Nimmagadda Prasad

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Nimmagadda Prasad
నిమ్మగడ్డ ప్రసాద్
Nimmagadda-prasad.jpg
Born (1961-10-11) 11 October 1961 (age 53)
Krishna District, Andhra Pradesh India
Residence Hyderabad, India
Education Delhi University
Institute of Management Technology, Ghaziabad
Occupation Chairman, MAA TV
Religion Hindu

Nimmagadda Prasad (Telugu: నిమ్మగడ్డ ప్రసాద్; born 11 October 1961) is an Indian industrialist from Andhra Pradesh, India, known for his ventures in the Pharmaceutical and Television industries, and is involved in philanthropic activities through Nimmagadda Foundation.[1][2] Along with actor Nagarjuna, Prasad is one of the major shareholders of the popular TV channel Maa TV.[3]

In 2006, Prasad sold off his majority shares in Matrix Pharmaceutical to Mylan Laboratories, USA, a large generic Pharmaceutical Company.[4] For his achievements, the state government has honoured him with the "Best Management Award" in 2006. On the other hand, in 2012, he was jailed during CBI's investigation on Y. S. Jaganmohan Reddy's Disproportionate Assets, for allegedly having paid Rs. 8.50 billion on a quid pro quo amounting to Rs 14261.7 million investments in VANPIC and other firms held by him, during Y. S. Rajasekhara Reddy's government.[5][6] However, these assets were subsequently attached by the Enforcement Directorate of India, and Prasad was granted bail after seventeen months.[7]

Early life[edit]

Son of an army officer, Prasad obtained his BSc degree from Babu Jagjivanram Govt. College, Hyderabad, and then his MSc from the University of Delhi,[8] followed by a post graduate diploma in management from Institute of Management Technology, Ghaziabad.[9]

Prasad started his career as a management trainee in Indian Molasses Company in Delhi (an associate of United Molasses Company, UK) in 1984 and was promoted to salesman at Rhone Poulenc Chemicals and then to Vorin Laboratories as general manager of marketing in 1993, from his continuous efforts was elevated to managing director in 1995. When Indian pharma market leader Ranbaxy Ltd. acquired Vorin, Prasad was re-designated Senior managing director and chief executive officer.[10]

Political connections[edit]

During this period, he also developed political connections, and was known to be close to Chief Ministers N. Chandrababu Naidu and Y.S. Rajasekhara Reddy.[11] Subsequently he developed a close friendship with Jaganmohan Reddy[12] and served on the board of Sakshi and some other of Jagan's firms.

Matrix Laboratories[edit]

In 2000, Prasad took over the sick pharmaceuticals company Herren Drugs, and renamed it Matrix Laboratories, and obtained US FDA clearance for the manufacturing facilities in Hyderabad.[1] Matrix grew dramatically through a series of mergers and acquisitions. Prasad acquired Medicorp Technologies in May 2003, Vorin Labs in September 2003, Vera Laboratories, Fine Drugs & Chemicals the same year 2004 and a controlling stake in Concord Biotech in 2006. Prasad set his eyes on the global pharma-scape by acquiring Belgium-based Docpharma in June 2005, and a controlling stake in China's McChem Group. He also floated a JV South Africa's Aspen Pharmacare in September 2005, and picked 43% stake in Switzerland's Explora Laboratories SA the same year.

In 2006, Prasad sold off his majority shares in Matrix to Mylan Laboratories, USA, a large generic Pharmaceutical Company. From an initial investment of Rs. 30 million,[12] Prasad retained 5% in Marrix, and made about Rs. 5.70 billion in the transaction in which Mylan picked up a 71.5% stake in Matrix laboratories.[4]

Other investments[edit]

Subsequently, Prasad invested his capital in healthcare – CARE hospitals and Asian Institute of Gastroenterology. He also invested in stent manufacturer Relisys, and some genomic research-based companies. In the media business, he invested in MAA TV (currently being sold to Sony, and Jagan's paper, Saakshi[disambiguation needed].

Prasad at TeachAIDS launch in 2010

Prasad was on the Executive Board of the Indian School of Business (ISB), Hyderabad, besides his association with several academic, research and business organisations. After his arrests, he had to resign from most such posts such as the Indian School of Business.[13]

VANPIC and corruption links with Jagan Reddy[edit]

Prasad floated the infrastructure firm Matrix Export Holdings, and in April 2008, he tied up with Ras Al Khaimah investment authority to develop two ports in Guntur and Prakasam districts.[14] The mechanisms of the large scale corruption in the case was highlighted in the fourth chargesheet filed by the CBI in the Jaganmohan Reddy corruption case. The chargeshet records that in the VANPIC project:

quid-pro-quo investments made by industrialist Nimmagadda Prasad to the tune of Rs 8.54 billion into the companies of Jagan and allotment of 22,000 acres of land to Nimmagadda Prasad in violation of prevailing rules and regulations.[15]

