Torrent Pharmaceuticals to Acquire Controlling Stake in JB Chemicals & Pharmaceuticals from KKR: A Strategic Consolidation in India's Pharma Sector
In a landmark move that underscores the ongoing consolidation in India’s pharmaceutical industry, Torrent Pharmaceuticals Limited, a prominent India Fortune 500 company, has announced its intention to acquire a controlling stake in JB Chemicals and Pharmaceuticals from the global investment firm KKR. This transaction, valued at an equity valuation of approximately INR 25,689 crores (about $3 billion USD), is poised to reshape the competitive landscape of the Indian pharma sector and significantly strengthen Torrent’s position both domestically and internationally.
Torrent Pharmaceuticals Limited
Torrent House
Off Ashram Road
Ahmedabad, 380009
India
Main Phone: 91 79 2659 9000
Website: https://www.torrentpharma.com
Industry Sector: Healthcare - Specialty Drug Manufacturers
Fiscal Year End: March 31
Annual Revenues: 115.16 Billion (INR)
CEO: Samir Uttamlal Mehta, Executive Chairman & MD and Sanjay Gupta, President and CEO of Torrent Pharma USA
J. B. Chemicals & Pharmaceuticals Limited
Cnergy IT Park
Unit A2, 3rd floor, Unit A, 8th floor Appa Saheb Marathe Marg Prabhadevi
Mumbai, 400025
India
Main Phone: 91 22 2439 5200
Website: https://www.jbpharma.com
Industry Sector: Healthcare - Specialty Drug Manufacturers
Fiscal Year End: March 31
Annual Revenues: 39.18 Billion (INR)
CEO: Nikhil Ashokkumar Chopra, CEO & Whole-Time Director
Q&A: Understanding the Torrent-JB Pharma Acquisition
What are the key details of the acquisition deal?
Torrent Pharmaceuticals will acquire a 46.39% equity stake in JB Chemicals & Pharmaceuticals from KKR’s affiliate, Tau Investment Holdings Pte Ltd, for approximately INR 11,917 crores at a price of INR 1,600 per share. Following this initial stake purchase, Torrent will launch a mandatory open offer to public shareholders to acquire up to an additional 26% of shares at INR 1,639.18 per share. Torrent also intends to acquire up to 2.8% of equity shares from certain JB Pharma employees at the same price. The acquisition will be executed in two phases. First, Torrent will purchase the 46.39% stake from KKR through a share purchase agreement. Second, JB Pharma will be merged into Torrent through a scheme of arrangement, whereby JB Pharma shareholders will receive 51 shares of Torrent for every 100 shares held.
What strategic benefits does Torrent expect from this acquisition?
Samir Mehta, Executive Chairman of Torrent, highlighted the strategic significance of the acquisition, stating, “We are pleased to have on board the JB Pharma heritage and build on the platform for the future. Torrent’s deep India presence and JB Pharma’s fast-growing India business, combined with the CDMO and international footprint, offers immense potential to scale both revenue and profitability. 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.” The acquisition is expected to strengthen Torrent’s presence in the Indian pharmaceutical market, particularly in the chronic segment, and provide access to JB Pharma’s leading brands in gastroenterology and cardiovascular therapies, as well as new therapeutic areas such as ophthalmology. The deal also expands Torrent’s capabilities in the Contract Development and Manufacturing Organization (CDMO) segment, which is emerging as a significant growth area for the company. By combining resources and expertise, both companies anticipate operational synergies that will enhance efficiency and profitability. The consolidation will propel Torrent to become the fifth-largest pharmaceutical company in India, with a 4.6% share of the organized retail pharma market, up from 3.6% prior to the deal.
How will this acquisition affect the Indian pharmaceutical market?
This transaction represents a major consolidation in India’s highly fragmented pharmaceutical sector. Torrent’s acquisition of JB Pharma will make it the number one player in the Rs 30,000 crore cardiac therapy market, increasing its market share from 7% to nearly 11% and overtaking Sun Pharma, which previously held the top spot with an 8.3% share. JB Pharma’s strong portfolio in chronic care and its expanding international footprint complement Torrent’s existing strengths, creating a diversified platform that is well-positioned to compete globally. The consolidation is expected to enhance healthcare access and product offerings across India and other international markets, setting a new benchmark for scale and innovation in the industry.
