Essar Group to invest up to Rs 1350 cr in telecom retail

New Delhi, March 14: Essar Group, which is in talks with Vodafone Group over a stake in Hutch-Essar, will pump in Rs 1125-1350 crore (USD 250-300 million) over the next three years in its telecom retail venture and is expecting revenues to the tune of Rs 5,000 crore. "We will invest USD 250-300 million over the next three years to set up 2500 'the Mobilestore outlets' across the country," Essar Telecom Retail CEO Rajiv Agarwal told reprters. The company would also increase its head count by ten fold to 10,000 in the next three years from the current 1000. With its aggressive expansion plans, the company is aiming to garner about 15 per cent market share in this space with a top line of Rs 4000-5000 crore in the next three years, he added. The multi-service outlets, the Mobilestore, would offer handsets, mobile accessories, new connections, value added services, after sales support and bill payment facilities. "Country's mobile market stands at Rs 35,000 crore and is growing at an annual rate of 60 per cent. With this huge market, we expect to have 10-15 per cent market share," Agarwal said. The company currently has 60 mobilestore across India, including 21 in Delhi. "We are also looking at opening up of 4,000 touch points in the form of stores, kiosks and shop-in-shops," Agarwal added. The stores would be set up in three formats - large, medium and compact besides shop-in-shops in malls and large retail outlets, he said, adding the outlets would also offer electronic products such as digital cameras, Ipods and other gaming devices.

Courtesy: Bureau Report

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