Healthcare major Apollo Hospitals Enterprises (AHEL) on Wednesday announced it has rejigged its top management by re-designating the positions of the four executive directors of the company.
The company that runs a chain of hospitals, clinics and pharmacies, across the country, re-designated Preetha Reddy and Shobhana Kamineni, daughters of Apollo promoter Prathap Reddy, as executive vice chairpersons with immediate effect.
The company has also re-designated the other two Reddy sisters, Suneeta and Sangita, as managing director and joint managing director, respectively.
The decision was taken on Wednesday at a meeting of the board of directors of the company, AHEL said in a statement.
Preetha Reddy, who is currently the managing director, has elevated as the executive vice chairperson with immediate effect for the remaining period of her tenure up to February 2, 2016. Suneeta Reddy (currently joint managing director) has been re-designated as managing director with immediate effect for the remaining period of her tenure up to February 02, 2016.
Shobana Kamineni, who currently holds the position of executive director - special initiatives, has now been re-designated as executive vice chairperson with immediate effect for the remaining period of her tenure upto January 31, 2015.
Sangita Reddy, who is currently executive director – operations, was given the role of the joint managing director with immediate effect for the remaining period of her tenure up to February 2, 2016.
The board has also approved the re-appointment of Shobana Kamineni as executive vice chairperson for a period of five years with effect from February 01, 2015 on the existing remuneration terms. However, the re-appointment is subject to approval of members at the ensuing annual general meeting, the statement said.
While the Reddy sisters were given much bigger roles to play, their domain of function and operations will remain the same. The reorganisation is also in line with Apollo's succession plan.
The statement said there would, however, be no change in the existing terms of remuneration. While Reddy sisters earn an annual remuneration of Rs 5.25 crore each as per the annual report 2012-13, their father Prathap Reddy, chairman of the group, earns Rs 15.63 crore annually.
"The realignment is clearly in line with the strategy, growth and succession plan but definitely the focus is more on the growth aspect. The verticals would also get strengthened. It would also help clearly to consolidate the business," Sangita Reddy, the new joint managing director, told dna.
She also said while Preetha Reddy will lead the international business of the company, AHEL will continue to look at geographies beyond India. Within India, it aims to grow both organic and inorganically.
The board also approved the appointment of Vinayak Chatterjee, chairman and MD of Mumbai-based Feedback Infrastructure, as an additional director with effect from July 2, 2014, to hold office as an independent director of the company.
Prathap Reddy said in a statement, "As the healthcare landscape in the country and the region changes and expands, this strategic realignment, we believe, will enable Apollo to focus on growth opportunities in hospitals, pharmacies, clinics and health insurance while furthering its clinical leadership and service excellence. We aim to deepen our focus in each of these verticals as well as drive synergies between them using technology and an ecosystem focused on wellness, innovation and productivity."