Industry News

LG to restructure its operations in India

India: In a move to strengthen its ground operations in the country, LG Electronics India has restructured and split sales into two geographical areas in a strategic move to improve its ground presence before the festive season The country's largest white goods maker has clubbed the north and east and named it India One. India Two covers the south and west regions of the country.

This kind of strategy was also adopted by Samsung which split the Indian market into two geographies last year.

The company has also shuffled some roles in the company. Vinod Kumar, who served as the national head of customer service, has been assigned with the role of chief of the goto-market strategy focusing on sales process innovation, shop floor branding and managing shop floor sales executives. Further, Rahul Tayal has been appointed as the head of strategy and innovation, and would be responsible for modern trade, brand shops and the online business.

The changes which were announced internally on Thursday are anticipated to be implemented in July. 

According to TechSci, the move is anticipated to increase market share of the company as the sales during the festive season in India Shoots up and this strategic move would enable the company to concentrate on different geographies without much hassle.

According to a recently published by TechSci Research, India Air Conditioners Market Forecast & Opportunities, 2020, the country’s air conditioners market is projected to grow at a CAGR of over 10% during 2015-20. The Indian air conditioning market is divided into two major segments: commercial air conditioners (VRF, Chillers & Others) and Room Air Conditioners (Split and Window air conditioners), among which, residential air conditioners segment witnessed a higher revenue share in 2014. This domination of room air conditioners segment is expected to continue over the next five years. Currently, the market for air conditioners in India is dominated by Voltas, followed by LG, Daikin and Samsung.