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Essar arm buys Impact Retail
Essar Group promoted The MobileStore has acquired Impact Retail Private Ltd for an undisclosed amount. The acquisition will help the company enhance its business portfolio and it will now retail consumer durables and IT (CDIT) products too.
Essar Group promoted The MobileStore (TMS) has acquired Impact Retail Private Ltd for an undisclosed amount. The acquisition will help the company enhance its business portfolio and it will now retail consumer durables and IT (CDIT) products too. Impact Retail runs seven retail stores selling CDIT products under the X-Cite brand.
The acquisition is aimed at expanding product portfolio and penetrating the estimated
Rs 80,000 crore strong CDIT market.
“Post the slowdown we are consolidating our operations,” said Rajiv Agarwal, CEO and Director, The MobileStore. “The timing is good and CDIT is one area where we see an opportunity. We have just signed the deal and plan to use the entire TMS footprint to sell the consumer durable and the IT products to our customers.”
TMS, when launched two years ago, had set a target of Rs 5,000 crore by 2010. It is now doing a business of Rs 125 core a month with a growth of 15 per cent year on year. It has 1,300 stores across 200 cities. TMS’s strategy is to leverage the presence of large and medium format stores (large formats are 150 and medium are 500 in numbers) to sell the CDIT products along with its existing lineup. The other stores will promote the X-cite range.
X-Cite will continue expansion and open new stores to plug gaps in key markets like Mumbai, Kolkata and Chennai. These stores will be re-branded later.
The product range would includes television and music system, cameras, home and kitchen appliances, mobiles, personal care and computers.
