Professionals take over
06 August 2004
The promoters of Shasun Chemicals and Drugs Limited, among the world's largest producers of ibuprofen, hand the reins to professionals. Venkatachari Jagannathan, interviews S Vimal Kumar, one of the co-promoters, to find out why
Chennai: Promoters divorcing themselves from daily management activities is becoming the norm at major corporate groups in the city. Taking a cue from this, the world's largest producer of ibuprofen, which also operates a global scale ranitidine plant, the 5,696-ton capacity Shasun Chemicals and Drugs Limited (SCDL) has hit the change button.
Inspired by the promoters of the Rs5,200 crore-turnover Murugappa group's strategy of distancing themselves from the day to day management by inducting professionals to run their organisation, SCDL too has decided to follow suit.
"From owners managing the business, we are now looking at managing the ownership. Now our primary function is to draw the future growth strategies and focus on maximising shareholder wealth," remarks S Vimal Kumar, finance director.
Kumar and his two brothers, Dr S.Devendra (managing director) and S Abhaya Kumar, (joint managing director) are the promoters of the Rs273 crore-turnover company.
SCDL also undertakes contract research for the pharma multinational, Eli Lilly. The Indian company has been chosen by Eli Lilly as a preferred supplier for three of its active pharmaceutical ingredients (API). In addition Eli Lilly has transferred the technology to SCDL to manufacture Cycloserine, an anti-tuberculosis drug for its global requirements.
Satisfied with SCDL's manufacturing success of hydroxypropylmethyl cellulose phthalate (HP MCP), an excipient or non-active ingredient of a drug, the US-based $5.8 billion-Eastman Chemical Inc, is strengthening its relations with the Indian company. Recently, the two companies signed an agreement to explore collaboration in the area of performance chemicals.