South India is major contributor to the biotechnology growth in the country. There are around 39 per cent of the companies based in the region. Out of the total biotechnology market of Rs 2,305 crore, South-based companies account for nearly 39 per cent of the business done, according to a survey by ABLE
(Association of Biotechnology Led Enterprises).

The reason for South being the number one is obvious. Biocon is South-based and is the single largest contributor. With total sales of Rs 255 crore, the company is almost 1.5 times larger than the second largest company, Panacea Biotec, whose total biotech business was about Rs 169 crore. Further the survey shows that among the top 50 companies, 19 are from South, 17 from West and 14 from North. The third biggest company Wipro is also based out of South.

The biotech activities have been well spread across the country. The North, South and the West regions are the prime ones where the activities have been concentrated. Out of the total market of Rs 2,305 crore, South-based companies contribute nearly 39 per cent of the business done, while West accounts for 32 per cent, and the North for 29 per cent.

The first ever survey of the biotech industry in India, conducted by ABLE (reveals that the total biotech industry size during 2002-03 was Rs 1,830 crore ($ 400 million). The biotechnology industry in 2003-04 expects to register 25-30 per cent growth and the investments are expected to double in the next two years.

For 2003-04, the top five players in the industry are Biocon, Panacea Biotec, Wipro, Wockhardt, and Haffkine. The sector employs 6,400 people which is up by 64 per cent compared to previous year. The exports account for 53 per cent and the orders are valued at Rs 875 crore. The investments in the sector are worth Rs. 600 crore. Another notable point is that 39 per cent biotech companies are based in the south India. The biotechnology sector expects 25-30 per cent growth, which is expected to double in the next two years.

The figures takes into consideration the biopharma, bioagri and bioindustrial products, bioinformatics, and the clinical trials and contract research services market into account but does not include the hybrid seeds and the sale of equipment (the suppliers to the biotech industry).

"Investment in biotech continues to remain inadequate, venture funding is scarce, infrastructure is expensive and regulatory regimes are deficient. Despite this difficult environment, entrepreneurs are bravely setting up new venture signifying the intrinsic belief in biotechnology being the business of the future," commented Ms Kiran Mazumdar-Shaw ABLE President and Biocon Chairperson. "The ABLE Index will now generate reliable national data with respect to the Biotech sector and will allow a systematic tracking of the various sub-sectors that constitute the biotechnology industry."

Out of the total market of Rs 1,830 crore, the biopharma sector accounted for 70 per cent of the market share, with total sales touching Rs 1,275 crore. Vaccines, therapeutics, diagnostics and animal health care products form the key products. Bioindustrial segment, consisting of enzymes, organic amino acids, and yeast and yeast-based products, accounted for 13 percent market share with total sales in excess of Rs 235 crore. Bio services--clinical research, contract research and contract manufacturing--accounted for 7 percent of the market share with Rs 135 crore in revenues.. The Bio-IT market was estimated at Rs 75 crore.

The Biotech pie changes significantly if the supplier's market is taken into account. It is the second largest market after biopharma with total sales of Rs 475 crore.