As India’s leading generic player Wockhardt hit the Rs 3,400 crore debt wall, Habil Khorakiwala stepped down paving way for his sons: Murtaza Khorakiwala and Hozaifa Khorakiwala.
Murtaza Khorakiwala will don the mantle of the new Managing Director –one of the portfolios his father held so far, while Hozaifa Khorakiwala will be the executive director of the over Rs 2,500 crore Wockhardt.
Dr Murtaza Khorakiwal has a degree in Medicine from India and Management Education in the USA.After joining in Wockhardt in 2000, Dr. Murtaza Khorakiwala has worked in various capacities in the company. He has worked in Wockhardt’s subsidiary in the UK for 3 years. He has also been involved in the biotechnology business, manufacturing and the Negma operations in France. Murtaza Khorakiwala is also a key member of Wockhardt’s Global Strategic Planning Team. In his new position as managing ndirector, Murtaza will head the global animal healthcare business and corporate administration.
An MBA from Yale Univeristy, Huzaifa Khorakiwala is a commerce graduate from India and has done his Management education at the Yale University, USA. Over the years he has been handling various Wockhardt businesses like Animal Health, International Business and Corporate Administration. Additionally, he devotes his time to Wockhardt’s Corporate Social Responsibility and heads the Wockhardt Foundation as its Chief Executive Officer.
Read my earlier post on the resignation of Mr habil Khorakiwala
Wockhardt’s board of directors, which met on 31st March 2009 approved the appointments of Murtaza Khorakiwala and Hozaifa Khorakiwala with immediate effect.
However, the appointments need to be ratified at the annual general meeting which has been postponed for April 25.
The senior, Habil Khorakiwala would continue as executive chairman of the Mumbai-based company.
The decision was taken to develop a long-term succession plan in the best interest of the company and all its stakeholders, stated Habil Khorakiwala, in a company release.
“This will give me an opportunity to mentor and develop the next generation leaders whilst I am fully involved in providing leadership, strategic vision and direction to the company’s business operations,” Habil Khorakiwala added.
Wockhardt currently faces a mounting debt crisis as it requires to repay foreign currency convertible bonds (FCCBs) worth $110mn by Sept 2009. The redemption amount is nearly 130% of the face value or Rs 715 crore. The company had taken approval in an EGM to raise Rs 500 crore as redeemable preference shares but it has not announced to the stock exchange whether it has placed these bonds.
According to a company filing to the Bombay Stock Exchange,the founders of Wockhardt have pledged about 54% of outstanding stock with lenders, The stock under pledge accounts for about 85% of the shares owned by Khorakiwala Holdings and Investments Pvt. Ltd. Analyst say that Wockhardt will have no option but sell some of its assets to service the debt.