What are the financial implications and valuation of the deal?
The total equity valuation of JB Pharma on a fully diluted basis stands at INR 25,689 crores, or approximately $3 billion USD. Torrent’s initial purchase of a 46.39% stake from KKR is valued at INR 11,917 crores, with the mandatory open offer to public shareholders and the planned acquisition of employee shares adding further to the total consideration. KKR, which acquired its stake in JB Pharma in 2020 at INR 745 per share, is exiting the company with a fivefold return, delivering a gross internal rate of return (IRR) of 36% in rupee terms. This outcome highlights the success of KKR’s investment strategy in the Indian pharmaceutical sector.
What are the regulatory and procedural steps ahead?
The acquisition and subsequent merger are subject to approvals from several regulatory bodies, including the Securities and Exchange Board of India (SEBI), the stock exchanges, the Competition Commission of India (CCI), the National Company Law Tribunal (NCLT), and other relevant authorities. The transaction is expected to conclude within 15 to 18 months, depending on the timely receipt of these approvals.
What are the perspectives of the CEOs of Torrent and JB Pharma?
Samir Mehta, Executive Chairman of Torrent, emphasized the long-term vision behind the deal, stating, “This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market and building a larger diversified global presence. The CDMO platform provides a new long-term avenue of growth for Torrent.” Nikhil Chopra, CEO of JB Pharma, expressed confidence in the merger’s potential, saying, “We are confident that the combined strengths of our organisations will unlock greater opportunities to enhance healthcare access across our markets. JB Pharma has built a strong foundation over the past five years, and joining Torrent will accelerate growth and innovation.” Gaurav Trehan, Co-Head of Asia Pacific and CEO of KKR India, also commented on the deal, noting, “JB Pharma’s transformation under our stewardship is a testament to KKR’s ability to scale high-quality companies. We are proud to have collaborated with JB Pharma’s management.”
How does this acquisition fit within Torrent’s broader corporate strategy?
Torrent Pharmaceuticals, listed among the India Fortune 500, has been steadily expanding its portfolio in chronic and specialty drugs. The acquisition of JB Pharma aligns with Torrent’s ambition to become one of India’s top three pharmaceutical companies by revenue and global footprint. The deal enhances Torrent’s capabilities in chronic disease segments such as cardiovascular and gastrointestinal therapies, as well as in emerging therapeutic areas like ophthalmology. Additionally, the acquisition expands Torrent’s international contract manufacturing and CDMO services, which are expected to be major growth drivers in the coming years. This strategic consolidation positions Torrent to leverage synergies, scale operations, and enhance profitability, reinforcing its competitive edge in the evolving global pharmaceutical landscape.
Summary
Torrent Pharmaceuticals’ acquisition of a controlling stake in JB Chemicals & Pharmaceuticals from KKR represents a transformative moment in India’s pharmaceutical industry. With a deal valued at nearly $3 billion, Torrent will significantly expand its market presence, becoming the fifth-largest pharmaceutical company in India and the leader in the cardiac therapy segment. The merger brings together Torrent’s expertise in chronic diseases with JB Pharma’s robust portfolio and CDMO capabilities, setting the stage for enhanced innovation, operational efficiency, and global expansion. Both Samir Mehta and Nikhil Chopra have expressed optimism about the combined entity’s potential to unlock new growth avenues and improve healthcare access. As the deal moves through regulatory channels, it stands out as a pivotal development in India’s pharmaceutical sector, reflecting the dynamic consolidation trends that are shaping the industry’s future.
Sources:
“Torrent Pharma to acquire controlling stake in JB Chemicals from KKR,” The Economic Times, June 2025.
“Torrent Pharma to buy JB Chemicals from KKR in $3 billion deal,” Mint, June 2025.
“Torrent Pharma to acquire controlling stake in JB Chemicals for Rs 11,917 crore,” Business Standard, June 2025.
Company press releases from Torrent Pharmaceuticals and JB Chemicals & Pharmaceuticals, June 2025.
