In a remarkable financial milestone, the diversified Torrent Group has crossed $20 billion (Rs 1.68 lakh crore) in market capitalization, nearly doubling its value within a year. This unprecedented growth is attributed to the group’s strong performance across various sectors, including pharmaceuticals and energy.
As of June 6, 2023, Torrent Group had a market capitalization of $10.8 billion (Rs 90,230 crore). However, on Friday, the stocks of Torrent Pharmaceuticals Limited and Torrent Power Limited surged by 2.22 percent and 2.59 percent, respectively, pushing the group’s market capitalization to an impressive $20.2 billion by the end of the trading session.
Torrent Pharmaceuticals, the group’s flagship, saw its shares close at Rs 2,838 each, while Torrent Power shares ended at Rs 1,492.35 on the NSE. This surge reflects the group’s robust financial performance, consistent growth, and strategic business expansions.
A key driver of Torrent Group’s success is its acquisition-focused business model. The group, now led by the third generation of founder UN Mehta’s family, has made significant strides in expanding its business through strategic acquisitions. Torrent Pharma’s notable acquisitions include Elder Pharma in 2013 and Curatio in 2022, marking its entry into the dermatology segment. The company’s bold investment strategies have yielded substantial returns over the past decade.
Recently, Torrent Pharma signed a pact with Takeda Pharmaceuticals to commercialize the novel gastrointestinal drug Vonoprazan in India under the brand name Kabvie, targeting acid-related disorders like Gastroesophageal Reflux Disease (GERD).
For the fiscal year 2023-24, Torrent Pharma reported a 33 percent increase in net profit, reaching Rs 1,656 crore, with a revenue growth of over 12 percent, totaling Rs 10,728 crore. The company generates about half of its revenue from the domestic market. Over the past year, Torrent Pharma’s Indian business grew by 10 percent, outperforming the market across all key therapies due to strong new product launches.
Torrent Pharma has 20 brands in the top 500 brands in the Indian Pharmaceuticals Market (IPM), with 17 brands valued at over Rs 100 crore each. Ranked fifth in the IPM, Torrent leads in the therapeutic segments of Cardiovascular (CV), Gastrointestinal (GI), Central Nervous System (CNS), Vitamins Minerals Nutritionals (VMN), and Cosmo-Dermatology, and has a presence in 50 countries.
On the energy front, Torrent Power reported a net profit of Rs 1,896 crore and revenues of Rs 27,183 crore for fiscal 2023-24. The company has developed 1,236 MW of renewable capacity, with an additional 3,041 MW under development. Torrent Power is also investing in pumped-storage hydro (PSH), with the first project expected within the next five years. Additionally, the company is pioneering green hydrogen projects, with a pilot project in Uttar Pradesh blending green hydrogen with gas in Gorakhpur’s city gas distribution network.
Torrent Power currently distributes nearly 30 billion units of electricity to over 4.13 million customers across 12 cities.
