The Tokyo-based Otsuka Chemicals, the chemical unit of Japan's drug major Otsuka Pharmaceutical Group, has announced launching of its new pharma-based chemical manufacturing facility in Jaipur, Rajasthan.

The new plant, set up with an investment of Rs 1.5 billion, is for manufacturing Otsuka's chloromethyl cephalosporin - GCLE, a new reactive intermediate for cephalosporin antibiotics. With the establishment of the facility, the company will manufacture and market its GCLE intermediate so that the product will be available for domestic pharma players without importing, according to Hiroyishi Tosa, managing director, Otsuka Chemicals.

Indian pharmaceutical industry is currently importing 80 per cent of GCLE used in manufacturing of antibiotics and pain relief medicines. "You can well imagine our stakes in India. We are the only company which manufactures GCLE," said Tosa. Indian pharma companies have been importing GCLE from Otsuka Chemicals at $115 per kg. Tosa said that the company was the exclusive supplier of the chemical and the new plant would ensure that their technology is not stolen and remains secret with them.

"The cost will remain the same for Indian pharma companies. But they will benefit from the import tax exemption. They will now start getting GCLE in India itself," explained Tosa. The plant set up at Keshwana Rajput village in Jaipur will initially produce 500 tonnes of the pharma-chemical. "We would later increase our plant's capacity," said Tosa.

Its is for the first time that the Rajasthan government with the help of the Rajasthan State Industrial Development and Investment Corporation (RIICO) has been able to attract a foreign pharma-based chemical unit to the state.