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.