Karnataka accounts for 55 per cent of biotechnology companies in the country in 2006-07. Out of a total 320 enterprises in India, Karnataka has 175 units and 158 of these are located in Bangalore. In 2005-06, out of the 28 new biotech ventures, 27 were set-up in Karnataka. In 2005-06, the state biotech business registered a turnover Rs. 1400 crore in 2005-06. Exports generated revenues to the tune of Rs: 850 crore. The total scientific head count is 6,800 personnel.
This has led the state capital, Bangalore to be recognized as the country's largest bio-cluster. According to Dr Anup K Pujari (IAS) principal secretary to Government Department .of Information Technology, Biotechnology and Science & Technology, Government of Karnataka, with regards to the bio-cluster creation, Bangalore has naturally adopted to the 'Economics of Agglomeration'. The city's economic geography has led to a concentration of biotech activity agglomerate in the region. The creation of economic clusters of biotech units is because of the increasing returns under monopolistic competition and generation of strategic alliances.
"There is no doubt that biotechnology in Karnataka is on an upswing. The development of companies portrays the scores of opportunities and the growth has been strong, ''stated Kiran Mazumdar-Shaw, chairperson, Vision Group on Biotechnology in Karnataka and chairman-managing director, Biocon Limited.
Supporting the success of the biotech units in the state, the government went on to clear the much-awaited Biotech Park 'Bangalore Helix' project on June 4, 2006. "This would provide the existing companies a big boost to the infrastructure availability. It will also create a platform for new investments," stated Karnataka chief minister HD Kumaraswamy who also holds the IT&BT portfolio in mid-June this year.
The leading companies in the state include Accelrys, Advinus Therapeutics, Agilent Technologies, Animal Biotech, Automed Systems, Avesthagen, Bhat Biotech, Bigtec, Biocon, ClinTec (India) International, CytoGenomics, Delta Biologicals, Gangagen Biotechnologies, Genetics Specialties, Genotypic Technology, Infosys (Lifesciences), JH Bio Innovations, Kewaunee Scientific, Khoday Biotech, Lotus Labs, Millipore India, Molecular Connections, MWG Biotech AG, Pall Lifesciences, PharmaNet, Pharm-Olam International (India ), Phikon, Polyclone Bioservices, ReaMetrix, Saint-Gobain, Sami Labs, Sartorius India, Serwell Instruments, Strand Life Sciences, SysArris Software, Triesta Sciences, Vittal Mallya Scientific Research, Waters, Wipro Biomed and XCyton Diagnostics.
The state's biotech ventures are sustained by the presence of notable research institutes like the Indian Institute of Science(IISc), National Centre for Biological Sciences(NCBS), and the Jawaharlal Nehru Centre for Advanced Research(JNCAR). There is also a large presence of pharmacy-biotech graduates. Yet despite these positive factors, there is an acute shortage for trained manpower which is now seen as a serious shortfall for growth in the future. However, Shaw is confident that with the State government-led Institute of Bioinformatics and Applied Biotechnology (IBAB) and Biozeen, a Bangalore-based biotech company would provide the much-needed relief for the industry in the hunt for the right kind of human resources.
Some of the visible emerging trends in the state is the linkages of research institutes like the University of Agricultural College Dharwad with an Innovation Centre to attract research start-ups to take off viable-revenue generative projects. Team-up of NCBS), Indian Institute of Science (IISc), IBAB and the Industry for collaborative research initiatives. Diagnostics development especially at ReaMetrix, Polyclone Bioservices, Bhat Biotech and XCyton which are showing positive signs of 'business in the right direction'. The capability of biological development to a global scale by Biocon and the strategic joint ventures in the area of Bio therapeutics, Pharmaceuticals & Diagnostics by Avestha Gengraine Technologies Pvt. Ltd.
The key challenges for biotechnology in Karnataka would the ability of the companies to attract investments in the sector. There is also a need to further streamline regulatory procedures to ensure hassle free approvals in terms of improved efficiency and managing compliance, pointed out Naveen Kulkarni, CEO, Polyclone Bioservices.