 companies, primarily dealing in consumer goods for doing business.

"In a couple of weeks, we expect to sign our first client in India, which will be an FMCG company,'' company's President, International Division, Fredrick Fuest, said, and added that the size of the expected business could be of $400,000.

Mr. Fuest said the joint venture was in discussion with top media companies in India, and added that they would bring new clients to media partners and media expenditure would be restored. Active International India Chairman Surinder P. S. Pruthi said the corporate trade took care of excessive inventory, liquidity squeeze, and excess capacity all at the same time.

Printer friendly page
Send this article to Friends by E-Mail

Business