KKR's Stellar Exit: A Textbook Case of Private Equity Value Creation in Torrent Pharmaceuticals' Acquisition of J.B. Chemicals

In a major consolidation move in the Indian pharmaceutical sector, Torrent Pharmaceuticals Limited (“Torrent” or “Acquirer”) has announced the acquisition of a 46.39% controlling stake in J.B. Chemicals and Pharmaceuticals Limited (“JB” or “Target”) from global investment firm KKR, followed by a proposed merger of JB into Torrent.

- Anirudha Jain

“This transaction shall help Torrent Pharma to strengthens its product portfolio and geographic reach”

This strategic transaction marks one of the largest domestic pharma deals in recent years.

Torrent Pharmaceutical Limited (“Torrent” or “Acquirer”) is the flagship Company of the Torrent Group. It is amongst the Top 5 in the therapeutics segments of Cardiovascular (CV), Gastrointestinal (GI), Central Nervous System (CNS) and Cosmo-Dermatology. The equity shares of Torrent are listed on nationwide bourses.

In past Torrent has grown significantly through acquisition route. The Company has history of successful acquisitions and its integration with existing business operations. Some of the acquisitions by Torrent are shown in this figure.

With strong own business backed by successful acquisitions, Torrent has grown from INR 4172 crore revenue in 2014 to INR 11516 crore revenue in 2025.

J.B. Chemicals and Pharmaceuticals Limited ("JB" or "Target") is one of the fastest growing pharmaceutical companies in India having high-quality products in the cardiac, gastrointestinal, and anti-infective therapeutic areas across the branded formulations. Besides its strong India presence, which accounts for majority of its revenue, its other two home markets are Russia and South Africa. The company is also a leading CDMO player in the segment of medicated lozenges. The equity shares of JB are also listed on nationwide bourses.

In 2020, the global private equity KKR acquired controlling stake in JB from the erstwhile promoters, Mody family for circa INR 3100 crore. The acquisition was followed by compulsory open offer by KKR followed by change in management and KKR took complete control over the company.

The Proposed Transaction