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TBLA 2018

#SYNERGY
S T RO N G E R TO G E T H E R

CAMPUS
ROUND
CASE

MJUNCTION SERVICES LIMITED


CAPABILITY AND SCALING UP RECOMMENDATIONS

INTRODUCTION THE CURRENT SCENARIO

mjunction services limited is a B2B e-commerce company In the journey, mjunction has continued on its mission of
that offers a range of services to the Government, PSUs, 'creating robust and sustainable supply chains by bringing
private sector, MSMEs and their stakeholders. in more efciency and transparency, disintermediating
value-destroying middlemen and delivering desired
In the year 2001, two steel majors & competitors - SAIL outcomes to stakeholders; leveraging technology and
and Tata Steel - joined hands to create this venture which Internet'.
would have an independent and impartial management
and would use internet and technology to bring higher It presently serves more than 150 clients which
efciencies in steel supply chain, that otherwise was includes several Ministries under Government of
conventionally plagued by issues like intermediaries and India, state governments, large PSUs and more
complex processes for buying and selling. 'Metaljunction,' than 100 large private sector organisations. Further
a brand belonging to mjunction, is now recognised as the over 2 lakh buyers & sellers, as bidding community
leading e-commerce platform for steel industry. are part of the mjunction's ecosystem.
Over the last 18 years, the company has expanded its
In terms of verticals, it serves domains like - Steel,
portfolio of services as well as the domains it serves.
Coal, Chemical and Fertilizers, Cement,
It is a debt free, cash rich, protable company and is now Automobiles and Food Grains - and has today
aspiring for rapid growth. 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.