The change of guard at the company's handsets division is the sixth in as many years. LG India, which entered the handsets business in 2003, holds less than 2% market share.
The company spokesman declined comment on the appointment. This is Maheshwary's second year in the company. He had moved from Nokia to LG India at the end of 2010 as marketing head of mobile phones division.
Chopra was a senior executive in the company's electronics business before being appointed business head. A senior executive said, on condition of anonymity, that the handsets division's poor performance has started weighing on the Korean company's main electronics business in the country, pulling down overall revenue and profitability. LG India's revenues in 2011 grew marginally to Rs 16,200 crore, against Rs 16,000 crore in the previous year and an annual sales target of Rs 20,000 crore.
According to LG's trade partners and retailers, the company is moving out of entry-level and feature phones. The LG India spokesman said the mobile phone business continues to be a priority. "We are focusing on smartphones, as part of our global strategy, and not on the low-end mass segment. This year, we will have an impressive lineup of smartphones in our portfolio," he said.
According to a former head at LG India's handsets division, the company's mobile phone business failed to pick up due to a small product portfolio and the fact that it was always overshadowed by the durables and television divisions.
"The company made mistakes like appointing electronics and durables distributors for mobile phones; it never came up with India-specific models and failed to create a USP," the executive said, on condition of anonymity. "Korea lost faith on the business heads, who were removed in quick succession, even before they could implement their business plan," he added.
Globally, LG ranks fifth in handsets, after Samsung, Nokia, Apple and ZTE, with a 3.5% market share.
The company on Wednesday launched two phones in India: Optimus 3D MAX and Optimus L7. The smartphones, priced Rs 30,500 and Rs 19,900 respectively, are based on Google's Android platform.
According to trade sources, this is LG's first launch since Diwali. In comparison, Samsung has already brought eight smartphones into the market this year. However, former LG India MD KR Kim feels the market size for feature phones in India is much bigger than that for smartphones. "LG could not do good a job in both and lost focus. It is a big mistake. The headquarters and the Indian arm should consider whether it should exit the mobile phones segment, since it will impact overall performance," Kim said in an e-mail response.
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