IndiaRetailBiz

To leverage on uninterrupted growth being registered by telecom sector, Pantaloon Retail, the country’s biggest listed retailer, has decided to expand its business in this segment by forming a 50:50 joint venture with the UAE-based Axiom Telecom LLC.

The new joint venture having an equity investment of US$ 40 million, will focus on achieving an annual turnover of US$200 million. Telecom business is growing at over 50% every year.

The Rs. 2593 crore (ttm turnover) Pantaloon Retail is a part of Kishore Biyani owned Future Group.

“The current explosion of the telecom retail market that we are seeing, is breaking new barriers every day. Future Group, with the knowledge and expertise of Axiom Telecom’s systems and process in this area, will be positioned to retail and service the Indian telecom market,” said Kishore Biyani, in a media release.

Founded ten years ago in 1997, the UAE-based, Axiom specialises in wireless communication products and boasts of more than 400 outlets under it’s management in prime retail locations across the UAE. It is the largest and leading, authorised distributor and retailer for almost all international mobile products brands with 2005 turnover of AED 3.2 billion (US$ 871 million).

Apart from creating a back-end sourcing infrastructure for telecom retail business of Pantaloon, the joint venture will also create a pan-India network of after-sales service centres.