Chennai-based mobile chain retailer UniverCell is planning to enter the overseas market by opening its retail stores — UniverCell — in countries like Sri Lanka, Maldives and Africa. The company would enter these markets by 2010. This apart, it is also planning to invest around Rs 500 crore in domestic markets.
Speaking to Business Standard, Satish Babu, managing director, UniverCell, said initially the stores would be rolled out through the franchisee model and later the company would go for its own outlets. It is looking at the overseas market to contribute around 15 per cent to the total business over the next 2 to 3 year.
Last year, the company registered a business of Rs 350 crore and has set a target of Rs 700 crore for the current year.
He said the company will look at low only low-cost countries where the investment would be less and margins more — around 10 per cent. The company has signed an agreement with Hyderabad-based Peepul Capital LLC, which is investing Rs 100 crore. It will raise the remaining amount from internal accruals.
On the domestic expansion front, Babu said UniverCell was planning to open 1,000 standalone stores by 2010 across the country. Each store, on an average, would require around Rs 50 lakh, which works out to around Rs 500 crore. The company has 167 stores across Tamil Nadu, Karanataka, Andhra Pradesh and Kerala.
Of the Rs 13,30,000 crore retail market, the organised mobile retail chain in the country is estimated to be around Rs 27,200 crore (including mobiles and accessories). It is expected to increase by 20 per cent over the next two years.