Torrent Pharmaceuticals Ltd., one of India’s leading pharma majors, has announced plans to acquire a 26% equity stake in its group entity Torrent Urja 27 Pvt. Ltd., which is setting up a captive hybrid renewable power project in Gujarat. The investment underscores the company’s focus on sustainable energy adoption and regulatory compliance in line with India’s power sector laws.
Deal Structure and Investment Details
- Equity Stake: 26% in Torrent Urja 27 Pvt. Ltd.
- Investment Value: ₹7.92 crore.
- Mode of Investment: Subscription to 79.19 lakh Class A equity shares at ₹10 each.
- Agreements Signed: Share subscription and shareholders’ agreement dated September 10, 2025.
- Related Party Transaction: Yes, since Torrent Urja is currently a wholly owned subsidiary of Torrent Green Energy Pvt. Ltd.; however, the company clarified that the transaction is being carried out on an arm’s-length basis.
The project will combine solar and wind power generation, aiming to provide a stable, renewable energy supply for Torrent Pharma’s manufacturing operations.
Project Timeline and Purpose
- Location: Gujarat.
- Technology: Hybrid power project – combining solar and wind energy.
- Timeline: Expected to be completed within 18 to 20 months.
- Objective:
- Increase Torrent Pharma’s share of renewable energy usage.
- Ensure compliance with India’s Electricity Act and captive consumption regulations.
- Lower long-term energy costs and carbon footprint.
This move is aligned with the global ESG push and the Indian government’s target of achieving 50% power capacity from renewables by 2030.
Strategic Significance for Torrent Pharma
Torrent Pharma has been expanding rapidly, not only in its core healthcare business but also in building sustainable operational practices.
- Operational Benefits: Access to cost-efficient, clean energy to power its pharma manufacturing units.
- Sustainability Commitment: Strengthens the company’s environmental stewardship by reducing reliance on fossil fuels.
- Regulatory Compliance: Meets renewable energy mandates for captive power consumption under Indian electricity regulations.
This is part of Torrent Group’s broader strategy to align its diverse businesses—including pharma, power, and energy—with sustainable growth initiatives.
Torrent Pharma’s Broader Business Momentum
- M&A Expansion: In June 2025, Torrent Pharma announced a blockbuster ₹19,500 crore acquisition of JB Chemicals and Pharmaceuticals. The deal included purchasing a 46.39% promoter stake for ₹11,917 crore and an additional open offer under SEBI takeover norms. Once completed, the acquisition will make Torrent the second most valuable pharma company in India.
- Q1FY26 Financial Performance:
- Revenue: ₹3,178 crore (up year-on-year).
- Net Profit: ₹548 crore, a 19.9% increase YoY.
- Strong Margins: Driven by leadership in chronic therapies such as cardiovascular and CNS (central nervous system), and a robust branded generics portfolio.
Industry and Market Implications
The move highlights a broader trend of Indian pharmaceutical companies diversifying into renewable energy for captive use to:
- Ensure uninterrupted energy supply for large-scale manufacturing.
- Reduce carbon footprint in line with global ESG benchmarks.
- Hedge against volatility in conventional power costs.
Torrent’s hybrid power investment places it among the early adopters of green energy integration in pharma manufacturing, setting a precedent for peers in the sector.
Summary
Torrent Pharma’s decision to acquire a 26% stake in Torrent Urja 27 Pvt. Ltd. for ₹7.92 crore reflects a strategic pivot toward sustainability, while ensuring regulatory compliance and operational efficiency. With the hybrid solar-wind project expected to go live in under two years, the company is not only securing a cost-effective green energy source but also reinforcing its commitment to environmentally responsible growth.
Coupled with its record-breaking acquisition of JB Chemicals and robust quarterly performance, Torrent Pharma is well-positioned to consolidate its status as a leading force in Indian healthcare, supported by sustainable energy adoption.
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