S Mobility scouting strategic partner for handset making division

Telecom Lead India: S Mobility is looking for a
strategic partner for its handset making division.

S Mobility is part of the $2 billion Spice group.

TM Ramakrishnan will be the new CEO of the new subsidiary called S Mobile
Devices that will handle the mobile device business of the company. He was the
national sales head of S Mobility.

S Mobile Devices will become the third subsidiary of S Mobility.

Spice group is also planning to list its two subsidiaries –
Spice Digital and Spice Retail – and bring strategic investors. 

“We are talking to several investors, including Android, as we want to
bring a tech partner in the devices subsidiary to propagate usage of Wi-Fi. The
subsidiary will also tie-up with service providers to promote free Wi-Fi. We
will also collaborate with service providers to launch co-branded retail
stores. We want to re-establish ourselves as a technology company,” BK
Modi of Spice group told Economic Times. 

Last year, Asian chip major MediaTek bought 10 percent stake in Spice Digital,
the value-added services arm of the group, for $20 million.

Spice is looking to similar investment for Spice Retail that
sells mobile phones through 800 outlets across the country. 

As part of an ongoing restructuring exercise, the group is deputing a common
independent chairman for the three entities who is also on the board of the
BSE-listed S Mobility. 

S Mobility has a customer base of over 15 million and an annual volume of over
6 million devices, which the company plans to increase over the next few
quarters.

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