A retail arm of the Reliance ADA Group, Reliance Webstore, has signed strategic pact with China’s Coolpad Communication to market and distribute its dual-mode smartphones in India.

Coolpad Communications is a subsidiary of China Wireless and the agreement marks its foray into the Indian market. Coolpad will invest over Rs 400 crore over the next three years towards the company’s capital expenditure plans as also for operational requirements. The funds will be raised through internal accruals and debt.

The units will liaise with Reliance Webstore teams across India to seek customer feedback and develop products for the Indian market.

ADAG has also introduced the ‘Hub-and-Spoke’ model for the first time in the country, to leverage Reliance World stores to act as distribution hubs for its handsets. It diversified into handset distribution business in addition to its current focus of handset retailing through Reliance World and Reliance Mobile stores.