Singh told reporters after the company's AGM here the company's president DS Brar would take over as MD & CEO on October 1. Singh would, however, continue as the chairman to "focus on strategic and long-term aspects of the vision". Ranbaxy has also announced corporate governance initiatives. Singh said that the company would have three committees -- management committee, science committee and finance and credit committee. The committees would comprise non-executive directors with managing and chief financial officer as permanent invitees.

On his stepping down as MD, Singh said 17 years as CEO of a company is long tenure. ``A person tends to get stale. My health has also not been verygood for quite some time. Let somebody else who is younger, whose thinking is different lead the company for the next 15-20 years".

Brar's appointment lays to rest speculation over the succession issue at Ranbaxy. ``I believe that the most competent manager should be the CEO. My sons taking over from me at the age of 25-26 years would be crazy,'' he said.``Brar eminently deserves to don the mantle of CEO. I am confident that the company will continue to be even more successful and will achieve greater heights under his leadership,'' he said. Elaborating on the corporate governance measures, Singh said non-executive directors of the board would be given a maximum of two terms of three years each. A director would be given a third term only under exceptional circumstances. The upper age limit for being a Ranbaxy director would be 70 years. The number of executive directors will not be more than one-third of the board strength.

The code will be a platform for embracing international practices, Singh said. Itwill also be an enabling methodology to further strengthen management and decision making process while enhancing effective and transparent functioning amongst the board, its committees and executive management to meet further challenges, he said.

Singh said both JM Khanna, senior vice-president (R&D) and VK Kaul (senior vice-president, finance) would continue as whole-time directors. With Brar being elevated as MD, Ranbaxy will look at internal and external candidates for the post of president. Singh said Ranbaxy faces three major challenges on which the company's future will depend - the results of its research and development initiatives; business-related challenges since the company has entered into overseas markets such as USA, UK, China, Russia and is now looking at Brazil and France; human resource development for integration of employees of the company which come from different cultures so that they think alike.