EIC Torrent Pharmaceutical

5/12/2018 EIC Torrent Pharmaceutical - slidepdf.com

http://slidepdf.com/reader/full/eic-torrent-pharmaceutical 1/22

Security Analysis &

Portfolio Management

Sem 3-A

EIC Analysis of Torrent

Pharmaceutical

(07) Jay Dave (09) Rishi Kanjani

(14) Rinku Chhatbar (20) Vishesh Pandya

(21) Rushabh Kothari (93) Dhaval Patel

RK

Professor Charmi



1 | P a g e

Table of Contents

Sr.

No

Particulars Page

No.1 Preface &

Acknowledgement

2

2 Executive Summary 3

3 Overview of Indian

Economy

4

4 Pharmaceuticals

Industry

6

5 Porter Five Force

Model applied on the

Pharmaceutical sector

9

6 SWOT Analysis ofPharmaceutical Sector

10

7 History of Torrent

Pharmaceutical

12

8 Background of Torrent

Pharmaceutical

13

9 Financial Highlights 14

10 Key Financial Ratios

for Investors

17

11 Conclusion & Learning 19



2 | P a g e

Value

12 Bibliography 20

Preface & Acknowledgement

The field of management is all about being able to handle the organization alltogether in an effective & efficient manner. Aspiring managers like us always need to have a

combination of practical as well as theoretical outlook about management.

This report is absolutely everything about our learning in the outer world by

matching the concepts that we have learnt in the classroom with the practices of corporate bodies

in the real world. It goes without saying that this practical study of facts about real organizations

will help us manoeuvre management skills in the right direction helping our careers the perfect

flight towards success.

We are all very much humbled and appreciate the direction & guidance given to us

by our Mentor-cum-Professor Ms Charmi Shah. It goes without saying that it wouldn¶t have

been possible for us to carry on this practical project & enlighten our minds.



3 | P a g e

Executive Summary

This report is prepared with a view to have a practical insight about the practical assignment prescribed as per the Gujarat technological university. This exercise will help us gain in our

curriculum as well as in the corporate world with respect to the legal aspects of business.

The pharmaceutical & healthcare industry is one of the widest sectors around the world

including India. It is poised to grow at a boundless rate in the coming years as we move towards

the future of humanity. The sector is heavily spending on research & development of newer

methods to cure and /or prevent diseases like cancer, AIDS, Diabetes & the likes.

With much speculation about the demand for life saving & generic drugs in the future, there are

ample opportunities for the investors to park their funds into such companies which are going to

be the future of humanity. The investors can earn a decent surplus when such companies have a

good scope to succeed with their management, techniques of developing a drug, favourable

external situations and the likes.



4 | P a g e

Overview of Indian Economy

India economy, the third largest economy in the world, in terms of purchasing

power, is going to touch new heights in coming years. As predicted by Goldman Sachs, theGlobal Investment Bank, by 2035 India would be the third largest economy of the world justafter US and China. It will grow to 60% of size of the US economy. This booming economy of today has to pass through many phases before it can achieve the current milestone of 10% GDP.

Challenges before Indian economy:

y Population explosion: This monster is eating up into the success of India. According to

2001 census of India, population of India in 2001 was 1,028,610,328, growing at a rate of2.11% approx. Such a vast population puts lots of stress on economic infrastructure of thenation. Thus India has to control its burgeoning population.

y Poverty: As per records of National Planning Commission, 36% of the Indian populationwas living Below Poverty Line in 1993-94. Though this figure has decreased in recenttimes but some major steps are needed to be taken to eliminate poverty from India.

y Unemployment: The increasing population is pressing hard on economic resources aswell as job opportunities. Indian government has started various schemes such as JawaharRozgar Yojna, and Self Employment Scheme for Educated Unemployed Youth (SEEUY).But these are proving to be a drop in an ocean.

y R ural urban divide: It is said that India lies in villages, even today when there is lots oftalk going about migration to cities, 70% of the Indian population still lives in villages.

There is a very stark difference in pace of rural and urban growth. Unless there isn't a balanced development Indian economy cannot grow.

These challenges can be overcome by the sustained and planned economic reforms.

