New Delhi: Cipla on Tuesday said Mustafa Khwaja Hamied or MK Hamied, vice-chairman and non-executive director has stepped down from the company’s Board citing “age and health”.
Hamied’s resignation will come into effect from close of business hours on October 29, 2024, Cipla told stock exchanges.
Hamied, 83 is the younger brother of Cipla’s chairman and patriarch YK Hamied.
“It is with a heavy heart that I write to formally announce my resignation from the position of vice chairman and non-executive director of the company..due to age and health,” Hamied said in his resignation letter to the Cipla’s board.
“These past 47 years at Cipla have been truly remarkable chapter in my life. Over the decades I have seen the company grow and evolve in ways I am immensely proud of,” Hamied added.
Cipla’s board has also approved the appointment of Adil Zainulbhai and Abhijit Joshi as additional directors (non- executive) with effect from September 3, 2024.
The company also appointed Kamil Hamied, son of Hamied and nephew of YK Hamied as non-executive director from November 1, 2024.
Hamied said Kamil Hamied’s appointment on the board is to “maintain continuity while representing the promoter family.”
Kamil Hamied in his previous stint at Cipla, Kamil was the chief strategy officer
and a member of the management team. He was involved in leading company transformation, M&A strategy, implementing a leadership structure and more.
Kamil has stepped down from the company to pursue personal interests in 2015..
Hamied in his resignation letter acknowledged his daughter Samina’s contribution in transforming the company into a professionally managed organisation.
Samina Hamied, daughter of MK Hamied resigned from Cipla board in July citing personal and family commitments. Samina in January relinquished her executive role as vice-chairperson.
Yusuf K Hamied, 87, who took over Cipla after the death of his father Khwaja Abdul Hamied in 1972 and remained at its helm for 40 years, is one of the biggest forces behind making it one of the best family-run companies in the country.
Cipla commands a market value of over Rs 1,33,441 crore and has turnover of over Rs 25,774 crore.
All promoters together hold 30.91 per cent stake in Cipla, while Yusuf Hamied individually owns 18.67 per cent. His sister Sophie Ahmed holds about 5.7 per cent stake.
Cipla has been in the news over the possible sale of promoters’ stake in the company.
ET in October last year reported that Cipla stake sale plan has hit a hurdle as reportedly the promoters are not aligned in view regarding the common valuation.
Cipla maintained that the news about promoter stake sale was “speculative”.
In May Cipla’s , Shirin Hamied, wife of MK Hamied, and her daughters Rumana Hamied, Samina Hamied, and Okasa Pharma Private Ltd, all categorized as promoter group, sold a 2.53 per cent stake for Rs 2,751 crore in a block deal.
