Axiom Telecom of the United Arab Emirates and India's top listed retailer, Pantaloon Retail India Ltd, have entered a joint venture agreement to distribute mobile handsets.

The equal venture, with an equity base of up to $40 million, will distribute mobile handsets and accessories, and set up service centres in India, Pantaloon chief executive Kishore Biyani said.

The venture is aiming at revenues of about $200 million in the first year of operations, he said, as it taps the world's fastest-growing mobile services market.

Shares in Pantaloon climbed as much as 4.45 percent on Friday to a record high of 545.90 rupees.

India adds more than 6 million subscribers each month, who are lured by tariffs as low as one US cent a minute.

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