Winds of change are blowing across Dr Reddy's Laboratories (DRL) as far as the top management is concerned, with the board of directors at the pharma major deciding to have separate roles for the chairman and the managing director and CEO.
DRL has appointed Satish Reddy as chairman of the board — he had previously held the position of vice-chairman, managing director & COO. While GV Prasad will continue as the CEO and provide leadership to the company in an executive role, he has also been appointed as the co-chairman and MD.
While the sudden senior level changes have raised many eyebrows in the industry, the company, said the move was aimed at separating the roles of chairman and the CEO and managing director. “We want to reassess and reorganise the corporate leadership roles and stabilise the corporate governance in the company,” Prasad, co-chairman, said.
Prasad was appointed as the chairman of the board in addition to his existing role as CEO in April last year following the death of the founder and chairman Kallam Anji Reddy.
Both Prasad and Satish are related to Anji Reddy. While Prasad is his son-in-law, Satish is son of Anji Reddy.
“The role of chairman assumes significance as it drives corporate governance across the board besides government relations and is the custodian of the corporate brand,” Prasad said, adding that the senior level management changes will drive further growth and will develop dealership across the firm.
Incidentally, Satish is actively involved in various industry associations such as the Indian Pharmaceutical Association (IPA) and leads the corporate social responsibility efforts at DRL.
“In his new role, he can contribute significantly to shaping the direction and course of action on these fronts, in addition to being a custodian of the corporate brand and driving governance processes and agenda of the board,” Prasad said.
Satish also focuses on child rights, sustainable livelihoods and safe drinking water and is a leader in providing academic support and daily meals to more than 1.3 million children in government schools across India.
“It is an honour to be nominated as chairman of the board,” said Satish. “Prasad and I have worked together to diligently execute the exemplary vision set by our founder Anji Reddy over the past two decades to emerge as a leading pharmaceutical company. By reorganising our roles, we should be able to give further focus to