For an acquisition to spree its retail space country wide, BK Modi- promoted telecom, mobile phone manufacturers Spice Corp Pvt Ltd bought 100 per cent stake of the Dubai-based mobile retail chain’s Indian arm Cellucom. Allied with its flagship multi-branded retail chain Hotspot, Cellucom will take 26 per cent of the stake and the stores will be operated under the brand name HotSpot Cellucom, according to a company official.
Commenting on the share-swap deal, BK Modi, chairman, Spice Group said, “It’s a cash-less deal in which we will swap shares. The CEO and CFO of HotSpot will retain the positions in the new entity. Spice Corp will invest Rs 1 billion in the retail chain this year.”
The new entity is expected to gross about Rs 10 billion in revenue by fiscal year 2009. Cellucom has about 120 mobile and IT product stores in the country. HotSpot has about 500 mobile retail stores, the second largest after Essar-promoted The Mobile Store that has 1,400 outlets.
— IndiaRetailing Bureau