ABOOMING Indian telecom market is throwing up big buck opportunities on the retailing front. Several international handset retailers are foraying into India to tap the mobile sales and after-service market. According to sources, among the latest entrants scouting for opportunities in the country are Axiom, a Middle-East-based company and Oke, an Indonesian mobile retail company with over 750 outlets. Global players already present in this market are Virgin, with its collaboration with Essar, and Cellucom, the Dubai-based retailer which has tied up with the RPG group. Sources say that Oke is looking for technical collaborators in the Indian market. According to reports, Axiom, with over 200 outlets in the UAE, has committed around $250 million for its entry into the Indian markets, but is still scouting for an Indian partner. As per current FDI regulations, companies can enter the country only through the franchisee route or with technical collaborations.
For instance, the RPG-Cellucom tieup is through the franchisee route while the Essar-Virgin collaboration is a technical tie-up. In this case, Virgin provides brand licensing and consultancy services. According to analysts, the market for mobile retailing including post-sale services is close to Rs 75,000 crore, and is growing at 60% pa. With mobile retail stores now expanding their portfolio, adding laptops and game consoles, an additional Rs 25,000 crore comes in from sale of laptops. The operator side of the business, including selling prepaid and postpaid cards, recharge vouchers along with billing services, brings in another Rs 70,000 crore. The interest in this market by global players brings in international expertise. “Our tie up with Cellucom will help us gain domain knowledge, which is really critical in retailing.
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