Chitkara is new LG CMO, Agarwal sales head

21 Dec,2012

By Writankar Mukherjee


LG Electronics India, the country’s largest electronics company, has replaced its heads of marketing and sales as part of a top-level reshuffle seen as a reaction to its failure to keep pace with revenue target.


LK Gupta, chief marketing officer, has put in his papers after leading the role for five years and will be replaced by Sanjay Chitkara, who was earlier heading sales administration. Amitabh Tiwari, who was heading sales, will switch roles with Sanjeev Agarwal, who was the head of business excellence.


They will report directly to company MD Soon Kwon, a senior company executive said.


“Probably, the headquarters felt a big change was required since LG India is falling short of its revenue target,” the person said, requesting anonymity. “While changes in top management is an annual affair undertaken every December, but never before have there been such sweeping changes like now.”


A detailed questionnaire sent to LG India’s corporate communications team on Wednesday to confirm the management changes and its business plans remained unanswered.


The company has also made some changes in its product group heads and split the role of the head for refrigerators.


Manish Gupta, the product group head for televisions, will now head microwave oven. Vijay Babu, who was heading microwave ovens, will look after frost-free refrigerators while Praveen Gosain-presently regional manager for East zone two that includes markets like Orissa, Jharkhand and Bihar-will head direct-cool refrigerators. Vishal Karan, who was the regional manager for Bengaluru, has been made the chief of modern trade. All the changes will be effective from January.


While LG India is yet to give any indications about its sales this year, trade sources expect the company to fall short of its revenue target of 20,000 crore for the current fiscal. Last year, it grew marginally to 16,200 crore from 16,000 crore in 2010, falling short of a target of 20,000 crore.


Trade sources say during Diwali, LG sales grew by 10% against a target of 15%-20% growth.


LG has been trying to reposition itself as a premium brand. However, industry insiders say it has made limited success in this regard and Indian consumers regard Sony and Samsung more premium brands. The only major exception is the 3D TV segment where LG has emerged the market leader with 37% share, as per GfK-Nielsen retail audit for January-October 2012.


India is identified as one of LG’s key growth markets and the company had earlier expected its Indian operations would outgrow the parent company by 2015.


Source:The Economic Times

Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved


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