Happy to play the manager
With one stroke of his pen, Malvinder Mohan Singh has transformed himself from being the owner of an Indian MNC to a CEO of a subsidiary of a Japanese company.
By ET Bureau |
With one stroke of his pen, Malvinder Mohan Singh has transformed himself from being the owner of an Indian MNC to a CEO of a subsidiary of a Japanese company. But there is nothing defensive or apologetic about him. In an interview with ET, he defends his decision. He says his father would have done the same and asserts that it���s important to differentiate ownership from management. Excerpts from the interview..
Your family has owned Ranbaxy for over 50 years. What were the emotions running through your mind when you were negotiating the transaction? What are you feeling this moment?
I want to transform the company to the next level. Globally, an alliance between big pharma companies and generic companies is the way forward. Yes, we will become a subsidiary, but we will be part of a $30bn global group. This transaction results in an alliance between the largest Indian pharma company and the second largest Japanese drug maker. It creates the 15th largest drug company in the world. Ranbaxy will become debt free. There will be continuity in management. I have always considered myself to be a professional and a trustee of employees and not an owner.
Do you think your father would have endorsed this deal?
During the discussions I kept on asking myself what dad would have done if he was around. I think he would have done exactly what we are doing. He taught me to always keep the company ahead of the family.
In the past, you have denied talks of selling out. What made you take this decision?
We have always said the drug industry needs to change. We discussed various permutations and combinations before finally deciding this is the best option for the company. I think it���s important to divorce ownership from management. Today, we are part of the top 15 pharma companies in the world. It���s great for India.
When did negotiations with Daiichi Sankyo begin?
A few months ago they approached us.
What impact will this transaction have on the Indian pharma industry? Do you see other promoters of Indian drug makers eye similar deals?
I hope this begins the process of reflection in the pharma industry. It���s time for people to explore new options and differentiate between, ownership, control, and management.
What do you plan to do with the proceeds of the sell-out? Do you plan to hire a consultant for identifying new business?
Shivinder (Malvinder���s younger brother and CEO of Fortis Healthcare), Sunil Godhwani (CEO of Religare) and I are the consultants. We have a good idea of what we want to do and will let you know shortly. Healthcare and financial services will be our key businesses. We are also looking at evaluating other opportunities.
You have just done the largest sell-out in the history of corporate India. You have earned more money than anyone could count. Why would you want to remain the CEO of Ranbaxy?
I won���t call this as a sellout. This is a strategic deal. Ranbaxy is my life. It is in my blood. This is my profession. I love the business.
Your family has owned Ranbaxy for over 50 years. What were the emotions running through your mind when you were negotiating the transaction? What are you feeling this moment?
I want to transform the company to the next level. Globally, an alliance between big pharma companies and generic companies is the way forward. Yes, we will become a subsidiary, but we will be part of a $30bn global group. This transaction results in an alliance between the largest Indian pharma company and the second largest Japanese drug maker. It creates the 15th largest drug company in the world. Ranbaxy will become debt free. There will be continuity in management. I have always considered myself to be a professional and a trustee of employees and not an owner.
Do you think your father would have endorsed this deal?
During the discussions I kept on asking myself what dad would have done if he was around. I think he would have done exactly what we are doing. He taught me to always keep the company ahead of the family.
In the past, you have denied talks of selling out. What made you take this decision?
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We have always said the drug industry needs to change. We discussed various permutations and combinations before finally deciding this is the best option for the company. I think it���s important to divorce ownership from management. Today, we are part of the top 15 pharma companies in the world. It���s great for India.
When did negotiations with Daiichi Sankyo begin?
A few months ago they approached us.
What impact will this transaction have on the Indian pharma industry? Do you see other promoters of Indian drug makers eye similar deals?
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I hope this begins the process of reflection in the pharma industry. It���s time for people to explore new options and differentiate between, ownership, control, and management.
What do you plan to do with the proceeds of the sell-out? Do you plan to hire a consultant for identifying new business?
ADVERTISEMENT
Shivinder (Malvinder���s younger brother and CEO of Fortis Healthcare), Sunil Godhwani (CEO of Religare) and I are the consultants. We have a good idea of what we want to do and will let you know shortly. Healthcare and financial services will be our key businesses. We are also looking at evaluating other opportunities.
You have just done the largest sell-out in the history of corporate India. You have earned more money than anyone could count. Why would you want to remain the CEO of Ranbaxy?
I won���t call this as a sellout. This is a strategic deal. Ranbaxy is my life. It is in my blood. This is my profession. I love the business.
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