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Global analytical device makers set up shops in India

Prabodh Chandrasekhar, MumbaiThursday, November 25, 2004, 08:00 Hrs  [IST]

Sensing the importance of Indian market, major global names like Agilent Technologies, Perkin Elmer, Varian, Waters, Thermo Group, Analytik Jena, and Biorad have recently set up their respective offices in the country, said senior officials with the Indian Analytical Instruments Association (IAIA). These offices are aimed towards direct marketing of their analytical instruments in the country. Previously, these players used to market their products through distributors in the country. "The current Indian AI market is worth Rs. 1,200 crore, two-thirds of whose needs are met by instruments imported from Europe and the US. The Indian AI market is believed to be growing at a healthy rate of 45 per cent annually on account of the phenomenal growth of domestic pharmaceutical industry," said VS Rajan, founder member and chairman, managing committee of Indian Analytical Instruments Association (IAIA). Thermo Group of US, with a turnover of about $ 3.5 billion and Agilent with a turnover of $ 2.5 billion would control about 20 per cent of the global analytical instruments market share, he added. Globally, there are about 1,60,000 analytical instruments, many of which finds simultaneous applications in the areas of petroleum, chemical and pharmaceutical analysis. The global analytical instrument market has grown to the current level of $ 28 billion from $ 4 billion in 1975. Although, the global companies have set up their marketing operations in the country, they have no intention of setting up manufacturing subsidiaries in India or outsourcing analytical instruments from Indian manufacturers, said Rajan. "The reason being, Indian manufacturing is very much segmented and unorganised. As I told you before, although India has a reservoir of talent, it lacks the drive for innovation and R&D, which is essential in any field of technology," he said. "Although the foreign companies would set up their marketing offices in India, unless the structure of Indian analytical industry evolves from the current way, unless there is speedy clearance in evolving policies and decision making from the government side, I do not see anything positive emerging like a foreign company making India an export hub for its products. Maybe at the end of a five year horizon, we will see some kind of improvement," he added.

 
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