Torrent Group, the Rs 12,000-crore conglomerate based in Ahmedabad is headed for a division of responsibilities after chairman Sudhir Mehta stepped down from the board of group flagship Torrent Pharmaceuticals.
His younger brother Samir Mehta is expected to take his place as chairman of Torrent Pharmaceuticals, while he will continue to hold charge of the Rs 8,000 crore Torrent Power, which is into generation, transmission and distribution of electricity.
“Sudhir Mehta, chairman of Rs 4,200 crore Torrent Pharmaceuticals expressed his desire to relinquish his position as chairman of board of directors and the company from the conclusion of the forthcoming Annual General Meeting scheduled on July 30, 2014. The board has reluctantly acceded to his desire and has also requested him to accept the position of Chairman Emeritus and continue to benefit the company…on key business and strategic matters,” the company stated in a release to the Bombay Stock Exchange on Friday.
“The board thereafter also recommended appointment of Samir Mehta who is currently the executive vice chairman of the company… This appointment is subject to the approval of the shareholders in the said meeting (on July 30),” the release added.
Torrent Pharmaceuticals was founded by UN Mehta in 1959. The company’s first manufacturing facility was set up at Vatva in Ahmedabad in 1980. On Mehta’s demise in 1998, his eldest son Sudhir assumed charge as head of the group. He has been the chairman of both the pharmaceutical and the power verticals ever since.
A questionnaire sent to the company seeking an official reaction behind the reasons that led to the elder Mehta relinquishing his position at Torrent Pharmaceuticals, remained unanswered.