Ashok Modi has been an integral part of Torrent Group for several years. But it was only in 2014 that he moved into Torrent Pharma as CFO. The esteemed jury for the Yes Bank-BW Businessworld Best CFO Awards recognised Modi’s efforts as the CFO, who despite all odds successfully pursued inorganic growth/restructuring in line with the company’s strategic objectives. In this case, Modi was instrumental in Torrent Pharma’s successful acquisition of Zyg Pharma in May 2015.
Last year, Ahmedabad-headquartered Torrent Pharmaceuticals sealed a deal to acquire a 100 per cent stake in Zyg Pharma, part of the Mumbai-based Encore Group, for an undisclosed sum. Zyg Pharma’s manufacturing site is located at Indore and approved by various regulatory authorities including USFDA and TGA Australia. The site has faclities for on-site development, analytical method development and QC laboratory with separate areas for chemical, instrumental and micro sections.
According to Torrent, the acquisition of Zyg Pharma was in line with its strategy to diversify into new therapy segments. The company had said at the time that the acquisition would help strengthen its position in the niche dermatological segment, especially in developed markets like the US and Europe. Modi’s role became even critical as the entire acquisition was funded through internal accruals. Modi’s vast experience in financial matters is coming in handy for Torrent. In a communication to the Bombay Stock Exchange on March 23, 2016 the company said that it is seeking enabling approvals from its shareholders to raise Rs 10,500 crore through issue of shares and other securities to fund its growth activity. The board of the company has decided to obtain enabling approvals from shareholders to issue equity “including convertible bonds/debentures through qualified institutional placement (QIP) or depository receipts or any other modes for an amount not exceeding Rs 3,000 crore’’.
The company is also seeking enabling approval for borrowing through issue of “unsecured/secured redeemable non-convertible debentures/bonds by way of private placement for an amount not exceeding Rs 7,500 crore, subject to overall borrowing limits of Rs 10,000 crore’’.
Torrent Pharma is the flagship company of Torrent Group and is backed by world-class research centre that supports the company’s operations and product pipeline in domestic and overseas markets. Torrent’s manufacturing facilities are located at Baddi (Himachal) and Sikkim.
ashish.sinha@businessworld.in
BW Reporters
Ashish Sinha is an experienced business journalist who has covered FMCG, auto, infrastructure, tourism, telecom among several other beats. Ashish has keen interest in the regulatory scenario impacting different sectors. He writes on aviation, railways, post and telegraph, infrastructure, defence, media & entertainment, among a wide variety of other subjects.
