The International Biotech Park at Hinjewadi in Pune has proposed to set up a Business Facilitation Centre (BFC) in the park to provide venture capital investment to incubation and startup companies in the park.
The park administration is in advanced stages of negotiation with Ernst & Young to operate the BFC at the park. Once appointed E&Y will help companies with venture capital investments depending on their potential. E&Y will also provide business development consultancy, legal and financial services to the tenants at the Hinjewadi park as also to biotech and pharma companies in and around Pune.
A promising blue print of a potential biotech venture for future is called as company under incubation.
"E&Y have shown interest in operating the BFC, although legally we are yet to appoint them. E&Y with their auditing, legal and biotech consultancy experience are the best consultants to head such a BFC," said a highly placed official concerned with Hinjewadi park.
Unlike the pharma companies, Indian Biotech firms face shortage of venture capital investments on account of less predictability of successful R&D in the biotech sector. Also, mainstream biotech activity in the country is at the primary level of infancy.
In advanced markets however, biotech research and drug development has ripened and is delivering positive results. As a result, after a lull economic period, VC investments have once again picked up with promising biotech companies of the world, said analysts.
"A BFC will be a good step forward for Indian biotech industry. As regards to future, venture capitalists have begun showing interest in Indian biotech investments," said a senior MIDC official
Shreya Life Sciences with 10 acres and Emcure with 14 acres are the only confirmed occupants of the park so far. Out of 136 acres, only 110 acre is developable land in the biotech park.