Aurobindo Pharma rejigs execs in wake of ‘Jagan scam’

Drugmaker Aurobindo Pharmaceuticals has replaced a couple of its top executives after they were named by the Central Bureau of investigation in its chargesheet against MP and YSR Congress chief Y S Jagan Mohan Reddy in a graft case. Reddy is now in judicial custody.

Aurobindo Pharma has notified the stock exchanges that founding chairman P V Ramprasad Reddy will quit as executive chairman from 1 June; and K Nithyananda Reddy, the managing director, will also relinquish his responsibilities as managing director from the same date.

However, both will continue as whole-time directors on the board; and Nithyananda Reddy would also continue as the vice-chairman.

K Raghunathan, a chartered accountant and an independent director on the company's board, has been appointed as non-executive chairman, replacing Ramprasad Reddy. N Govindaran, Aurobindo's chief executive (API and Crams) will replace Nithyananda Reddy as the company's new managing director. Ravindra Y Shenoy has been appointed as the joint managing director.

''Considering the significant contribution made by N Govindarajan as one of the top executives of the company in the growth and development of the company, it is proposed to appoint him as managing director of the company with effect from June 1, 2012 for a period of three years,'' the company said.

The company statement said the revamp was to professionalise the leadership, but the timing suggests otherwise.