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Benefits of Trade Platform(Primary Metals)

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Index• Megatrends• B2B in India• Disruption• Is the Market ready to go Online• E-marketplace and the Indian Metals

Industry• First ever Non-Ferrous Metals e-

marketplace• Mtlexs & NeML• Benefits of Online Auction• Process of Auction at MTLEXSSPOT

Platform• MtlexsSpot Auction Platform• 3 Level Approach

• Dashboard• Benefits to the Seller• Yankee Auction/ Contract Note Ascending

Auction• MtlexsSpot Unique Offer• Basic Auction Rules• Buyer/ Seller Roles & Responsibilities• Sample Contract in INR• Sample Contract in USD• Products which can be traded Online• MTLEXSSPOT e-Marketplace BENEFITS for

YOU• Thank You

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Megatrends What is the age of the next revolution??

3,000 years

40 years

300 years

25 yearsThe Information AgeThe Electronic RevolutionThe Industrial Revolution The Bronze Age

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We are good at all the manufacturing processes, but Disruption is taking placeairbnb.com does NOT OWN any hotel property, but still manages largest Number of hotel rooms daily.

Uber.com does not own any cars, but still is the highest TAXI Aggregator

GM the CAR MAKER filed for Bankruptcy in 2008KODAK and NOKIA died an untimely death,

B2B in IndiaThe Giants of the Industry are taking plunge in B2B:

Mr. Uday Kotak – Disruption in business because of the new “Winner takes it all” world order and it will force the Change in Current Business Model• “Disruption is the new world order. Business Models are changing. We are moving to a

world which is getting to be a lot more winner takes it all” – Uday Kotak. (Source ET-Mumbai, July’2015)

Birla Group – Thoughts for $10 Million Investment• Aditya Group to invest in disruptive ideas across areas of financial services,

healthcare and retail. Source ET-Mumbai,3rd August)

Essar Steel – Retail arm to sell Online• Essar Steel plans to generate 600 Crore sale of Steel products in first year . (Source

ET-Mumbai,30th July’2015)]

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Disruption at the business level

Businesses today use Disruptive innovation as a tool to progress.

It creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and alliances.

We must Innovate or be ready to Perish

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By 2020, 75 percent of all enterprises are expected  to become fully digital. This is because  the rapid adoption of mobile devices, ever-increasing thrust for collaboration, proliferation of cloud-based services and increased competition are pushing the threshold for businesses to increase efficiency.

Is the market ready to go online ?

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Power2sme & industrybuying.com have started selling steel online.

MSTC along with the Govt. plans to sell Steel Online.

Where Similar Manufacturer/Sellers are carrying out AUCTION of same/Similar Products with Same/Similar Buyers regularly for PRICE DISCOVERY and CUSTOMER DISCOVERY.

Huge Amounts of CC Rods and Aluminium Products are being Imported

Steel companies are entering the Online trading market, Which gives us further opportunity for business

E- Marketplace and the Indian Metals Industry

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MTLEXS and NeML (a subsidiary of NCDEX) partner to bring to you a premiere E-Marketplace MtlexsSpot for online trade (delivery based) specifically for Non Ferrous metals.It is an unique, secure, reliable and efficient system for Buyers & Sellers to save costs, get faster and quality delivery. With an integrated risk management system and clearing & settlement bank.

First ever Non Ferrous Metals E-Marketplace

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You can Buy/Sell products of Aluminium | Copper | Zinc | Tin | Lead | Nickel |

Brass Ingots | Billets | Scrap & such forms.

NeML: India’s largest commodity market place , successfully delivering value across agri., energy, metals and dairy sectors. Known for Integrity , Transparency & Ethical business practices.NCDFI: A 50:50 JV with NDDB , for dairy products.ffresh: A fresh produce initiative across the nationNeML auctions: A nationwide e auction platform for some of the country’s largest procurements spanning PDS and Mid-day meals schemes

MTLEXS: India’s first unique online marketplace for Non-Ferrous Metals providing information which includes Tender, Local & International Prices, Projects, Technical Data and much more.Information: A huge database of 7 metals , 25 alloy types and huge listing of productsEcosystem: Over 36,000 + registered members from global non ferrous metals trades comprising manufacturers, sellers, exporters, buyers, consumer, importers, stockiest and brokers.Trade: More than 500 Crores worth of matchmaking executed. 12

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Better Price Discovery

Standardization&

Transparency

Smooth Trade Settlement & No

Risk

Low Transaction

Cost

Widens Participation

Widens Market Automation Online Realtime Banking

Benefits of Online Auction

$ Funding to Participate

Customer Discovery

Confidential & Secured

MTLEXS Ultimate Vision is to increase demand of Non-Ferrous

Metals in INDIA

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Process of Auction at MTLEXSSPOT platform

Initiate Auction Online

BankOnline payment

facilityExclusive tie ups with Banks for

trade facilitationClearing bank

Credit from banks.

Bank loans based on credibility.

BuyerSmart buy auction

platformLarge

participationIntegrated

banking facilityQuality / Certified

goodsCost saving

InformationIndustry news

Import-Export data, Live Tenders,Project data , Live Local &

International prices, Trends of Prices.

Seller- An ideal place for

price discovery- Supports multiple

trade types- Large validated

buyer base- Risk managementAdvisory services

- Fair & transparent auction system

Dedicated infrastructure housed in a high end data center with built in redundancy to support large volume of participation. Mtlexs brings the Non ferrous metals domain knowledge into this partnership as the members behind Mtlexs have been in the Non-Ferrous industry for over 30 years.

