Aurobindo Pharma, a leading drug manufacturer, has exercised a major reshuffle at the top with effect from June 1.
Its founder and Executive Chairman, Mr P.V. Ramprasad Reddy will relinquish his post. He will remain as a whole-time director.
Mr K. Nityananda Reddy, Managing Director, has decided to give up his responsibilities.
The Board has appointed him as Whole-time Director and designated him as Vice-Chairman.
In his place, the 43-year-old Mr N. Govindarajan, the present Chief Executive Officer (CEO), has been appointed as Director and Managing Director. Mr Govindarajan joined Aurobindo Pharma in October 2010. Before that he was MD and CEO of Shasun Pharmaceuticals Ltd.
Mr K. Raghunathan, an Independent Director has been made a Non-Executive Chairman of the pharma major's board from the same date.
The changes at the top are seen as an offshoot of the ongoing CBI investigation into the disproportionate assets case of Mr Y.S. Jaganmohan Reddy, MP of Kadapa and presently lodged in Chenchalguda jail. Aurobindo Pharma and Mr Nityanand Reddy find mention in the first charge sheet filed by the investigating agency.
Aurobindo and Hetero Drugs were allocated land to develop a pharma SEZ in Mahboobnagar district by the erstwhile Dr Y.S. Rajasekhara Reddy Government.
The Hyderabad-based pharma major, which logged consolidated net sales of Rs 4,567 crore for fiscal 2011-12, has also brought in Mr Ravindra Y. Shenoy as the Director and Joint Managing Director for a three-year period. Before joining the company, he was COO of Alkem Laboratories Ltd.
All these changes are subject to approval of shareholders at the ensuing Annual General Meeting.