The seven-member family council will be headed by Prathap C Reddy, the 80-year-old Founder-Chairman of India’s biggest hospital operator, his four daughters and two professional advisors.
Confirming the developments, Sangeetha Reddy, the youngest of the four daughters of Reddy, said the move to form a council was important as the third generation of the Reddy family entered the organization.
She said like any family constitution, the Reddy family council would protect the value system, ensure growth, 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 MD and Reddy's eldest daughter Preetha Reddy's son Karthik, who specialise in finance and project management, and Sindoori, daughter of Suneeta Reddy, who was instrumental for the child hospital.
Sangeetha Reddy said Apollo would announce its detail transformation plan within a month. The plan will include investment programmes, technology etc.
Bloomberg adds: Prathap Reddy, along with his family controls 35% of Apollo,valuing the stake at Rs 3,800 crore. The family and Apollo also own 51% 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 clinic and 100 telemedicine units across 9 countries.
IHH Healthcare Bhd., an arm of Malaysia’s state investment company Khazanah Nasional Bhd., holds about 11% of Apollo. The Indian chain sold shares in an initial public offering in 1983.
An orderly transfer of assets may 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 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.
It may be noted, at present two members from third generation have come in full time at Apollo Hospitals and ten grandchildren of Reddy are in the pipeline and youngest among them is 14 years old.
Members from the third generation who entered the business include Apollo Hospitals MD and Reddy's eldest daughter Preetha Reddy's son Karthik, who specialise in finance and part of the project management and Sindoori, daughter of Suneeta Reddy, who was instrumental for Child hospital and she is also part of transformation agenda.
Sangeetha said, Apollo to announce its detail transformation plan in the next 30 days. It includes investment programmes, IT, methodology and others.
Pratap Reddy said between 2015 and 2018, Apollo to add 15 hospitals with an investment of Rs 3,000 crore in these three years.
