On E-Markets in Emerging Economy: An Indian Experience

Abstract

MetalJunction.com is a joint venture of TISCO (Tata Iron & Steel Company) and SAIL (Steel Authority of India), the steel makers contributing more than 60% to the India’s total steel production. The case illustrates how an organization(s) can use information technology to spin off key processes such as procurement and selling. Since its first year of operations, MetalJunction.com generated substantial savings for TISCO and SAIL. The case also supports the argument that the business context in emerging economies is significantly different from developed economies; hence, setting up a successful B2B marketplace may require the creation of basic services that are taken for granted in developed economies. These days Indian dot.com companies are having a tough time because of the dot.com burst, the 9/11 terrorist attack, and the sluggish American economy. However, Mr. Viresh Oberoi, MD, of MetalJunction.com has enough reasons to celebrate. His firm not only survived the dot.com bloodbath, but also generated substantial profit from the very first year of operations. Total transaction value in financial year 2003 to 2004 has touched Rs 21.35 billion ($427 million).