The Success Story of Torrent Pharma becoming a drug manufacturing giant

Shalini Rath Shalini Rath
Oct 29, 2022 9 min read
The Success Story of Torrent Pharma becoming a drug manufacturing giant

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Diseases and medications have been an essential part of our lives since the dawn of time. The human body has health issues, and with the fast-paced lifestyle today, it is increasing like anything. Heart problems, diabetes, and blood pressure are some of the common diseases in today's world. These issues are on the rise, and so is the pharmaceutical industry.

Pharma industries have become an integral part of our lives. This particular industry has a huge social responsibility while creating pharma products. One such well-known company like Torrent Pharmaceuticals Ltd. deals mainly in manufacturing drugs for Cardiovascular, nervous system (CNS), gastrointestinal, diabetes, etc. It was founded in 1959 by Indian businessman Uttambhai Nathalal Mehta.

Get all the details we have covered about Torrent Pharmaceuticals in this article. Learn about Torrent Pharmaceuticals's business strategy, its products, the startup story, funding and investors, and more.

Torrent Pharma - About
Torrent Pharma - Company Highlights
Torrent Pharma - Industry details
Torrent Pharma - Founder
Torrent Pharma - Startup Story
Torrent Pharma - Mission and Vision
Torrent Pharma - Name, Tagline, Logo
Torrent Pharma - Business & Revenue Model
Torrent Pharma - Revenue Growth
Torrent Pharma - Funding and Investors
Torrent Pharma - Mergers and Acquisitions
Torrent Pharma - Awards and Achievements
Torrent Pharma - Competitors
Torrent Pharma - Future Plans

Torrent Pharma - About

Torrent Pharma, the flagship company of the Torrent Group, is one of the country's leading pharmaceutical enterprises. As per records, it ranks eighth in the Indian Pharma Market and is in the top five in the therapeutic areas of Cardiovascular, Central Nervous System, Gastrointestinal, and Vitamins Minerals Nutritionals. Other than being present in these therapeutic areas, the company has a strong presence in diabetology, pain management, gynecology, cancer, and anti-infective industries.

Torrent Pharma has eight production sites, out of which 7 are in India and 1 in the United States, five of which are FDA-approved. It has invested heavily in R&D capabilities, with state-of-the-art R&D infrastructure employing over 700 scientists, as the backbone for its expansion in the local and international markets.

Today, the company has a presence in over 40 countries and is ranked first among Indian pharmaceutical companies in Brazil, Germany, and the Philippines.

Torrent Pharma - Company Highlights

Date Funding Round Fund Amount Investors
January 7, 2021 Venture Round β‚Ή5.6 billion ADQ
November 9, 2020 Private Equity Round β‚Ή11.3 billion Goldman Sachs
July 31, 2020 Private Equity Round β‚Ή2.3 billion Tata Capital
January 6, 2020 Private Equity Round β‚Ή5.4 billion True North

Torrent Pharma - Industry details

The high rise of numerous diseases is resulting in the improvement of the healthcare sector these days. According to a report, the worldwide pharmaceutical manufacturing market is estimated to be worth Β $957.59 billion by 2028, which is growing at a CAGR of 11.34%.

Torrent Pharma - Founder

Uttambhai Nathalal Mehta is the founder of Torrent Group. Torrent Pharmaceuticals is the flagship company of the Torrent Group.

Uttambhai Nathalal Mehta

U.N Mehta was born in Mehmadpur, a tiny hamlet in India's Palanpur district in 1924. While living at the Mahavir Jain Vidyalay hostel, he earned his B.Sc. from Wilson College. He began his career as a government servant. From 1945 through 1958, he worked as a medical representative for the pharmaceutical corporation Sandoz.

It was in 1959, that U.N Mehta made the ground-breaking decision to establish his own company, Trinity Laboratories, with a starting capital of only Rs 25,000. This organization began producing specialized medications. It was a significant move at a period when only multinational corporations produced specialty medications, and Mr. Mehta went on to found Torrent Laboratories in 1976. The firm began promoting a variety of important pharmaceuticals at extremely lower rates and quickly established a reputation for itself. Torrent is now a huge corporation involved in pharmaceuticals and electricity generation.

U.N Mehta is commemorated by the U. N. Mehta Institute of Cardiology and Research Centre (UNMICRC) in Ahmedabad, Gujarat. He received various honors, including the Government of India's 'Business Man of the Year' award in 1996-97. He is also known for his philanthropic contributions and has also financially supported social, educational, and humanitarian institutions and causes.

U.N Mehta was married to Shardaben Mehta. They have four children: two sons, Sudhir Mehta and Samir Mehta, and two daughters, Meena and Nayna. He left for the heavenly abode in 1998 in Ahmedabad.

