Zandu Pharmaceutical Works: The Takeover Bid (B)

By Kavil Ramachandran, Navneet Bhatnagar, Jayshree Suresh
Harvard Business Publishing | November 2014

Citation

Ramachandran, Kavil., Bhatnagar, Navneet., Suresh, Jayshree. (2013). Zandu Pharmaceutical Works: The Takeover Bid (B) Harvard Business Publishing .

Harvard Business Publishing, 2013

Abstract

This case is about the takeover battle between two Indian companies, Zandu Pharmaceutical Works and Emami Limited, in 2008. Zandu Pharma was owned by two promoter families. Emami bought the stake held by one of the promoter families, the Vaidyas without the knowledge of the other promoter family, the Parikhs. The Parikhs viewed this acquisition by Emami as a hostile move. Emami offered to run the firm under a joint management but Parikhs were opposed to such an arrangement. What followed was an intense battle for control over Zandu. None of the two sides wanted to give up the fight. A series of moves and counter moves on business, legal and family fronts, were witnessed as the fight went on. After months of fighting each other in the courts, on the stock markets and in media, both Emami and Parikhs are finding themselves worn out and under heavy financial and mental stress. With horns locked since long, markets watch as to who would blink first. Emami group has given Parikhs an offer to either sell their stake to Emami or buy the stake owned by Emami. The Parikh family has to now decide its course of action, that is, whether to sell out to Emami or to buy out Emami’s stake. Though seemingly easy, the choice for the Parikhs is difficult one to make. The case necessitates students to appreciate the business decision scenario from different standpoints. It encompasses several management issues about leadership, communication, acquisition strategy, legal/regulatory and emotional issues faced by promoter families. The case serves as a suitable tool for students to learn and apply leadership and communication skills in business, more specifically in complex and hostile acquisition situations.

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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