Essar mulls own mobile brand, eyes Asian market

Essar Telecom Retail, an Essar group company that operates The MobileStore, its multi-service telecom retail outlets, is looking to introduce its own mobile brand, besides considering a into other emerging markets in Asia.

"We are seriously looking at launching our own mobile brand, offering a complete range of handsets to bring better value to our customers. We are currently negotiating with a couple of original equipment manufacturers (OEM)," Rajiv Agarwal, chief executive officer and director, The MobileStore, said, while refusing to give details.

Plans were also afoot to tap emerging markets such as Sri Lanka and Bangladesh, where the company intends to roll out its multi-brand mobile outlets in the next six months, he said. "Asia will definitely be our focus area."

Launching the company's 21st store in Hyderabad, Agarwal said the company was aiming at creating a pan-India network of 2,500 outlets in the next two years.

"At present, we have 450 stores in 70 cities. We intend to open up to 1,700 outlets by year-end and touch the 2,500-mark by 2010, covering 600 cities. We also plan hike the employee headcount to 10,000 people from 2,500," Agarwal said.

According to Agarwal, The MobileStore, which currently generates revenues of Rs 1,200 crore annually, is set to touch the Rs 4,000 crore-top line mark by next year on the back of the rapid expansion of its retail network.

The handset market in India is expected to touch 120 million units this year, as against 80 million last year.