Spice group acquires Cellucom

MUMBAI, INDIA: HotSpot Retails Ltd., a Spice Group company, today announced the acquisition of the Indian stake of Dubai-based mobile and IT products retailer, Cellucom.

Through this deal HotSpot has acquired 100 per cent equity of Cellucom in lieu of its 26 per cent equity on a consolidated basis, said a press release.

The merger would further enhance HotSpot’s product line to include IT and related products along with the existing line of mobility offerings, the release added.

Dilip Modi, vice chairman, Spice Group said, “This tie-up will go a long way in supplementing out footprint nationally, as well as increasing customer stickiness due to an increase in the width of the product portfolio - in line with our philosophy of offering Mobiles and More.”

Modi added that the mobile and technology-product retail business in India is growing at a fast pace and holds tremendous potential. This coupled with HotSpot’s growth of 100 per cent in the calendar year 2008 v/s 2007, showcases the opportunity in the segment.

“We expect this trend to continue and estimate the combined turnover for the year 2009 to be around Rs. 1000 crore. We will infuse another Rs 100 crore in the business in 2009 to fuel growth plans and expand operations to over 100 cities across the country,” he added.

Arun Nagar, CEO and managing director, Cellucom said, “Cellucom has made its mark as a specialized retailer of Mobility products, with a variety of products and solutions designed to enable consumers stay productive while on the move. Its choice of locations, store design, product portfolio, and the staff training are designed to provide a better Customer Experience.”

He added that the merger with Hotspot Retails improves the retail capillarity of the organization, while widening the customer profile and providing improved economies of scale.

The new entity with an employee strength of 2,500 people would be led by Sanjeev Mahajan as CEO, the release added.