The methodology was succinctly described by Supreme Court of India Chief justice P. Sathasivam, in his judgment rejecting a bail application for Jaganmohan Reddy:

The investigation disclosed the payment of illegal gratification of Rs. 300 million to Y.S. Jagan Mohan Reddy (A-1) by Nimmagadda Prasad (A-3) for the wrongful gain obtained by A-3 from the Government of Andhra Pradesh in connection with awarding a project consisting of development of two Sea Ports and an Industrial Corridor as VANPIC Project and falsification of documents to cover up the said payment.[16]

Investments linked to Jagan Reddy firms[edit]

The quid-pro-quo (payment for some benefits) investments made by Prasad into Jagan Reddy firms included:

  • Sandur Power Company: 2142,000 shares at Rs. 650 each (Rs. 1.40 billion)
  • Carmel Asia Holdings : Rs. 200 million
  • Bharati Cements : Rs. 2.44 billion
  • Silicon Builders : Rs. 280 million
  • Jagathi Publications: Rs. 4.50 billion (270 million in Sakshi office building)[17]

The benefits for Prasad's companies included a free allotment of 15,000 acres of land, exemption from stamp duty, seigniorage and other benefits estimated to total over Rs. 14 billion.[18]

Arrest and attachment of properties[edit]

On 17 May 2012, Nimmagadda Prasad was questioned for several days and eventually arrested by the CBI. He was lodged in Chanchalguda jail, where he was always seen carrying a bottle of mineral water.[19] After several failed attempts, he was eventually granted bail after seventeen months, in October 2013.[20]

In March 2014, in one of the largest criminal actions under the Prevention of Money Laundering Act, the Enforcement Directorate (ED) attached about 15 billion of assets of Nimmangada Prasad and his companies: G2 corporate Services Ltd, Alpha villas Pvt Ltd, Alpha Avenues Pvt Ltd, Gilchrist Investment Pvt Ltd, Suguni Constructions Pvt Ltd and Beta Avenues Pvt Ltd.[18] ED claimed that Prasad had obtained illegal benefits of Rs 14261.7 million in his firms, and made the quid pro quo investment worth Rs 8545.4 million into Jagan Reddy's companies.

See also[edit]

References[edit]

  1. ^ a b "List of Private Companies Worldwide, Letter – Businessweek". Investing.businessweek.com. Retrieved 17 September 2012. 
  2. ^ M. Somasekhar (16 May 2012). "Business Line : Companies News : The rise and fall of Matrix Prasad". Thehindubusinessline.com. Retrieved 17 September 2012. 
  3. ^ Nimmagadda Prasad all set to sell Maa TV | Deccan Chronicle
  4. ^ a b "The Hindu Business Line : Nimmagadda Prasad: `Fastest wealth creator' in Indian pharma space". Thehindubusinessline.in. 29 August 2006. Retrieved 17 September 2012. 
  5. ^ "Jagan Mohan Reddy's judicial custody extended". NDTV.com. 13 August 2013. Retrieved 24 September 2013. 
  6. ^ Prasad put Rs 850 cr in Jagan firms: CBI – Indian Express
  7. ^ Quid-pro-quo case: Nimmagadda Prasad, K V Brahmananda get bail | Latest News & Updates at Daily News & Analysis
  8. ^ "Nimmagadda Prasad who?". Financial Express. 2 September 2006. 
  9. ^ Special Correspondent (16 May 2012). "NATIONAL / ANDHRA PRADESH : Nimmagadda Prasad, a first generation entrepreneur". Chennai, India: The Hindu. Retrieved 17 September 2012. 
  10. ^ "industrialist Nimmagadda Prasad: Latest News, Videos, Photos | Times of India". Timesofindia.indiatimes.com. Retrieved 17 September 2012. 
  11. ^ "Prasad had Midas touch". The Asian Age. 16 May 2012. 
  12. ^ a b B Krishna Prasad (19 August 2011). "Who is Matrix Prasad?". Times of India. 
  13. ^ Rajeev, M. (20 June 2012). "B-school frets over one-time mentor's plight". The Hindu (Chennai, India). 
  14. ^ Construction World (Indian Edition)
  15. ^ "Jaganmohan Reddy Gets Bail: A Chronology". Outlook. 23 September 2013. 
  16. ^ Chief Justice P. Sathasivam (9 May 2013). "Y.S.Jagan Mohan Reddy vs C.B.I.". Supreme Court of India. 
  17. ^ The Inside Advantage | Madhavi Tata
  18. ^ a b "Enforcement Directorate attaches Rs 863 crore properties of Jaganmohan Reddy, others in laundering case". Economic Times. 5 March 2014. 
  19. ^ Nagaraju Koppula (6 June 2012). "Balance in Jagan's jail Account: Rs 2,900". Indian Express. 
  20. ^ Quid-pro-quo case: Nimmagadda Prasad, K V Brahmananda get bail | Latest News & Updates at DNAIndia.com