Torrent Gujarat Biotech Limited (A)

Abstract

This case deals with the issues in mitigating an unexpected development. The Torrent group decided to integrate backwards by venturing into the production of penicillin. The decision was motivated by the huge demand-supply gap and a favourable public policy. The technology was to be supplied by a company in Czeckoslovakia. Unexpected political developments and the discovery that the technology supplier was ill equipped to meet his obligations upset the economics and hence the viability of the project. The management of the Torrent Gujarat Biotech Limited was required to develop recommendations for mitigating the situation.