The acquisition of JB Chemicals and Pharmaceuticals will not only provide Torrent Pharmaceuticals crucial entry into newer therapies such as Ophthalmology and IVF in India, but also expand its presence in Russia, US and South African markets.

During an investors call on Monday to update on the acquisition, the largest for the company so far, the management of Torrent Pharmaceuticals said it expected to take “control” of JB Chemicals between January and March 2026. It would take 15-18 months for the completion of the deal which will see JB Chemicals and Pharmaceuticals merging into Torrent Pharmaceuticals.

On Sunday, Torrent Pharma announced buying out private equity firm KKR’s stake in JB Chemicals and taking a controlling stake in it through a subsequent open offer for a total deal value of around ₹19,500 crore..

Strategic vision

“The acquisition is in line with our strategic vision of deepening our IPM (Indian Pharmaceutical Market) presence. It expands our presence in some high growth segments and gives us a resilient platform to drive long term value. Additionally it gives us a new avenue of growth in the CDMO (Contract Development and Manufacturing Organisation) segment. We find this space to be attractive. The rest of the international business is of decent scale and we have several common markets. The US, Russia and South Africa are three most important regions outside India and the CDMO segment where we intend to build a greater presence through this acquisition. In India business, JB Chemicals and Pharmaceuticals brings with it strong capabilities where we are already present and also opens up new therapy segments that are important for our future like Ophthalmology and IVF,” said Aman Mehta, whole-time director while addressing investors. 

Cardiac, Gastroenterology and Paediatric will be complementary therapies for Torrent Pharmaceuticals. “The enhanced prescription footprint which will go up from rank 10 to 4 as per the SMSRC data-set is positive for our overall reach. It will also help enhance trade visibility as a result,” he said adding the acquisition will also help boost presence in segments like Nephrology where Torrent Pharmaceuticals is not a strong player. 

Talking about the international business, Mehta said that brands of JB Chemicals were doing “very well” in Russia and were “faster-growing” than Torrent Pharmaceuticals and the company also hoped to build on the JB Chemicals presence in South Africa and the US. “CDMO is one segment we do not have any presence today. We understand it is a very robust and sustainable platform with a good set of customers in key emerging markets and there is potential to add more customers,” he added.

Bargaining power

Mehta said the recent acquisition will provide procurement-related savings, better bargaining power with vendors and optimum use of manufacturing capacities. Incorporated in 1976, JB Chemicals and Pharmaceuticals Ltd has a consolidated net worth of ₹3,433 crore and a turnover of ₹3,918 crore as on March 31, 2025. With 5,600 employees, eight manufacturing plants the company has presence in India, Russia, Dubai, South Africa and Philippines and the merger will help Torrent to consolidate in key international markets, and enhance its ability to scale-up.

A report by Nomura said that the acquisition does not come as a surprise as inorganic expansion has been a key strategy for Torrent Pharmaceuticals in the past.

In its investor presentation, Torrent Pharma stated that it strengthened its presence in pain management and women’s health segment after acquiring the India business of Elder in 2014. Similarly, the company expanded its market share in India by acquiring the India business of Unichem Laboratories Ltd.

In 2022, the company acquired Curatio and forayed into high-growth pediatric dermatology and leadership positions in cosmetology. The company said every acquisition has strengthened its position in core and emerging therapies.

Acknowledging that the acquisition of JB Chemicals and Pharmaceuticals has been “far larger than our past three deals”, Mehta said, “We have known the company for a very long time. It has been in a similar segment we have operated in. So I do not think it is very different from what we have at most levels.”

With respect to funding the deal. Torrent management said it would be via debt, the cost of which will be less than eight per cent. On the timing of the deal, company officials said that JB Chemicals was looking “relatively attractive” compared to last year when the valuations were higher. 

Torrent said that it will need the approval of about 26 percent of minority shareholders of JB Chemicals for the merger to go through. Mehta said the company was expecting an approval from Competition Commission of India within the next 4-5 months. “We are thinking of a CCI approval in mid-December. If that happens, then it is a one-month process to complete the minimum tender offer and then consummate the transaction. The merger process then begins, as it typically takes about 12 months time,” Mehta said, adding it was looking to take “control” of JB Chemicals between January-March 2026, subject to regulatory approvals.

Published on June 30, 2025