The Challenge to Transform Cipla for the Future


This case addresses the challenges to business growth, intergenerational leadership transition, and long-term sustainability of the third-generation family firm, Cipla Limited. Cipla was an 84-year-old, Mumbai-based pharmaceutical company that sold its products in over 80 countries. It was going through an intergenerational transformation in both the business and owner family. Only three years ago, the senior generation members had made way for the third generation leader, Samina, to take up leadership at Cipla. The company had also appointed a nonfamily professional as its global CEO. The new leadership had the challenge of steering the business through supply-chain disruptions, a volatile business environment, intensifying competition, and regulatory pressures. The generational shift in the family was critical because the senior generation members had been leading and growing the business and family for the last 40 years. Slipping into their shoes was not easy for Samina. She had the challenge of steadying the family business in this transition phase and building further capabilities and structures to ensure long-term growth and sustainability. The case describes the key challenges to be mitigated and forces the participant to critically analyze the dynamics of intergenerational transition in a large family business. It helps the participant gain in-depth understanding to develop a strategic roadmap that could take the firm to the next level of professionalization and governance and achieve long-term sustainability.

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