Singh's sons Malvinder Mohan Singh and Shivinder Mohan Singh have endorsed the appointments. The two brothers said in a statement that they firmly believe in distinguishing "ownership" from "management" and the "critical importance of the management to be based entirely on the principles of competence and merit for maximisation of value for all shareholders."

Brar's five-year tenure, which was earlier scheduled to begin from October 1, had to be advanced due to Singh's death. As per the earlier plan, Khanna was to take over as vice-chairman with effect from October 1.

The board of directors paid rich tributes to Singh and recognised his sterling role in creating a strong, vibrant and well-knit company.

Malvinder and Shivinder, in atribute to their father, said Singh had implemented his ideals and principles, including professionalising the management. Over the years he successfully built, nurtured and empowered a vast pool of dedicated and talented managerial, scientific and technical personnel in the company in all spheres of its operations, they said in a written statement.

"Khanna succeeding him as the chairman, brings with him a wealth of wisdom and experience while Brar assuming the position of CEO and MD reflect, on one hand, Singh's commitment for this position to be held by the most competent professional in the company and, on the other, continuity and stability of the executive management team that Brar heads as the CEO with his intimate knowledge and experience of the affairs of the company that he has served with distinction and dedication for over 22 years," the two brothers said.

Khanna's appointment as Ranbaxy chairman was expected in the wake of Singh's terminal illness. A 1961 batch IAS officer of Punjab cadre,Khanna retired as commerce secretary after holding several important positions including that of Punjab chief secretary in his 35-year career.

A close confidant of Singh, Brar joined Ranbaxy in 1977 and gradually rose to become its president in 1996. He is credited with Ranbaxy's breakthroughs in the international market besides playing an important role in making it India's largest pharmaceutical company.

Singh had announced Brar's appointment as managing director with effect from October 1 after the company's annual general meeting at Mohali on June 8.

Unlike most Indian businessmen, Singh did not want his sons to become managing director or chairman saying "the most-competent person should run the company". Singh had stated after the company's AGM that just because Malvinder and Shivinder were his sons did not entitle them to occupy the top posts.

Singh had also announced a code of practices for corporate governance to be implemented at Ranbaxy including segregation of the positions of "chairman ofthe board" and "chief executive officer and managing director". He had also announced setting up of empowered committees of the board with majority of non-executive directors to over look functioning of key departments of the company.

Ranbaxy was just a Rs 36-crore company when Singh took over as managing director in 1982. The company's turnover has leapfrogged to Rs 1,400 crore in the past 17 years. Its market capitalisation grew from Rs 3.5 crore to over Rs 7,300 crore.