ET reported that Mjunction services, which has tied up with EPSA Groupe of France for a slice of Europe's eprocurement market has bagged its first client in Tata Steel Europe.

Mjunction, 50:50 JV between Tata Steel and Steel Authority of India Limited is betting big on e procurement outsourcing in Europe as it plans to achieve transaction worth INR 27,000 crore in the e procurement space in FY 2013.

Mr Viresh Oberoi founder CEO and MD of mjunction services said that "Our alliance with EPSA Groupe has helped us break into Europe, which is a mature market for e procurement. Some 65% of Tata group's business comes from countries outside India. To begin with, we would like to target Tata group companies and jointly service the clients who require a presence on-site . We recently received a letter of intent from Tata Steel Europe after we made a joint pitch for the business.”

He said that in e procurement, mjunction is mainly targeting low cost, nonstrategic buys like paper & stationery or bearings for instance, to achieve cost savings for corporates. Incidentally, Tata Steel Europe's operations are divided into three parts the UK, mainland Europe and downstream units. For starters, mjunction will work with the Tata Steel Europe's downstream units. While the EPSA alliance is likely to assist it in gaining a foothold in Europe and North America, mjunction will provide a low cost BPO facility for EPSA in India.

Source - Economic Times

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