These include:

y Maintaining fiscal discipline



5 | P a g e

y Orientation of public expenditure towards sectors in which India is faring badly such ashealth and education.

y Introduction of reforms in labour laws to generate more employment opportunities for thegrowing population of India.

y Reorganization of agricultural sector, introduction of new technology, reducing

agriculture's dependence on monsoon by developing means of irrigation.y Introduction of financial reforms including privatization of some public sector banks.

Important highlights of Economic Outlook 2011-12

Agriculture grew at 6.6% in 2010-11. This year¶s monsoon is projected to be in the range of90 to 96 per cent, based on which Agriculture sector is pegged to grow at 3.0% in 2011-12!

Industry grew at 7.9% in 2010-11. Projected to grow at 7.1% in 2011-12

S

ervices grew at 9.4% in 2009-10. Projected to grow at 10.0% in 2011-12 Investment rate projected at 36.4% in 2010-11 and 36.7% in 2011-12 Domestic savings rate as ratio of GDP projected at 33.8% in 2010-11 & 34.0% in 2011-12 Current Account deficit is $44.3 billion (2.6% of GDP) in 2010-11 and projected at $54.0

billion (2.7% of GDP) in 2011-12 Merchandise trade deficit is $ 130.5 billion or 7.59% of the GDP in 2010-11 and projected

at $154.0 billion or 7.7% of GDP in 2011-12 Invisibles trade surplus is $ 86.2 billion or 5.0% of the GDP in 2010-11 and projected at

$100.0 billion or 5.0% in 2011-12 Capital flows at $61.9 billion in 2010-11 and projected at $72.0 billion in 2011-12

FD

I inflows projected at $35 billion in 2011/12 against the level of $23.4 billion in 2010-11 FII inflows projected to be $14 billion which is less than half that of the last year i.e $30.3

billion Accretion to reserves was $15.2 billion in 2010-11. Projected at $18.0 billion in 2011-12 Inflation rate would continue to be at 9 per cent in the month of July-October 2011.

There will be some relief starting from November and will decline to 6.5% in March

2012.



6 | P a g e

Pharmaceuticals Industry

The pharmaceutical industry in India is valued at US$ 12 billion with an annual compound

annual growth rate (CAGR) of 10-11 per cent. The industry spends around 18 per cent of itsrevenue on research and development (R&D). In India, the clinical research industry is estimatedto be a US$ 2.2 billion with a healthy CAGR of 23 per cent. India is ranked as the third largestemerging market and is growing fastest in conducting number of trials.

Moreover, India is expected to join the league of top 10 global pharmaceuticals markets in termsof sales by 2020 with the total value reaching US$ 50 billion, according to a report byPricewaterhouseCoopers (PwC).

Sector Structure/ Market Size

The Indian pharmaceutical market is poised to grow to US$ 55 billion by 2020 from the 2009levels of US$ 12.6 billion, as per a McKinsey & Company report titled ³ India Pharma 2020:Propelling access and acceptance realising true potential´. The industry further holds potential toreach US$ 70 billion, at a CAGR of 17 per cent.

The pharma industry constitutes around 8 per cent of the world¶s pharmaceutical production.Over the last couple of years, Indian pharma companies have been increasingly targeted bymultinationals for both collaborative agreements and acquisition, as per an Espicom report titled,

³The Pharmaceutical Market: India O pportunities and Challenges´. The report further echoes the

sentiments and the trends of the industry in totality.

Exports

India¶s exports of drugs, pharmaceutical & fine chemicals stood at US$ 9.26 billion during April2010±Feb 2011, up 16.15 per cent as compared to US$ 7.97 billion in the same period during the previous year. India¶s exports has recorded a growth rate of over 20.07 per cent, during the



7 | P a g e

period of the two financial years in the study and the exports to rest of the world has grown by 9 per cent, according to DGCIS data from Pharmexcil Research.

Growth

The drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth US$ 4.84 billion between April 2000 and May 2011, according to data published by Department ofIndustrial Policy and Promotion (DIPP) upto May 2011.

Indian pharmaceutical market is predicted to grow to US$ 55 billion by 2020 from US$ 12.6 billion in 2009, as per a McKinsey report.

