Medtonic to invest nearly Rs 430 crore in new diabetes GCC in Pune
Pune: In a major boost to India's growing healthcare tech scene, global medical device giant Medtronic plc has announced plans to invest nearly Rs 430 crore over five years in its new diabetes Global Capability Centre (GCC) in Pune.
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.
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