Samir Uttamlal Mehta

Samir Uttamlal Mehta along with his brother Sudhir Mehta run the business of the Torrent Group. Samir has a master's degree in business administration from the B.K. School of Business Management. Torrent Pharma took several strategic initiatives under his leadership, including ventures into novel therapeutic and geographies, large investments in product development infrastructure and capabilities, building state-of-the-art manufacturing facilities, and acquisitions, establishing Torrent as one of India's fastest-growing and most respected Pharma companies.

Samit Mehta is responsible for the Group's entry into the burgeoning City Gas Distribution sector by participating in bidding rounds for new territories and acquiring existing CGD firms to increase its commercial footprint.

Sudhir Uttamlal Mehta

Sudhir Uttamlal Mehta joined the family business in the early 70s. He has a bachelor's degree from Gujarat University. Mr. Mehta joined his father in handling the activities of Torrent Pharma after finishing his schooling and began studying the complexities of business and management under his father's guidance. He contributed significant dynamism and business acumen to the Group, culminating in the first success of Torrent Pharma, the Torrent Group's flagship firm.

Torrent Pharma - Startup Story

The actual story of Torrent Pharmaceuticals began in 1971 as a Private Limited Company by Shri Rajnikant C. Patel and his family members. Later on, it was acquired by U.N Mehta. The Company's primary business was the production of pharmaceutical formulations and bulk pharmaceuticals. The Company's products had a strong reputation and were highly recognized in the market from that time.

On 28th June 1989, the Company became a deemed Public Company under the provisions of Section 43-A of the Act and by a Special, Resolution passed on 25th July 1992 at the Annual General Meeting, the Company became a Public Limited Company within the meaning of Section 3(1)(iv) of the act and adopted a new set of articles.

Fast forward to 1994, in the Indian market, the company was the first to introduce ranitidine (Ranitin), nifedipine (Calcigard), atenolol (Betacard), domperidone (Domstal), diltiazem (Dilzem), amiodorane (Cordarone), lisinopril (Listril), and other medications. During the same year, the Company introduced many new medications, including Zirtin, Tyklid, Flutamide, and Topcef, all of which were favorably welcomed by the market. In 1997, the firm made strategic agreements with world-renowned pharmaceutical companies such as Sanofi in France for cardio-vascular products and Novo Nordisk in Denmark for diabetes treatment. With sales in over 70 countries and a network of international marketing offices, Torrent become one of India's top exporters of medicinal formulations during that period.

All these years, the contributions by Torrent Pharmaceuticals were many. Recently, the company launched MSD (a brand name of Merck & Co., Inc, Kenilworth, NJ, USA) and Ridgebacks molnupiravir under the brand name Molnutor.

Torrent Pharma - Mission and Vision

Torrent Pharma's mission statement is, "We commit ourselves to total customer care by delivering world-class products and services."

The vision statement is, "To become the Most Respected Pharma Company."

The company strongly believes in its Core values upon which it ensures longevity. Its core values are:

  • Integrity
  • Passion for Excellence,
  • Participative Decision Making,
  • Concern for Society & Environment,
  • Fairness with Care and Transparency.

The tagline of Torrent Pharma is, "Innovating For A Healthier Tomorrow"

Torrent Pharma - Business & Revenue Model

Torrent Pharma's business can be divided into three main segments:

India Business

The company has established itself as a prominent participant in the Indian Pharma field, from pioneering specialized marketing in India to earning the moniker "The Company with the Most First Launches." They have well-separated marketing divisions that are strategically oriented toward distinct therapeutic sectors. Furthermore, it has a dominant position in the therapeutic segments of the cardiovascular, central nervous system, gastrointestinal, and women's healthcare as mentioned earlier.

The company's main areas of focus include formulations, API, drug discovery, marketing, and drug sales. Its operational manufacturing & R&D sites are as follows:

  • The manufacturing plant at Dahej, Gujarat
  • The manufacturing plant at Pithampur, Madhya Pradesh
  • Research Centre, Ahmedabad-Gandhinagar region, Gujarat - Β R & D Centre is spread out over 125,000 Sq. mts. with a built-up area of 41,000 Sq. mts.
  • The manufacturing plant at Indrad, Mehsana, Gujarat
  • The manufacturing plant at Baddi, Himachal Pradesh
  • Corporate Office, besides sales India, off. Ashram Road, [Ahmedabad]- Gujarat
  • The manufacturing plant at Visakhapatnam (Andhra Pradesh)
  • 3 Manufacturing plant at Rang-Po, (Sikkim)

International Business

Torrent Pharma has its operations in the EU territory. It has operational sites are present in Germany, UK, and Brazil. The company is also an emerging market in countries like Russia, CIS, South East Asia, Asia Pacific, Africa, the Middle East, Australia, and Central and Latin America.

Torrent Pharma is present in African Countries like Kenya, Zimbabwe, Nigeria, Uganda, and South Africa. In Asian countries like - Sri Lanka, Malaysia, Philippines, Vietnam, Β and Myanmar.

