Tube lnvestments of lndia (TII) has entered into an agreement with Mr. N. Govindarajan (NG) to incorporate a subsidiary for pursuing the contract development and manufacturing organization (CDMO) business. The agreement was signed on 13 March, 2023.

TII will invest up to Rs 285 crore, while NG will invest up to Rs 15 crore through equity and compulsorily convertible preference shares.

The proposed investment is subject to satisfactory completion of the condition’s precedents, as contained in the agreement executed between the parties. The proposed subsidiary will focus on active pharmaceutical ingredients (API) and other products. The new lines of business, will complement the company’s existing businesses for future growth and expansion as part of its long-term strategy.

TII intends to diversify its business by identifying new growth opportunities, and has forayed into clean mobility, electronics and alternate fuels.

Mr. N Govindarajan, who is well-recognised in the Indian pharmaceutical industry, will be the Chief Executive Officer (CEO) of the subsidiary and will be involved in establishing the business and driving its growth and profitability.

CDMO is one of the fastest growing segments in the pharmaceutical industry, as pharmaceutical companies are increasingly resorting to outsourcing of R&D and manufacturing processes to focus on core business activities.