Sun Pharma, one of India’s largest pharmaceutical companies, has undergone a significant leadership transition. Dilip Shanghvi, the company’s founder and promoter, has transitioned to the role of executive chairman, while Kirti Ganorkar, who headed the India business, has taken over as managing director. Additionally, Shanghvi’s son Aalok has been appointed as chief operating officer and will oversee the company’s North America business, which is being run by Richard Ascroft, a former Takeda Pharmaceuticals executive.
The leadership changes are part of a “structured and forward-looking succession planning process” aimed at bolstering the company’s global innovative drug pipeline. Sun Pharma has been focusing on its speciality business, particularly in the US, where generic price erosion and policy uncertainties have impacted the company’s sales. The company has delivered a compound annual growth rate (CAGR) of 10% in sales between 2018-19 and 2024-25 and is expected to maintain a similar growth rate for the next three years.
The transition is significant, as it involves the company’s globally critical functions, including the India business, the US, and its long-term speciality focus. Industry experts believe that the timing of the transition is opportune, as the company is in good shape and its business is strong. The changes are aimed at making the company more professionally driven, while still maintaining the influence of the promoter family.
Aalok Shanghvi, who has been with the company for over 15 years, has been groomed to take over key responsibilities. He will oversee the North America business, which is critical for the company’s growth. Richard Ascroft, who has been appointed to run the North America business, brings significant experience in the biopharmaceutical industry. The company has also elevated Shanghvi’s daughter Vidhi to whole-time director and appointed Jayashree Satagopan as chief financial officer designate.
The transition is seen as a planned move to balance the company’s global ambitions with the grooming of the next generation of leaders. Experts believe that the company is attempting to preserve institutional memory and culture while allowing newer leadership to take over operational responsibilities. The changes are expected to help Sun Pharma compete better in the global market, protect margins, and accelerate launches of new products. Overall, the leadership transition is a significant development for Sun Pharma, as it aims to strengthen its position in the global pharmaceutical industry.