Honest 836 Report post Posted December 19, 2008 RPG exits mobile retail space; sells 50% to JV partner Economic Times l 20 Dec l Mumbai Fierce competition in the mobile retail space has claimed its first victim. The RP Goenka Group has sold its 50% stake in mobile and laptop retail chain RPG Cellucom to joint venture partner Arun Nagar, founder and owner of Dubai-based Cellucom. Industry analysts peg the deal value at Rs 150-200 crore. However, this could not be independently verified. RPG group declined to provide details. While confirming the exit, a group spokesperson said, “This divestment is consistent with RPG’s focus on higher margin retail categories.” Cellucom is spread across Asia, Eastern Europe, South America and Africa. In October, Mr Nagar had announced plans to invest around Rs 300 crore on the India expansion, and said the company was adding 15-20 outlets every month. Currently, there are over 200 RPG Cellucom stores across the country, and the company plans to set up 500 stores by March 2010. It is expected that RPG Cellucom will rechristen itself to reflect the change in ownership. Cellucom, which is a mobile-and-IT product retail chain, has mandated Ernst & Young to find an Indian investor for the venture, said a source familiar with the development. Share this post Link to post Share on other sites
kshah 452 Report post Posted December 20, 2008 No big retailer are offering indian consumer what they should, also their operations are marred by poor logistics support and lethargy and insensitivity toward market needs. I heard that reliance too is closing its RELOGISTICS logistic company for RELIANCE FRESH and they are going to cut 27000 jobs this financial year end. Though I don't agree but its said reliance FRESH are going to close down. Share this post Link to post Share on other sites
ACS 130 Report post Posted December 20, 2008 So who's the smarter one here? RPG's Goenka or Cellucom's Nagar ? Probably there is something that Cellucom can foresee & RPG cannot.. Share this post Link to post Share on other sites
kshah 452 Report post Posted December 20, 2008 I don't think its about smartness Cellucom is gulf company and retailing there is different than in india. Also no big retailer offers real deals as offered in gulf and us. Indian small retailers are very prompt and they offer better deals and personalized service which till date big retailer could not. However future belongs to big format retaling. Share this post Link to post Share on other sites
commonman 228 Report post Posted December 20, 2008 (edited) just visit any of these Retail Format shops and then visit ur friendly neibourhood corner shop and try to get a recharge or a new connection. U will feel the difference in approach and service. no wonder the large formats are making losses. after all its the sevice that brings back the customer. Edited December 20, 2008 by commonman Share this post Link to post Share on other sites
Honest 836 Report post Posted December 20, 2008 Indian small retailers are very prompt and they offer better deals and personalized service which till date big retailer could not. I 100% agree with the above. Share this post Link to post Share on other sites
