In the last blog, we did a comprehensive SWOT Analysis of PharmEasy – One of India’s Largest Healthcare and Medicine Delivery Platforms. This time, we are dealing with the SWOT Analysis of Torrent Pharmaceuticals.
One of the top pharmaceutical companies in India – Torrent Pharmaceuticals Ltd encircles the complete pharmaceutical value chain, varying from the cardiovascular, central nervous system, gastro-intestinal and women healthcare. The main motive of writing this blog is to help you understand how Torrent Pharmaceuticals became one of the renowned pharma companies in India. The company has been operating since 1959 and has expanded overseas in more than 40 countries.
Another reason for the success of Torrent Pharmaceuticals which is big now is its digital marketing strategies. Currently, there is great progress and demand for digital marketing and if you are interested in learning about the latest – check out our Free MasterClass on Digital Marketing 101 by the CEO of IIDE, Karan Shah.
Do you want to learn how Torrent Pharmaceuticals succeeded in the market? In this blog, we will be learning about the SWOT analysis of Torrent Pharmaceuticals.
About Torrent Pharmaceuticals
Torrent Pharmaceuticals Ltd was established in the year 1959 by Late U.N. Mehta, originally as Trinity Laboratories Ltd. It was later acquired by Torrent Group and is an Indian Multinational Pharmaceutical Company.
To date, the company’s 2000+ products have been patented. Torrent Pharma has been established as a pioneer in the segment of gastrointestinal, cardiovascular, and women-healthcare. The company started international acquisitions in 2005 and has its presence in more than 40 countries such as Europe, the U.S., Brazil, and many more. The company has 8 manufacturing plants where more than 700 scientists are working on providing better lifecare products.
Torrent has strengthened the US presence through the acquisition of Bio-Pharm, Inc. (BPI) generic pharmaceuticals and OTC Company, based in Levittown Pennsylvania, USA, which includes its first overseas US FDA registered manufacturing facility.
|Founder||U. N. Mehta|
|Origin||Ahmedabad, Gujarat, India|
|No. of Employees||12,881+|
|Market Cap||Rs45,080.09 Crore (2022)|
|Annual Revenue||Rs8,060 Crore (2020)|
|Net Income/ Profit||Rs1,024 Crore (2020)|
Products by Torrent Pharmaceuticals
It’s been more than 63 years since Torrent Pharmaceuticals establishment and it manufactures several kinds of pharmaceutical products such as
- Over-the-counter drugs
- Generic drugs
- Contact Lenses
- Animal Health
Competitors of Torrent Pharmaceuticals
Following are the close competitors of Torrent Pharmaceuticals Ltd.
- Divis Laboratories
As we are clear about the foundations of Torrent Pharmaceuticals, let’s move on to the SWOT analysis of Torrent Pharmaceuticals.
SWOT Analysis of Torrent Pharmaceuticals
SWOT stands for strength, weaknesses, opportunities and threats which is an analytical technique used for assessing your business in the four aspects. SWOT analysis is simple to analyse and determine what is best for the company at present as well as to formulate a successful strategy for the future. Accordingly, the SWOT analysis of Torrent Pharmaceuticals is carried out.
To better understand the SWOT analysis of Torrent Pharmaceuticals, refer to the infographics image below.
Let’s first start by analyzing the strength of Torrent Pharmaceuticals from the SWOT analysis of Torrent Pharmaceuticals.
Strengths of Torrent Pharmaceuticals
Strengths are defined as what each business does or has best in itself. Following are the strengths of Torrent Pharmaceuticals Ltd.
- Manpower: Torrent Pharma makes sure to hire the best talent across the country and incentivize them accordingly. Hiring the right people definitely gives cutting-edge competition to other firms.
- Global Presence: It’s been more than 63 years since the company’s establishment and during this period, the company has been distributing its products in more than 40 countries,
- Research & Development: Torrent Pharma invests heavily in R&D as compared to its competitors. The company is involved in promoting both basic and applied research.
- Awards & Recognitions: In 2001, Torrent Pharma bagged the Gold Trophy for IDMA Quality Excellence Award for its Formulations facility and Silver Trophy for its API manufacturing facility. It also got the ‘Best Suppliers’ award from the Sri Lankan State Pharmaceutical Corporation. At the 10th CNBC TV18 India Business Leader Awards 2014, Torrent Pharma was awarded as the Most Promising Company of the Year.
- CSR Activities: Through its CSR activities, Torrent makes continuous efforts to give back all the care, healing, support and nurturance to society. Torrent strongly believes that the sustainability of any business is directly related to the well-being and development of the society in which it is embedded.
