Daiichi Sankyo-owned Ranbaxy Laboratories’ woes are not restricted to the US market alone, where the company paid $500 million to the federal drug watchdog to settle a long-pending compliance dispute. Its India operations, which shifted out of Ranbaxy’s Gurgaon headquarters to Mumbai a year back, is seeing an exodus of key management personnel, which experts said will hurt its business. India is Ranbaxy’s second largest market after the US, contributing around R2,500 crore or 20% of its total sales.
V Vijayendran, one of the business heads reporting to the chief executive of India operations, Yugal Sikri, has left the company, while another, Mahendra Bharadwaj, was tranferred to Africa. Rajbir Sandhu, head of the pharmaceutical strategic business unit (SBU), the largest, has left to join Alkem, a mid-sized pharma firm in Mumbai. Both these positions have not been filled up, instead, other senior SBU heads have been redesignated as cluster heads, so that they can handle more than one SBU.
In the organisational hierarchy, the company has 15 SBUs, like pharma, cardiovascular and intensiva (for hospitals), and heads of these SBUs report to the two business heads, who in turn report to Sikri.
Debajit Sensharma, the CFO for the India operations, has left the company to join a small pharma company in Delhi and so has Dinesh Jumrani, the second senior-most in HR, who moved on to Alkem. Rajiv Roy Chaudhury, who used to head commercial and logistics, has left to join BAE Systems in Delhi as finance director.
“There is so much resentment among around 150-180 senior executives who were shifted to Mumbai, since it meant uprooting them and their families from Delhi, where they have spent much of their career,” said one of the senior executives who left the company last year. “Many more are on the verge of leaving.” He did not want to be quoted as the matter is sensitive.
Responding to queries from FE, a Ranbaxy spokesperson said, given Ranbaxy’s concern for its employees, the relocation of staff to Mumbai was handled with the greatest sensitivity and transparency. All manner of assistance was provided to employees