The Challenge to Transform Cipla for the Future

By Navneet Bhatnagar, Bharagavi Mantravadi, Kavil Ramachandran
Sage Publications - Sage Business Cases Originals | January 2022

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sk.sagepub.com/cases/the-challenge-to-transform-cipla-for-the-future

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Bhatnagar, Navneet., Mantravadi, Bharagavi., Ramachandran, Kavil. The Challenge to Transform Cipla for the Future Sage Publications - Sage Business Cases Originals sk.sagepub.com/cases/the-challenge-to-transform-cipla-for-the-future.

Sage Publications - Sage Business Cases Originals, 2022

Abstract

This case addresses the challenges to business growth, intergenerational leadership transition, and long-term sustainability of the third-generation family firm, Cipla Limited. Cipla was an 84-year-old, Mumbai-based pharmaceutical company that sold its products in over 80 countries. It was going through an intergenerational transformation in both the business and owner family. Only three years ago, the senior generation members had made way for the third generation leader, Samina, to take up leadership at Cipla. The company had also appointed a nonfamily professional as its global CEO. The new leadership had the challenge of steering the business through supply-chain disruptions, a volatile business environment, intensifying competition, and regulatory pressures. The generational shift in the family was critical because the senior generation members had been leading and growing the business and family for the last 40 years. Slipping into their shoes was not easy for Samina. She had the challenge of steadying the family business in this transition phase and building further capabilities and structures to ensure long-term growth and sustainability. The case describes the key challenges to be mitigated and forces the participant to critically analyze the dynamics of intergenerational transition in a large family business. It helps the participant gain in-depth understanding to develop a strategic roadmap that could take the firm to the next level of professionalization and governance and achieve long-term sustainability.

Kavil Ramachandran is a Professor of Entrepreneurship (Practice) at the Indian School of Business (ISB). A founding faculty member, Professor Ramachandran established the Wadhwani Centre for Entrepreneurship Development at the Indian School of Business in 2001. He later served as the Associate Dean (Academic Programmes), before becoming the Thomas Schmidheiny Chair Professor of Family Business and Wealth Management, and subsequently the Executive Director of the Thomas Schmidheiny Centre for Family Enterprise at ISB.

He specialises in family business, entrepreneurship, and strategy, with 36 years of combined academic experience at the Indian Institute of Management, Ahmedabad, and the Indian School of Business.
Professor Ramachandran holds a PhD from Cranfield University, UK. His research focuses on family business, entrepreneurship, and strategy. He has authored and edited seven books and published extensively in reputed Indian and international journals.

His consulting experience includes areas such as family business governance, professionalisation, succession planning, strategic planning, identification of new opportunities for growth, corporate entrepreneurship and turnaround strategies in family and non-family business environments. His special expertise lies in managing the challenges at the interface of governance, professionalisation, and strategy, particularly in rapidly growing mid-size, multi-generational family businesses.

Professor Ramachandran has demonstrated special interest in mentoring young members of business families. He spearheaded the initiative in ISB offering a new MBA-level programme for the next generation of family business leaders (PGP MFAB), and was adjudged the “Faculty of the Year” by students in both 2018 and 2019. He has consistently been listed among the top 100 global influencers (academics) in the field of Family Business by the Family Capital magazine.

He has authored several case studies, worked with several well-known family business leaders and global experts, and consulted on transformation of family businesses. A frequent speaker at family business forums in India and abroad, he also contributes regularly to popular media. He has conducted numerous training programmes for family businesses on governance, professionalisation, strategic management, and entrepreneurship.

Professor Ramachandran has served on various advisory committees for the Government of India, the World Bank, and the Securities and Exchange Board of India (SEBI). His book, The 10 Commandments for Family Business, is widely regarded as a leading publication in the field.

He is recognised as a pioneer academic entrepreneur, dedicated to advancing the cause of strengthening family businesses in India and internationally. In 2022, he was conferred with the Bharat Asmita Acharya Shreshta Award for Best Teacher in Management by MIT World Peace University, Pune (MIT-WPU)

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