Smartphone maker LAVA faces leadership shakeup as top executives resign
What's the story
LAVA International's Managing Director Sunil Raina and Chief Financial Officer Rajesh Sethi have resigned from their positions, Moneycontrol reported. The exits come as the Indian smartphone brand is looking for fresh capital and growth opportunities to revive its business. Co-founder Hari Om Rai, who stepped down as managing director in 2023, has returned to the role of MD.
Strategic shift
Leadership changes amid strategic shift for LAVA
The leadership changes also come as LAVA looks to expand its presence in the sub-₹20,000 smartphone segment.
This is a strategic move to capitalize on opportunities as Chinese manufacturers focus on mid-to-premium devices due to rising component costs.
The Indian government's renewed push for globally competitive domestic smartphone brands has also opened up avenues for homegrown players like LAVA.
Career transition
Key leadership transitions at LAVA
Raina, who joined LAVA in 2010 as VP and CMO, has held key leadership positions while the company rebuilt its smartphone business.
He was appointed MD in 2023 after Rai's arrest by by the Enforcement Directorate (ED) in a money laundering case.
Now, Raina is leaving to explore business opportunities outside LAVA.
Meanwhile, Sethi will continue with the company until December as part of his notice period.
Financial strategy
Funding and growth talks for LAVA
LAVA is looking to raise around ₹500-600 crore from various investors to fund its expansion and possibly restructure part of its debt.
The company has also been in talks with promoters of electronics manufacturers Dixon Technologies and Amber Enterprises, in their personal capacities.
Despite a small market share, LAVA's smartphone business grew by 60-70% this year, even as the overall market contracted.
Strategic moves
Boosting domestic production and supporting Indian-owned handset brands
LAVA plans to apply for the government's ₹62,500 crore Mobile Phone Manufacturing Scheme (MPMS) to boost domestic production and support Indian-owned handset brands.
The scheme offers incentives linked to eligible sales, with additional benefits for domestic component sourcing and investments in design and R&D.
Recently, LAVA won half of the UP government's tender for 25 lakh tablets, which is another major win for the company. Acer secured the other half.