- Purchases & Acquisitions: Torrent Pharmaceuticals is always ahead in terms of international acquisitions as in 2005 it acquired Pfizer to enter the German market and later on to capture the US market in 2015 it purchased ANDA of Minocycline from Ranbaxy.
Weaknesses of Torrent Pharmaceuticals
Torrent Pharma should focus on improving its flaws in order to retain its brand name in the market. Following listed are the weaknesses of Torrent Pharma.
- Fewer Supplier Loyalty: Torrent Pharma is leading the Biotechnology and Drugs Industry and is continuously trying to lower the prices in the supply chain.
- Imitate Business Model: The revenue model of Torrent Pharma is quite easy to copy and many firms have been imitating their model.
- Less Awareness: The general public uses medicines of Torrent Pharma as prescribed by the doctor, but they are not aware which brand’s medicine they are consuming. For Instance, Cipla spends heavily on advertising, so the brand’s name has reached the ears of all the Indian households.
- Compliance to Principles: The firm functions in such a sector in which it has to function beneath specific regulations and limitations which can be a difficult and expensive matter for Torrent Pharmaceuticals. There is also an added hazard of dealing with illegal compositions.
- Low Gross Profit: The company has been operating with a very thin profit margin because of tough competition.
- Less Focus on Customer Oriented Services: Though Torrent Pharma has many manufacturing plants and doing good in R&D, it needs to buckle up to provide good customer-oriented services.
- Shares & Net Profit: Torrent Pharmaceuticals shares tanked over 16%. The company reported a year-on-year decline of 16% in its consolidated net profit at Rs 249 crore for the October-December quarter as its US business registered a decline in revenue of 20%.
Opportunities for Torrent Pharmaceuticals
Torrent Pharma should have an eye on exploiting the external opportunities in order to gain an advantage from them. A few of these are listed below:
- Enter New Market: The government has created barriers for new entrants in the field of BioTechnology and Drugs Industry, Torrent Pharma should seize the opportunity and try to increase its customer base.
- Policy Reform: According to some experts and reviews, The Patient Protection and Affordable Care Act (ACA Act) passed by the US government will open a new set of reforms that will favour the pharma companies dealing with generic drugs. If this news is true, it will benefit Torrent Pharmaceuticals Ltd. to a big extent.
- New Technologies: Torrent Pharmaceuticals may use the new technologies to implement a differentiated pricing approach in the new market. It will allow the company to keep its current consumers by providing excellent service while also attracting new customers through various value-oriented offers.
- The Utilisation of Global Brand Position: Over the years, Torrent Pharmaceuticals Ltd. has gained a global market stand or goodwill worldwide. This can help the company by utilisation of the global brand positioning and expanding it towards the other potential markets.
- Backward Integration: Torrent Pharma should focus on creating raw materials for the medicines themselves in order to increase its profit margin.
Threats to Torrent Pharmaceuticals
Torrent Pharma should try to remove the external threats as they have a vital role in creating hindrance to the growth of a firm. The threats of Torrent Pharmaceuticals are
- Political Instability: Hefty taxation and an unstable political environment limit an organization to achieve heights of prosperity.
- Government Intervention: Medical care administrations are heavily controlled by the government in various nations including the U.S.
- Commodification: For those working in the Healthcare Industry, commoditization has a negative effect because it doesn’t let the manufacturer charge a profitable fee for what they produce.
- Competition: Torrent Pharmaceuticals has been under excessive competition from Emcure Pharmaceuticals and Abbott Laboratories.
- High Prices: Pharmaceutical companies require various chemical compositions which can result in high priced drugs. This can limit the expansion in various Asian and African countries with low per capita income.
- Counterfeit Drugs: Torrent Pharmaceuticals product is also vulnerable to counterfeit and low-quality product imitation, particularly in emerging and low-income regions.
This ends our detailed SWOT analysis of Torrent Pharmaceuticals. Let us conclude our learning below.
Torrent Pharmaceuticals ltd. is a very renowned pharmaceutical company and has gained a significant market stand globally. The SWOT analysis of Torrent Pharmaceuticals tells us that it enjoys its global market stand, has a focused objective, and has a series of successful acquisitions.
But it needs to acknowledge the opportunities like growing market trends, use of goodwill to reach other potential markets and increasing efforts in its R&D department to fulfil the upcoming needs of its customers and consumers.
Fewer barriers in pharma industries have led to increased competition. Now, industries are fighting for their market stand which can be increased by increasing and improving their marketing skills. In recent years, most of the marketing is done digitally. For successful digital marketing, you need to have some adequate skills. If you are interested in enhancing and boosting your digital marketing skills, then you should checkout IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Torrent Pharmaceuticals has given you a good insight into the company’s strengths, weaknesses, opportunities and threats. You can also check out an in-depth study on the marketing strategy of Johnson & Johnson.
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