Sun Pharma Asks 18 Top Ranbaxy Execs to Leave A Year After Merger: Top India News

The reality of the Sun-Ranbaxy merger has begun to bite a year after. Two weeks after the merged entity announced quarterly results that were largely underwhelming, the Sun Pharma management has asked 18 top Ranbaxy executives to leave. Of course for a merger between two same sized companies with similar organization structures, this was bound to happen. However, Ranbaxy’s acquisition history has also been checkered. The company was acquired by Japanese Daiichi Sankyo in 2008 at a relatively high valuation and struggled for for more than five years with regulatory issues with the USFDA among others. Last year, it threw in the towel and sold the company to Sun Pharma. Analysts now say the benefit from this merger will only be visible from next year.

 After e-commerce and hyperlocal commerce, re-commerce seems to be the latest thing. Re-commerce or reverse ecommerce websites are those that enable sales of second hand goods. While online classified websites such as Olx and Quikr offer the same facility, these are slightly more specialized with logistics services and some of the companies even refurbish the products for resale. At the moment there were different models that are being tried out and we shall see which ones work and attract the attention of the investors.

 Tata Airlines’s stake purchase in Air Asia may not be as simple as one would expect. For one, the group already holds 51 percent in its venture with Singapore Airlines, Vistara, so would the current competition rules allow them to hold majority stake in two airlines? And of course, there is the archaic 5/20 rule for overseas flights – an airline can only operate overseas flights after it has been in operation for five years and owns 20 aircrafts. While there are talks that this will be replaced with more contemporary criteria, the older airlines are lobbying against the change. The Tatas’ struggle with the airlines business is not over, yet.

 Cement prices are typically weak in the rains when construction practically comes to a halt. Usually, that also means the prices are stronger in the summer as most companies try and wrap up as much of the construction work as possible before the rains. But this year has been dismal. Cement prices have weakened even before the rains hit, suggesting inherent weakness in demand. Some traders put it down to payment delays on government contracts, but it could also be a sign of the overall weakness in the economy, which is also obvious from the company results.

 Here’s another twist to the Yes bank saga. The battle between promoter Rana Kapoor and Madhu Kapur, widow of co-founder Ashok Kapur, to nominate directors on the bank’s board has come to a resolution of sorts. A Bombay court has allowed MAdhu Kapur to nominate a director on the board in place of her husband, after two years of battling it out in the courts.

 If you’re following the Lalit Modi controversy, here’s the latest update.

Every morning, we'll share the top news from India that professionals need to know. Click on the Follow button above to not miss one. And we want to know what you think, so head to the comments below with feedback, suggestions, bouquets and brickbats. I am also on Twitter here.

Do you have a view on current hot stories? Write about them on LinkedIn. Click here to get started. Tweet to @LinkedInPulse to let us know when you publish.