The Indian pharma industry is estimated to grow manifolds, on back of a high middle-class population base, improvements in medical infrastructure and the establishment of intellectual property rights.

The Indian pharmaceutical sector has registered an outstanding growth during the last few yearsand has become the hub of pharmaceutical companies owing to low cost manufacturing, large population, and high demand, as per a research report - Global Contract Manufacturing MarketAnalysis.

Generics

India tops the world in exporting generic medicines worth US$ 11 billion and currently, theIndian pharmaceutical industry is one of the world's largest and most developed, according to MrSrikant Kumar Jena, Union Minister of State for Chemicals and Fertilisers.

The Indian generic drug market is expected to grow at a CAGR of around 17 per cent between2010-11 and 2012-13.

Generics will continue to dominate the market while patent-protected products are likely toconstitute 10 per cent of the pie till 2015, according to McKinsey report µIndia Pharma 2015 -Unlocking the potential of Indian Pharmaceuticals market¶. Moreover, as per a press release byresearch firm RNCOS, the report titled µBooming Generics Drug Market in India' projects theIndian generic drug market to grow at a CAGR of around 17 per cent between 2010-11 and2012-13.

Government Initiative

Marking a new trend of investments from foreign players in the Indian pharma sector, the needfor overseas investors to get a no-objection from their JV partner before venturing out on their own or roping in another local firm has been removed by the Pharmaceuticals Export PromotionCouncil. It is expected that this measure will promote the competitiveness of India as an



8 | P a g e

investment destination and be instrumental in attracting higher levels of FDI and technologyinflows into the country.

100 per cent FDI is allowed under the automatic route in the drugs and pharmaceuticals sector including those involving use of recombinant technology.

The Union Minister of Commerce and Industry and Minister of Trade and Industry, Singapore,have signed a µSpecial Scheme for Registration of Generic Medicinal Products from India¶,which seeks to fast-track the registration process for Indian Generic medicines in Singapore.

The Department of Pharmaceuticals has prepared a "Pharma Vision 2020" for making India oneof the leading destinations for end-to-end drug discovery and innovation and for that purpose provides requisite support by way of world class infrastructure, internationally competitivescientific manpower for pharma research and development (R&D), venture fund for research inthe public and private domain and such other measures.

R oad Ahead

On back of aggressive marketing initiatives, the pharma companies witnessed rural market salesdoubling. India's rural drug market grew by 18.8 per cent in the 12 months period ended April2011 as compared with 10.9 per cent in the previous year.

Interestingly, in order to increase their share in the globally important market - in India, theinternational drug-makers have introduced generic or low-priced version of popular medicinesand have also decreased prices of their existing products. Global firms who traditionally bankedon sales of their original high-priced medicines have now come into direct competition with

Indian drug-makers. The Indian-makers business model is built around selling large volume of cheap generic medicines at lower margins in the country, to add to twin purpose of affordabilityand popularity.

"The industry posting healthy growth consecutively for the second year reflects the inherentstrengths of the industry and improving healthcare standards in the country... demand for drugsand pharmaceuticals is on the rise, and is likely to continue next year as well. The nutraceuticalsegment will continue to have better-than-average growth with people getting more conscious oftheir general health and well-being," as per Ganesh Nayak, Executive Director, Zydus Cadila.



9 | P a g e

STRUCTURAL INDUSTRY ANALYSIS -

PORTER¶S FIVE FORCES

This section provides a summary positional analysis of the pharmaceutical industry usingPorter¶s Five Forces model.

Barrier to entry: High (Pharmaceuticals). Cost of R&D and patent limitations.

Industry Competition: High. Advantages gained by first mover advantage (patents).

Suppliers: supplier power is low.

Buyers: buyer power is low.



10 | P a g e

Substitutes: low (with patents) medium (after patent expiry).

Overall, the pharmaceutical industry shows an upward trend in its core markets. The industry

remains highly valued has a favorable market position with strong financial make-up and strongearnings growth. Its future potential demand trend is positive and despite increased competition

the industry still shows a continuing upward growth momentum.



