Retail Chain in JV with Axiom

Pantaloon Retail India Ltd has entered into a 50:50 joint venture (JV) with Axiom Telecom LLC, UAE at a valuation of Rs 120 crore to do sourcing and wholesale distribution of mobile handsets and accessories, apart from setting up service centres and authorised after-sales service centres for mobile handsets in India.

Axiom Telecom LLC is the leading, authorised distributor, retailer and after sales support provider of mobile phones, phone accessories, wireless gadgets, memory and storage devices in the Middle East.

The joint venture activities would be carried out by a separate new company which will be headquartered in Delhi. The JV is a strategic business decision for the Future Group and reinforces its commitment to be a serious player in the telecom wholesale, retail and after sales service market in the country, a media release said. The new company will focus on developing back-end sourcing infrastructure for Pantaloon Retail?s existing telecom retailing business to enable it to expand and scale up exponentially. Further, it will also create a nationwide network of state-of-the-art after-sales service centers for mobile handsets in the country. Rabo India Finance and Alpen Capital (ME), Dubai were joint financial advisors for the transaction.

Kishore Biyani, Group CEO, Future Group said,?The current explosion of the telecom retail market that we are seeing, is breaking new barriers every day. There is no doubt that mobiles will soon be the single largest electronic products retailed in the country. Future Group, with the knowledge and expertise of Axiom Telecom?s systems and process in this area, will be best positioned to retail and service the Indian telecom market.?

According to Faisal Al Bannai, CEO, Axiom Telecom LLC, ?We see great business potential in India for distribution and servicing of telecom products, and are delighted to partner with Future Group, the largest retailer in the country. We believe that our expertise in distribution and after sales service operations and Future Group?s understanding of the Indian consumer and the marketplace, will create a win-win for us, as well as the Indian consumers.?