Murugappa Group’s engineering firm Tube Investments of India (TII) and Azim Premji Foundation’s Premji Invest have joined hands to acquire Lotus Surgicals Pvt Ltd, which is engaged in the business of wound closure products, for an estimated sum of ₹348 crore.

TII will invest up to ₹233 crore, while Premji Invest will invest up to ₹115 crore to acquire equity shares from the existing shareholders of Lotus.

TII and Premji Invest (through PI Opportunities Fund I Scheme II) on Saturday signed a share purchase agreement to acquire 100 per cent equity capital of Lotus Surgicals from India Medical Consumables Holdings Ltd (a Samara Capital entity) and other shareholders, said a statement.

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TII will acquire 67 per cent, while Premji Invest will acquire the balance 33 per cent, subject to the completion of certain conditions precedent.

The objective behind the acquisition is to create a med-tech platform, according to the statement.

“The acquisition of Lotus marks our entry into the med-tech business. We believe that the Indian medical industry is expected to be one of the fastest-growing sectors driven by both demand and supply side factors. Our deep expertise in establishing and managing large-scale manufacturing, coupled with Premji Invest’s strong domain knowledge and investing experience will enable Lotus to tap the immense potential in the med-tech business,” said Arun Murugappan, Executive Chairman of TII.

The proposed Medtech Platform will seek to scale up through both organic growth and inorganic acquisitions.

“The platform draws inspiration from the vision of “Atmanirbhar Bharat” and aspires to become a global platform to design, manufacture and distribute innovative world-class medical products at affordable price points,” it added.

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“We believe the medical consumables market is attractive, and there is a unique opportunity to create a global platform that manufactures and distributes world-class medical products by leveraging cutting-edge technologies,” TK Kurien, Chief Investment Officer, Premji Invest said

The ₹6,359-crore TII has been looking to diversify into new areas that hold strong future growth potential.

It recently forayed into clean mobility, electronics, and alternate fuels. It has also identified contract development and manufacturing organization (CDMO) and active pharmaceutical ingredients (API) as its new line of businesses.