Hyderabad-based Aurobindo Pharma Ltd said the company’s decision on Wednesday to restructure its top management was part of a leadership change process started in 2010 and had nothing to do with the ongoing investigation against YSR Congress chief Y S Jaganmohan Reddy, in which two of the company officials were named.
"We planned these changes much ahead of the implementation in the light of growing business," outgoing Managing Director K Nityananda Reddy told Business Standard.
The company on Wednesday said P V Ramprasad Reddy would resign as executive chairman, while Nithyananda would also step down from his post. The announcement came in background of the company and two key officials, including Nityananda, being named in the Central Bureau of Investigation (CBI)’s chargesheet against Jaganmohan Reddy.
Jagan, as the Andhra Pradesh politician is popularly known, is facing charges of amassing disproportionate assets and is now in judicial custody.
According to CBI, Aurobindo and its group companies were allotted about 75 acres in a special economic zone by the Andhra government led by
Y S Rajasekhara Reddy, Jagan’s late father. Nityananda, however, said the management restructuring had got nothing to do with the investigation.
The key objective of the leadership change was to bring professional leadership to the company to run day-to-day affairs, enabling the promoters to focus on long-term strategies of growth, said
N Govindarajan, who is taking over as the new managing director from Friday.
