Torrent Pharmas core philosophy lies in providing life-supporting medications at affordable cost. Its R&D Center and the manufacturing facilities conform to world-class standards. Torrent Pharmaceuticals operates in more than 50 countries with over 1000 product registrations globally and over 200 products in the pipeline. Torrent Pharmaceuticals is a leading pharma player based in India having a strong presence in various therapeutic areas including cardiovascular, diabetology, central nervous system and pain management segments. The facility has the capacity to manufacture 3.2 billion tablets, 300 million capsules and 17 million Oral Liquid bottles, per annum. It has set up a world-class R&D facility at an investment of USD 40 million that employs more than 560 scientists dedicated to drug discovery and development. TPL is ranked 17th in India on the basis of sales turnover (FY12) while it is No.2 in the cardiovascular segment and No.3 in the neuro-psychiatry segment. Its 6 pharmaceutical brands are in the top 300 brands and 37 of its other brands enjoy leadership positions in their respective molecule segments. TPL provides CRAMS (Contract Research and Manufacturing Sales) services for global pharma majors such as Novo Nordisk and Astra Zeneca. Torrent has remained ahead of the curve when it comes to strategic decision making. In domestic formulations, it concentrated on high yielding chronic therapies like cardiovascular & neuropathy when most Indian players were growing in anti-infectives (acute). It was one of the early entrants in the Brazilian markets. Torrent acquired a marketing company in Germany in 2005. It also struck a CRAMS deal with NovoNordisk in the Indian market for insulin. Just when it was witnessing a slowdown in domestic formulations, it acquired Elders lucrative formulations business. US launches like gCymbalta and gMicardis have strengthened the US business and overall financial health. Strong margins and high return ratios are some of the major differentiators for Torrent. The exports business (~55% of the total turnover) is seeing strong traction especially from US even as Brazil is slowing down due to structural issues. However, Brazil has also started showing signs of a recovery with a recalibrated approach. Other export markets like Europe and RoW are growing at a steady pace. In the US, the company owns a healthy product pipeline (71 filed ANDAs, 50 approvals and 39 launches). We expect US sales to grow at a CAGR of 17% in FY14-17E to | 1244 crore. Similarly, ROW and European sales are likely to grow at a CAGR of 8% and 10% to | 473 crore and | 1229.3 crore, respectively, in FY14-17E. Despite having a higher proportion of chronic therapies, the company remained an underachiever in the branded formulations space, growing at a CAGR of 13% in FY09-14. The acquisition of Elder Pharmas branded portfolio is likely to add new therapies such as neutraceuticals and gynaecology and fill up the portfolio gaps. Elders portfolio is also margin accretive. We expect Indian branded formulations to grow at a CAGR of 28% in FY14-17E to | 2452.5 crore.

Strengths Asset leverage Effective communication High R&D Innovation Loyal customers Market share leadership Strong management team Strong brand equity Strong financial position Supply chain Pricing Reputation management Unique productsWeaknesses Bad communication Diseconomies to scale Over leveraged fiancial position Low R&D Low market share No online presence Not innovative Not diversified Poor supply chain Weak management team Weak real estate Weak, damaged brand

Opportunities

Acquisitions Asset leverage Financial markets (raise money through debt, etc) Emerging markets and expansion abroad Innovation Product expansion TakeoversThreats

Competition Economic slowdown External changes (government, politics, taxes, etc) Exchange rate fluctuations Lower cost competitors or imports Maturing categories, products, or services Price wars