India’s JSW Group will invest an estimated $506 million over the next five years in its e-commerce platform - JSW One Platform - to make it “an Amazon of building materials” such as steel, cement and paints manufactured by its various group companies, a company official said on Thursday, September 8.
The aim is to service demand for steel, cement and paints from small and medium-scale enterprises with the most efficient costs and deliveries.
Parth Jindal, director of JSW One, said that, since start of the e-commerce platform 14 months ago, it has achieved a gross merchandise value (GMV) of around $127 million and is poised to grow to $380 million by the end of the current fiscal year and to $1 billion by the end of the fiscal year 2023-24.
He said that the platform expects 50 percent of sales from new customers that JSW did not have access to.
Mr. Jindal said that each transaction value for steel on the platform was for 15 mt and that JSW Steel never had customers who bought such small volumes, which is a clear indication that JSW One offers the opportunity to serve any kind of customers irrespective of order size.
Jindal said that currently 60 percent of the GMV of the platform was accounted for by steel and about 15 percent of the GMV will come from non-JSW brands by the end of 2023-24.