Mjunction broadens horizons for growth, goes straight to customers

Written by fe Bureaus | Kolkata | Updated: Aug 28 2009, 07:20am hrs
Steel Authority of India Ltd (SAIL) and Tata Steel joint venture, mjunction services, has decided to launch operations in the business to customer (B to C) and customer to customer (C to C) markets, even as it targets business worth Rs 22,000 crore on transactions through all its verticals in 2009-10.

Mjunction, which offers e-selling, e-sourcing, e-finance and knowledge services across diverse industries through platforms like metaljunction, coaljunction, valuejunction, financejunction and buyjunction, has been operating in the B to B segment since 2001.

The company has now firmed up plans to start operation of straightlinejunction and autojunction, which would serve the B to C and C to C segments respectively.

Viresh Oberoi, managing director, said while straightlinejunction will mainly serve the B to C segment, bringing under its portfolio all consumer goods ranging from fabric to furniture and even insurance products, autojunction, which is being developed as a platform to e-trade automobiles, will also bring under its portfolio pre-owned vehicles to serve the C to C segment.

In 2009-2010, the focus will be on development of a world class frontend and backend infrastructure for the e-retailing platform dedicated to B to C and C to C markets, Oberoi said. Cognizant Technology Services (CTS) is developing the platform, scheduled for launch during the second quarter of this fiscal, he added.

The platform, buyjunction, which operates on the principle of consortium buying, will look beyond India for growth. The company has initiated talks with three companies, one each in the UK, Thailand and Singapore, to facilitate e-procurement of raw materials.

Oberoi said till date byjunction has helped procurement of goods and services worth over Rs 10,500 crore for companies operating in India in the steel, cement, FMCG and chemical sectors.

With plans to cater to more product segments, buyjunction is developing a strong team of category-wise experts, which will hunt for potential customers in the US and Europe, Oberoi said.

However, in terms of transaction value, mjunction is not depending much on the B to C and C to C services but will focus on positioning the companys new services in the market this year. The company, in this fiscal, will continue to depend on its operational verticals, which have given a 50% growth in its value of transactions at Rs 14,393 crore in 2008-09.

A 50% growth in 2009-2010 would work out in a transaction value of Rs 22,000 crore.

We are working on sustaining this growth and our vision envisages a target achievement of Rs 50,000 crore as our annual transaction value by 2012-2013, Oberoi said.