Apollo Hospitals has decided to follow the footsteps of several other industrial groups by forming a family council, which will assign responsibilities to family members and look at growth strategies.
The seven-member council will be headed by Prathap C Reddy, the 80-year-old founder-chairman of India’s biggest hospital operator, and would also comprise his four daughters and two professional advisors.
Confirming the developments, Sangeetha Reddy, the youngest of the four daughters, said the move to form the council was important as the third generation of the Reddy family entered the organisation. She said like any family constitution, the Reddy family council would protect the value system, ensure growth, and work towards protection of shareholders and more transparency.
Two members from the third generation have already joined Apollo Hospitals full time. The family patriarch has 10 grandchildren, all of whom are expected to join the group in future. The youngest among them is 14 years old.
Members from the third generation who entered the business include Apollo Hospitals managing director and Reddy's eldest daughter Preetha Reddy's son, Karthik, who specialises in finance and project management, and Sindoori, daughter of Suneeta Reddy, who was instrumental in the development of the child hospital.
Sangeetha Reddy said Apollo would announce its detailed transformation plan within a month. The plan will include investment programmes, technology, etc.
Bloomberg adds that Prathap Reddy, along with his family, controls 35 per cent of Apollo,valuing the stake at Rs 3,800 crore. The family and Apollo also own 51 per cent of Indraprastha Medical Corp.
In an interview, Reddy said, “We are talking to the next generation on the future course of action. Other investors who are with us have completely supported us. But between the family, everybody asked what next.”
Apollo, which counts private-equity fund Apax Partners LLP as an investor, manages 8,500 beds across 50 hospitals, runs 1,350 pharmacies, 100 primary care and diagnostic clinics and 100 telemedicine units across nine countries.
IHH Healthcare, an arm of Malaysia’s state investment company Khazanah Nasional, holds about 11 per cent of Apollo. The Indian chain sold shares in an initial public offering in 1983.
An orderly transfer of assets could help Apollo focus on expansion to tap clients from overseas as well as at home.
While Reddy is planning a will, he already has a succession plan in place.
His eldest daughter Preetha, who is the managing director of the hospital, will succeed him and the “other sisters have accepted that,” he said.
Second daughter Suneeta is the joint managing director,while the third Shobana Kamineni is executive director for new initiatives. Sangita, the youngest, is the executive director for operations.
“Whenever I step down, she is ready to take on the mantle,” Reddy said. “I don’t think there is any controversy in that,” he added. Preetha was ranked in the list of “50 Most Powerful Women in Business” by Fortune magazine in 2010 and 2011, according to the company’s website.
