Earlier in the day, reports of Micromax chairman Sanjay Kapoor’s possible exit from the company surfaced online. However, Micromax has dismissed any rifts between the top level management and has confirmed that Kapoor continues to be an “integral part of the company.” Also Read - Micromax to bring a budget phone with price likely under Rs 10,000: Check launch dateAlso Read - Micromax In 2b, In 2c in the works: Listed on Geekbench ahead of launch
Micromax is reportedly looking to sell as much as 25 percent of its stake to Alibaba, and the deal may see fruition by the end of June. Amidst this fundraising, the promoters and Kapoor were reportedly having difference of opinion regarding the company’s future business strategy. It was even reported that as soon as the deal is done, Kapoor may exit the company. Also Read - 5 delayed smartphone launches in India due to COVID-19 in May 2021
However, Micromax has told BGR India there are no such disagreements between the management and promoters. Mr Sanjay Kapoor continues to be our chairman and an integral part of the company. Micromax board and management work under clear principles of consensus, and they are working cohesively (on all strategic and operational issues) with complete unanimity to build Micromax s leadership in all our markets, a Micromax spokesperson told BGR India.
Kapoor joined Micromax from Airtel, where he was the CEO for South Asia for three years. Kapoor feels that online sales is the way forward, while the promoters want to stick with traditional offline retail as it still brings 70 percent of revenue to the company. Rahul Sharma, Rajesh Agarwal, Sumeet Kumar and Vikas Jain are the four founders and they collectively own a little less than 80 percent of the company.
The final call on Micromax’s future moves will be taken by the investment committee at Micromax that comprises of promoters, top management and existing investors.