11 | P a g e

SWOT ANALYISOF THE INDIAN

PHARMACEUTICAL INDUSTRY

It is often said that the pharma sector has no cyclical factor attached to it. Irrespective of whether the economy is in a downturn or in an upturn, the general belief is that demand for drugs is likely

to grow steadily over the long-term. It is true in some sense. But are there risks? The following

gives a perspective of the Indian pharma industry by carrying out a SWOT analysis (Strength,

Weakness, O pportunity, and Threat).

STR ENGTHS:

India with a population of over a billion is a largely untapped market. In fact the penetration of

modern medicine is less than 30 per cent in India. To put things in perspective, per capita

expenditure on health care in India is $93, while the same for countries like Brazil is $453 andMalaysia $189. The growth of middle class in the country has resulted in fast changing lifestyles

in urban and to some extent rural centers. This opens a huge market for lifestyle drugs, which has

a very low contribution in the Indian markets. Indian manufacturers are one of the lowest cost

producers of drugs in the world. With a scalable labor force, Indian manufactures can produce

drugs at 40 per cent to 50 per cent of the cost to the rest of the world. In some cases, this cost is

as low as 90 per cent. Indian pharmaceutical industry has excellent chemistry and process

reengineering skills. This adds to the competitive advantage of the Indian companies. The

strength in chemistry skill helps Indian companies to develop processes, which are cost effective.

WEAK NESS:

The Indian pharma companies are marred by the price regulation. Over a period of time, this

regulation has reduced the pricing ability of companies. The NPPA (National Pharma Pricing

Authority), which is the authority to decide the various pricing parameters, sets prices of

different drugs, which leads to lower profitability for the companies. The companies, which are

lowest cost producers, are at advantage while those who cannot produce have either to stop

production or bear losses. Indian pharma sector has been marred by lack of product patent, which

prevents global pharma companies to introduce new drugs in the country and discouragesinnovation and drug discovery, but this has provided an upper hand to the Indian pharma

companies. Indian pharma market is one of the least penetrated in the world. However, growth

has been slow to come by. As a result, Indian majors are relying on exports for growth. To put

things in to perspective, India accounts for almost 16 per cent of the world population while the

total size of industry is just 1 per cent of the global pharma industry. Indian pharma industry is

highly fragmented with about 300 large manufacturing units and about 18,000 small units spread



12 | P a g e

across the country. This makes Indian pharma market increasingly competitive. The industry

witnesses price competition, which reduces the growth of the industry in value term.

OPPOR TUNITIES:

The migration into a product patent based regime is likely to transform industry fortunes in thelong term. The new patent product regime will bring with it new innovative drugs. This will

increase the profitability of MNC pharma companies and will force domestic pharma companies

to focus more on R&D. This migration could result in consolidation as well. Very small players

may not be able to cope up with the challenging environment and may succumb to giants. Large

number of drugs going off-patent in Europe and in the US during the period 2005 to 2009 offers

a big opportunity for the Indian companies to capture this market. Since generic drugs are

commodities by nature, Indian producers have the competitive advantage, as they are the lowest

cost producers of drugs in the world. O pening up of health insurance sector and the expected

growth in per capita income are key growth drivers from a long-term perspective. This leads to

the expansion of healthcare industry of which pharma industry is an integral part. Being the

lowest cost producer combined with FDA approved plants; Indian companies can become a

global outsourcing hub for pharmaceutical products.

THR EATS:

There are certain concerns over the patent regime regarding its current structure. It might be

possible that the new government may change certain provisions of the Patent Act formulated bythe preceding government. Threats from other low cost countries like China and Israel exist.

However, on the quality front, India is better placed relative to China. So, differentiation in the

contract manufacturing side may wane. The short-term threat for the pharma industry is the

uncertainty regarding the implementation of VAT. Though this is likely to have a negative

impact in the short-term, the implications over the long-term are positive for the industry.



13 | P a g e

HISTORY

It all began with the toil of one enterprising individual, Shri. U N Mehta, when he ventured onhis own to create history in the Indian pharmaceutical industry by implementing successfully the

concept of niche marketing.

His journey, characterized by ups and downs, reached a milestone in 1970, with the launch of

Trinicalm Plus, an effective tranquilizer in the niche segment, central nervous system (CNS).

