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.