Torrent Pharma seals Rs 3.6k-cr Unichem deal

MUMBAI: The Ahmedabad-based

Torrent

Pharmaceuticals has announced the acquisition of

Unichem

’s branded formulations business in India and Nepal for Rs 3,600 crore, as reported by TOI on Friday. The deal, which will catapult the company to the fifth rank in the domestic market, was approved by the company’s board on Friday.

The acquisition helps the Rs 5,800-crore company, currently ranked 15th, to consolidate its market share from the existing 2.4% to 3.4% in the domestic pharma industry. Torrent Pharma, flagship of the Torrent Group, has an India business of around Rs 2,600 crore. It will add roughly 3,000-plus employees to Torrent’s pool, while the distribution reach will be enhanced by 2,000 stockists.

A company statement said this will be Torrent’s fifth acquisition after acquiring brands of Elder and

Novartis

, as well as manufacturing plants from ZygPharma and Glochem Industries, over the last four years Unichem’s India business comprises a portfolio of over 120 brands in India and Nepal, amanufacturing plant at Sikkim catering to these markets, and employees engaged in the said business. The transaction is an ongoing concern basis by way of a slump sale, a company statement said, adding Torrent will fund the acquisition through a mix of internal accruals and bank borrowings. Unichem will remain an independent publicly listed company with no change in its existing shareholding, it added. After the deal is completed, formulations plants in Goa, Ghaziabad (UP), Baddi (HP), API manufacturing plants in Roha, Kolhapur (both in Maharashtra) and Pithampur (MP), besides the international business, will be with Unichem.

Torrent Pharma chairman

Samir Mehta

said, “The transaction is a strategic fit for Torrent and will strengthen its position in the key segments of cardiology, diabetology, gastro-intestinals and CNS therapies.”

According to Unichem Laboratories chairman Dr Prakash Modi, “Torrent, we believe, is the right company as they have the expertise and right presence in key therapies.”