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PwC picks up 12% stake in WorldChemnet.com

Aparna Krishnan

MUMBAI, July 10

PRICEWATERHOUSECOOPERS (PwC) has picked up a 12 per cent stake in `WorldChemnet.com', an online chemical and pharmaceutical exchange offering services such as online trading in chemicals. The portal has been operational since August 1999.

Speaking to Business Line, Mr. Pradeep Malu, Chief Executive Officer, WorldChemnet.com, said that the memorandum of understanding (MoU) with PwC was signed on the first week of May. He could not comment on the price due to ongoing negotiations with PwC.

Mr. Malu, however, said: ``Negotiations are still on and things would be finalised in the next four weeks.'' WorldChemnet.com is the brainchild of Mr. Malu and co-founder, Mr. Raj K. Bengani, who hold major stake in WorldChemnet.com.

Principal Pharmaceutical and Chemicals Ltd holds 10 per cent in WorldChemnet.com of which Mr. Malu is the Managing Director. For the next two years, the total capital requirement for the portal is $4-5 millions.

The company is in talks with various financial institutions, both domestic and foreign, to raise the amount, Mr. Malu said. ``These could be in the form of strategic alliances as well,'' Mr. Malu said.

PwC would be involved in the activities of the portal in the areas of corporate governance and bringing in their clientele, i.e., chemical companies.

The portal is introducing some new features and would now be charging sellers in their D2B marketplace segment which provides a platform for direct contact for buyer or seller and direct off-site trade negotiation and confirmation. The fee structure is a s follows: Rs. 3,000 for three months, Rs. 5,000 for five months and Rs. 8,000 for one year. The new fee structure will be applicable from July 12, 2000. The services were earlier free of charge.

The company is also negotiating with a US firm which specialises in online testing. The company would also charge a fee of Rs. 10,000 for Indian traders and $250 for foreign traders as trading rights.

The company is carrying out a `Business Affiliation Program' (BAP) wherein the company is in the process of appointing 15 business affiliates: nine in India and the rest in Korea, Singapore, China and the US for ground support to its registered members.