US Business

Torrent has expanded its business footprint in the United States with the acquisition of Bio-Pharm, Inc. (BPI), a generic medicines and over-the-counter (OTC) company situated in Levittown, Pennsylvania. Torrent Pharma Inc., our subsidiary, meets the expanding market demand for our medicines, and we are now rated 10th among US generic Indian companies.

Approximately 85% of the Company's revenue originates from four key markets: India, the United States, Germany, and Brazil. Torrent Pharma's business mix (70% BGx and 30% Gx) is highly optimized since it blends steady financial returns with operational leverage and cost competitiveness.

Torrent Pharma's CSR Activities

Torrent Pharma believes in the philosophy of "Think of others also when you think about yourself". Through this principle, Torrent Pharma makes ongoing efforts through its CSR initiatives to give back to society for all of the care, healing, support, and nourishment bestowed on us. Its CSR initiatives are:

  • Community Health care, Sanitation, and Hygiene - Some of the projects are - the U.N.Mehta Institute of Cardiology and Research Centre (UNMICRC), Swadhar, the Community Health Care Centre, and REACH – the Paediatric Healthcare Programme
  • Education and Knowledge Enhancement - Set up many schools such as - Sharda Mandir Primary School, K.G. Mehta High School, Akhakhol Primary School, and Shiksha Setu: A Teaching-Learning Enhancement Programme in 2011.
  • Social Care and Concern - Urja Dweep, is a green-power residential complex situated at SUGEN Plant, Surat.

Torrent Pharma - Revenue Growth

Torrent Pharma's EBITDA margins were 31% (2020-21 32%). Margins were greater the prior year due to Covid-induced cost moderation. Current-year margins were impacted by pricing pressures in the US base business, as well as a lack of fresh releases pending USFDA re-inspection of facilities.

The company reported having a revenue of $1.1 billion in 2022.

Torrent Pharma - Funding and Investors

Torrent Pharmaceuticals has received $40 million in investment in one round. On April 3, 2014, a Post-IPO Equity round was raised. Chrys Capital, an investment firm focused in India, is the company, which has invested in Torrent Pharmaceuticals.

Torrent Pharma - Mergers and Acquisitions

Torrent Pharmaceuticals has acquired five companies. Bio-Pharm was their most recent purchase, which occurred on January 19, 2018.

Date Funding Round Fund Amount Investors
January 7, 2021 Venture Round β‚Ή5.6 billion ADQ
November 9, 2020 Private Equity Round β‚Ή11.3 billion Goldman Sachs
July 31, 2020 Private Equity Round β‚Ή2.3 billion Tata Capital
January 6, 2020 Private Equity Round β‚Ή5.4 billion True North


Recently, Dr. Reddy's Laboratories Ltd. has made an agreement with Torrent Pharma to buy four of its brands: "Styptovit-E," "Finast," "Finast-T," and "Dynapress."

Torrent Pharma - Awards and Achievements

Torrent Pharma has won many awards such as:

  • It was listed amongst the top five β€˜Fastest Growing Companies (Middleweights Category)’ by Business World Magazine - in 2017
  • Torrent Pharma's manufacturing plant in Dahej, received USFDA approval - in 2016
  • Torrent Pharma was recognized as the Most Promising Company of the Year at the 10th CNBC TV18 India Business Leader Awards 2014

Milestones

  • Torrent Pharma entered into a licensing agreement with Medicine Patent Pool to manufacture and commercialize a generic version of Pfizer Oral COVID-19 Treatment
  • Torrent Pharma Entered Into Voluntary Licensing Agreement with Lilly to manufacture and distribute Baricitinib for Covid-19 in India - 2021

Torrent Pharma - Competitors

Torrent Pharma competes with the following companies:

  1. Dr. Reddy's Laboratories
  2. Divi's Laboratories
  3. Cipla Limited
  4. Zydus Lifesciences Ltd.
  5. Lupin Ltd.
  6. Aurobindo Pharma Ltd.
  7. Pfizer
  8. Abbott India
  9. Ajanta Pharma
  10. Glenmark Pharma Ltd.
  11. P&G
  12. Gland Pharma Ltd.
  13. Alkem Lab

Torrent Pharma - Future Plans

Torrent Pharma plans to stay dedicated to remaining patient-centric, delivering best-in-class performance metrics, and driving portfolio innovation in order to achieve above-market growth. The company is anticipating that the US will contribute favorably to the Company's total growth following facility re-inspection, which will be assisted by new product releases.

FAQs

Who is the founder of Torrent Pharma?

U.N. Mehta is the founder of Torrent Pharma.

What is the rank of Torrent Pharma in India?

In India, Torrent pharma ranks as the 8th biggest pharma company.

Where is Torrent pharma based?

Torrent Pharma is based in Ahmedabad.

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