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INDIA BUSINESS WORLD - 1st March - TO - 15th March - 2009
MOTOROLA SNAPS BHARTI TIES, GETS NEW PARTNER
US-BASED cellphone vendor Motorola has restructured its sales and distribution structure in India. The company has terminated its sales and distribution arrangement with Bharti Teletech, a subsidiary of Bharti Enterprises. Bharti Teletech was the sole countrywide distributor for Motorola handsets in India.
With this, Motorola has roped in a Delhibased distribution firm, Jaina Marketing and Appliances, as its new nationwide distributor. The new distribution partnership kicks off with immediate effect. Apart from consolidating Motorola’s existing sales network, Jaina will also be responsible for expanding the network to smaller towns and undertaking various promotions.
Motorola India head (mobile devices) Faisal Siddiqui said: “Motorola and Bharti Teletech have taken a mutual decision to end the distribution partnership. Both the companies have decided to independently pursue their growth strategies. As a result, we have roped in Jaina as our new distributor in India.”
The appointment of a new distributor puts to rest the speculation that Motorola may wind up its handset distribution division in India. Bharti Teletech was handling Motorola’s mobile phone distribution in India since end-2005 and the partnership ended in February this year.
“The appointment of Jaina is in line with our new business strategy. Apart from handling distribution, Jaina will jointly undertake consumer and trade promotional activities. India is one of the fastest growing telecom markets and we are committed to grow our presence here. We have a portfolio of handsets which will soon be launched,” said Mr Siddiqui.
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