The Board of 3M India, the local unit of a US-based material science company, on Friday also approved an arrangement to accelerate growth of its healthcare business in India.

The company said the licensed manufacturer and reseller model will allow 3M India to continue to have exclusive access to the health care products and IP portfolio of the new entity and to continue to participate in the growing health care market in India.

The distribution model will permit 3M India to act as an independent exclusive distributor of the new entity’s products in India, ensuring continued leverage for the health care business.

“We are pleased with the arrangement with the new world-class healthcare entity and its affiliates. We believe it to be in the best interests of 3M India and all its stakeholders." said Ramesh Ramadurai, managing director, 3M India.

The agreements have an initial term of five years, and will become effective upon the spin-off of 3M Company’s healthcare business into a standalone, public company.

3M Company expects to complete the global health care spin-off during the first half of 2024, subject to the final 3M Company Board of Directors’ approval and other required conditions.