Following the resignation of Chairman Sanjay Kapoor in August last year, Micromax could soon see yet another top brass on his way out. Micromax Informatics CEO Vineet Taneja seems all set to depart as the company promoters don t seem to be favor of hiring top professionals for leading the brand, ET reports. Also Read - Micromax In Note 1 Pro tipped to launch in India by September endAlso Read - Micromax In 2b review: Is this the best smartphone under Rs 10,000 right now?
One of Micromax s top officials who quit recently told ET, “The promoters want to control the business and have not left much free space for the professionals, which has led to so many exits.” Also Read - Micromax In 2b budget phone goes on sale today Flipkart: Should you buy it?
The displeasure among the company s top management first emerged back in April last year with reports claiming that promoters and Kapoor were not on the same page regarding future business strategy. He was hired to promote the brand, focus on new products and raise money. And while Kapoor felt that online sales could be the way forward, promoters were keen to stick with traditional brick and mortar selling strategy, as it brings around 70 percent of the revenues.
According to an earlier report on ET, Sanjay Kapoor was asked to step down from his post of company Chairman with allegations of misappropriating fuel bills. However, in his resignation letter, Kapoor did mention that he will take legal action against the company and its directors. When Kapoor joined, he was promised 1 percent share in the company s stock options. However, Micromax intentionally terminated him so as to deny him of his stock options, Kapoor said.
With the CEO gone, Micromax promoters Rahul Sharma, Rajesh Agarwal, Sumeet Kumar and Vikas Jain who hold less than 80 percent stake in the company are said to take charge of day-to-day operations. Taneja, who was formerly heading Samsung India, joined Micromax in July 2014. Before Samsung, Taneja had his stints at Bharti Airtel and Nokia.
Rajesh Agarwal, one of the company s co-founders looks after human resources, sales and support, LED television and international business, whereas Vikas Jain, looks after finance and tablets business. While Rahul Sharma takes care of product and marketing of the company s the co-brand YU, and Sumeet Kumar looks after government liaison, IT, research and development.
Taneja will join the list of other top brass Prosenjit Sen (VP of sales), Khaja Muzaffarullah (head of feature phones), Teja Gudena (VP for R&D) and Badal Bagri (CFO), who quit the Micromax in the past couple of months.
One of the earlier rumors also pointed that Micromax promoters are in talks with Japanese communication giant Softbank and Chinese e-commerce giant Alibaba to sell stakes and raise funds for an initial public offering (IPO). However, the discussions don t seem to have gone as planned, an industry executive told ET.