Handset company Celkon’s promoters to launch retail chain
ET Bureau|
Feb 24, 2018, 11.59 AM IST
HYDERABAD: Promoters of homegrown mobile handset firm Celkon floated a multi-brand retail chain for mobile handsets and accessories.
Y Guruswamy Naidu and Retineni Murali Krishna plan to invest around Rs 400 crore in the chain that will operate under the Celekt brand. The target is to open at least 1,000 retail stores across India over the next three-four years.
“There has been a declining trend in the sales of smartphones through online channels, in line with a similar global trend in China, South Korea, etc,” Celekt managing director Naidu said. “Hence, we see good growth in organised longform retail channels for mobiles and accessories,” he said.
Celekt, the founders said, would be the first mobile retailer to have a pan-India presence. They hope for it to break-even in about a year or so. The new venture will begin operations next month with in-house service centres. The investments will be met through institutional borrowings and promoter’s equity. Half the proposed 1,000 stores will come up over the next two years, while the balance will be set up in the second phase. They will spread over 500 sq ft to 2,000 sq ft, they said.
“We will be focusing on the north and west regions where the penetration of organised mobile retail market is very low, unlike the south where we have many players,” Celekt director Krishna said.
Y Guruswamy Naidu and Retineni Murali Krishna plan to invest around Rs 400 crore in the chain that will operate under the Celekt brand. The target is to open at least 1,000 retail stores across India over the next three-four years.
“There has been a declining trend in the sales of smartphones through online channels, in line with a similar global trend in China, South Korea, etc,” Celekt managing director Naidu said. “Hence, we see good growth in organised longform retail channels for mobiles and accessories,” he said.
Celekt, the founders said, would be the first mobile retailer to have a pan-India presence. They hope for it to break-even in about a year or so. The new venture will begin operations next month with in-house service centres. The investments will be met through institutional borrowings and promoter’s equity. Half the proposed 1,000 stores will come up over the next two years, while the balance will be set up in the second phase. They will spread over 500 sq ft to 2,000 sq ft, they said.
“We will be focusing on the north and west regions where the penetration of organised mobile retail market is very low, unlike the south where we have many players,” Celekt director Krishna said.
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