Essar Telecom Retail eyes $1 bln revenue in 3 years

Essar Telecom Retail, an Essar Group firm, expects $1-billion revenues in three years from its dedicated mobile phone retail stores and hopes to achieve breakeven in two years, its chief executive officer said. “The Indian mobile phone market is growing very rapidly. We are cashing in on that and we will offer customers personalised services at our dedicated mobile outlets,” CEO and director Rajiv Agarwal told reporters. The company on Tuesday announced its tie-up with UK’s Virgin Group for The MobileStore, Essar’s network of telecom retail stores, launched last month. Essar Telecom will set up 2,500 stores across 600 cities in three years with an investment of $250 million. Virgin would provide the branding and niche expertise it has in mobile retailing and get a royalty fee for it. In three years, Essar Telecom expects to have 10% of the mobile retail market share in terms of sales. “Around 70% of our revenues would come from the sale of handsets,” Agarwal said. The remaining would be from sale of talktime and value-added services.

Courtesy: EconomicTimes
For more details on Retail India visit: www.retailindia.tv