Ahmedabad-based Torrent Pharmaceuticals has approached the Competition Commission of India (CCI) to seek approval for acquiring a majority stake in JB Chemicals and Pharmaceuticals in a deal valued at ₹19,500 crore.
Torrent to Become India’s Second Most Valued Pharma Company
Once the deal is finalized, Torrent Pharmaceuticals will become the second most valued pharmaceutical company in India. This milestone will mark a major shift in the domestic pharma landscape.
Details of the Proposed Acquisition
Torrent Pharma, the flagship company of the Torrent Group, officially filed a notice with CCI, stating that the proposed combination involves acquiring a majority stake in JB Chemicals, followed by a merger of JB with Torrent. This strategic move aligns with Torrent’s ongoing focus on strengthening its footprint in the Indian and global pharmaceutical markets.
Business Profiles of Torrent and JB Chemicals
Torrent Pharmaceuticals primarily manufactures and sells pharmaceutical formulations (FDFs) across various therapeutic areas. In contrast, JB Chemicals manufactures and markets FDFs and Active Pharmaceutical Ingredients (APIs) and also offers Contract Development and Manufacturing Organization (CDMO) services.
Overlap in Product Portfolios
Both companies acknowledged that their business activities have horizontal overlaps in certain therapeutic segments within the FDF market in India. This overlap will be examined by the CCI to determine any potential impact on market competition.
Breakdown of the ₹19,500-Crore Deal
In June, Torrent Pharmaceuticals announced its plan to acquire a 46.39% stake in JB Chemicals from promoter Tau Investment Holdings Pte Ltd, an affiliate of global private equity firm KKR, for ₹11,917 crore. Additionally, Torrent will purchase another 2.80% stake from JB employees for ₹719 crore, at the same acquisition price of ₹1,600 per share.
Following this, Torrent will launch a mandatory open offer to acquire a further 26% stake from public shareholders at ₹1,639.18 per share, amounting to ₹6,842.8 crore—bringing the total deal value to ₹19,500 crore.
Second Largest Pharma Deal in India
As reported by The Hindu Businessline, this acquisition marks the second biggest pharma sector deal in India. It follows only Sun Pharma’s USD 4 billion acquisition of Ranbaxy Laboratories in 2015. Post completion of the share purchase, JB Chemicals will be merged into Torrent Pharmaceuticals.
KKR’s Exit from JB Chemicals
KKR originally acquired a 65% stake in JB Chemicals in 2020. However, by March 2025, KKR had divested 5.8% of its holding for ₹1,460 crore through open market transactions, setting the stage for Torrent’s entry.
JB Pharma: A Legacy in Specialty Therapeutics
Established in 1976, JB Chemicals has built a diverse portfolio with a strong presence in therapeutic areas such as gastroenterology, dermatology, and diabetes. Its robust domestic and international presence has made it a valuable player in India’s pharmaceutical industry.
Torrent Pharma’s Strong Market Position
Torrent Pharma currently reports annual revenues exceeding ₹11,500 crore, and the overall Torrent Group commands around ₹45,000 crore. The JB acquisition will further solidify Torrent’s position in the competitive pharmaceutical sector.
Other Major Deals in Indian Pharma
The Indian pharmaceutical space has witnessed several major mergers and acquisitions in recent years. In April 2014, Sun Pharma announced that it would acquire Ranbaxy in an all-stock deal worth USD 4 billion (including USD 800 million debt) and completed it in March 2015. More recently, Mankind Pharma completed a ₹13,768 crore acquisition of Bharat Serums and Vaccines, highlighting the consolidation trend in the industry.