CasesNupur Pavan, Bang; Ramachandran, Kavil. "The Unfinished Agenda: Dr. Reddy's Laboratories Ltd", Harvard Business Publishing, 2018Read Description >Close >Discipline: Entrepreneurship
Industry: Pharmaceuticals
Length: 16p
Subjects covered: Corporate governance; Entrepreneurship; Family businesses; Family-owned businesses; Generational issues; Leadership; Leadership & Managing people; Stewardship; Succession issues
Publication Date: December 5, 2017
 
Description: 
Dr. K. Anji Reddy founded Dr. Reddy's Laboratories Ltd (DRL) in 1984. Since then, the company had grown to become one of the largest pharmaceutical companies in India. The company professionalized early on, and over the years, the family members defined and refined their roles for the efficient running of the company. Dr. Reddy passed away on March 15, 2013. His son-in-law, G. V. Prasad, had been with DRL for more than 25 years by then. Prasad acknowledged that a lot needed to be done to fulfill Dr. Reddy's dreams. He had been contemplating his own future role in the company and the need for a smooth succession. But who would succeed him? What would be the qualities of the person who would succeed Prasad, a passionate member of the founding family of DRL? Would a non-family CEO be a suitable replacement?

Learning objective:
The case takes the audience through the journey of an entrepreneur-driven company that transforms itself into a professionally run multinational company and the involvement of the next generation of the family members in the business. A few specific teaching objectives are to understand how family-controlled entrepreneurial ventures are transformed into professionally managed, well-governed organizations and understand the challenges of building the foundations of a lasting organization.

CasesBhatnagar, Navneet., Ramachandran, Kavil. "Touchdown Footwear on Slippery Slope", Harvard Publishing, 2018Read Description >Close >This case is based on the professionalization and governance challenges faced by Touchdown Footwear Limited (TFL) – an Indian mid-sized footwear manufacturing family business. It was setup in1965 by three brothers, Ramnath, Krishna and Ganesh Pai who had inherited their father’s rubber trading business. Initially, TFL made flip flop slippers and catered to the local market. Over the years, TFL had a larger product portfolio, and by 2013, they had a pan-India presence with some exports to African markets. In the early years, the three brothers managed all functions. As the next generation grew up, they started joining the firm and took up different roles often based on business exigencies. By 2013, TFL had a turnover of 6.23 INR, but lacked a clear strategy and professional management. In the absence of appropriate structure, systems and processes, decision-making was ad-hoc. Inefficiencies and wastages were evident all across, and working capital was under severe strain. The firm suffered from governance deficit at both family and business levels. Lack of clear policies and processes delayed many crucial decisions. Earlier attempts to professionalize the business failed to achieve the desired results as family members neither had clear policies nor could change their mindset. Besides, there were questions about the level of commitment and discipline of the next generation. Vivek, the case protagonist, who managed TFL’s finances, realized the need for a transitional change on multiple fronts to sustain the business but was unclear about roadmap.

CasesBang, Nupur Pavan., Ramachandran, Kavil. "Dodla's Dilemma", Harvard Publishing, 2018Read Description >Close >D. Sunil Reddy established Dodla Dairy in the year 1995 at Nellore district of Andhra Pradesh, as a greenfield company. An industrial engineer from Mangalore University, Sunil started Dodla Dairy at the age of 27, with the seed money given by his father. He would often wonder if the brand ‘Dodla’ and the Company sustain beyond ‘Sunil Dodla’. While Sunil continues to put in efforts to increase capacity, expand and capture more market share, he keeps asking himself, “What next”, “How do I build a legacy?” If the company had to move to the next orbit, both in term of size (revenues, assets, market share) as well as professionalization, certain organizational changes were necessary. “What were these changes and who would do it?” How could Sunil better prepare himself and the company for the future? How would the company move from being a family owned enterprise to a professionally run, sustainable organization? Would one of his daughters bring about that freshness by joining the company and yet provide continuity in terms of the family values? Would it be an outsider? “Who after me?” thought Sunil. After two decades, a certain degree of fatigue was beginning to set in and he had been contemplating his own role in the company. The days when he was under pressure or had a bad day, he would think of selling off the company, take the money and live peacefully ever after. On the other days, he would think of building a sustainable organization and leaving a legacy!

CasesRamachandran, Kavil., Bhatnagar, Navneet. "Aurobindo Pharma Gearing Up for the Future", SAGE PUBLISHING, 2018Read Description >Close >The Chairman and co-founder of the Hyderabad, India-based family-owned pharmaceutical company Aurobindo Pharma Limited (APL), P. V. Ramaprasad Reddy is reminiscing on his business growth journey. In 1986, along with a close friend, K. Nithyananda Reddy (no relation), and a few other associates, he started a small semisynthetic penicillin manufacturing unit. Since then the business had grown both organically and through strategic acquisitions. By 2011, APL was present in more than 125 countries. It had more than 500 drugs and intermediates spanning multiple therapeutic areas. As the business grew in size, scale, and scope so did its complexities, which demanded it adopt systematic processes, policies, and procedures. APL had adopted best practices in all functional areas and cultivated a culture of quality, to meet its objective to grow the business in the more demanding and developed markets of the USA and Europe. However, Ramaprasad pondered the future, specifically if APL was to continue to grow it had to further transform itself by professionalizing governance. Ramaprasad and Nithyananda were good friends and had effective control over APL. However, they were growing old due to which APL faced a leadership succession challenge. There was limited choice within the family and the next generation members were not prepared to take leadership positions in the company. The co-founders faced the dilemma of whether to groom someone within the family or to appoint a non-family professional at the helm.

CasesManikutty, Sankaran., Ramachandran, Kavil. "Aravind Eye Care System – Retaining the Legacy", Harvard Business Publishing, 2017Read Description >Close >The case deals with multiple challenges faced by Dr. Nam, the second generation head of Aravind Eye care, a social enterprise providing eye care in India. His goal of setting up 100 eye hospitals had hit a road block as a number of new private eye hospitals had come up. The owner family had grown into its fourth generation and branched out. The next generation had grown up with different aspirations. Their career path were not likely to be similar to that of their previous generation. Dr. Nam realized that he had a lot to do within a short period of time to keep the legacy and growth intact.

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