It's raining resignations at Cipla

Kamil Hamied has quit Cipla, surprising those who had expected him to take a leadership role at India's third-largest drug company. A few months ago, Cipla founder YK Hamied had referred to nephew Kamil (33) and the latter's sister Samina Vaziralli (38) as family members who would carry on the family tradition.

A Cipla spokesperson said the younger Hamied was leaving to pursue his own interests and sought to downplay the suggestion that there might have been disaffection on his part, making the point that he had backed the move to bring in professional managers to run the drug maker. Cipla has been going through a spell of turmoil of late, with several changes at the top.

Hamied was chief strategy officer and managed European operations before Frank Peters was hired to take charge of the region. There has been talk about Hamied having an uncomfortable working relationship with Subhanu Saxena, who was appointed chief executive officer in 2012.

To be sure, many family run Indian firms are increasingly professionalising by hiring CEOs and other top managers with global experience and proven ability. Hamid's exit also raises questions about his induction on board, where he was expected to get an elevated role that would have taken him a step closer to the top.

Cipla has seen a top management reshuffle coupled with uncertainty over the business since the team led by Saxena took charge. Saxena is considered one of the highest paid CEOs in India, with a remuneration of Rs 21 crore according to 2013-14 annual report, and was hired with the intention of globalising the business and going into markets where Cipla had not ventured before. However, the ride has been anything but smooth and Saxena has had to face investors' queries over consistently low growth amid the changes at the top.

The resignation of Sameer Goel as India head within a year of joining has added to the speculation about the company's growth path. In April, CLSA downgraded Cipla over lack of clarity on the launch of the company's much-awaited dry powder inhaler (DPI) launch. Saxena cancelled an interview request from ET because of his travel schedule.

Source: http://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/successor-in-waiting-kamil-hamied-leaves-cipla-to-pursue-his-own-interests/articleshow/47794039.cms