Bharti sells majority stake in Beetel to Brightstar
15 Jul 2014
Bharti Enterprises has sold a majority stake in its consumer telecom manufacturing arm Beetel Teletech to US wireless products and services supplier Brightstar, for an undisclosed sum.
Brightstar said in a statement that the two companies would bring the latest mobile technologies and services to the Indian market.
It said, "Brightstar Corp and Bharti Enterprises today announced that they have entered into a definitive agreement to bring the latest mobile technologies and services to the Indian market. As part of the agreement, a Brightstar subsidiary will acquire a majority interest in Beetel Teletech Limited, a leading company in the distribution and sale of communication and media devices, enterprise solutions and IT products in India.
"As the largest specialised wireless distributor in the world and a leader in innovation and diversified services for the wireless industry, Brightstar will bring the latest mobile devices and accessories from top manufacturers for distribution through Beetel's well-established distribution platform throughout India."
Tough the companies did not disclose the exact amount of stake to be divested by Bharti, Brightstar said Beetel would retain its name and all existing employees, and will continue operating from Beetel's headquarters in Gurgaon, on the outskirts of Delhi.
Beetel Teletech distributes and sells landline handsets, communication and media devices, enterprise solutions and IT products in India.
''The Indian mobile market is entering the next phase of growth, which will be driven by data services on 3G and 4G technologies. The smartphone market in the country recorded triple-digit growth in 2013 and offers a huge opportunity going forward,'' said Rakesh Bharti Mittal, vice chairman, Bharti Enterprises. ''The new mobile businesses and related technologies that Brightstar is bringing to Beetel will help drive significant growth by leveraging our deep distribution strength.''
Founded in 1985, Beetel is part of the Bharti Group and is a market leader in the manufacturing of high-quality fixed-line telephones for Bharti Airtel, Bharat Sanchar Nigam Ltd, Mahanagar Telephone Nigam Ltd and retail market and exports to more than 30 countries across five continents.
It also distributes and markets a wide range of technology brands such as Samsung, Panasonic, Polycom, Avaya, AMX, Extron, RADWIN, Huawei and SanDisk.
Beetel has a strong business-to-business distribution reach in India with more than 500 distributors and partners, 10,000 retailers and 28 warehouses spanning across the country.
''India represents a tremendous growth opportunity for both devices and attached services as consumers continue to upgrade from feature to smartphones in record numbers,'' said Marcelo Claure, founder and CEO of Brightstar Corp. ''Beetel is a recognised leader in technology distribution in India, and we look forward to enhancing the company's strong position to bring the latest mobile technologies and services to the marketplace.''
Beetel will retain its name and all the existing employees and continue operating from its headquarters in Gurgaon, India.