The centre is designed to drive innovation, with Medtronic aiming to create over 300 service and software jobs in its first year of operations, and plans to double that headcount in four years.
The company, which inaugurated the new Global Capability Centre (GCC) in Pune for its diabetes business, said that as GCCs continue to reshape global business landscapes, India has emerged as a pivotal hub for these centres.
"Over the next five years, an investment of USD 50 million will support the establishment and expansion of the new centre," Medtronic said.
"In recent years, India has firmly established itself as a leading global IT hub. The incredible depth of talent in Pune and across India aligns with our purpose -- to support people living with diabetes with solutions that truly make life easier," Medtronic Diabetes EVP & President, Que Dallara, said.
According to PTI, Medtronic said its diabetes GCC will also support patient financial services and operations, and this expansion in India will also unlock a diverse array of job opportunities in these functions.
This announcement comes amid Medtronic’s broader strategy to separate its Diabetes business into a new standalone company.
As previously reported by Medical Dialogues, the separation is expected to be completed within 18 months through a series of capital markets transactions, with a preferred path of an initial public offering (IPO) and subsequent split-off.
Upon completion, the separation is expected to improve Medtronic adjusted gross margin by approximately 50 basis points, adjusted operating margins by approximately 100 basis points, and be immediately accretive to adjusted EPS. The separation is expected to provide the ability to retire Medtronic shares outstanding without reducing cash, resulting in EPS accretion and a reduction in the dividend liability for Medtronic, enabling increased growth-accretive investment. Medtronic expects its dividend per share to remain unchanged pre- and post-transaction with no change to its dividend policy.
Read also: Medtronic to spin off diabetes business
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