3M India Limited Announces Agreements Executes in Relation to the Health Care Business
April 01, 2024 at 05:45 pm IST
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Pursuant to the Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in furtherance to the disclosure made to you on November 10, 2023 in respect of the approval granted by the board of directors of 3M India Limited ("Company") for (a) entering into the binding term sheet by the Company with 3M Healthcare US Opco, LLC (US), 3M Healthcare LATAM/APAC Export Corporation (US), Solventum Intellectual Properties Company (formerly known as 3M Healthcare Intellectual Properties Company) (US) and 3M Unitek Corporation (US), which sets-out the key terms and conditions for the licensed manufacturing, reselling and distributorship, and sales agent agreements to be entered into between the Company and the aforesaid entities in relation to the health care business of the Company, and (b) authorising the senior management of the Company to execute the aforesaid
agreements, we hereby inform you that the Company has entered into the following agreements: Distribution Agreement with 3M Healthcare US Opco, LLC and 3M Healthcare LATAM/APAC Export Corporation on March 31, 2024; Licensed Manufacturer and Reseller Agreement with Solventum Intellectual Properties Company, 3M Healthcare US Opco, LLC, and 3M Healthcare LATAM/APAC Export Corporation on March 31, 2024 and Sales Agent Agreement with 3M Unitek Corporation on March 31, 2024. The key terms of the term sheet are set-out hereinbelow: Time period, if any, associated with the agreement: 5 years, being the initial term under the Licensed Manufacturer and Reseller Agreement and the Distribution Agreement (as listed in point 4 below), and 1 year being the initial term of the Sales Agent Agreement (as listed in point 4 below); Details of consideration paid/received in agreement: In respect of the agreements mentioned in point 4 below, Under the Licensed Manufacturer and Reseller Agreement, apart from the purchase of raw materials from the counterparties at the agreed price (with yearly adjustment), the Company has to pay a royalty equal to 4% of the net sales value to 3M Healthcare Intellectual Properties Company (US) and the Company will be entitled to the revenue generated from the sale, subject to the above; Under the Distribution Agreement, apart from the purchase of the specified Health Care products from the counterparties at the agreed price (with yearly adjustment) payable by the Company, the Company will be generating revenues by sale of the aforesaid Health Care products; and Under the Sales Agent Agreement, the Company will be entitled to a commission equal to 12% of products sold in India.
3M India Limited is a diversified technology and science company. The Companyâs segments include Safety and Industrial; Transportation & Electronics; Health Care, and Consumer. The Safety and Industrial segment include vinyl, polyester, foil and specialty industrial tapes and adhesives. The Health care segment includes medical and surgical supplies, medical devices, skin and wound care and infection prevention products and solutions, drug delivery systems, dental and orthodontic products and food safety products. The Transportation & Electronics segment include personal protection products, brand and asset protection solutions, border control products, passive fire protection products for industries and commercial establishments, track and trace products, cleaning, and hygiene products for the hospitality industry. The Consumer and Office segment includes products, such as Scotch brand, addressing the home and office tapes, adhesives, and packaging protection platforms.