Cipla has “completely professionalised” over the last 10 years, said Cipla Managing Director and Global Chief Executive Umang Vohra, of a transformative journey undertaken even as two of its key promoters who built the business do not intend to sell it, he added.

“The reality of Cipla as it is today is that the two people who fundamentally groomed the business are today 88 and 84 (years). They have no intention to sell the business,” Vohra told businessline, in an exclusive interaction, dwelling on promoter families, market-talk that still simmers on their possible stake-sale, and the drugmaker’s growth plans to increase revenues from innovative and emerging therapies.  

Most promoter-run companies professionalise by the third generation, Vohra observed, adding “We are on that journey. Every company like Cipla will go through these transitions. Cipla is going through it 10 or 15 years ahead of others, because we are also 15 years older than they are.”   

While the timeframe could vary for companies, he said, “I see this reality for the entire pharma industry.”

Cipla made the decision about 10 years ago, when Subhanu Saxena, for instance, was brought in at the helm, he said.  

“The face of Cipla has always been the Hamied family. And their values will always be central to what we do,” he said, referring to Cipla founder Khwaja Abdul Hamied, his sons Dr YK Hamied and MK Hamied’s stewardship of the company, and its legacy of supplying affordable drugs.   

But earlier this year, Samina Hamied (MK Hamied’s daughter) announced she was stepping down as executive vice-chairperson of the company from March 31, 2024. This further stirred the pot on the possible promoter family stake-sale. Samina continues as a non-executive director, and is the third generation of the promoter family.

“I‘m not in the camp that believes that Cipla’s journey now is where a promoter will come back to the business …I think the company is now completely professionalised. That’s where we are,” he said, looking back at his eight years at the helm. The problem is the optics of a promoter stepping down, against the backdrop of reports suggesting a possible promoter family stake-sale, he admits. “But the broader journey is that 10 years back this company took a decision to professionalise and it’s on that journey right now is perhaps what people miss,” he explains, adding that he was not privy to the promoter family’s thoughts for the future.

Innovative revenue

The drugmaker, meanwhile, charts its course to increase its “innovative revenue” contribution to the ₹25,000-plus crore company’s revenues. Between “difficult to do inhalers” and wellness products, “40 percent of our revenue comes from sources that are fairly protected,” said Vohra. The aim is to add a layer of innovative medicines to bring in another 15 percent, “so at least 70 percent of the company at any point in time are revenue sources that are predictable and not uncertain,” he said, pointing to segments including neurology, cell and gene therapies, as focus areas.

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