SAR acquires majority stake in Meridian Mobiles

SAR Group has acquired a majority stake of 51 percent in Meridian Mobiles, manufacturer of Fly mobile handsets. Both the companies are expected to significantly benefit through this new joint venture.

The two companies make mobiles phones in the low-to-mid range to compete with other homegrown brands that have much larger market share in the Rs 33,171 crore (as per Voice&Data) Indian handset market.

Prem Kumar will continue as a managing director and Navneet Kapoor, co-founder SAR Group would be the chairman of Meridian Mobiles. This acquisition would open entry into the SAARC region including India.

"SAR Group has a sizeable commitment to this business vertical through its existing portfolio in Wynn Telecom; Wynncom has reached a run rate to take it to Rs 250 crore in 2012 and with the acquisition of majority stake in Fly mobiles, SAR Group will add approximately a similar size to its telecom portfolio to emerge as one of the top 5 companies in the Indian handset market," said Rakesh Malhotra, founder of SAR group.

This would be the starting base for SAR group consolidate and build in this industry and open entry into SAARC region.

“Our respective strengths are a natural fit and will help us address the fast evolving needs of today's consumers," said Prem Kumar, CEO, Meridian Mobiles.

SAR Group at present in its fold has Wynn Telecom (Wynn Phones); World Ace Service (independent service providers for GSM handsets) Luminous Water Technologies (operating in end to end water purification processes for domestic and large institutional usage); and Luminous Mobile Accessories (mobile chargers, batteries and other devices).