JSW aims one-fifth of top line from B2B site

By siliconindia  |  Thursday, 08 September 2022, 08:50:03 AM IST

JSW aims one-fifth of top line from B2B site
The JSW Group is betting big on its B2B marketplace JSW One Platforms, seeking to garner a fifth of the $22-billion conglomerate's top line from ecommerce, pointing to imminent convergence in the approaches to decision-making at traditional resources businesses and consumer industries that extensively harness web commerce.
The 14-month-old platform, which sells construction material to micro, small and medium enterprises, sold merchandise worth Rs 90 crore last month, translating to an annualised run rate of over Rs 1,000 crore, the company said.
The company is looking to cross Rs 8,000 crore ($1 billion) of gross sales in FY24, said Parth Jindal, director at JSW One and a promoter of the JSW Group.
The JSW Group has so far invested Rs 250 crore in JSW One and by FY27 a total investment of Rs4,000 crore is planned, according to Jindal. The funds will go towards technology and customer acquisition, among other things.
The steel-to-cement conglomerate is not alone to bet on ecommerce. From Reliance Industries to the Tata Group, Indian conglomerates are looking to sell merchandise online to keep with shifting consumer trends. While Reliance and Tata are focussing on retail consumers, others like Aditya Birla Group and L&T are setting up ecommerce platforms for the B2B space.
"Over the last 10 years we saw B2C ecommerce really explode," Jindal said on Wednesday. "B2B is still very much offline. We feel that this decade B2B is going to really go online and JSW One is going to play a very large role in that."
JSW Steel, JSW Cement and JSW Paints hold equity stakes in JSW One and their goods are sold exclusively in markets where they have distribution. For other goods like wiring, stainless steel, glass and sanitary ware among other things, the company is onboarding other companies onto its platform.

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