Tube Investments of India (TII) is bolstering its medical arm’s Contract Development and Manufacturing Operations (CDMO) with the establishment of a manufacturing facility in Andhra Pradesh and a research and development (R&D) centre in Chennai, as the Murugappa Group company bets on opportunities in the Active Pharmaceutical Ingredients (API) in the pharmaceutical segment.

TII, the engineering company of the Murugappa Group, has diversified into new sectors, including electric mobility and medical segments. In May 2023, it acquired medical consumables manufacturer Lotus Surgicals, now renamed TI Medical Pvt Ltd, marking its entry into the medical business.

TI Medical, a subsidiary of TII, manufactures and supplies medical and surgical consumables, operating a state-of-the-art manufacturing plant in Dehradun, Uttarakhand. TI Medical is also planning to embark on MedTech projects.

New CDMO venture

Last year, the company launched 3xper Innoventure Ltd, a new venture for CDMO of APIs. As the pharmaceutical industry increasingly outsources R&D and manufacturing, CDMO is becoming one of the fastest-growing segments. 3xper Innoventure aims to provide comprehensive chemistry solutions across the drug lifecycle, including discovery, development and manufacturing services. This business will focus on serving global pharmaceutical, healthcare, agricultural, nutritional and specialty chemical companies, according to TII’s latest annual report.

To support its growth, the company has commissioned a state-of-the-art R&D facility in Chennai, equipped with dedicated synthetic and analytical labs. This facility, which employs 50 scientists and chemists, focuses on process and analytical chemistries, scale-up and technology transfer.

Additionally, a greenfield plant is being set up in Naidupeta, about 120 km from Chennai, to support its manufacturing ambitions. Construction of this facility is expected to be completed this fiscal, offering services ranging from small-scale material generation to commercial-scale manufacturing in custom synthesis, and commercial manufacturing of key starting materials, intermediates and APIs.

“With a young and energetic R&D and manufacturing team on board, this business is building the requisite capability and capacities. The commissioning of the Kilo lab was completed and the pilot plant is under construction,” M A M Arunachalam, Executive Chairman of TII, said in the report.

In FY24, TI Medical recorded a revenue of ₹164 crore and a profit before tax of ₹22 crore from the date of acquisition. Both TI Medical and 3xper are currently consolidating their resources, operations and product offerings, in preparation for future growth prospects, added the report.