SUCCESSION PLANNING

AT RANBAXY
Succession planning
 Succession planning is a process whereby an
organization ensures that employees are
recruited and developed to fill each key role
within the company. Through succession
planning process, company recruit superior
employees, develop their knowledge, skills,
and abilities, and prepare them for
advancement or promotion into ever more
challenging roles.

 organizationsuse the concept of succession planning
to a greater extent as a way to identify and
cultivate employees with leadership qualities to
assume greater responsibilities in the future.


 The term 'succession planning' also referred to as

replacement planning can be described as, 'a
process through which leaders identify and help
groom their replacements before moving on to
another position themselves.'
 Such organizations are able to plan for future leadership
positions.
 Also, they avoid the dangers of ill-timed promotions of
inadequately trained managers.
 Succession planning also helps in recruitment as well as
retention of employees by drawing more employees to
the organization and also by filling up senior level
positions from within the organization
 IMPORTANCE OF SUCCESSION
PLANNING IN
FAMILY-OWNED BUSINESSES
 The importance of succession planning is vital to the
success and survival of family-owned businesses. Ideally,
in a family-owned business, a CEO succession plan should
contain details like who would run the business after the
owner retires and how the ownership of the businesses
would be transferred.
 
RANBAXY
 In 1952, an entrepreneur Bhai Mohan Singh
founded Ranbaxy as a manufacturer of
pharmaceuticals in Mohali in Haryana. Like
most other small pharmaceutical companies,
Ranbaxy too was mainly engaged in producing
drugs by reverse engineering the molecules of
established drug brands
.
In 1967, Dr Parvinder Singh (Dr Singh), Bhai
Mohan Singh's son, joined the company after
completing his doctorate in pharmacy at the
University of Michigan (USA). Dr Singh was a
very ambitious person and worked hard to
take the company to greater heights. In 1982,
he became the company's Managing Director
 Brar had joined Ranbaxy in 1977 as a business development
manager. A thorough professional and hard worker, he
soon rose through the company's ranks to become one of
Dr Singh's most important and trusted men
 In 1993, Brar became the President and a whole time
Director. From the very beginning of his career at
Ranbaxy, Brar was a close confidant of Dr Singh.
 Company watchers felt that it was 'Parvinder's vision and
Brar's execution which helped Ranbaxy turn into a group
with many manufacturing facilities outside India with
more than 2,000 overseas employees

 In the early 1990s, differences cropped up between Dr
Singh and Bhai Mohan Singh over the growth route the
former was charting for the company. Dr Singh wanted to
take the risk of investing huge amounts into basic R&D
and in expanding operations to other countries.
.

 Brar supported Dr Singh's vision of internationalizing the

company by setting up operations in various countries
like China, US, Ireland, and others in Europe. In the late
1990s, Brar chalked out a strategy to shift half the
company's business to the US, a decision which was
staunchly opposed by members of the Singh family
 BRAR
AS RANBAXY'S MD & CEO
 When Brar took over as Ranbaxy's MD & CEO, the company
did not have any family representation on the board. It
was truly a company managed by professionals. However,
by the beginning of the 2000s, the Singh family
reportedly decided to take control of the firm.
 Reportedly, he had revealed his retirement plans in 1997
itself. Brar had said that he would retire in 2002, after
completing 25 years with Ranbaxy
 Tempest takes over. Tempest is expected to
continue till Malvinder Singh is groomed to
done the mantle
 Under the leadership of Tempest, Ranbaxy
planned to focus on HR planning and
 ABOUT THE CASE
 The case discusses the CEO succession planning
controversy at Ranbaxy Laboratories Limited (Ranbaxy),
India's largest pharmaceutical company.
 The case describes how and why Parvinder Singh (Ranbaxy's
promoter, also CEO) believed in running the business
professionally and handed over the company's
management to D S Brar (Brar), a professional (and a
non-family member), amidst stiff opposition from family
members. The case then details how Brar transformed
Ranbaxy from a small Indian pharmaceutical company
into a research based global pharmaceutical major



Thank you
