New investments to the tune of Rs 800-1,000 crore is expected to go into the biotechnology sector in the next five years. This was stated by Dr K V Raghavan, Director, IICT.
Talking at a two-day national symposium on ‘Biotechnology & Chemical Engineer,’ organised by the Dr B V Raju Institute of Technology in Medak district, Dr Raghavan said biotech had emerged as a top investment sector for venture fund organisations. During the past five years, about 90 companies had received support, with ICICI and SIDBI being the leading promoters.
The increase in investment was likely in view of the new venture capital in the form of APIDC-VCL and the KSIDC creating sizable funds. Similarly, the exclusive biotech parks in AP, Karnataka, Uttar Pradesh and Himachal Pradesh were progressing well, said Dr Raghavan, whose institute was playing a big role in setting up the first biotechnology Incubator at the SP Biotech Park in Hyderabad.
He said the domestic biotechnology sector had 200 companies of which nearly 50 were directed towards agri-biotech and 25 per cent were into the healthcare sector. Dr Raghavan felt that the biotechnology industry should cluster around research and academic institutions to survive and grow well in a competitive market.
Dr Krishna Ella, Chairman & Managing Director of Bharat Biotech, said in the biotech business the dependence on imports was very high. From equipment such as gaskets, fermenters, filtration membranes, HEPA filters to even repair and maintenance, Indian companies had to look for foreign help. This was proving both expensive and time-consuming. Hence there was a need for domestic manufacture of at least key equipment in order to make the companies and research institutes competitive.
Biotech industry also needed skilled professionals and not just degree holders. There was tremendous scope for chemical engineers, who could play an important role in scale-up of production, he told the large gathering of engineering students.
Dr Ella said imports from Korea and China were giving a tough competition to the domestic manufacturers of Hepatitis-B vaccine. Referring to viral infections, which are a major challenge for biotechnologists, he said, “We don’t have a strategy to detect quickly and control theses infections. The latest episode of infections in AP had demonstrated this,” Dr Ella said.