3M India Limited , a prominent player in the Indian market, has recently received a final settlement order under the Direct Tax Vivad Se Vishwas Scheme, 2020. This development marks a significant step in the company's efforts to resolve outstanding tax disputes.

Key Details of the Settlement

• Scheme: Direct Tax Vivad Se Vishwas Scheme, 2020
• Issuing Authority: Principal Commissioner of Income Tax, Bengaluru-2
• Financial Year Covered: 2008-09
• Refund Amount: Rs 2.28 crores

Background of the Scheme

The Direct Tax Vivad Se Vishwas Scheme, introduced by the Finance (No.2) Act, 2020, aims to settle tax disputes efficiently. 3M India had applied under this scheme to resolve open tax litigations for the period spanning from FY 2004-05 to FY 2013-14.

Settlement Process

According to the LODR disclosure dated November 4, 2022, the company had previously received a Certificate in Form 2 from the Principal Commissioner of Income Tax, indicating the acceptance of their application for FY 2008-09. The recent development involves the receipt of the final order in Form 4, dated November 4, 2022, specifically for FY 2008-09.

Financial Implications

While the settlement entitles 3M India to receive a refund of Rs 2.28 crores for FY 2008-09, the company has stated that this settlement has no material impact on its operations or activities.

Broader Context

This settlement is part of 3M India's larger strategy to resolve tax disputes for multiple financial years. The company had opted for the Scheme to settle various open tax litigations covering the period from FY 2004-05 to FY 2013-14.

The Direct Tax Vivad Se Vishwas Scheme represents a government initiative to streamline the resolution of tax disputes, potentially benefiting both companies and the tax authorities by reducing litigation and expediting settlements.

As companies continue to navigate complex tax landscapes, such schemes offer opportunities for resolving long-standing disputes, potentially leading to improved financial clarity and reduced legal burdens for corporations operating in India.

3M India Limited has announced that it is evaluating the potential implications of a significant business transaction involving its parent company, 3M Company, USA. The parent company has entered into an agreement to sell its Precision Grinding & Finishing (PG&F) business to Nimbus, a Europe-based private equity firm specializing in medium-sized industrial enterprises.

Transaction Details

The agreement for the sale of the PG&F business was signed in September 2025. The transaction is expected to close in the first half of calendar year 2026, subject to customary closing conditions.

Impact on 3M India

3M India is currently assessing the potential impact of this global transaction on its Indian operations. The company has disclosed that the PG&F business in India:

• Contributed less than 1% of 3M India Limited's revenue in FY 2024-25
• Has two employees

Given these figures, the immediate impact on 3M India's operations appears to be limited. However, the company is conducting a thorough evaluation to understand any potential long-term implications.

Recent Financial Performance

While assessing the impact of the PG&F business sale, it's worth noting 3M India's recent financial performance. The company reported strong results for the quarter ended September 30, 2025:

The company registered broad-based growth across all four business segments:

• Healthcare: 14.9% growth
• Consumer: 14.6% growth
• Transportation & Electronics: 12.9% growth
• Safety & Industrial: 12.3% growth

Management Commentary

Ramesh Ramadurai, Managing Director of 3M India Limited, commented on the financial results, stating, "We are encouraged with the sales growth in Q2 as well as the first half of FY 25-26, despite timing benefit in the quarter due to certain project-related businesses. The Company's profit after tax grew 43.0% to Rs. 191 crores in Q2 FY26. The Company maintained higher spend levels during the quarter in sales and marketing to improve market penetration."

As 3M India continues to evaluate the potential impact of its parent company's PG&F business sale, stakeholders will be keenly watching for any updates on how this global transaction might influence the company's future strategies and operations in the Indian market.