3M India recorded a 37.5 per cent growth in net profit for the quarter ended September at ₹146.11 crore, compared to ₹106.23 crore in the same quarter last year. On a sequential basis, net profit improved 13 per cent.
The Bengaluru-based company’s revenues from operations grew 6.4 per cent to ₹1,039.5 crore, compared to ₹976.70 crore in September 2022.
Further, in a major global development, 3M Company officially announced the spin-off of its healthcare business, which would result in two world-class public companies. The new healthcare company will operate under the leadership of the newly appointed CEO, Bryan Hanson, according to a company press release.
On Friday, the Board of Directors of 3M India also approved the arrangement as they determined it to be the preferred path to drive accelerated growth in the country.
A licensed manufacturer and reseller model will allow 3M India to continue to have exclusive access to the health care products and IP portfolio of the new entity and to continue to participate in the growing health care market in India.
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.
Ramesh Ramadurai, Managing Director, 3M India, said: “We are pleased with the arrangement with the new world-class healthcare entity and its affiliates. We believe it to be in the best interests of 3M India and all its stakeholders.”
The agreements have an initial term of five years, and will become effective upon the spin-off of 3M Company’s healthcare business into a standalone, public company. 3M Company expects to complete the global health care spin-off during the first half of 2024, subject to the final 3M Company Board of Directors’ approval and other required conditions.