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`Contradictory' statements on strike -- HSE seeks clarification from Dr. Reddy's Labs

C.R. Sukumar

HYDERABAD, June 23

THE Hyderabad Stock Exchange (HSE) has served a notice on Dr. Reddy's Laboratories Ltd (DRL) seeking clarification on the contradictory statements allegedly being made by the DRL management on the indefinite strike at its formulations unit-II located at Bachupally, near here, from June 17.

The HSE was said to have observed that the submissions made by the DRL management in the court, as appeared in the media, were in contradiction to the information submitted by the company earlier to the stock exchanges. Further, the HSE top brass is lear nt to have felt that the contradictory statements allegedly made by the DRL management were sending confusing signals to the investing community at large as the issue was price-sensitive in nature.

When contacted, the HSE President, Mr. Rajendra Naniwadekar, told Business Line: ``We have sought an explanation from the company on the issue following several enquiries made by the member brokers and investors. It appears from the media reports that th e DRL management has admitted in the Civil Court on June 19 that the activities at its formulations unit-II have come to a complete standstill and the company also incurred a production loss of Rs. 2 crores.

``As against this, we were informed by the company on June 19 that a small group of employees struck work and the DRL management has taken adequate measures to ensure that the manufacturing process was not affected. According to media reports, the compan y's spokesperson reiterated even on June 20 that the production at the unit continues as before. Keeping all these in view, we have asked the company to furnish the exact facts on the issue''.

Despite repeated attempts by this paper, the DRL management stonewalled the query as to which of its statements were accurate, the one made before the media and HSE or the one submitted to the Court.

However, the DRL Assistant Company Secretary, Mr. Santosh Kumar Nair, informed the stock exchanges at Hyderabad, Calcutta, Chennai, Mumbai, Ahmedabad and Luxembourg that ``the matter is before the courts and the company is refrained from making any state ments''.

Meanwhile, the indefinite strike at the formulations unit-II continued for the seventh day today. The representatives of the DRL Formulations Employees Union claimed that the activities at the unit remained at a standstill even on Friday. With the manage ment seeking further time for submitting its arguments on the issue, the court has posted the case for further hearing on June 26.