May

26

Ranbaxy Management Shakeout - Malvinder Singh Leaves; Atul Sobti New CEO

Filed Under Healthcare, Indian Companies, Indian Stock Market | Leave a Comment

Ranbaxy Laboratories Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 24, 2009, has transacted the following:

1. Mr. Malvinder Mohan Singh stepped down as Chairman, CEO & Managing Director of the Company with immediate effect

2. Mr. Sunil Godhwani, Mr. Balinder Singh Dhillon and Mr. Atul Sobti resigned from the Directorship of the Company with immediate effect.

3. Dr. Tsutomu Une, Non-Executive Director was elected as the Chairman of the Board of Directors of the Company

4. Mr. Atul Sobti was appointed as CEO & Managing Director of the Company for a period of three years effective May 24, 2009, subject to requisite approvals.

Key Takeway: Daiichi, the Japanese parent company of Ranbaxy, wants clear operational control over Ranbaxy to get the company to profitability. The last few quarters have been full of losses, and it could not continue. Change has probably been difficult with continuing presence of Malvinder Singh who represents the past at Ranbaxy, and it would have been difficult for Daiichi to rally executives on the new business plan. Anyway, Malvinder had exited Ranbaxy in spirit the day he sold his entire stake to Daiichi. Looking forward to some bright new venture from him.

May

21

Reliance Industries Gets Govt Approval For Piped Gas Deal

Filed Under Energy, India Business, Indian Companies | Leave a Comment

Reliance Industries Ltd. (RIL) has received government approval to sign agreements with firms supplying gas to households and car owners in major cities.

RIL got Indian govt approval for the allocation of gas from RIL’s Krishna-Godavari basin to gas distribution firms (CGD) in Delhi as well as Mumbai, Ahmedabad, Gandhinagar, Agra, Indore and Ujjain.

This move is significant for the following reasons.

  • The natural gas used in a compressed form or supplied to homes through pipes is a far cheaper alternative than LPG, diesel or petrol. This move by the government will result the distribution firms in the form of adding more consumers and generate more revenue once the gas becomes available.
  • The cost of transport for the commuters will drop, who are using buses, taxis and auto rickshaws using CNG. This is expected to benefit RIL in a big way.
  • RIL is already selling natural gas to fertilizer and power firms and the addition of CGD firms will help increase its revenue and profitability. [source : Asian Cerc]

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