Kishore Biyani''s Pantaloon Retail India Ltd has entered a joint venture agreement with Axiom Telecom of the United Arab Emirates to distribute mobile handsets.

The two companies will form a 50:50 joint venture with an equity base of up to $40 million, for wholesale and retail marketing of handsets and accessories and after sales service market to distribute mobile, and set up service centres in India, the world''s fastest growing telecom market.

According to Kishore Biyani, group chief executive, Pantaloon Group, "There is no doubt that mobiles will soon be the single largest electronic products retailed in the country." He said that the venture expects revenues of about $200 million in the first year of operations.

The joint venture would be carried out through a new company, which will focus on developing backend-sourcing infrastructure for Pantaloon Retail''s existing telecom retailing business, to enable it to expand

Pantaloon, the flagship of the Future Group, operates department stores, hypermarkets and malls, besides specialised formats for footwear, furniture and consumer electronics.

Faisal Al Bannai, CEO, Axiom Telecom LLC, "We believe that our expertise in distribution and after sales service operations, and Future Group''s understanding of the Indian consumer and the marketplace, will create a win-win for us, as well as the Indian consumers."

Rabo India Finance Ltd. and Alpen Capital (ME) Limited, Dubai were joint financial advisors to the transaction.