Expert Perspectives on Efficient Working Capital Management in Pharmaceutical Companies: A Case Study of Torrent and Zydus

This study investigates expert perspectives on efficient working capital management (WCM) within two leading Indian pharmaceutical companies—Torrent Pharmaceuticals and Zydus Lifesciences. Given the capital-intensive and regulation-heavy nature of the pharmaceutical sector, efficient WCM is critical to ensuring liquidity, operational continuity, and profitability. While prior research has primarily relied on financial ratios and quantitative analysis, this study addresses a significant literature gap by adopting a qualitative case study approach based on semi-structured interviews with 12 senior finance professionals. Data were thematically analyzed to identify WCM strategies, assess financial and operational impacts, explore challenges, and generate expert-informed recommendations. The findings reveal that Torrent follows a conservative WCM strategy focused on internal funding and risk mitigation, while Zydus adopts a more dynamic, tech-enabled, and growth-oriented approach. Both companies reported enhanced cash flow, reduced inventory costs, and improved receivables efficiency, though they differed in technological maturity and strategic priorities. Common challenges included interdepartmental coordination and customer credit control, while suggested improvements centered on digitization, KPI alignment, and demand forecasting. The study offers practical insights for finance professionals and contributes to academic literature by integrating strategic, technological, and human dimensions of WCM. It calls for future research that incorporates mixed-method approaches or broader industry samples to validate and extend its findings.