Here is a trick question: Which is the largest e-commerce company in India? Is it IRCTC? Flipkart? Nope. Hint: its not even a household name.
mjunction, an online market place for steel and coal, is little heard of outside certain circles, but the company easily dwarfs other e-commerce ventures by its sheer scale. A 50:50 joint venture company between the Steel Aurhority of India and Tata Steel, the company claims to have done transactions worth Rs Rs 33,145 cr in the financial year 2012. It is now aiming to clock $ 10 bn worth transaction in FY 2013. The entire Indian e-commerce market is estimated to be worth a little over $ 10 bn currently.
The reason many people have not heard of the company is because it sells mostly to other businesses instead of selling to consumers directly. The company derives scale from the Tata group and SAIL, as the industry heavyweights begin to transact through mjunction.
Launched in 2001, the company now offers a large range of online services through sites like metaljunction(for primary, secondary steel), buyjunction (enterprise procurement services), coaljunction (forward e-auction of coal), autojunction (new and used car), straightline (electronics and consumer goods), valuejunction (electronic marketplace for assets).
Mjunction’s various businesses
2002: eSelling, eSourcing, Channel Finance
2003: eAsset Sales
2004: Receivable Purchase
2005: Events & Conferences, BPO eSelling
2006: Coal Sales, Logistics
2007: Auto eSales, straightline, Publications, Buyer Finance, Procurement KPO
2008: Auto eRetail, Enterprise Procurement System
2009: High-end Industry Reports, Hindi Publications
2010: Foray into overseas market, Launch of Coal Spot Price Index
2011: Corporate Gifting/ Loyalty Program, Auto Accessories eSales
The online b2b market looks like a very large opportunity overlooked by many. Will we see more such companies entering the fray?