The Board of 3M India, the local unit of the US-based material science company, has approved an arrangement which will boost the growth of its healthcare business in India. Under the licensed manufacturer and reseller model, 3M India will continue to have access to the health care products and IP portfolio of the new entity.

The distribution model will permit 3M India to act as an independent exclusive distributor of the new entity’s products in India, ensuring continued leverage for the health care business.

The agreements have an initial term of five years, and will become effective after the spin-off of 3M Company’s healthcare business into a standalone company. 3M Company expects to complete the process during the first half of 2024, subject to the Board of Directors’ approval and other required conditions.