Torrent Pharma looks to expand India business, contract development with JB Pharma deal

Ahmedabad-based pharmaceutical major Torrent is strengthening its India business as well as a push into contract development and manufacturing (CDMO) by acquiring rival JB Chemicals and Pharmaceuticals from private equity giant KKR at an equity valuation of ₹25,689 crore.

 

According to Torrent Pharma, this deal will mark a significant step in its ambition to create a future-ready, diversified healthcare platform combining a deep chronic segment heritage with emerging international CDMO capabilities.

 

Torrent’s deep India presence and JB Pharma’s fast-growing India business, combined with the CDMO and international footprint, offer immense potential to scale both revenue and profitability, said Samir Mehta, executive chairman of Torrent.

 

“This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market and building a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent,” he pointed out.

 

The acquisition of JB Pharma by Torrent will happen in two phases. Initially, Torrent will acquire a 46.39 per cent equity stake in JB Pharma for ₹11,917 crore, or ₹1,600 a share. This will be followed by a mandatory open offer to acquire up to 26 per cent additional stake in JB Pharma from public shareholders at ₹ 1,639.18 a share. This is an 8.5 per cent discount to JB Pharma’s closing price of ₹1,792.20 on the NSE on Friday.

 

JB Pharma shares tumbled 6.5 per cent on Monday morning at ₹1,684.90. Torrent shares, meanwhile, were up 0.6 per cent at ₹3,362.10 on the NSE.

 

Torrent also plans to acquire up to 2.80 per cent equity shares from certain employees of the company at the same price (₹1,600) it is paying per share to KKR.

 

Upon the merger of the two companies, every shareholder holding 100 shares in JB Pharma will receive 51 shares of Torrent.

 

Torrent has, over the years, done a string of acquisitions to rapidly emerge among the top players in the pharma space.

 

In December 2024, Torrent had agreed to acquire three anti-diabetes brands from Boehringer Ingelheim. Earlier, in 2022, it struck a deal to acquire Curatio Healthcare ₹2,000 crore, adding a portfolio of over 50 brands in the cosmetic dermatology segment.

 

Back in 2017,  Torrent acquired the branded business of Unichem Labs, and in 2013, it bought the Indian branded formulations business of Elder Pharma.

 

In the financial year ended March 2025, Torrent Pharma reported a net profit of ₹1,911 crore on revenue of ₹11,516 crore. In the same year, JB Pharma reported a profit of ₹660 crore on revenue of ₹3,918 crore.

 

Torrent sees multiple opportunities from this latest deal for JB Pharma. For one, it provides Torrent access to a fast-growing India franchise, with leading brands in the chronic segment, and entry into untapped therapeutic areas like ophthalmology. It will strengthen Torrent’s market share in the Indian pharma market.

 

It offers platform diversification with entry into the CDMO segment, added Torrent. It will also help in consolidation in key international markets and greater ability to scale up, it said.

 

Reports indicate Torrent is likely to become the fifth in terms of market share in the Indian pharmaceutical market with this deal for JB Pharma.

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