The foundations for Torrent were laid when 'Trinity Laboratories' began operations under the

able guidance of Shri Mehta whose efforts are worthy of emulation.

'Trinity' was renamed 'Torrent' in 1971 and with this not only did the company get a new name, it

also focused on establishing its own manufacturing facilities in the early 80s.

Torrent Pharmaceuticals Limited recorded a quantum leap in the year 1994. It has also been

rated India's ninth best company among capital intensive companies in terms of R OCE in a study

by ETIG-BCG in 2001.



14 | P a g e

The Company Background

Torrent Pharma¶s core philosophy lies in providing life-supporting medications at affordablecost. It¶s 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 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.



15 | P a g e

Financial Highlights

Balance Sheet of TorrentPharmaceuticals

------------------- in Rs. Cr. -------------------

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 42.31 42.31 42.31 42.31 42.31

Equity Share Capital 42.31 42.31 42.31 42.31 42.31

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 1,050.74 838.54 690.37 542.94 422.07

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 1,093.05 880.85 732.68 585.25 464.38

Secured Loans 428.47 364.64 318.27 336.65 263.98

Unsecured Loans 143.59 157.75 163.79 4.96 15.00

Total Debt 572.06 522.39 482.06 341.61 278.98

Total Liabilities 1,665.11 1,403.24 1,214.74 926.86 743.36

Mar '11 Mar '10 Mar '09 Mar '08 Mar '07

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gr oss Block 884.93 771.79 680.78 612.30 543.31

Less: Accum. Depreciation 297.32 246.16 193.55 164.78 140.20

Net Block 587.61 525.63 487.23 447.52 403.11

Capital Work in Pr ogress 67.83 105.38 45.73 78.60 39.78

Investments 430.52 231.48 244.96 158.05 94.97



16 | P a g e

Inventories 342.83 227.88 191.84 166.53 185.89

Sundry Debtors 340.01 259.78 240.81 198.48 165.61

Cash and Bank Balance 22.79 11.62 12.26 10.63 10.20

Total Current Assets 705.63 499.28 444.91 375.64 361.70

Loans and Advances 200.53 164.05 231.58 95.83 70.07

Fixed Deposits 242.53 335.17 171.05 87.04 0.05

Total CA, Loans & Advances 1,148.69 998.50 847.54 558.51 431.82

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 464.44 375.18 353.17 265.91 210.91

Pr ovisions 105.12 82.55 57.54 49.90 15.42

Total CL & Pr ovisions 569.56 457.73 410.71 315.81 226.33

Net Current Assets 579.13 540.77 436.83 242.70 205.49

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 1,665.09 1,403.26 1,214.75 926.87 743.35

