Micromax CEO Vineet Taneja steps down

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http://scroll.in/latest/804512/micromax-ceo-vineet-taneja-steps-down

Taneja was CEO of the country’s largest Indian handset maker for two years, and his exit makes him the latest top executive to resign from the company. A series of senior executives, including chairman Sanjay Kapoor, have left the company in the past few months. The Economic Times reported that Kapoor, who was forced to leave because of financial irregularities, filed a case against the company in the Delhi High Court.

Why ? and what is happening

http://www.thehindubusinessline.com...e-of-indias-smartphone-biz/article8348998.ece

A year ago, Micromax vaulted past Samsung Electronics Co Ltd to become India’s leading smartphone brand. Today, its market share has nearly halved

lost half their share within a year. how ?

tensions arose soon after between founders and the newly hired executives, six former executives told Reuters. These conflicts undermined Micromax’s attempts to raise funds for expansion, say former executives. Last May, Alibaba walked away from a mooted $1.2-billion purchase of a 20 per cent stake, citing a lack of clarity on growth plans, according to one executive.

After Alibaba walked away, Micromax struggled to attract other investors who would have been key to Micromax’s plan to invest in software R&D and hardware design. The company was forced to scale down the in-house R&D project

have always seen micromax as a future htc. htc does not make any of their components, they get components from others and design thier phones. an oem to others for well over a decade.

So losing funding to create an r&d unit is a setback. it means creating a phone which is unique with an identity will take longer.

So who grabbed their share ?

In 2015, Chinese brands doubled market share to 18 per cent, according to Counterpoint Research, taking away business from Indian budget phone makers such as Micromax.

and samsung.

 

[bking]

It's about time Asin realised that she has made a huge mistake.

 

[adventureguy]

Any commerce guy willing to guess the next few years of this company? Their USP was decent phones at cheap prices but now that is nullified.

They had time and money to spend on R&D or grow brand loyalty but they didn't. Now, I don't see a way forward to profits for this company in current scenario

 

[kippu]

their usp was make it in china and sell it here , now the chinese are directly selling and micromax got nothing