CASE STUDY ON SUCCESSION PLANNING AT RANBAXY

Formation of the Company:
Ranbaxy Laboratories Limited was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a combination of the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir and Gurbax. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw an increase in scale.
Summary of the Case Study:
Ranbaxy ranks No. 1with a 2007 turnover of Rs 4,198.96 crore (Rs 41.989 billion) by sales, Ranbaxy is the largest pharmaceutical company in India. The case discusses about the CEO succession planning controversy at Ranbaxy
In the given case study it clearly states that there has been a big misunderstanding between Brar and the promoter (Bhai Mohan Singh) over Dr. Singh’s vision of shifting half the company over to US, this decision was strongly opposed by Bhai Mohan Singh. Regardless of this opposition, Brar went ahead with Dr. Singh’s plan and made the company to emerge in the top level in the international market globally. Therefore, his decision to step down as the CEO is both a forced one and a personal choice. The forced one is not shown directly but it is indirectly indicated by Bhai Mohan Singh which led Brar to step down on his own (personal choice). Below is a paragraph to prove that Brar’s decision was both a forced one and a personal choice.
Commenting on the conflicting views in the media regarding this issue, an analyst remarked, “We feel that this slight aberration is mainly because of the sentimental issues involved.” According to Business Today Magazine dated July 1999, for six years, Bhai Mohan Singh has harboured a major grouse; he attributes the fallout with his son to certain ''elements'' in the company. ''I realise that some people in Ranbaxy influenced his (Parvinder's) mind,'' he says, while refusing to divulge their identities. Therefore, the patriarch is apprehensive that history might be repeated. Two other things bother Bhai Mohan Singh. How would Brar & Co. decide to induct Malvinder without grooming him and giving him a chance to prove himself in a