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Our Bureau

Mumbai, April 1 A day after it announced the recast of its top management, drug-maker Wockhardt Ltd said, the “succession plan” was to mentor and develop the next generation of the promoter-family, under the stewardship of Mr Habil Khorakiwala.

“This decision was taken to develop a long-term succession plan in the best interest of the company and all its stakeholders,” the Wockhardt Chairman, Mr Habil Khorakiwala, said in a statement on Wednesday.

“This will give me an opportunity to mentor and develop the next generation leaders whilst I am fully involved in providing leadership, strategic vision and direction to the company’s business operations,” he clarified.

The assurance from the company management came after the Wockhardt stock plummeted 21 per cent on Wednesday, following the previous day’s announcement that had been made after market hours.

The company had said after its board meet on Tuesday, that Mr Habil Khorakiwala would be the Executive Chairman, and he would be replaced as Managing Director by his younger son Dr Murtaza Khorakiwala, pending shareholder approval. Similarly, the elder son, Mr Huzaifa Khorakiwala, had also been redesignated as Executive Director.

The estimated Rs 2,600-crore Wockhardt had also admitted that liquidity pressures and an Rs 3,500-crore debt, combined adversely with bad market conditions to affect its operations.

Wockhardt has also delayed the statement of its year-end review of its financial performance, saying that they were evaluating a possible restructuring of its businesses and subsidiaries.

Wockhardt shares fell to an intra-day low of Rs 68.45 on the BSE on Wednesday and closed 11 per cent from its previous close at Rs 76.

A total of 76.05 lakh shares of Wockhardt were traded on both the BSE and NSE, totally worth Rs 4,886.51 lakh.

More Stories on : Restructuring | Pharmaceuticals

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