Tube Investments of India (TII) and Premji Invest (PI) on Saturday signed a share purchase agreement to acquire a 100% stake in Lotus Surgicals (Lotus) from India Medical Consumables Holdings (a Samara Capital entity) and other shareholders.

TII will get 67% of the shares, while PI will get the remaining 33%, subject to certain conditions being met. Currently, Lotus is in the wound closure products business.

TII will invest up to Rs 233 crore in the core and PI up to Rs 115 crore to acquire stakes from existing Lotus shareholders. TII is part of the Chennai-based Murugappa Group.

The acquisition is the first step in launching a medtech platform partnership between TII and PI. The platform aims to scale through organic growth and inorganic acquisitions. Drawing inspiration from the vision of ‘Atmanirbhar Bharat’, the platform aspires to be a global platform to design, manufacture and distribute innovative world-class medical products at affordable prices.

M A M Arunachalam, also known as Arun Murugappan, Executive Chairman of TII, said, “The acquisition of Lotus marks our entry into the medical technology business. We believe the Indian medical industry is poised to be one of the fastest-growing sectors, driven by supply and demand factors. We are delighted to partner with Together with Premji Invest, our deep expertise in setting up and managing large-scale manufacturing, combined with Premji Invest’s strong domain knowledge and investment experience, will enable Lotus to realise the enormous potential of the medtech business.”

“TII has an excellent track record in incubating and scaling businesses across diverse industries and creating stakeholder value through manufacturing excellence and execution. Premji Invest is excited to deepen our partnership with TII through this medical technology platform. We believe the medical consumables market is attractive. There is a unique opportunity to create a global platform to manufacture and distribute world-class medical products using cutting-edge technology,” said T K Kurien, Chief Investment Officer at Premji Invest.