TBLA 2018
#SYNERGY
S T RO N G E R TO G E T H E R
MJUNCTION SERVICES LIMITED
CAPABILITY AND SCALING UP RECOMMENDATIONS
INTRODUCTION
mjunction services limited is a B2B e-commerce company
that offers a range of services to the Government, PSUs,
private sector, MSMEs and their stakeholders.
In the year 2001, two steel majors & competitors - SAIL
and Tata Steel - joined hands to create this venture which
would have an independent and impartial management
and would use internet and technology to bring higher
efciencies in steel supply chain, that otherwise was
conventionally plagued by issues like intermediaries and
complex processes for buying and selling. 'Metaljunction,'
a brand belonging to mjunction, is now recognised as the
leading e-commerce platform for steel industry.
Over the last 18 years, the company has expanded its
portfolio of services as well as the domains it serves.
It is a debt free, cash rich, protable company and is now
aspiring for rapid growth.
CAMPUS
ROUND
CASE
THE CURRENT SCENARIO
In the journey, mjunction has continued on its mission of
'creating robust and sustainable supply chains by bringing
in more efciency and transparency, disintermediating
value-destroying middlemen and delivering desired
outcomes to stakeholders; leveraging technology and
Internet'.
It presently serves more than 150 clients which
includes several Ministries under Government of
India, state governments, large PSUs and more
than 100 large private sector organisations. Further
over 2 lakh buyers & sellers, as bidding community
are part of the mjunction's ecosystem.
In terms of verticals, it serves domains like - Steel,
Coal, Chemical and Fertilizers, Cement,
Automobiles and Food Grains - and has today
practically become vertical agnostic.
 Following gure-1, illustrates the current services landscape of mjunction.

FIGURE-1
BUYING SERVICES SELLING SERVICES

E-auction platform Reverse e-Auction Forward e-Auction

Software eProcurement (PR to PO) eCatalogue

Supplier Aggregator Procurement Aggregation Service

Outsourced Services Procurement Outsourcing Services Post Sales Management Services

Misc. & Value Add Services Knowledge Services | Financial Services Knowledge Services | Financial Services
Channel Enhancement Services Channel Enhancement Services

FOLLOWING ARE FEW OF THE RECENT SUCCESSES OF MJUNCTION

e-auction of Spectrum for DoT, e-allocation of

Government of India, mobilising Oil Blocks for DGH,
INR 1.74 lakh crores saving foreign exchange of
(In FY15 and FY17) $8bn per year (FY18 onwards)

e-auction of Media Right e-procurement platforms

(TV & Digital) for for Chhattisgarh Govt.,
BCCI fetching Ordinance Factory Board,
INR 6,138 crores (In FY19) Power Grid Corporation

The current annual gross merchandise value of transactions taking place on mjunction's platform is
about 1.5 lakh crores. These transactions generate revenue in INR 200-500 crore band, with about
20% protability. Interestingly, the business quantum of mjunction generated from Tata group
(sans Tata Steel) is less than 2%.
 Now that mjunction has established itself well, the organisation is aspiring to scale up exponentially. The following
matrix (gure-2) depicts few growth levers available with mjunction.

MARKETS
Existing New

Extend e-auction
Increase synergy
Existing
services to new categories
with promoters:
TATA group Expand footprints in
global market
SERVICES

Develop
Build procurement
New

e-marketplace for
shared service centre
some select domain

FIGURE-2

EXPECTATIONS FROM THE PARTICIPANTS

1 2
Suggest plan for developing an Using a combination of information
deliberated in Figure-1 (mjunction's service
ecosystem and capacities that
landscape), Figure-2 (Few levers for growth
enable mjunction to embark on
with mjunction) and your own blue sky ideas,
the exponential growth path from identify and elaborate upon an area
the enriching foundation that has been built
where mjunction should endeavour
and sustain the growth rate year on year.
to create synergy within Tata group
and the larger market, and leverage
these synergies to scale up fast.

It may be noted that each Tata company is a separate legal entity with an independent board. Tata companies and the
industry at large would accept a synergy solution, based on the value created for them.