Glaxo India's official spokesperson told The Financial Express: "As the new global structure takes shape, a new matrix organisation structure is emerging, where local functions also have reporting lines to international heads of those functions located in various countries."

Put simply, this would -- for example -- mean that Glaxo India's head (procurement), Madhav Kurdekar (who is executive vice-president of the Indian company) will now have international responsibilities for coordination of procurement in the Asia Pacific and Japan. Kurdekar would initially be based in India. In effect, the company said, it was moving into the realm of a virtual organisation where geographic location of the individual really becomes inconsequential.

"For instance, technicaldirectors around the world will now have reporting lines to regional supply directors or the worldwide director of primary operations in the United Kingdom, as the case may be. Similarly, functions like quality assurance and procurement in India will have reporting lines to the heads of these functions within the international structure some of whom are regional offices, some in the UK and some even operate from their own countries," Glaxo India said. The spokesperson, however, said that all operations in India continue as before, including the functioning of the company's executive committee.

Glaxo Welcome Plc has created a worldwide manufacturing and supply organisation which will be a model for manufacturing excellence and will meet the group's long-term business objectives. The key drivers of this change are the need to lower manufacturing costs, create the ability to handle greater complexity and a variety of product offerings and ensure compliance with increasingly stringent regulatoryobjectives.

On whether the British giant would look to India for additional sourcing needs, Glaxo India said: "India features in the planned network of manufacturing and supplying sites. Determination of the extent of use of these sites for regional/world supply is still under examination and the process may take up to another two years."

Glaxo Wellcome regional supply director (Asia Pacific region) Ranthi Dev had, in late October 1999, 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 consider manufacturing anti-asthma drug, Seretide.

The company 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.