Spice Group recently bought the Indian arm of Cellucom which is a mobile retail chain. Though the BK Modi lead Spice Group has bought 100% shares of Cellucom the latter gets a 26% stake in HotSpot (Spice’s retail venture).
With no revenue sharing it is a clean share swap that is benefiting both the parties. The new entity aims at generating a revenue of Rs. 1000 crore by the end of the fiscal year. As part of their global acquisition strategy Spice will be investing in the merged entity and will be branding the same.
The Essar Group will be their direct competitors as their chain, The Mobile Store, has over 1400 outlets all across India. Currently Cellucom has 120 stores while HotSpot runs 500 mobile retail outlets which still does not match up to the Essar scale.