RCom, Kribhco to form JV

Reliance Communications (RCom) has signed a joint venture agreement with Kribhco, a co-operative society, to form a new company Kribhco Reliance Kisan. Kribhco would hold 60 per cent stake in the joint venture firm, while the balance 40 per cent would be held by Reliance ADAG. However, the financial terms of the deal were not disclosed.

“The JV will market telecom products of RCom, both GSM and CDMA. Later, it will also distribute products and services of other business enterprises of Reliance ADAG, including Reliance Capital, Reliance Entertainment and BIG TV,” RCom President (Wireless) S P Shukla said.

The new firm will use Kribhco’s existing 25,000 co-operatives to sell RCom’s telecom products and services in rural India. Earlier, Bharti Airtel had entered into a marketing tie-up with fertilizer major Iffco to distribute its products and services in the rural market.