Creating Connection Architectures

@ mjunction

Vinaya Varma San Francisco

8th May, 2019

Creating Connection Architectures 1

Contents

About Mjunction

Connection Architecture

Road Ahead

Creating Connection Architectures 2

mjunction : A Snapshot

CertificationsExp. 20 19-10-28 / Appraisal # 27874

PROMOTERS

• Set up as “metaljunction” in 2001

• By TATA Steel & SAIL as a 50:50 JV

Coal, Steel, Minerals,

Obsolete Capital

equipment, Industrial

supplies, Financial

services

…. and many others

OPERATESB2B e-AUCTION PLATFORM

GMV

USD 21 Billion

transacted on our

platforms

in FY 19

GMV : Gross Merchandise Value

Creating Connection Architectures 3

mjunction : A Snapshot

AWARDS

• SUFI Digital India Award 2018, Steel Users Federation

• Best eCommerce Company, ET Now, 2018

• Company of the Year 2018, CEO Magazine

Creating Connection Architectures 4

We operate from Kolkata, India

Kolkata

INDIA

westbengal

Creating Connection Architectures 5

Our Mission

Make the World a Better place,

creating

Robust and Sustainable Supply chains

through greater

Efficiency and Transparency,

Disintermediating

value destroying middle men,

and delivering

Desired Outcomes

to stakeholders,

Always!

Creating Connection Architectures 6

Our Mission is to help

Businesses Buy and Sell

with other

Businesses

through our eCommerce solutions

that creates

Value For All

Our Mission: This means

Creating Connection Architectures 7

We connect Businesses With Other Businesses:

Banks

e-Reverse Auctions

eRFx (on cloud)

One stop shop for MRO items

eForward Auctions

eOrder (fixed price)

Loyalty & gifting

DealersDistributorsInfluencers

Suppliers

Transporters

BuyersENTERPRISES

146

12

39 K200 K

75 K

Through our 6 core services

Creating Connection Architectures 8

eForward Auction

SELLERS’BUYERS’

• Competitive price discovery

• Buyer discovery

• Transparency

• Access to large no. of sellers

• Convenience

• Transparency

Value that it creates

• Category & domain expertise

• Large, active buyer base

• Supports large no of e-auction variants

• Secure & robust platform

Steel, Coal, Minerals,

Rough Diamonds,

Obsolete Plants &

Machinery, Spares,

Food grains, Spectrum,

Media Rights, Tea,

Real-Estate

Unique Value Propositions

Categories

Help enterprises convert their inventory into cash, faster

Creating Connection Architectures 9

eReverse Auction

SELLERS’BUYERS’

• Transparency• Seller Discovery

• Transparency

• Shorter cycle time

• Category & domain expertise

• Large, active supplier base

• Multiple eAuction methodologies

• Certified & secured platform

• Ability to promise savings

Mechanical equipment, MRO,

Project & Civil Packages,

Electricals, Refractories, Logistics,

Agro, Chemicals & Minerals,

Steel, Ferro Alloys and Non

Ferrous Metal Scrap, Tea

Needs Served

Unique Value Propositions

Categories

Help enterprises buy competitively

Creating Connection Architectures 10

• “Pay as you use”

• Easy to configure

• Provides ready access to a large supplier base

• Secure & auditable

Unique Value Propositions

Needs Served

Help enterprises improve efficiency & effectiveness in Procurement

eProcurement

SupplierMaster

Ready To UseSourcing

Templates

CallCenter

PaymentIndent

Enterprise(Buyer)

SELLERS

eProcurement Platform

Creating Connection Architectures 11

Loyalty & Gifting

Needs Served

SELLER

ORG.

Sales Data

Channel Data

ProgramDesign

Loyalty PointsCalculator

Website/App forRedemption of Loyalty Points

& Engagement

Fulfilment &Delivery

Straightline provides

Help enterprises sell more through their trade channel

• End to end responsibility

• Pan-India doorstep delivery

• Reports & Analytics

Unique Value Propositions

DealersDistributorsInfluencers

Creating Connection Architectures 12

Supply Chain Finance

BANKS’

• Reduced risk of lending

• Easier access to borrowers

• Increased buying power with easy liquidity

• Reduced cost of borrowing

BUYERS’

• Integrated platform with sellers and

banks

• Finance on minimum or no collateral

security

Needs Served

Unique Value PropositionsHelp businesses get access to finance

Creating Connection Architectures 13

One stop shop for MRO Items

2

As transaction service provider

1

As single supplier(Super Aggregator)

Through centralized Procurement Service Center

• One-Off Buys (SPOT buys)

• Regular MRO Items (ARC)

- Lamps

- Fasteners

- Electrodes

- Valves

- Pumps

- Wire Ropes & Slings

- V Belt

- Safety Items

ConnectedWarehouse

Needs Served

Help enterprises manage their MRO requirements efficiently & effectively• High availability & delivery

compliance

• Savings

• End-to-end status visibility

BUYINGENTERPRISE

SUPPLIERS

Unique Value Propositions

Creating Connection Architectures 14

Making efficient & effective connections are critical for us

Attract

• User experience• 24X7 Help Desk• Physical presence in 41 cities

Use emerging technologies

• “ Plug & Play” connect with ERP of anchor clients

Remove effort

• “ Recommender “ tool based on ML

• RPA for routine transactions

Make it convenient • Market Insights,

based on BI Tools

Immersion

Creating Connection Architectures 15

Customer Immersion @mjunction helps in making stronger connects with enterprises

Cross Functional Team

Client Visit

VOCCustomer Need

Customer Insights

Strategic Objectives to fulfil customer needs

Learning & Growth Objectives

Internal Process

Objectives

Customer Satisfaction &

Loyalty

Strategic Input 1

Strategic Input 2 Strategic Input 3

Creating Connection Architectures 16

Benefits: Customer Immersion @ mjunction

• Increase the willingness-to-pay of Customers: Identifying drivers of willingness-to-pay and pain points

