Hikal Ltd. , a prominent player in the Indian chemical and pharmaceutical industry, finds itself embroiled in a boardroom tussle as it gears up for a crucial vote on the reappointment of Amit Kalyani as a non-executive director. The ongoing dispute has caught the attention of proxy advisory firms, who have issued conflicting recommendations, adding another layer of complexity to the situation.

Ownership Structure and Family Dispute

At the heart of this corporate drama lies a complex ownership structure and a long-standing family arrangement:

• The Kalyani family, represented by Baba Kalyani, holds approximately 34% stake in Hikal.
• The Hiremath family, led by Baba Kalyani's sister Sugandha Hiremath, controls around 35% of the company.
• The remaining 31% is distributed among institutional and retail investors, who are likely to play a decisive role in the upcoming vote.

The roots of the current dispute can be traced back to a family arrangement made in 1994, which has now resurfaced as a point of contention.

Proxy Advisory Firms' Divergent Views

The reappointment of Amit Kalyani has elicited contrasting opinions from prominent proxy advisory firms:

1. Stakeholder Empowerment Services (SES): Recommends voting in favor of Amit Kalyani's reappointment. SES cites Kalyani's 13-year tenure on the board and notes that his six listed directorships within the same promoter group do not raise significant concerns.

2. Institutional Investor Advisory Services (IiAS): Opposes the reappointment, expressing concerns about the potential impact on the company's functioning due to the ongoing ownership dispute.

KIL's Defense and Baba Kalyani's Previous Rejection

Kalyani Investment Limited (KIL), the Kalyani family's holding company claiming over 31% stake in Hikal, has come out in defense of Amit Kalyani's appointment. KIL emphasizes that Amit has no day-to-day role in the company's operations and does not serve on any committees.

This boardroom battle comes in the wake of a significant development in December 2023, when Baba Kalyani failed to secure reappointment to Hikal's board, bringing an end to his 31-year tenure as a director.

Implications for Hikal's Future

The outcome of this vote on Amit Kalyani's reappointment is likely to have far-reaching implications for Hikal's corporate governance and future direction. With the Kalyani and Hiremath families holding nearly equal stakes, the decision now rests in the hands of institutional and retail investors.

As Hikal navigates through this challenging period, stakeholders will be closely watching how the company balances family interests with corporate governance best practices. The resolution of this boardroom conflict could set a precedent for handling similar situations in other family-controlled businesses in India.

Hikal Limited , a prominent Indian pharmaceutical company, has received a warning letter from the United States Food and Drug Administration (US FDA) regarding its manufacturing facility in Jigani, Bengaluru. The company disclosed this development in a regulatory filing to the stock exchanges on August 21, 2025.

Details of the FDA Inspection

The warning letter follows an inspection conducted by the US FDA at Hikal's Jigani facility from February 3rd to February 7th, 2025. The company had previously intimated the stock exchanges about this inspection on February 8th, 2025, and provided an update on May 23rd, 2025.

Company's Response

In response to the warning letter, Hikal has stated its commitment to addressing the regulatory concerns raised by the FDA. The company plans to work closely with the US FDA to resolve the issues at the earliest possible time.

Rajasekhar Reddy, Company Secretary and Compliance Officer of Hikal Limited, emphasized the company's stance on quality and compliance, stating, "We uphold quality and compliance issues with utmost importance and remain committed to be compliant with cGMP quality standards across all our manufacturing facilities."

Impact on Operations

While the specific details of the warning letter have not been disclosed, such regulatory actions can potentially impact a company's ability to supply products to the US market from the affected facility. However, Hikal has not provided any information on the potential impact on its operations or financial performance at this time.

Credit Ratings Reaffirmed

In a separate announcement on the same day, Hikal informed that ICRA Limited has reaffirmed the company's credit ratings:

This reaffirmation of credit ratings suggests that, despite the regulatory challenges, the credit rating agency maintains a stable outlook on Hikal's financial position.

As the situation develops, investors and stakeholders will be closely watching Hikal's efforts to address the FDA's concerns and the potential implications for the company's operations and market position in the pharmaceutical industry.