Essar Telecom eyes Rs 4,000 cr retail biz

Essar Telecom Retail is eyeing a turnover of Rs 4,000 crore over the next three years, according to a top executive of the company.

"We are targeting a turnover of Rs 800 crore this fiscal. Over the next three years we aim to scale this up to Rs 4,000 crore," CEO and Director Rajiv Agarwal said.

The company also aims to scale up its retail network during this period. "We plan to increase our store-network to 2,500 in the next three years from the existing 300," Agarwal said.

The company wants to extend its presence to 600 towns and cities with a headcount of between 12,000-15,000.

"We plan to have our footprint virtually in every major town in every state across the country," Agarwal said. Presently, there are 300 stores across 35 cities in which about 2,000 personnel are employed.

By the end of this fiscal Essar Telecom Retail aims to more than double its retail network strength to around 750 stores. "The number of our employees will also touch the 5,000 mark," he said.

High rentals and space were a concern for the company as it expands its network across the country, as rentals at prime locations were too high, Agarwal said.

"Delhi is the most expensive followed by Bangalore and Mumbai."

Essar Telecom Retail is eyeing a 10 per cent marketshare over the next three years and the key growth drivers for the company would be its comprehensive product range, competitive pricing, knowledgeable store-staff, an interactive environment, and handset repairs along with music, entertainment and gaming, Agarwal said.

Christened 'The MobileStore', Essar Telecom Retail is an Essar Group venture that retails a wide range of telecom products.