Torrent To Invest Rs 115 Crore For New Units

The Torrent group will invest Rs 115 crore for creating new capacities and R&D facilities in its various companies.

Torrent Pharma, the group's flagship, is setting up a Rs 40-crore plant for downstream penicillin-G products, which will be commissioned in six to eight weeks. The company is also investing Rs 45 crore in new R&D facilities.

Another group company, Torrent Gujarat Biotech Ltd (TGBL), is expanding capacities for bulk drugs and formulations in Ahmedabad and Baroda at a cost of Rs 30 crore. The bulk drug plant's capacity at Baroda will be increased from 1,500 mmu to 2,200 mmu. The project is being funded through internal accruals and loans in the ratio of 50:50, said a company official.

"Penicillin prices are falling in the international and domestic market. By increasing capacity and producing more downstream products, we will be able to cut down prices and be more competitive," said K K Sureka, deputy managing director, Torrent Pharma.

Torrent is also increasing the capacity of its formulations plant at Chattral near Ahmedabad from the current 500 million tablets to two billion tablets per annum. This plant will make products for Sanofi - Torrent, the 50:50 joint venture of Sanofi and Torrent.

The company's penicillin-G plant is considered to be one of the most well integrated plants in the country, with captive consumption of 95 per cent of the production. The plant also produces anti-infectives for Torrent Exports.

The Torrent group companies are Torrent Pharmaceuticals Ltd, Torrent Gujarat Biotech Ltd, Torrent Exports Ltd, Torrent Cables Ltd, Gujarat Torrent Energy Corporation Ltd and Gujarat Lease Financing Ltd.

The group manufactures basic chemicals, bulk drugs and intermediate and dosage forms.

The group's consolidation will result in the pharma business being brought under the Torrent Pharma umbrella. Torrent Medisystems, a group company was merged with Torrent Pharma and the latter issued 1,74,144 shares. As a result, Torrent Pharma's share capital has increased to Rs 21 crore.

The pharma business of Torrent Exports was transferred to Torrent Pharma last year. Company officials said there are plans to merge Torrent Gujarat Biotech with Torrent Pharma. Besides, it has already spent Rs 30 crore in R&D and will spend a further Rs 45 crore this year.

It is developing therapeutic proteins which will be manufactured next year.