Ranbaxy merger: Sun Pharma readies new leadership team
Taking forward its acquisition of Ranbaxy Laboratories , Sun Pharma has put in place a team of top executives, including Dilip Shanghvi’s son Aalok Shanghvi, to lead the businesses of both the organisations. While the leadership team is comprised mainly from the representatives of Sun Pharma, it also has executives from Ranbaxy, drawing upon expertise, experience and contribution of the chosen leaders from both the organisations. Aalok would head emerging market businesses, currently under folds of Sun and Ranbaxy, while Sun’s India business head Abhay Gandhi will take charge of domestic business of both the companies, sources said. Kal Sundaram, who is CEO of North America business for Sun Pharma will lead the North American business for both the organisations. He will also continue to be CEO of Taro. The group is looking into a new role for Ranbaxy CEO and MD Arun Sawhney. “The leadership team for Sun Pharma as a combined entity has been announced internally. This leadership team comprising members of Sun Pharma and Ranbaxy draws upon the strategic expertise, collective industry experience and proven track record of chosen leaders within both the organisations,” Sun Pharma’s official spokesperson said in an e-mailed response. They have been selected based on their contribution and performance since last couple of years after several rounds of discussions supplemented with feedback from a talent mapping process undertaken by a global firm, he added. The new team becomes effective from the date of merger, the spokesperson said. On the role that the current CEO and MD of Ranbaxy Arun Sawhney will have, he said: “An appropriate role is currently being evaluated for Arun”. Similarly, “there are many other senior leaders in both organisations who will be contributing to our success in the future and we will need all their support and involvement in driving the future goals of the combined entity. Currently, we are exploring ways to involve them to contribute to the combined entity,” the spokesperson said. Sun Pharmaceutical Industries has received most approvals for the USD 4-billion merger deal. However, Competition Commission of India (CCI) has given a conditional approval to the deal and has asked the two companies to divest some key products to address the anti-competitive issues. Ranbaxy Labs stock price On March 12, 2015, at 15:05 hrs Ranbaxy Laboratories was quoting at Rs 813.25, up Rs 18.25, or 2.30 percent. The 52-week high of the share was Rs 827.65 and the 52-week low was Rs 353.00. The latest book value of the company is Rs 25.79 per share. At current value, the price-to-book value of the company was 31.53.