Atul Sobti quits as Ranbaxy MD & CEO; Arun Sawhney steps in as MD, leaving CEO slot vacant
12 Aug 2010
Ranbaxy Laboratories Ltd, India's largest pharmaceutical company, announced today that its chief executive officer and managing director Atul Sobti has resigned.
Sobti, who had taken charge a year ago, is reported to have had major differences with the management of Daiichi Sankyo, which announced plans for a friendly acquisition of the Indian pahrma firm in June 2008 (See: Japan's Daiichi Sankyo to acquire majority stake in Ranbaxy)
Arun Sawhney, who is currently president of Ranbaxy's global pharmaceutical business, will take over as managing director, the company said in a statement.
Sobti's resignation takes effect from 19 August. Sawhney will take over as managing director from 20 August, the company said, but did not announce a replacement for the chief executive position.
Sobti decided it was the ''right time to step down and was on happy terms with the rest of the board,'' said Masaya Tamae, a spokesman for Daiichi Sankyo Co. The Tokyo-based company bought a 64 per cent stake in Ranbaxy in 2008. Daiichi thus controls the company, with two seats on the seven-member board.
Under Sobti's tenure, Ranbaxy recovered from its first net loss in eight years. The company loses a manager with experience working in Japanese-linked companies including Hero Honda Motors Ltd, 26 percent owned by Tokyo-based Honda Motor Co.
