Torrent Group achieved a significant milestone on Friday, crossing $20 billion (Rs 1.68 lakh crore) in market capitalization. This remarkable growth nearly doubled their market value, reflecting strong performance across its diverse businesses, including pharmaceuticals and energy. The group’s market cap was $10.8 billion (Rs 90,230 crore) as of June 6, 2023.
Two of the group’s listed companies, Torrent Pharmaceuticals Limited and Torrent Power Limited, saw gains of 2.22% and 2.59% respectively, bringing the group’s total market cap to $20.2 billion by the close of market hours, as per stock exchange data. Torrent Pharmaceuticals’ shares closed at Rs 2,838 each, while Torrent Power ended at Rs 1,492.35 apiece on the NSE.
Growth Drivers of the Torrent Group
The group’s market cap growth is driven by strong financial performance, a sustained growth trajectory, and business expansions. Acquisitions play a central role in their strategy. The third generation of founder late UN Mehta has taken key positions across the businesses, ensuring continued growth and innovation.
Torrent Pharma has a history of strategic acquisitions, starting with Elder Pharma in 2013. The most recent acquisition was Curatio in 2022, which marked their entry into the dermatology segment. The company’s bold strategies are now paying off.
Torrent Pharma recently partnered with Takeda Pharmaceuticals to commercialize the gastrointestinal drug Vonoprazan in India under the brand name Kabvie, targeting acid-related disorders like Gastroesophageal Reflux Disease (GERD).
Torrent Pharma reported a 33% increase in net profit, reaching Rs 1,656 crore for the fiscal year 2023-24, with a revenue growth of over 12% at Rs 10,728 crore. About half of its revenue comes from the domestic market. The company’s India business grew by 10% over the past year, and it has outperformed the market in all focus therapies on a moving annual turnover basis.
Torrent Pharma has 20 brands in the top 500 Indian Pharmaceuticals Market (IPM) brands, with 17 brands exceeding Rs 100 crore in value. Ranked 5th in the IPM, Torrent Pharma is among the top 5 in several therapeutic segments, including Cardiovascular, Gastrointestinal, Central Nervous System, Vitamins Minerals Nutritionals, and Cosmo-Dermatology. The company operates in 50 countries.
Torrent Power’s Achievements
Torrent Power reported a net profit of Rs 1,896 crore on 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. It has ambitious plans in the renewable energy sector, including pumped-storage hydro projects and green hydrogen initiatives. The first green hydrogen pilot project is underway in Uttar Pradesh.
Torrent Power distributes nearly 30 billion units of electricity to over 4.13 million customers across 12 cities, demonstrating its extensive reach and significant role in the energy sector.
The Torrent Group’s robust growth strategy, driven by acquisitions and innovation across multiple sectors, underscores its strong market position and future potential.
