Mjunction

mjunction services limited
Privately held joint venture of Tata Steel and SAIL
Industry e-commerce
Founded February 2001
Headquarters Kolkata, India
Area served
 Worldwide
Key people
 Vinaya Varma - CEO
Viresh Oberoi (former)
founder CEO & MD
Products e-auction, business process management, e-commerce
Number of employees
 745 (2015)
Website www.mjunction.in

mjunction services limited is a 50:50 joint venture of two Indian steel conglomerate – the Steel Authority of India Ltd (SAIL) and Tata Steel.[1] It started operating in 2001 and was initially called metaljunction.com. Headquartered in Kolkata,West Bengal, it primarily facilitated the online sale of steel. Subsequently, it moved into new areas of business and now offers e-selling, e-sourcing, e-finance, e-retail and knowledge services across diverse industry verticals.[2]

mjunction was established to help redesign and improve business processes of a supply chain or an industry. This would in turn create value for the industry in a sustainable and scalable manner. mjunction has facilitated transactions worth more than INR 2 lakh crores.[3] It operates through various domains, including metaljunction.com, buyjunction.in, coaljunction.in, autojunction.in, valuejunction.in, financejunction.in, straightline.in and mjunctionedge.[4]

mjunction is an ISO 9001:2008, ISO 27001:2005 and a CMMI Level 5 certified company.[5]

Financials

Viresh Oberoi, former[6] CEO and MD, has led the company since its inception. From a fledgling start-up in 2001,[7] the company has e-transacted worth over Rs 3,50,000 crores till FY'15. Business volume of the company in terms of transactions has increased from Rs 94.35 crore in FY'02 to Rs 151,108 crore in FY'15.[8]

In FY16, the topline of the B2B e-commerce company mjunction grew 33% and bottomline went up by 44% as it focused on generating value for its customers in a particularly difficult economic situation.[9]

Serving both sides of supply chain

mjunction exists on both sides of the supply chain and serves both sellers and buyers. It uses the Internet and online auctions with the objective of making the entire process of buying and selling steel transparent in India, freeing it up of intermediaries.[10]

Influence of cartels in the buying of coal was minimized with the online bidding process. Smallest bidders can transact business here.[11] Till date, mjunction has sold more than 500 million tonnes of coal in India through its e-auctions.[12]

History

mjunction came into existence at a time when the dotcom boom had just gone bust and a B2B e-platform for steel sales was a risky and challenging business proposition. About 70 such exchanges existed worldwide and even while new ones were formed, some others were regularly closing shop. In the early 2000s, the Internet penetration in India was low and steel business was tradition bound.[13]

The company was rechristened to mjunction services limited in 2007 from erstwhile name of metaljunction.com and broke away from the metals domain.[14][15] It paid dividend over Rs 100 crore to its promoters, and has never gone back to them for more capital, though it continues to build new businesses till date.[16]

See also

References

  1. ↑ "mjunction MD". The Economic Times. 6 July 2011. Retrieved 31 August 2015.
  2. ↑ "Cognizant to Help mjunction Increase Market Share Through Enhanced Sales and Delivery Models". PR NewsWire. Retrieved 31 August 2015.
  3. ↑ "Mjunction: World's largest e-marketplace for steel". Rediff. Retrieved 31 August 2015.
  4. ↑ "Mjunction scouting for key partnerships in coal mining". The Financial Express. 30 June 2008. Retrieved 31 August 2015.
  5. ↑ "mjunction aims annual transaction value of Rs22,000 crore for FY’09-‘10". Retrieved 31 August 2015.
  6. ↑ "Vinaya Varma takes charge as CEO of Kolkata-based Mjunction services Limited" – via http://economictimes.indiatimes.com/.
  7. ↑ "Viresh Oberoi, Managing Director & CEO, mjunction Services Ltd". Nasscom. Retrieved 31 August 2015.
  8. ↑ "Why rational investors should eye entrepreneurs from the B2B e-commerce industry". The Economic Times. 17 July 2015. Retrieved 31 August 2015.
  9. ↑ Mazumdar, Rakhi. "Mjunction ropes in steel majors like JSW Steel, JSPL; looks forward to Alibaba". economictimes.indiatimes.com. Economictimes. Retrieved 16 May 2016.
  10. ↑ "Technology for e-commerce". TATA. Retrieved 31 August 2015.
  11. ↑ "MJunction creates online sale of coal". Retrieved 31 August 2015.
  12. ↑ "CIL, SCCL earn Rs 30,000 crore incremental revenues via e-auction: Mjunction Services - The Economic Times". The Economic Times. The Economic Times. Retrieved 2015-12-21.
  13. ↑ "Mjunction: outlier that finds e-commerce success in B2B". Business Standard. 4 April 2015. Retrieved 31 August 2015.
  14. ↑ "mjunction registers a turnover in FY08a". www.moneycontrol.com. Retrieved 31 August 2015.
  15. ↑ "Tata steel ltd" (PDF). Retrieved 31 August 2015.
  16. ↑ Kumar, Abhineet. "Mjunction: outlier that finds e-commerce success in B2B". business-standard.com. Business Standard. Retrieved 17 May 2016.
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