Future Group on Friday said it will set up a joint venture (JV) with the UAE-based Axiom Telecom for distribution of mobile handsets, accessories and setting up of service centres.
The Group's flagship company Pantaloon Retail has signed a 50:50 joint venture agreement with Axiom Telecom, the company said in a statement.
The company, however, did not provide any financial details of the agreement.
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," said Future Group CEO Kishore Biyani.
Axiom Telecom is a leading, authorised distributor and retailer for international mobile brands. It specialises in wireless communication products and has more than 450 outlets across the Middle East.
"Future Group, with the knowledge and expertise of Axiom Telecoms systems and process in this area, will be best positioned to retail and service the Indian telecom market," Biyani added.
This area, will be best positioned to retail and service the Indian telecom market, said Axiom Telecom CEO Faisal Al Bannai.
The JV, which would be carried by a separate company, would focus on developing back-end sourcing infrastructure for the Pantaloon Retails existing telecom retailing business, to enable it to expand and scale up exponentially, it added.
Rabo India Finance Ltd and Alpen Capital (ME) of Dubai were joint financial advisors to the transaction. Shares of the company were trading at Rs 538, up 2.94 per cent on the BSE in the afternoon trade.