Dutch multinational Akzo Nobel has decided to streamline its management structure and introduce a new operating model for its decorative paints business.
It has also embarked on a major reshuffle of its key management personnel across its markets.
As a part of the plan, Amit Jain, Managing Director, Akzo Nobel India, will be Akzo Nobel NV Director, Decorative Paints - North & Central Europe, based in Amsterdam, from January 1 next year.
Until then he, however, will continue in his current position.
The North and Central Europe, once the largest market for Akzo Nobel, now needs to turnaround.
“This change has no implications for the Indian business apart from getting benefit of R&D, brands and expertise of a highly successful Asian (decorative) business,” Jain told Business Line in an e-mailed response from Amsterdam.
The proposed structure would be divided into five regions instead of the existing eight -- North and Central Europe, South-East Europe and Africa, India and South-East Asia, Latin America, China and North Asia.
Four current European regions are being reduced to two. The Asian business regions are also being reorganized.
The planned changes – due to come into effect on January 1, 2014 – will involve reducing the number of senior management teams and introducing a new management structure for decorative paints business, Akzo Nobel NV made it clear early this week.
According to the company, the intended changes will involve a number of potential relocations.
Last month, Partha Sarathi Basu, whole-time Director and CFO of Akzo Nobel India, was moved to Akzo Nobel NV headquarters.
The company said a number of key global functions would also be centralised, including human resources, research and development, supply chain, finance, sourcing and information management. This is expected to bring about significant cost savings and efficiency benefits.
The changes come after Akzo Nobel’s recent divestment of the decorative paints business in North America.