Torrent’s ₹18,000 cr JB Pharma buy signals bold third-gen bet on renewables, healthcare, thermal power, and green hydrogen

In healthcare, Torrent is planning to diversify into hospitals and diagnostic centres. Torrent Electricals, which manufactures cables, is expanding into wires, switchboards, and other electrical items to evolve into an electricals-focused FMCG company.The acquisition of JB Pharma by Torrent Pharmaceuticals for over ₹18,000 crore is part of a well-charted, aggressive, high-growth plan being executed by the young third-generation leaders of the Ahmedabad-based Torrent Group, one of India's oldest business houses.

Founder U.N. Mehta’s sons — Sudhir Mehta, Chairman Emeritus, and Samir Mehta, Executive Chairman of the Group — have stepped back, handing over the reins to their four sons. Jinal Mehta (41), Sudhir Mehta’s eldest son, is Vice Chairman & Managing Director of Torrent Power and also heads Torrent Gas. His younger brother Varun Mehta (36) is a Director at Torrent Power and now oversees new business verticals. Samir Mehta’s elder son, Aman Mehta (32), Director at Torrent Pharmaceuticals, will take over as Managing Director from August 1. His younger brother, Shaan Mehta (27), who joined the group after his studies, now heads strategic planning at Torrent Pharmaceuticals.

“We plan to grow group revenues to ₹1 lakh crore (from over ₹40,000–₹42,000 crore) and double profits within the next five years,” Samir Mehta, Chairman of Torrent Group, told Fortune India in a recent interview.

The group, which has so far focused mainly on pharma and power and entered the natural gas sector in 2018, is now diversifying into new businesses: hospitals and diagnostics in healthcare, and renewables, pumped hydro storage (PHS), and green hydrogen in energy. It is also transforming its cables company into an electrical FMCG business. Torrent Power alone plans to invest around ₹1 lakh crore in solar and wind hybrid renewables, green hydrogen and its derivatives, and pumped hydro over the next eight years.

Over the past ten years, Torrent Pharma has made major strides, especially in its domestic business, through a series of acquisitions, both companies and brands, spending over $1 billion, with JB Pharma being the latest. In FY25, Torrent Pharmaceuticals' revenues rose 7% to ₹11,516 crore from ₹10,728 crore the previous year. Profit After Tax (PAT) grew 15% during the same period, from ₹1,656 crore to ₹1,911 crore. Since 2018, Torrent Pharma’s domestic business — which now contributes 55% of total revenues — has grown at a CAGR of over 15%, reaching more than ₹6,500 crore in FY25.

Torrent Power's revenue rose to ₹29,165 crore in FY25, up 7% from ₹27,183 crore in FY24, driven by gains in the power distribution business. Torrent Power’s total generation capacity is nearly 4,500 MW. It now claims to be the leading private power distributor in India, selling nearly 30 billion units to over 4.13 million customers in 12 cities. The company is also expanding its transmission business with two projects — in Khavda (Gujarat) and Solapur (Maharashtra) — involving a combined investment of ₹1,300 crore.

While renewable energy and power distribution are immediate growth drivers for Torrent Power, it is also actively evaluating opportunities in pumped hydro, green hydrogen, and energy storage. The focus is on building large renewable energy capacity, expanding from the current 1,236 MW (with another 3,000 MW under construction). The medium-term goal is to reach 5 GW in renewables by FY27 or FY28, and the long-term aim is to hit 10 GW by FY32 with an investment of ₹57,000 crore. The group’s energy diversification plans also include setting up 5–8 GW of pumped hydro storage (PHS) projects, entailing an investment of ₹25,000–₹35,000 crore. Torrent Power is building a green hydrogen facility in Gorakhpur, Uttar Pradesh, to blend hydrogen into Torrent Gas’ distribution network as a pilot project. It also plans to set up a 100,000-tonnes-per-annum green ammonia production facility with an investment of ₹7,200 crore.

Torrent Gas operates in 17 geographical areas through seven entities, with a total authorised area exceeding 1.25 lakh sq. km. Though it entered the gas business only in 2018, revenues have grown at a CAGR of 180%, and gas demand at 108% over the past six years. Torrent Gas is now among India’s top five city gas distribution (CGD) companies.

For FY25, Torrent Gas posted revenue of ₹4,027 crore and EBITDA of ₹668 crore, supported by 40% volume growth, driven by an existing core infrastructure base and balanced input costs — despite reduced APM gas allocation — due to pre-existing contracts, according to a Crisil analysis. Torrent has invested over ₹5,000 crore to develop 25 city gas networks and 447 CNG stations, provide 1.32 lakh piped natural gas domestic connections, and lay 1,600 km of steel and 5,900 km of MDPE (plastic) pipelines. It plans to invest another ₹5,000 crore to grow gas sales to 5 MMSCMD over the next five years and to expand operations in its allotted GAs.

In healthcare, Torrent is planning to diversify into hospitals and diagnostic centres. Torrent Electricals, which manufactures cables, is expanding into wires, switchboards, and other electrical items to evolve into an electricals-focused FMCG company.

The group also recently forayed into sports by acquiring a 67% stake in the Gujarat Titans IPL franchise from CVC Capital Partners in February, in a deal valued at approximately ₹5,025 crore.