With the exit of Vineet Taneja as CEO of home-grown mobile handset maker, Micromax Informatics, the management of the company is back in the hands of the promoters. The development comes at a time when the company is facing tough competition from new Chinese companies that undercut prices of domestic firms.
In a statement, Micromax, confirmed the exit of Taneja as chief executive and the re-entry of the four co-founders in managing the day-to-day operations at the company. Taneja’s exit comes after Sanjay Kapoor exited the company as its executive chairman in August last year. Kapoor was formerly Bharti Airtel’s CEO for India and South East Asia.
Kapoor and Taneja were brought into the company as independent professional management, in mid-2014, after the four co-founders — Rajesh Agarwal, Rahul Sharma, Vikas Jain and Sumeet Kumar – decided to step back and run the company with professionals, as part of their plans to go public.
Micromax is currently facing tough competition from Chinese handset makers.
“The whole industry is facing cut in margins because of Chinese companies,” Tarun Pathak, senior telecom analyst at CounterPoint Research told FE. He added that Micromax could be looking at changing its strategy from being a hardware company to a software-driven company with the recent changes in management. For instance, Micromax had last month named Shubhajit Sen, as its chief marketing officer. Sen moves in from GlaxoSmithKline where he was executive vice president for marketing, and replaces incumbent Shubhodip Pal.