Glaxo Wellcome plc chairman Sir Richard Sykes, on a whistle-stop visit to Nashik, Maharashtra, told reporters, "Once IPR is recognised, we will be looking at putting more R&D into India". Glaxo India's R&D thrust at present revolves around pharmacy and chemistry development, even as the parent company has, in-principle, accepted that a R&D centre can be located with advantage in the country.

To a specific query on any plans to set up a 100 per cent subsidiary in India, Sykes said, "We will look at that but in a very sensitive way". Glaxo and Burroughs Wellcome India managing director HR Khusrokhan, however, said, "There are no immediate plans as of today". He said that such plans, if any, would not take away any business from the Indian subsidiary. The wholly-owned arm, if at all, may be purely for exports or R&D purposes, he said.

Glaxo India has successfully undertaken custom synthesis of target molecules and side chains on a contract basis for group companies in France and the United Kingdom.

Sykes was at Nashik to present the "Chairman's award" for 1998 to Glaxo India. The Indian arm's Nashik factory bagged the health, safety and environmental management award while Glaxo India's community support programme won the award for excellence in corporate citizenship.

Sykes also said that Glaxo Wellcome's global rationalisation effort (which will shed 3,400 jobs from a 55,000-strong workforce globally) will "not have a major impact" on the Indian operations. The revamp is expected to generate annual cost savings of 370 million pounds by 2003, while costing the British giant 520 million pounds spread over four years.

On whether the delay in the merger of Glaxo and Burroughs Wellcome in India was a matter of concern, Sykes said, "The legalities are meaningless". The two companies are already working together on all key operational fronts, though labour woes have held up a legal merger in India.

On sourcing plans from the Nashik facility, Glaxo Wellcome regional supply director (Asia Pacific region) Ranthi Dev said, "Nashik is an important site for Glaxo Wellcome. We intend to see Nashik grow and will explore all available options". Indications are that this unit will shortly manufacture anti-asthma drug, Seretide.

The British giant is already sourcing ranitidine base, an advanced intermediate used in the manufacture of off-patent anti-ulcer drug, Zantac, from Glaxo India's Ankleshwar facility in Gujarat.