The 460-odd organised auto component makers are already striving to IT-enable the production and distribution process. "We want to be a major player in this market where we will automate the distribution and sales processes of these companies," said Mr Atul Aggarwal, director of Sparesindia.

Sparesindia aims to create a virtual private network between the component manufacturers and the buyers and take care of the network. "We will not only develop the network but also we will maintain it. For this, we have set up a data centre, which will ensure hundred percent network connectivity. The whole logistics support of running the network will be provided by us," said Mr Aggarwal.

The VPN will have an automated sales order processing system which enables the distributor to send inquiries online. Orders are confirmed depending on the inventory status. The distributor then gets an online order confirmation in real time.

The revenue model is clearly on two fronts - building the network and maintaining it. The interesting part in this business plan is that the company has a small team of nine personnel, basically in administration and sales, to carry out the operation. The network development will be outsourced, according to the needs of the client.

The company is working with 12 auto parts makers and expects to have a sizeable market share at the end of the year. The company has implemented an automated order processing system for Ingersoll Rand Wadco Tools Ltd.According to the company, it has initiated dialogues with leading banks such as Citibank, ICICI and HDFC. "We expect to earn Rs 1 crore at the end of this year," added Mr Aggarwal.