The Hindu Business Line : MetalJunction to make BPO main biz

THE business process outsourcing activities are catching up with the domestic steel sector as well. MetalJunction.com Pvt Ltd, which had once pioneered e-commerce in steel industry, is now planning to make BPO operations as its mainstream business.

Beginning November this year, the 50:50 joint venture between Tata Steel and SAIL will take over the entire responsibility of marketing products and realisation of the proceeds for a medium-sized steel company. Created as an e-commerce outfit, MetalJunction is also actively considering entry into consultancy business for the steel sector.

Talking to Business Line, the MetalJunction Managing Director, Mr Viresh Oberoi, said that the company would enter into an agreement with a steel products manufacturer on November 1.

"As per the agreement, beginning November, the particular steel company will stick to only production, while MJ will be responsible to pick it up from the factory gate, sell and collect the proceeds." The said steel company currently has a marketing set up which was expected to be dismantled and replaced by a marketing team of MJ.

During its operations as an e-selling and e-procurement portal for the last few years, MJ has developed a huge stockpile of information on selling and procurement of several items. While access to data has already converted the company's profile from a mere `electronic service provider' to a `knowledge-based company', there is a sincere attempt to enter into synergistic physical business activities.

"We want to be a `click-and-mortar' company," Mr Oberoi said, adding that the BPO operations would further be expanded to the field of procurement of raw material and a larger product profile in the steel industry.

"Right now we have developed sufficient critical mass by way of information for selling items such as hot-rolled coils (HRC). There is also sufficient information on transportation. We are also in the process of developing critical mass on procurement in the next few months," he said.

"Our exposure in e-selling a wide range of products, from steel, chemicals, metals to packaging, has provided us with critical market data. So far we were analysing this data to give support services to our listed clients. However, lately, we are receiving a number of requests from corporates who are ready to pay just for industry information. Accordingly, we are actively considering taking consultancy as our mainstream business activity," Mr Oberoi said.