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INDUSTRY & SERVICES

BIOTECHNOLOGY

With its large pool of scientific talent, world-class information technology industry, and vibrant pharmaceutical sector, India is well positioned to emerge as a significant player in the global biotech arena. Biotechnology is perceived as a revolution throughout the world. Scientists, through Research and Development (R&D), have developed and are continuing to develop cures for diseases that have affected people for decades and even centuries.

With its large population of over a billion people there is a huge market for products and services. India 's population has a very interesting demography that creates almost a perfect environment for biotech companies to shift bases here. In addition the Indian sub-continent, which occupies only 2.4% of the total global surface area, has the most varied species of flora and fauna.

Indian Advantage

• Promising potential to be a global player in the arena of biotechnology
• Large pool of skilled and cost competitive manpower
• Well developed and integrated scientific infrastructure
• Advanced chemical synthesis technologies
• Manufacturing practices conforming to US and EU norms
• Diverse biological resources
• Globally recognized as a producer of low cost, high quality bulk drugs and formulations.

Overview of Biotech Industry

The Biotech Industry in India in FY 2010-11 clocked US$ 3927.6 million, excluding life sciences education (with which the biotech industry has crossed US$ 4 billion) , growing 21.5 percent over the last year’s revenue of US$ 3233.2 million.

The revenue split between exports and domestic sales has also recorded minor shifts ranging between two-to-five percent. The exports across segment made up 51 percent of the overall revenue contributing a total of US$ 2015.7 million. The ratio between exports and domestic sales stands at 51:49, which is a sign of a robust industry.

Indian Biopharma Sector

India BioPharma market comprising primarily of vaccines, therapeutic drugs, insulin, animal biologicals, stations and diagnostics, continued to grab the largest share of the total biotech industry revenue of US$ 3924.4 million in 2010-11. The biopharma market accounted for US$ 2424.8 million , with 61.8 percent of market share in 2010-11.It accounted for US$ 2008.7 million, taking 62 percent market share in 2009-10.

Vaccines: Vaccines sector within biopharma segment witnessed a continued growth of 12 percent during 2010-11. With the revenue of US$ 555.4 million in 2010-11, vaccines sector claimed the largest pie in the biopharma segment. In 2009-10 the vaccines sector had sales of US$ 495.9 million.

Diagnostics: Driven by a rise and investments in the healthcare infrastructure, diagnostics and therapeutics business had a positive impact on the diagnostic sector. The diagnostic market is estimated to be at US$ 555.2 million for 2010-11 registering growth of 22 percent over last year’s market of US$ 455.1 million.

Therapeutics: The total biologics market in India witnessed a growth of over 35 percent and stood at over US$ US$ 455.1 million for year ending 2010 as against US$ 336.8 million for the year ending 2009. For 2010, the human insulin and analogues market stood at over US$ 177.5 million and erythropoietin stood at US$ 23.4 million.

Indian Bioservices Sector

The bioServices sector clocked total revenues of US$ 738.4 million in 2010-11, registering a growth of 23 percent over last year’s (2009-10) total segment revenue of US$ 600.2 million.This constitutes about 19 percent of the total biotech industry revenue for the fiscal.

Looking into the future, the contract research organization (CRO) industry will continue to grow at a rate of 20-30 percent in the next three years. The segment will also see the entry of a number of small-sized homegrown CROs into the market looking at BA/BE studies. Also, being on the growth mode, Indian CROs will look at outbound acquisitions both big and small. Mandatory registration of all clinical trials in India has brought about the much-needed transparency into the system and this in turn will lead to a rise in the number of global companies outsourcing clinical trials to India.

Indian BioAgri Sector

The BioAgri market clocked total revenue sales of US$ 564 million in 2010-2011 as against US$ 440.3 million in 2009-2010. This accounts for 14.4 percent of the total biotech revenues. Bt cotton has been a roaring success with 95 percent of Indian farmers adopting the technology. India today is the fourth largest country in the world under Bt cotton cultivation.

The total land area under Bt cotton in 2010-2011 was 9.5 million hectare, which is over 85 percent of the total land under cotton cultivation in the country. In the fiscal 2009-2010, the total land acreage under Bt cotton cultivation was 8.4 million hectare. Maharashtra with about 3.142 million hectare has the highest area under Bt cotton acreage followed by Gujarat at 2.354 million hectare and Andhra Pradesh at 1.399 million hectare. Punjab, Haryana, Rajasthan and Karnataka are other important states undertaking Bt cotton cultivation.

Indian BioIndustrial Sector

The bioIndustrial market in India clocked US$ 142.3 million in 2010-2011, growing at a rate of 10.9 percent for 2010-2011, as against US$ 128.2 million in 2009-2010. India has a marginal share in the global market for industrial enzymes, which is estimated to be at about US$ 3387.30 million.The segment is forecasted to grow at a CAGR of 15 percent till 2015.

Though there is a prevailing domestic demand, the segment is largely export driven. Major export markets include the US (global share of 40 per cent), Europe (global share 25 percent) China (Global share: 20 percent). Others include Rest of Asia (Global share of 15 percent). Realizing the potential of the opportunities outside India, many Indian companies are expanding their base outside the country even into difficult markets such as China. Advanced Enzymes for instance, will start its European and Chinese subsidiaries for market expansion. And this is how the company expects to achieve its US$ 227.4 million revenue-milestone in the next five years.

Indian BioInformatics Sector

The bioInformatics segment, which is the smallest of industry segments constituting barely two percent of the market share in the overall industry revenue, grew by 4.9 percent in FY 2010-11. The segment clocked US$ 55.1 million in this fiscal as compared to US$ 52.5 million in FY 2009-10. The major players in the segment, Strand Life Sciences and Ocimum Biosolutions collectively contributed US$ 24.3 million to the overall revenue.

The factors contributing to this growth include tracking of discovery activities, data analysis, and pharma research. The different sub verticals covered under it are Informatics, Omics, Lab information, Clinical Data Management and Biostatistics.

Biotech Industry Exports of different sectors during FY 2009-10

Segment
2009-10
2010-11
 

Exports
Rs Crore
(US$ Million)

Percentage Share (%)

Exports
Rs Crore
(US$ Million)

Percentage Share (%)
BioPharma
4767.7
(1081.7)
54
5535.4
(1255.6)
52
BioServices
2507
(569)
95
2986.3
(677.4)
92
BioAgri
58.1
(13.2)
3
74.4
(16.9)
3
BioIndustrial
124.1
(28.2)
22
150.2
(34.1)
24
Bioinformatics
73.9
(16.8)
32
106.02
(24)
42
Total
170.9
(38.8)
53
8852.3
( 2008)
51.3

Source: Association of Biotechnology led Enterprises (Able)

 

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