Calcutta, July 24: mjunction services ltd, a 50:50 venture promoted by SAIL and Tata Steel, is looking to establish itself in Europe in the procurement outsourcing business through its arm — buyjunction.
The ecommerce company, which had entered into a strategic alliance with EPSA Groupe, France, in October 2011, has made a joint presentation to Tata Steel Europe to assist them with low end, non-strategic procurements in their downstream units in Europe.
Tata Steel Europe has issued a letter of intent (LOI) to buyjunction, recognising its capabilities.
“The Tata Group gets 65 per cent of its revenues from overseas companies, which are largely based in Europe. If we are supporting Tata Group in India, then there is an even larger group outside the country where we can assist. For buyjunction, we are specifically looking at Europe and North America,” said Viresh Oberoi, founder CEO and managing director, mjunction services ltd.
It has so far processed 6,064 purchase orders for Tata Steel in India. “We have not signed a contract with Tata Steel Europe. They have issued an LOI,” Oberoi said.
He said it would have taken time for mjunction to build its strength in Europe, prompting it to enter into a partnership with EPSA.