Vedanta Aluminium plans to have more app-based features on its online platform Metal Bazaar so that most of the transactions can be done on mobile phones, while it is looking to offer price risk management, its Chief Marketing Officer (CMO) Alok Ranjan has said.
“Currently, we have initiated hedging which is one of the few electronic platforms doing this. Going forward, we can extend these services to give a complete 360-degree solution bundled with financing or logistics companies,” he told businessline in an online interaction.
Vedanta Metal Bazaar (VMB) is mulling to leverage its house expertise. Vedanta also works with a lot of start-ups under ‘Vedanta Spark’ where the productivity of new-age companies is improved.
Transforming buying behaviour
“So how to extend that functionality to all our customers through this platform will be something which we still need to work,” said Ranjan.
VMB has solutions designed around customers’ needs and Vedanta, India’s largest aluminium producer, will continue to evolve using the online platform. VMB is transforming the buying behaviour of small and medium enterprises (SMEs).
In just six months since its launch in January-February this year, utilisation by SMEs has increased by 35 per cent, and active users have surged by 240 per cent.
VMB has no purchase limits or caps and provides businesses with direct access to aluminium in the quantities they need. It eliminates third-party intermediaries, which is particularly helpful for SMEs.
Changing traditional sourcing
“This streamlined, one-stop solution is enabling smaller businesses to focus on growth rather than procurement complexities,” he said.
Earlier, SMEs had a time-consuming procurement processes and they used to rely upon third party intermediaries. For them, VMB really saves a lot of time.
According to Vedanta, the online platform aligns with the evolving needs of Digital India by providing seamless access to quality aluminium products. It offers facilities for instant orders, price locking and real-time shipment tracking.
“Vedanta Metal Bazaar is transforming traditional sourcing methods and enabling businesses to focus on growth,” the CMO said.
Key features
The platform has key features such as price booking (LME hedging), ledger (financial reports), and dispatch visibility (live shipment tracking and documentation).
“Since January 2024, Vedanta Metal Bazaar has generated more than 150 leads, including 45 for exports,” a company statement said.
Ranjan said there has been a big shift from traditional aluminium sourcing which involves managing multiple tasks to something which is very simple. “At the click of a button with complete transparency, the entire transaction can be done,” he said.
One of the features of VMB is artificial intelligence-based price discovery integrated into the platform. “It digs into a lot of data. Depending upon the price conditions of the market and buyers’ purchase history, it develops a replicable pattern. It empowers customers to make an informed decision based on stock requirements, suitability based on current market trends and the inventory throughout the chain. It is disrupting the way aluminium was being purchased earlier,” said the Vedanta CMO.
Improving productivity, market share
Largely, the customers on VMB are Indians. However, Vedanta will look to roll out the platform on a global scale. The response so far has been “overwhelming”. “We didn’t expect the user adoption to increase so fast. At least 35-40 per cent are SMEs and they have found VMB user-friendly,” said Ranjan, adding that 97-98 per cent of Indian business is now routed through the online platform.
VMB is getting at least 500 unique users daily and at least 50 per cent of the customers return looking for new products. “We offer billets, wire rods, ingots and all kinds of alloys. VMB has helped to improve Vedanta’s overall productivity besides increasing its market share,” he said.
Though aluminium usage in India is only one-eight of global standards, its utility is increasing with the government’s push for infrastructure construction. “The need for aluminium in various forms is increasing because aluminium is a diverse metal and it is infinitely recyclable,” said the Vedanta CMO.
Metal’s 14% CAGR growth
Power transmission and distribution in there is maximum usage of the metal. “Its light weight is helping its use in electric vehicles. In electric vehicles one of the most important criteria is the range. The lighter the vehicle the more the range will be. As a rule of thumb, aluminium usage is increasing by a factor of five to six times,” he said.
The transition towards clean energy is witnessing more aluminium panels go into making solar panels, frames and modules. It is also finding its use in metro rail coaches, said Ranjan, adding that over the past 3-4 years aluminium demand has been increasing at a CAGR of 14 per cent.
