Amuch sought-after acquisition in the domestic market and a late but strong entry into the US market has put the Ahmedabad-based Torrent Pharmaceuticals back on the map. Executive chairman Samir Mehta, who has been instrumental in identifying emerging opportunities — be it forays into new therapies or geographies, or striking alliances with global leaders in the industry, or creating resources to match the exacting demands of the markets — has steered the company well into its current position as one of the most respected Indian drug makers in the local as well as foreign markets.
Torrent’s remarkable performance — on all parameters important to investors — in the last three years has put Mehta at the fifth spot on the Most valued CEOs list of 2017. On his watch, the company posted a turnover of Rs 5,439.45 crore in FY15-16, and registered an average annual growth of 47.2 per cent in profits and 24.89 per cent in sales in the last three years. Its average return on capital employed during the period was 45.50 per cent.
Some of the most strategic moves that Torrent made in the last three years certainly include its acquisition of Elder Pharma’s domestic portfolio of brands at a time when the company’s local sales were lagging; and launch of some niche products in the high-profit US market.“Strong execution of low competition opportunities in the US and a very successful integration of Elder portfolio acquisition were the key growth drivers for the company along with its focus on building larger brands with market leading share in Brazil and India,” says Mehta. Although a late entrant, Torrent’s US business soared some 220 per cent in FY15-16 to Rs 2,671 crore, from Rs 832 crore in the previous year. During the year, the company successfully launched its psychotropic drug Aripiprazole and some newly acquired dermatology products in the US market. It gained at least $250 million from the mood disorder drug alone.
When Torrent started its US journey, it had just four drugs in the market. But now, it has some 61 approved drugs in the market and awaits FDA approval for another 22 products.
“The company’s strength to continue its growth trajectory lies in its ability to build strong brand equity for our products; maintain the highest level of productivity by hiring, motivating and training our people; and improve its technological ability to develop more complex products that require larger investments,” says Mehta.
Mehta, who has been rightfully credited for establishing Torrent’s strong pan-global presence, especially through its subsidiaries in the US, Germany and Brazil, believes the future of Indian pharma lies in its research capabilities. It was this belief that led Torrent to strongly invest in research and development infrastructure at a very early stage, and today, it is reaping benefits. Torrent is not even worried about the potential implications of a Trump administration in the US adversely affecting the ambitious growth plans of the company; it believes that a process of sustained investment research and a quest for new markets will ensure that Torrent maintains its current pace of growth.
BW Reporters
Unnikrishnan is currently Senior Associate Editor with BW Businessworld at its Mumbai Bureau. During his two decades long journalistic career, he has received several media awards and recognitions. His articles on healthcare, life sciences and intellectual property rights (IPR) have been republished by several international blogs and journals.