Sangeetha Mobiles to sell 20% to PE in a year

The company has 222 outlets predominately in southern part of country

Bangalore-based multi-brand mobile handset retailing company Sangeetha Mobiles is exploring options to dilute up to 20% equity in the family-owned firm to private equity (PE) funds over the next 12 months.

“We have already received approaches from bankers. While discussions are on, we are yet to take a final call,” said managing director L. Subhas Chandra, Sangeetha Mobiles. Funds raised through the PE placement would be used in expanding the company’s operations in neighbouring countries Sri Lanka and Bangladesh, he added.

Sangeetha Mobile, which has 222 outlets predominately in the southern part of the country, today announced its entry into the northern market by opening two stores through franchisee model. This is the first time the company had taken the franchise route.

Chandra said the company would open 130 new outlets by March 2014 and targets to cross Rs 1,000 crore in revenues by that time. It has posted revenue of Rs 540 crore last fiscal and sold around 1 lakh mobile phones every month in which Nokia had maximum share.

Sangeetha Mobiles is planning to open 30 new stores in North India across Delhi, Haryana and Uttar Pradesh. It provides life-time warranty across on all handsets sold from its stores, free pick and drop service for repairs with stand by handsets and theft insurance.

To counter the fast growing e-commerce retailing, the promoters of Sangeetha Mobiles has started selling handsets online through shopno47.com recently. However, it will not compete with the established online retailers with aggressive pricing, he added.