Richard Branson’s Virgin Group has reportedly exited India, selling its stake in Virgin Mobile India to local partner Tata Teleservices (TTSL). According to sources at Hindu Business Line, TTSL has agreed to buy out the 50 percent stake held by the UK-based company for an undisclosed amount. The alliance was formed in 2008 and served two purposes: a 50:50 joint venture for marketing mobile services on a revenue-share basis, and a branding arrangement that allowed TTSL to use the Virgin brand in return for royalties. Sources say that the branding side of the agreement will continue for the foreseeable future with TTSL continuing to pay a royalty fee to Virgin for the next three years.

Neither company was able to confirm Virgin’s exit from the JV, but sources say the move was expected considering that TTSL is integrating all its telecom-specific businesses under one umbrella. TTSL is reportedly planning to merge its sales, marketing and distribution teams as part of a cost saving drive. The Virgin Mobile unit was thought to have been initially successful in targeting the Indian youth market, but has wilted of late. Analysts suggest that its decline may have coincided with TTSL’s link-up with Japan’s NTT Docomo, which led to the launch of the Tata Docomo GSM brand.