mjunction crosses Rs10,000 crore milestone in FY’07-08
by Amrita Das
- Plans five fold growth; to touch Rs50,000 crore of transaction value by 2013
- Breaks into the global market, working with Corus Steel, its first international client, and setting up base in Europe
- B2C businesses; autojunction and straightline to drive growth in India
mjunction services, India’s largest eCommerce company, a JV between Sail and Tata Steel, registered a milestone turnover of Rs10,314 crore in FY’08. It unveiled ‘Vision 2013’ setting itself a target to generate a cumulative transaction value (TV) of Rs50,000 crore by financial year 2013.
FY’09 and beyond — Vision 2013
| FY 2008 | FY 2013 | |
| Transaction volume (Rs crore) |
10,314 | 50,000 |
| Revenue from foreign geographies | 0 per cent | 30 per cent |
| Own office | No | Mjunction campus in Kolkata |
mjunction plans to achieve this five fold growth through its existing six strategic business units — metaljunction, coaljunction, buyjunction, autojunction, straightline and mjunctionedge by a combination of expansion in the domestic market and tapping opportunities in the international markets.
Viresh Oberoi, founder CEO and managing director, mjunction services, said: “We have created immense value in terms of efficiency, convenience and transparency in the supply chains verticals we have entered. In FY’09, the focus of the company would be on consolidating its presence in the existing verticals by building adjunct services and getting into new geographies. The company will also be looking at inorganic growth through strategic acquisitions. We will be driving our B2C businesses with an increased customer orientation since we believe that the time is right for the end consumers to experience the benefits of eCommerce in their daily lives. While straightline will sell everything, from books to music to clothes to FMCG, autojunction will expand its current eAuction business and focus on the sale of new vehicles, pre-owned vehicles, exchange schemes and innovative transportation solutions.”
Overview of operations
metaljunction: The steel e-sales business unit of the company traded 2.25 million tonne in FY’07-08 and estimates sales of around 2.60 million tonne of steel FY’08-09. The increase is attributed to additional volume from its new clients as well as expansion of its product portfolio. Since its inception in 2002, metaljunction has sold over 6.5 million tonne of steel establishing it as the world’s largest steel e-marketplace.
The other matured business which will also add to the growth story is coaljunction, which is scouting for the new global clients to meet the country’s growing coal demands. From last year’s 9.62 million tonne, coaljunction expects to sell around 19 million tonne of coal this year.
buyjunction: The e-procurement service of mjunction is expected to contribute significantly to the company’s growth. buyjunction is set to tap the immense potential of e-procurement and BPO procurement services in India and Europe. While buyjunction signed up leading corporate houses in the country last year, it has made a start by working with its first international client – Corus Steel, which has prompted the company to set up its first overseas office in London.
With 30 million internet users in India, mjunction’s B2C businesses — autojunction and straightline are expected to grow exponentially this fiscal. While autojunction has already unlocked tremendous efficiencies, transparency and convenience on behalf of most of the leading Indian banks and NBFC’s last year by extending its online auction services of repossessed vehicles to them; this year’s focus will be on selling good quality used vehicles directly to end customers online and tapping the potential of online retailing of new cars.
straightline, the e-retail initiative, has also chalked out an aggressive growth path targeting to add over 100 retail products spanning across apparel, books, gadgets, gifts, handicrafts, music, gaming, white goods, and electronics.
mjunctionedge: The knowledge division plans to organise more industry focused conferences this year with partners Metal Bulletin and McCloskey. The division plans to increase subscribers base for its three industry focused publications named Steel Insights, Coal Insights and Sourcing Insights.
Source: Tata Group
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