Murugappa group's Tube Investments to enter pharma business

by IANS |

Chennai, March 14 (IANS) Conglomerate and acquisitive Murugappa group is entering the pharmaceutical business through its listed Tube Investments of India Ltd at an outlay up to Rs 285 crore.

According to Tube Investments, the company has signed an agreement with N.Govindarajan, an experienced industry professional to float a subsidiary.

As per the agreement, Tube Investments will invest up to Rs 285 crore in the proposed contract development and manufacturing operations (CDMO) and active pharmaceutical ingredients (API) subsidiary in the form of equity and compulsorily convertible preference shares.

On his part, Govindarajan invested up to Rs 15 crore as equity and compulsorily convertible preference shares.

Subject to the performance and other terms and conditions specified in the agreement, Govindarajan will be entitled to get up to 25 per cent of the equity for his investment.

According to Tube Investments, it was looking at new platforms to complement the existing businesses for its future growth as part of its long-term strategy and has identified CDMO as a new line of business with the potential to grow and expand in the future.

M.A.M Arunachalam (also known as Arun Murugappan), Executive Chairman of Tube Investments said, the foray into CDMO, a business with high growth potential, augurs well with its plan to diversify its business portfolio and reduce dependency on traditional revenue streams.

Govindarajan will be the Chief Executive Officer of the subsidiary and will be establishing the business and driving its growth and profitability.

Latest News
Sensex crosses 74K mark in 1000 points rally Thu, Mar 28, 2024, 03:42 PM
Man stabbed to death during fight over drinking water Thu, Mar 28, 2024, 03:41 PM
Actor Mukesh, BJP candidate Ashwini file nominations in Kerala Thu, Mar 28, 2024, 03:22 PM
Gillespie resigns from his role as South Australia, Adelaide strikers' head coach Thu, Mar 28, 2024, 03:15 PM
'No scope for individuality in party', Karnataka DyCM Shivakumar warns warring leaders Thu, Mar 28, 2024, 03:10 PM
Ukrainian FM arrives in India to build on talks between PM Modi, Volodymyr Zelenskyy Thu, Mar 28, 2024, 03:02 PM
Political conspiracy, claims Kejriwal while being taken to Rouse Avenue Court Thu, Mar 28, 2024, 02:47 PM
NXP Semiconductors unveils industry-first platform for software-defined vehicles Thu, Mar 28, 2024, 02:41 PM
CM Vijayan & CPI(M) tread cautiously after ED case against Veena Vijayan Thu, Mar 28, 2024, 02:37 PM
IPL 2024: 'They opened for Australia...', says Ganguly on DC's opting for Warner, Marsh as opening pair vs PBKS Thu, Mar 28, 2024, 02:28 PM
India's trade policy is calibrated with economic growth path: Piyush Goyal Thu, Mar 28, 2024, 02:17 PM
Holi brings cheer to UP excise dept as sales soar Thu, Mar 28, 2024, 02:11 PM
Punjab CM Bhagwant Mann blessed with baby girl Thu, Mar 28, 2024, 02:10 PM
New AI tool can predict fatal heart rhythm with 80 pc accuracy Thu, Mar 28, 2024, 12:41 PM
IPL 2024: 'Perplexed, beyond my understanding', Smith, Pathan slam Hardik's tactics of using Bumrah vs SRH Thu, Mar 28, 2024, 12:27 PM