Cellucom India Retail, associate company to Dubai- based mobile retail chain Cellucom, completed a new joint venture agreement in India with Spice Group.
Led by Dr B K Modi, Spice Group has substantial interests in the telecom and IT sector in India and has acquired a 100 per cent stake in Cellucom India, the master franchisee of Dubai-based mobile retail chain in an all stock deal.
This joint venture will enable Cellucom to move forward on its growth path in one of the fastest-growing markets in the world.
Cellucom India's promoters will now get a 26 percent stake in Spice Group's mobile retail venture Hot spot. The group plans to invest Rs 100 crore (Dh80 million) in the retail venture this year to fuel growth plans and expand operations across 100 cities in India. While Hotspot has 470 stores in India focussing mainly on the mass market, Cellucom India has 117 stores, mainly focused on the "A" and "B" segments of the market. The new entity is expected to grow to about Rs 900-1,000 crore (Dh650-750m) in revenue by fiscal year 2009.
"The merger between Cellucom India Retail and Spice Group is a significant development for Cellucom India. The company would benefit from Spice Group's substantial presence in the field of telecom, their professional expertise in managing large businesses through strategic initiatives," said Arun Nagar, Founder, CEO and MD of Cellucom. "Hotspot Retail also stands to benefit from an expanded footprint through the Cellucom stores, which complement Hotspot by addressing a different customer segment and a wider product portfolio through the addition of laptops and IT accessories."