If the milestones achieved by the biotechnology industry in India in recent times are any indication, this sector appears to be the next biggest business opportunity in India after information technology. Available figures indicate that biotech industry has crossed $2 billion in India, apart from registering a 40 per cent growth in 2007. Much of this growth was driven by the bio-pharma sector, which accounted for nearly 70 per cent of bio business in the country.
Besides, according to reliable estimates the Indian biotech sector is well on its way to garner $5 billion in revenues by 2010. When it comes to states, Karnataka accounts for the biggest share of biotech industry in India, recording a turnover of $500 million with exports touching $250 million market.
In addition, out of the 340 registered biotech companies in the country, 183 are based in Karnataka. In 2006 alone, out of the 21 new companies registered in India, Karnataka accounted for over ten companies, including Biozeen, Boston Biologicals, Navvya Biologicals, Stempeutics, Silicocyte, Advinus Therapeutics, Polyclone Bioservices, CellWorks, Bioneeds, Biovel and Biovet. Apart, this state is also an abode for leading bio-pharma companies like Biocon, Avesthagen, Biovel, Panacea Biotech, Serum Institute, Shantha Biotech and Bharat Biotech.
Given the recent reports, biotech companies are increasingly generating profits and making fresh investments. For instance, Biocon has set up the Biocon Park at an investment of Rs 650 crore, while Avesthagen has made an investment to set up a modern research and production facility. Also, Reliance Life Sciences has plans to invest US $63.2 million for a stake in GeneMedix Plc UK.
Reports show that in 2006-07 the national biotech sector saw an investment of Rs 2,200 crore, compared to Rs 1,600 crore in 2005. The total investment in 2007 is estimated to be over Rs 1,000 crore. When it comes to profits, Indian bio services sector clocked revenues to the tune of $250 million, while agri-bio sector reported revenues of $250 million, registering a growth rate of 50 per cent.
According to a survey conducted jointly by Cygnus, a Hyderabad-based business consulting and research organisation and ATS Ventures Advisors, NY, the biopharmaceutical companies in the US prefer India to China for their immediate expansion plans through outsourcing. With cross-border alliances becoming a powerful growth driver for the biotech industry, there are plenty of opportunities for the US and Indian companies to tap each other's market.
India is now a preferred hub for contract services and research. Ernst & Young ranks Indian biotech sector third after Japan and South Korea in the Asia Pacific region. Indian biotech sector possesses many advantages, including highly productive and qualified manpower, state-of-the-art research laboratories, strong pharmaceutical sector and rich biodiversity. The country can also boast of skilled persons to handle microbes and animal cells and capacity in downstream processing and isolation methods. Besides, it has expertise in extraction and isolation of plant and animal products, apart from growing competence in plant and animal breeding. As a result, India is slowly but steadily showing its prowess in generics, clinical research trials, bioprocessing, bioinformatics and stem cell research.