MICHAEL FERNANDEZ AT NICHOLAS PIRAMAL
Nicholas Piramal India Limited (NPIL) has acquired Avecia, a pharmaceutical company in
UK which owns Torcan, another pharmaceutical company in Canada. Although their
functions were different from each other, the goal was to use one type of strategy globally.
To stay organized globally seemed easier said than done. The two operations in UK and
Canada wanted more control over their business development activities. One of the major
issue at stake was the point that its structural and physiological ambiguities got in the way
while building their integrated business development. Apart from the company going
global, 3 of its most important managers had some issues with one another due to lack of
transparency, different leadership and communication styles, based on different cultures
they belonged from. All of these confusions were in their mind and not in person due to
which they may end up quitting the job, and replacing a person with such qualifications
and experience would have been difficult task for NPIL.
With customers in this industry specifying exactly where they want the molecule and drug
to be developed and produced, the acquisition is very lucrative because NPIL will be able
to have plants in U.K and Canada. Giving their customers more choice of molecules, and
drug production would help them to increase their customer base. The issue that arises for
the company as a whole is that NPIL acquired a company that was in losses, which would
take years for NPIL to reach profitability. NPIL as a whole may see a decrease in profits of
(approx 50%) or even see losses greater than 50%, as this has been a big acquisition and
money generated from the profitable plants would be used to operate the one in the UK.
CONFLICTS BETWEEN THREE SENIOR MANAGERS:
There are several factors which lead to the conflicts that are occurring in the company, but
the core reason was the difference in the cultural behaviour, different tactical approach in
business and the complicated hierarchy system. Moreover, the confusing organizational
structure, multi-levelled hierarchy played an instrument to the conflicts. There was lack of
transparency and non-effective communication between the 3 senior managers. Prior to the
acquisition, the original plans for business development of (NPIL) was to be constituted
for one integrated function globally as one sector. However, the Canadian and UK
operations are acting more as local control over business development activities rather than
being part of Avecia as a whole. Therefore, it leads to the conflicts between the three
