Incorporated on 21 October 2005, Lotus is engaged in the business of wound closure products. It reported turnover of Rs 116 crore in FY 2021-22.

Tll said it is looking at new platforms for its growth as part of its long term strategy and has identified medical consumables/devices as a new line of business with the potential to grow and expand in the future.

TII will acquire 67% while Premji Invest will acquire the balance 33% subject to completion of certain conditions precedent. TII will invest up to Rs 233 crore and Premji Invest will invest up to Rs 115 crore to acquire equity shares from the existing shareholders of Lotus. The acquisition is expected to be completed on or before 30 April 2023.

The acquisition is the first step for TII and PI to initiate a medtech platform partnership. The platform aims 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.

M.A.M Arunachalam (also known as Arun Murugappan), executive chairman of TII said, "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. We are delighted to join hands with Premji Invest. Our deep expertise in establishing and managing large scale manufacturing, coupled with Premji Invest's strong domain knowledge & investing experience will enable Lotus to tap the immense potential in the med-tech business."

T K Kurien, chief investment officer, Premji Invest said: "TII has an outstanding track record of incubating and scaling businesses across diverse sectors and creating stakeholder value through manufacturing and execution excellence. Premji Invest is pleased to deepen its partnership with TII through this med-tech platform. 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."

TII, a Murugappa Group company, is one of India's leading manufacturers of a wide range of precision engineered and metal formed products for major industries such as automotive, railway, construction, mining, agriculture, etc. The company is also a leading manufacturer of bicycles in India, with a range of iconic brands and a strong market presence.

The company reported 15.47% fall in consolidated net profit to Rs 235.75 crore on a 7.52% increase in sales to Rs 3,538.02 crore in Q3 FY23 over Q3 FY22.

Shares of TII rose 3.12% to Rs 2555.95 on Friday, 24 March 2023.