MUMBAI: The Essar Group is likely to forge a tie-up with British billionaire Richard Branson’s Virgin Group for technical support and store design for its mobile retailing venture.
Highly placed sources said both parties have agreed to a strategic pact, which is likely to be signed this week. The Essar Group had recently announced a Rs 1,100 crore investment in its mobile retail venture.
Apart from selling multi-brands mobile phones in Essar’s ‘MobileStore’, it will also sell Virgin mobile phones in India.
Industry experts said Essar will get an edge in mobile retailing business as Virgin has prior experience in this segment. Also, tying up with Essar is part of Virgin’s strategy to expand its telecom business in India.
In the UK, Virgin Mobile phones are available in more than 5,000 outlets, including Virgin Mobile Specialist Stores and Virgin Megastores. It runs chains of stores selling music, electronic products and Virgin mobile phones in the US, too.
Virgin had designed its concept stores in the UK, US to create an urban, entertainment focused destination that embraces the Virgin Mobile brand showcasing all of Virgin Mobile’s products and services have a bold, youthful and interactive design.
Essar is expecting revenues to the tune of Rs 500 crore and is aiming to garner about 15% market share in this space in next three years. The company would also increase its head count by tenfold to 10,000 in the next three years from the current 1000.
The country’s mobile market stands at Rs 350 billion and is growing at an annual rate of 60%. The Essar’s MobileStore would offer handsets, mobile accessories, new connections, value added services, after sales support and bill payment facilities. The company currently has 60 MobileStore across India, including 21 in Delhi.
Analysts said country’s mobile retailing is getting bigger and now a very lucrative sector for corporate houses. Mobile and IT retailing market will be getting competitive with the entry of big corporates like Essar and RPG.
As the margins are thin in this business, it’s the volume game. The more aggressively companies will roll out their stores across the country, the more revenue they get from it.
At present, there are retailers such as RPG Cellucom, Pantaloons ConvergeM, Spice, Mobile Magic, MobileNXT are Cell World competing in the space. These retail outlets are offering customers a wide range of hi-tech and technology products ranging from mobile phones, accessories, various other products.
source : Dna
Highly placed sources said both parties have agreed to a strategic pact, which is likely to be signed this week. The Essar Group had recently announced a Rs 1,100 crore investment in its mobile retail venture.
Apart from selling multi-brands mobile phones in Essar’s ‘MobileStore’, it will also sell Virgin mobile phones in India.
Industry experts said Essar will get an edge in mobile retailing business as Virgin has prior experience in this segment. Also, tying up with Essar is part of Virgin’s strategy to expand its telecom business in India.
In the UK, Virgin Mobile phones are available in more than 5,000 outlets, including Virgin Mobile Specialist Stores and Virgin Megastores. It runs chains of stores selling music, electronic products and Virgin mobile phones in the US, too.
Virgin had designed its concept stores in the UK, US to create an urban, entertainment focused destination that embraces the Virgin Mobile brand showcasing all of Virgin Mobile’s products and services have a bold, youthful and interactive design.
Essar is expecting revenues to the tune of Rs 500 crore and is aiming to garner about 15% market share in this space in next three years. The company would also increase its head count by tenfold to 10,000 in the next three years from the current 1000.
The country’s mobile market stands at Rs 350 billion and is growing at an annual rate of 60%. The Essar’s MobileStore would offer handsets, mobile accessories, new connections, value added services, after sales support and bill payment facilities. The company currently has 60 MobileStore across India, including 21 in Delhi.
Analysts said country’s mobile retailing is getting bigger and now a very lucrative sector for corporate houses. Mobile and IT retailing market will be getting competitive with the entry of big corporates like Essar and RPG.
As the margins are thin in this business, it’s the volume game. The more aggressively companies will roll out their stores across the country, the more revenue they get from it.
At present, there are retailers such as RPG Cellucom, Pantaloons ConvergeM, Spice, Mobile Magic, MobileNXT are Cell World competing in the space. These retail outlets are offering customers a wide range of hi-tech and technology products ranging from mobile phones, accessories, various other products.
source : Dna