Generic injectables and biotech firm, Zenotech Lab's facility in Turkapalli near here has shutdown operations as its employees are on a strike since Tuesday.

When contacted, a company official told Business Line that about 150 employees including some scientists were striking for immediate payment of salaries.

The employees also went on strike for seven days last month for the same reason, he added.

“The salaries could not be paid as we did not receive about Rs 95 lakh, which is due from Ranbaxy Laboratories Ltd,” he said.

Ranbaxy and Daiichi Sankyo together hold 66.84 per cent stake in the Hyderabad-based Zenotech.

Management issue

Meanwhile, the dispute over the position of Managing Director of the company between Dr Jayaram Chigurupati, founder-promoter of Zenotech, and Ranbaxy/Daiichi is still on.

“The Company Law Board (CLB) has posted the matter for next Tuesday. I am going to extend an offer to Daiichi that I am ready to buy back its 67 per cent stake in Zenotech at Rs 130 per share,” Dr Chigurupati told Business Line here on Wednesday.

Dr Chigurupati holds 25 per cent stake in the company.

The appointment of Mr B.K. Raizada as Managing Director of Zenotech in the board meeting held on March 19 was contested by Dr Chigurupati on the grounds that he had a valid contract with Ranbaxy to continue as MD.

Last week, the CLB had allowed Mr Raizada to continue as MD of Zenotech.

“I had also moved AP High Court on the issue. The petition would come up after the summer vacation of court,” Dr Chigurupati added.

Related Topics