Tube Investments of India Ltd. (TII) has decided to foray into contract development and manufacturing organisation (CDMO) and active pharmaceutical ingredients (API) as part of its growth strategy.
“TII’s foray in to CDMO, a business with high growth potential, augurs well with its plan to diversify its business portfolio and reduce dependency on traditional revenue streams,” said executive chairman M.A.M. Arunachalam.
CDMO is one of the fastest growing segments in the pharmaceutical industry as big pharma players are increasingly outsourcing R&D and manufacturing to focus on core business activity, TII said.
On Tuesday, TII signed an agreement with accomplished pharma expert N. Govindarajan for establishment of CDMO business through a new subsidiary. The proposed subsidiary will focus on API and other products.
TII proposes to invest up to ₹285 crore by way of equity and compulsorily convertible preference shares in tranches, while N. Govindarajan, as CEO, will be investing ₹15 crore.
