Vijay Mallya steps down as board chairman of drug maker Sanofi India
MUMBAI: UB Group chief Vijay Mallya has stepped down as chairman of the board at drug maker Sanofi India Ltd and said he will not seek relection as a director at the company's annual general meeting (AGM).
Mallya became a director of the company (then called Hoechst Pharmaceuticals Ltd) in December 1973 and has been chairman of the board since December 1983.
Mallya, who owes banks upwards of Rs.9,000 crore in loans taken by his grounded Kingfisher Airlines Ltd, India for an overseas destination on 2 March, after signing a sweetheart deal with Diageo Plc that agreed to pay him $75 million for stepping down as chairman of United Spirits Ltd.
In a letter to the board of Sanofi India released to the media by the company, Mallya wrote, "Having been a director of your company for over 42 years and chairman of the board for over 32 years, I have decided it is time for me to retire without resorting to the ' first-in, last out formula."'
"I have decided to step down progressively from my responsibilities and therefore will not be seeking as a director at the forthcoming AGM at the end of April 2016." Elaborating reasons for his move, Mallya said: "As you are aware, I celebrated my 60th birthday and I am spending more time in England closer to my children, it is also the company's Diamond jubilee which marks two important milestones." Reacting the Mallya's letter, Sanofi India said its board, which met on Wednesday, accepted his decision. "Consequently, Mallya will cease to be a Director and Chairman of the Board of Directors of Sanofi India Ltd at the conclusion of the company's AGM," the company said in a BSE filing.