With failure of initial discussions and the strike yielding no response, employees of Zenotech Laboratories have resorted to a round-the-clock, relay hunger strike at the company's corporate office in Hyderabad.
The main demand in addition to payment of their salaries for April is to re-assign responsibilities of research and development (R&D) and manufacturing to Dr Jayaram Chigurupati, the founder and Managing Director of the Hyderabad-based biotech and generic injectables company.
Daiichi/Ranbaxy holds around 66.84 per cent of the equity in Zenotech Laboratories, while the promoter MD, Dr Jayaram Chigurupati, is the other major equity holder with 26 per cent. Troubles began when Daiichi acquired Ranbaxy (which was holding over 45 per cent in Zenotech then) and thereafter the open offer price from the Japanese major was contested by Dr Jayaram. The employees, at the Turkapalli R&D facilities of Zenotech have been on strike since May 3, 2011.
Delay in payment of salaries was attributed to non-receipt of dues to the tune of Rs 95 lakh from Ranbaxy by a company official.