Orchid Pharma to Set Up ₹600+ Crore Pharmaceutical Facility in Kathua Under PLI Scheme

Orchid Pharma

Orchid Pharma is set to establish a ₹600–₹700 crore pharmaceutical manufacturing facility in Kathua, Jammu & Kashmir, aimed at strengthening India’s antibiotic supply chain and reducing dependence on imported pharmaceutical intermediates.

The foundation stone for the project was laid by Union Minister of State for Science & Technology Dr. Jitendra Singh at Village Gadadhar in Kathua district.

The Orchid Pharma facility is being established with facilitation from Biotechnology Industry Research Assistance Council (BIRAC) under the Department of Biotechnology.

The ₹600+ crore project marks a significant expansion for Orchid Pharma and is expected to strengthen India’s pharmaceutical manufacturing ecosystem.

The project reflects growing industrial investments in the region and is aligned with the Government of India’s Production Linked Incentive (PLI) Scheme.

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Speaking at the event, Jitendra Singh said the investment of around ₹600 crore under the PLI Scheme demonstrates increasing confidence in the industrial and innovation potential of the region.

He noted that the Orchid Pharma facility is expected to generate direct employment for nearly 400 people while creating a similar number of indirect job opportunities for suppliers, logistics providers, and other allied sectors.

The minister highlighted that with its expanding industrial infrastructure, Kathua has the potential to emerge as a significant pharmaceutical manufacturing hub, helping place the region firmly on India’s pharma export map.

He added that the establishment of the Orchid Pharma plant marks an important milestone for the pharmaceutical sector in the Union Territory.

Dr. Singh described the project as a breakthrough for the regional pharmaceutical industry, stating that the Orchid Pharma facility will manufacture Amino Cephalosporanic Acid (ACA), a critical antibiotic intermediate used in the production of cephalosporin antibiotics. Currently, India depends largely on imports of this intermediate from China, creating vulnerabilities related to supply security, pricing stability, and healthcare access.

Orchid Pharma: Manufacturers of Cephalosporin Antibiotics

According to the minister, the new Orchid Pharma plant in Kathua will strengthen India’s strategic pharmaceutical manufacturing capabilities and reduce dependence on imported intermediates.

He noted that antibiotics remain foundational to modern healthcare and that global supply disruptions during the pandemic highlighted the risks of relying on a single geography for essential pharmaceutical inputs.

Dr. Singh further stated that the project reflects the vision of Prime Minister Narendra Modi to make India self-reliant in critical healthcare technologies and pharmaceutical supply chains.

He also referred to the ₹10,000 crore Biopharma Shakti initiative announced in the Union Budget, aimed at strengthening India’s biotechnology and biopharmaceutical ecosystem.

Highlighting India’s progress in biotechnology and pharmaceuticals, the minister said the country currently ranks third in biomanufacturing in the Asia-Pacific region and 30th globally. He emphasized that projects such as the Orchid Pharma manufacturing facility could help place Kathua prominently on India’s pharmaceutical export landscape.

Dr. Singh added that the initiative demonstrates India’s intent to move up the pharmaceutical value chain, reinforcing the country’s role as a reliable global supplier of essential medicines, particularly during global health emergencies.

He also noted that establishing advanced pharmaceutical manufacturing in Jammu & Kashmir reflects a new development model focused on capability building, skill development, and long-term value creation. “This is not merely about reducing imports; it is about building strategic capability where it matters most,” he said, adding that such projects integrate regions like Jammu & Kashmir into the national growth story through knowledge-driven industries.

The minister stated that investments like the Orchid Pharma facility will not only expand India’s pharmaceutical capacity but also strengthen the country’s health security by ensuring the availability and affordability of essential medicines even during global disruptions.

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Secretary of the Department of Biotechnology, Rajesh Gokhale, said that the bioeconomy is crucial for strengthening the country’s scientific and economic capabilities. He noted that science-led biomanufacturing initiatives, including emerging efforts in Kathua, demonstrate how India is building capacity to become a strong global competitor in biotechnology and advanced manufacturing.

Managing Director of BIRAC, Jitendra Kumar; Chairman of Dhanuka Group, Ram Gopal Agarwal; Managing Director of Orchid Biopharma, Manish Dhanuka; and Deputy Commissioner of Kathua, Rajesh Sharma, were also present on the occasion.

The pharmaceutical manufacturing facility in Kathua is being developed by Orchid Pharma, one of the world’s leading manufacturers of cephalosporin antibiotics. The company operates in more than 60 countries and serves over 200 global customers through international partnerships.

Author

  • Salil Urunkar

    Salil Urunkar is a senior journalist and the editorial mind behind Sahyadri Startups. With years of experience covering Pune’s entrepreneurial rise, he’s passionate about telling the real stories of founders, disruptors, and game-changers.

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