Contingent Liabilities 49.76 72.91 35.80 44.03 31.86

Book Value (Rs) 129.18 104.11 86.59 69.17 54.88

Key Financial Ratios of Torrent Pharmaceuticals

Mar

'11Mar '10 Mar '09 Mar '08 Mar '07

Investment Valuation Ratios

Face Value 5.00 5.00 5.00 5.00 5.00

Dividend Per Share 8.00 6.00 4.00 3.50 3.00

Operating Pr ofit Per Share (Rs) 46.92 47.68 31.50 26.72 20.08

Net Operating Pr ofit Per Share (Rs) 206.80 169.84 139.99 117.74 104.75



17 | P a g e

Free Reserves Per Share (Rs) 123.65 98.57 81.05 63.67 49.38

Bonus in Equity Capital 83.88 83.88 83.88 83.88 83.88

Profitability Ratios

Operating Pr ofit Mar gin(%) 23.78 28.07 22.50 22.68 19.16

Pr ofit Bef ore Interest And Tax Mar gin(%) 20.42 24.08 19.04 19.35 15.62

Gr oss Pr ofit Mar gin(%) 20.51 24.28 19.34 19.40 17.55

Net Pr ofit Mar gin(%) 16.39 14.30 15.51 15.56 12.63

Retur n On Capital Employed(%) 22.36 25.74 20.43 21.14 19.77

Retur n On Net Worth(%) 26.61 23.54 25.48 26.57 24.32

Retur n on Long Term Funds(%) 23.21 28.26 21.77 22.05 20.26

Liquidity And Solvency Ratios

Current Ratio 1.53 1.51 1.66 1.42 1.65

Quick Ratio 1.39 1.65 1.57 1.22 1.06

Debt Equity Ratio 0.52 0.59 0.66 0.58 0.60

Long Term Debt Equity Ratio 0.52 0.45 0.56 0.53 0.59

Debt Coverage Ratios

Interest Cover 26.28 12.51 6.49 9.39 7.23

Total Debt to Owners Fund 0.52 0.59 0.66 0.58 0.60

Management Efficiency Ratios

Inventory Tur nover Ratio 5.20 6.77 6.66 6.45 4.81

Debtors Tur nover Ratio 5.92 5.74 5.39 5.47 6.41

Investments Tur nover Ratio 5.43 6.77 6.66 6.45 5.22

Fixed Assets Tur nover Ratio 2.01 1.89 1.77 1.65 2.18

Total Assets Tur nover Ratio 1.07 1.03 0.98 1.08 1.20

Asset Tur nover Ratio 2.02 1.89 1.77 1.65 1.65

Ear nings Per Share 34.38 24.51 22.07 18.38 13.35

Book Value 129.18 104.11 86.59 69.17 54.88



18 | P a g e

Key Ratio Analysis for Investors

1) DEBT EQUITY RATIO = The ratio is almost constant for all the years except March2008,there is a slight change which indicates that some amount of the debentures must have

been redeemed as equity is constant for all the years. We can also say that the company using

leverage is confident about its profitability and so it issuing debt.

2) CURRENT RATIO = The ratio is increasing year after year which shows a positive sign for the

companys growth. The company has good amount of current assets which shows that they

are successful in maintaining liquidity and are using the assets at optimal level. They are

maintaining sufficient amount of cash balance which helps them to meet their sudden and

unexpected liabilities or expenses. They can also easily pay off their suppliers to avail a

discount and increase their profitability.

3) FIXED ASSETS RATIO = The ratio is increasing gradually which shows that the amount of

the fixed assets have increased. It is due to the expansion of its operations in various locations

and also torrent may have increased their production capacity by upgrading its assets.

4) INVENTORY RATIO = The increase in ratio shows that large bulk of inventory is maintained

by torrent due to its increase in operations. It also indicates that the production process is a bit

slow and the time to convert raw materials in finished goods is gradually increasing.

5) DEBTORS RATIO = This ratio is decreasing which indicates that the company is efficient

enough in its collection and it has a proper credit period. Torrent is efficient in realizing its

credit sales efficiently.

6) QUICK RATIO = The ratio is increasing which shows that the company is becoming highly

liquid compared to the previous years. The company is efficient enough in meeting its current

obligations.

7) GROSS PROFIT MARGIN = The margin is gradually increasing which shows that the

manufacturing ability of torrent pharmaceutical is getting better as it is possible that the

resources are efficiently used by the company and new assets & technologies may have be

employed by them.



19 | P a g e

8) NET PROFIT MARGIN = The ratio has significantly increased in the year 2007 but has seen a

nominal decrease in the year 2010. It shows that over all the companys profitability is good

and is efficient in its operations.

9) DIVIDEND PER SHARE = The DPS of the company has increased which shows that the

company is profitable & is increasing its pay-out which will lead to a good image in the minds

of the investor. In future the company can easily raise money from the market.



20 | P a g e

Conclusion

EconomyThe Indian economy is at its development stage & it has a lot of potential to grow

as predicted by many. But it is facing some serious setbacks such as corruption & inflation. But

overall it is a stable economy as compared to others.

Industry

The industry is growing at a good pace & government is taking initiatives for givingboost to this industry. The country is having good laws for research & development, patent

laws & up to 100% FDI in this industry that will lead to global exposure to Indian pharmaceutical

industry.

Company

Company is having a relatively strong financial position. From the above ratios we

can analyse that the company is efficient in its economic operations & can be said that it would

prove to be a good investment avenue for the domestic as well as international investor.



21 | P a g e

Bibliography

1. Search partner: www.google.com 2. Official Website: www.torrentpharma.com

3. www.ibef.org 4. www.trak.in 5. www.moneycontrol.com

Documents

EIC Torrent Pharmaceutical