Ahmedabad, Sept 16: The Rs 320-crore Torrent Pharmaceuticals Ltd (TPL), flagship company of the Rs 2,000-crore Torrent Group, has undertaken a major restructuring exercise by creating three distinct divisions to give focus on mega brands, super-speciality and sub-speciality products respectively.According to TPL chairman Sudhir Mehta, restructuring of the product portfolios, which is nearing completion, should lead the group to focus on its core `healthcare' and `energy' business activities. The recent realignment of non-pharma activities has released the funds invested by TPL in the past back to its fold. This has provided substantial resources to the company and has helped it trim its debt portfolio to a considerable degree.
The exercise has resulted in culmination of three divisions. They are:
-Prima: It will focus on enlarge the reach of existing mega brands and build new brands.
-Psycan: It will focus on building superspeciality brands in cardiology and neurology.
-Vista: It will focus on suchsub-speciality mass consumed formulations for gastroenterology, diabetes, chest, gynaecology, dermatology and ophthalmogy -- with general practitioners and family physicians as the target groups.
Over 41 per cent of sales turnover is coming from top six products, Quintor (anti-bacterial) drug alone taking the lion's share. It proposes to build the remaining five popular brands -- Alprax and Listril (both anti-anxiety and cardiac), Dilzem (anginal), Domstal (for nausea and vomiting) -- into mega brands.
Mehta gave an outline of the exercise at the company's annual general meeting here on Wednesday. When contacted on Thursday, he elaborated saying that the company has initiated an accelerated process to resolve the contractual issues pertaining to the balance of debt obligation, towards achieving its objective of becoming a debt-free company. The turbulent and fast-paced economic development has necessitated a comprehensive review of the operation of the entire group.
The other thrust area ofrestructuring exercise was strengthening the field mustle by 30 to 35 per cent to 1,000-strong staff over the last one year.
He pointed out that earlier the sales were looked after by two divisions, known as (a) cardiovascular and neuropsychiatry products with a turnover of Rs 95.77 crore, comprising 34 per cent of the total sales, and (b) anti-infectives accounting for a turnover of Rs 183.34 crore, comprising 66 per cent of the sales.
Mehta said research and development would be the company's another thrust area in the coming years.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.