The Auction Platform

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3 Level Approach

Level 1: Select Primary/ ScrapLevel 2: Select Metals (Aluminium, Brass, Copper, Lead, Nickel, Tin, Zinc)Level 3: Select Product to trade

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Dashboard

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Dashboard

Dispose off excess stock, meet month end targets through online trade & auction We can arrange finance for your regular buyers We can arrange finance for some buyers who do not regularly buy from you due to

your strict payment terms Price Discovery, every time you carry out auction Price discovery can be attained with same or similar customers every time Customer Discovery, Customers remain UNKNOWN to each other. NIL Administration/Marketing Cost Seamless Online Transaction Least Manual intervention Penalty to Defaulter Closed User group Auction can be carried out

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Benefits to the SELLER

Yankee AuctionYankee is a multi buyer and single seller auction. In this auction the seller sets a base price and offers the total quantity that is available for auction. On the onset the auction session time is defined and the same is increased based on certain parameters. In this type of auction, multiple winners are generated at multiple price points depending upon the price and quantity they have bid for.

Order Based Continuous MarketOrder Based Continuous Market will show live Sell/ Buy Offers of Various Products (supplier wise / origin wise / anonymous) which can be negotiated upon (by both) & trade will be concluded successfully when price is matched.

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MtlexsSpot Unique Offer

A. LME options to buy/sell products• SPOT• CSP• Current Month(M0)• Next Month (M1)

B. Secured Transactions• Buyers will be Pre-verified• Buyers will be able to trade after Pre-deposit• EMD can be forfeited incase of default

C. Negotiation Possible• Absolute Value• % of Metal Price• Premium/ Discount over base price.

Seller / Initiator Identity may be disclosed (can carry out anonymous auctions as well) Buyers / Bidders Identity will not be disclosed

In case of default : 80% of the margin of the defaulting party will be paid to the non defaulting party and 20% of the margin will be retained by the MtlexsSpot

Auction Timings: A base time of 1 hour 30 minutes.

1st extension if there is a bid in the last 3 minutes 2nd extension if there is a bid in the last 3 minutes 3rd extension if there is a bid in the last 3 minutes At the end successful winner is announced

Existence of stock to be self declared. Any wrong information regarding the stock will be treated as default and the margins will be forfeited.

Basic Auction Rules

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Seller : 1. Registration at MtlexsSpot

2. Define the Contract note which includes the following terms: a. Tradable lotb. Tick Sizec. Price quotation e.g., Price/Kg; Price/MT

d. Product type, quality & grade

3. Floating of the Auction note

4 The Seller will have to deposit a Seller Margin of around 1% to 3% of the expected trade value in the settlement account.

5 Settlement procedure

1 Delivery details2 Payment details3 Other charges which can be levied4 Taxes which can be levied

Buyer / Seller Roles & Responsibilities

Buyer :1. Registration with MtlexsSpot

2. The buyer need to have appropriate margins in the exchange settlement account

3. SIMILAR PROCEDURE

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This is the process on the platform for any initiator (buyer & seller)

Aluminium Contract , For Aluminium EC Ingots LME Grade Date-- 01-06-2016, Name of Seller – Supplier, Contract Code - ______ , Product – Supplier Aluminium Ingots EC grade 99.6% , Packing Bundles Delivery-- EX Factory/Ex Seller Depo, Quantity Variation – (+-) 3% Auction type– Forward , Auction Matching type - Yankee, Minimum Order Size - 9 TONS, Maximum Lot Size - 100 TON, Standard delivery Lot - 9 TONS, Base Price -Rs.141/- per kg, Tick Size- Rs 0.50; No. of Ticks – 30, Trade Margins- 2 % Buyer, Seller 1 % Payment within - 5 Days Delivery within - 8 Days

Sample Contract in INR

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Aluminium Contract , For Aluminium Sheets Date-- 01-06-2016, Name of Seller – Supplier, Contract Code – _________, Product – Supplier Aluminium Sheet 99.5% , Packing– Lose, Delivery-- EX Factory/Ex Seller Depo, Quantity Variation – (+-) 3% Auction type– Forward , Auction Matching type - Yankee, Minimum Order Size - 2 Tons, Maximum Lot Size - 50 Tons, Negotiate premium – USD 100/ton, Base Price –LME in USD/Ton, Tick Size- USD 3, No. of Ticks – 30, Trade Margins- 2 % Buyer, Seller 1 % Payment within - 5 Days Delivery within - 8 Days

Sample Contract in USD

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Products which can be traded OnlinePrimary Metals• Aluminium Ingots• Aluminium Rolled/ Extruded Products• Copper ETP Wire 1.6/1.8/2.0 mm• Copper CC Rods/ Cathodes

Scrap• Brass Scrap – Honey, Pales, Ebony• Copper Scrap – Mill Berry, Candy• Aluminium Scrap – Taint/ Tabor, Telon, Tense• Zinc Scrap, Diecast, Dross• Other Scrap Metals

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Your Company can make a beginning by•Allotting a Product or a•A territory or•A specific Size or•1 to 5% of production to MTLEXSSPOT Platform.

You may even start with•Slow moving items•Specific Buyers who buy small quantities, buy infrequently, or buyers who are far away to reach•Create competition amongst existing buyers

And Many More opportunitiesCan you Define/ Allot a “Certain Product” or a “Certain Quantity” or a “Certain Brand” or Certain Size” or “Certain Regional Sales of your Production” -- FOR SALE on MTLEXSSPOT.

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trade@mtlexs.com

twitter.com/mtlexs

facebook.com/mtlexs

Contact us at: Mr. Suneel R. Mardia : +91 – 9323216277Email : suneelrmardia@mtlexs.comMrs. Saloni Mardia Kothari : +91 – 9820515353Email : salonimardia@mtlexs.com

Toll Free : 1800 224 226Visit us on: www.mtlexsspot.com

Thank YouLet us make a new beginning,

Let us make History…

Linkedin.com/company/mtlexs-com

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