LG home appliances to be one family

LG home appliances to be one family

Author | Source: The Economic Times | Thursday, Jan 04,2007 8:26 AM

LG home appliances to be one family

LG Electronics India has effected an internal restructuring of the organisation by consolidating separate home appliances wings under a single vertical. The consumer durable company has merged three categories of products - washing machine, vacuum cleaner and microwave - with the refrigerator business to form a new kitchen appliances business group.

The integrated business group with sales of about Rs 2,200 crore would be headed by Anil Arora. Mr Arora is currently the head of the refrigerators wing.

Rajiv Jain, who was heading the washing machines business group including microwave ovens and vacuum cleaners, has been given a new portfolio. He would head product planning, strategic channel management and the Blue Ocean Group.

Product planning portfolio would involve new product development while Blue Ocean Group would take care of innovations. When contacted by ET, LG Electronics India director (HR) YV Verma said: “The idea behind the creation of the kitchen appliance group was to bring synergy. We wanted to club all the product categories whose purchase decision is made by the housewife. At the executives level, everyone has been elevated.”

LG has made three other executive elevations. R Manikandan and HS Bhatia who were product group heads of IT and mobile communications respectively, have been made business group heads of their business wings. This apart, Dhananjay Chaturvedi who was heading institutional sales has been made business group head of institutional as well as retail sales.

Product planning, which has been allotted to Rajiv Jain, was earlier under Sandeep Tiwari, who doubles up as the head of marketing. His designation would remain unchanged as head (marketing) and would continue to oversee advertising in particular.

Significantly, this is the first major change that the new chief of Indian operations Moon B Shin has introduced after taking over as the boss this week. Such internal movements were usually associated with the management style of the outgoing boss of LG India, KR Kim.

Under Mr Kim, LG had witnessed several cross movements of executives and combinations of executive portfolios. Following the restructuring, LG would now have six broad verticals - consumer electronics, kitchen appliances, airconditioners, IT, mobile communications and institutional & retail sales.

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