GreenDust bullish on second factory products

GreenDust, a brand of Reverse Logistic Company (RLC), who deals in secondary market that supplies accessories, spare parts, second-hand equipment, and other goods and services used in the repair and maintenance of returned products has been gaining ground in the Indian reverse logistic space, which is largely dominated by unorganized players.

The company has the capabilities to convert defected and dead products and sell it as second factory and refurbished products.

Today, the company manages returned products of IT, consumer electronics and non IT companies like FutureBazaar, HomeShop18, Dell, HP, LG, Toshiba, Phillips, Panasonic, Wipro and many more.

Speaking to The DQ Week, Hitendra Chaturvedi, MD, GreenDust said, "We offer solutions to those products returned by customers due to various cosmetic issues like transit damages, obsolete, bad packaging, bad quality of the products, etc, which sit idle at OEMs' warehouse and take away a lot of time and money. Our company provides the IT/PC manufacturers, distributors and retailers an alternate organized sales channel where they can be assured that the returned/factory seconds products will not cannibalize their new product sales."

He also pointed out, "OEMs are more focused on forward logistics that nobody cared about reverse logistics. In India we have a very low 4-5% return rate as compared to countries like the US, which has 8-10%. Because, in India customers and OEMs are very stingy when it comes to return of the products. OEMs create major issues while returning the product to the customers. Therefore, we need to change this customers dissatisfaction perception as it creates loss of business opportunities."

GreenDust has the capabilities to provide chip-level services on the products through its own 6 value-added centers (VAC) which receive returned products, and refurbish and re-distribute them through its own franchised GreenDust stores. It allows manufacturers and retailers to comply with e-waste regulations.

Presently, it has 15 Distribution Centers, 40 GreenDust stores and 1,000 dealers selling to consumers. The company is aggressively looking at expanding into deeper towns.

Talking about its revenue model, Chaturvedi said, "We charge processing fee from the companies and sell the second factory products at good margins with warranty. We position our products as refurbished or second factory with the sticker of GreenDust.

Lastly, the company is having a turnover of Rs 100 crore and it is aiming to become a Rs 500 crore company in next 3 years.