• Optimize fulfilment costs: Sketch the efficiency frontier for the industry that reflects the trade-off betweenwillingness-to-pay and fulfillment costs

• Identify the deeper needs of the Customers: Utilize information gathered from repeated interactions toimprove the Recognize-Request-Respond cycle

• Identify new opportunities associated with connected Relationships: Coach Behavior, make CuratedOfferings and Respond-to-Desire

• Mapping of own activities vis-à-vis activities of competitors: Create new ideas for areas of improvement

• Identification of new technological solutions: Enable further innovations in your Connected Strategy

Creating Connection Architectures 17

• Monthly magazines – Steel Insights and

Coal Insights

• High-end digital reports – India Steel

Market Watch and India Coal Market

Watch.

Magazines

Conferences

2nd Indian Steel Markets ConferenceJune 2018

2nd Global Procurement ConferenceFeb 2019

12th Indian Coal Markets ConferenceNov 2018

Connections are made stronger through our Magazines & Conferences

Creating Connection Architectures

Ability to connect us has provided confidence to set up e-marketplaces

Platforms can be described as ‘digital matchmakers’ connecting :

The Owner of a product or service i.e. the seller And The seeker of the product or service i.e. the buyer

So, being neither the seller, nor the buyer, the value that a platform brings is that of the network effect

Through the value of network, platforms enable : Highly efficient matching Disruptive innovation Improved asset utilization

This connected ecosystem led to an almost organic genesis of a new business model –the Platform business model

Creating Connection Architectures

• Spot, Bargain, Auction• Invoicing, Taxation• Analytics, MIS• Feedback Management• Advanced Search

(Uniform taxonomy,Parametrization)

• Buyer/seller rating

• Lowest price option

• Fastest delivery option

Trading Platform

• Platform for processing centre selection

• Inventory Management• Order status

Processing Centre

Inspection

• Streaming of real-time inspection before sale

• After sales/In-process Inspection

• Inspected status

• WMS• RFID, Bar code scanners• Driver Identification

System• ATM like kiosks for DOs,

Challans etc• Video based Inspection

Warehouse

Financing

• Platform• Payment gateway• Banks/ Financiers

• Knowledge Services• Guest features• Steel market information

Other Services

• Online registration• Online document verification• Trade Management• Invoices

Seller

• Online registration• Online document verification• Trade Management• Invoices• Shopping cart

Buyer

Transportation

• Platform for transporter selection

• TMS• GPS based vehicle tracking• Delivery and PoD Management• Cameras inside vehicles

Future Roadmap : To connect multiple entities : Steel eMarketplace

106

Thank you

Creating Connection Architectures 21

Key Aspects about Indian e-Commerce

• Internet penetration in India is expected to increase to 840 million internet users by 2023.

• India currently is expected to increase to 700 million smartphone users by 2023.

• In the context of rapidly improving technology and falling data costs, technology-enabled business models wouldcreate significant economic value in the future

• Core digital sectors (IT-BPM, digital communications, and electronics manufacturing) could double their GDP

contribution by 2025, from $170 billion in 2018 to $355 billion by 2025

Source:1. Economic Times, Live Mint, Department of Telecommunications, Bain & Company –Unlocking Digital for Bharat2. CISCO Systems report in economics times3. Kalaari capital –India Trends 20184. Financial Express5. McKinsey Global Institute

Potential Economic Impact

Creating Connection Architectures 22

Bengal

4th largest state economy in India with 91.3 million people and a literacy rate of 77.1%

The state with highest number of MSME establishments and employs 1 trillion people

Unique partnership between IIM Calcutta; IIT Kharagpur & ISI to further analytics

Active encouragement of IT by the State Government; Silicon Valley being set up !

Creating Connection Architectures 23

State Of Finance & IT

Financial Centre

• The FinTech Hub in New Town that was founded in 2013, now has 25 units with lands being allotted to leading financial institutions

Pro - IT Government

• 4 hardware parks are being commissioned

• The State Government has ensured uninterrupted power supply

• Both birth certificate and death certificate are on blockchain

IIM Calcutta Tie-ups

• Cybersecurity CoE - MAKAUT

• Innovation CoE- IIT Kharagpur

• Artificial Intelligence CoE - IIT Kharagpur, IIIT Kalyani

• Blockchain CoE- ISI

• Robotics CoE- NIT

• Quantum Computing CoE - CU

Creating Connection Architectures 24

How We Compare – With Bangalore & Hyderabad

Advantages:

• Low operational cost

• Geographical location : gateway to Eastern and North-Eastern India and also to South-East Asia and Eastern Pacific region

• Home for all big IT companies including TCS, Cognizant, Wipro, IBM, Accenture, Capgemini, ITC Infotech, Genpact, HCL

Technologies, CA, NIIT, Lexmark, British Telecom etc

• Robust physical infrastructure including road network, national maritime advantages, two international airports, national

inland waterways, 4,000 kms of railway tracks, second largest metro rail network in the country

Recent Investments

• ITC Infotech has invested Rs. 500 crores in their existing facility

• TCS has invested Rs. 1200 crores in their existing facility

• State Government has just launched Silicon Valley where substantial investment is awaited.

Creating Connection Architectures 25

Where Do We Stand

Alibaba

Snapdeal

Amazon India

Flipkart

mjunction 15

768

7.5

0.6

6.2

0.006 billion

11 billion

(0.94) billion

(0.48) billion

(0.08) billion

GMV (in Billion USD) PAT (USD)