Bangalore India Bio, India’s flagship biotech event kicked off this morning with the state bagging investments worth Rs 1,500 crore from the sector in the last 12 months.

The 10th edition of the event was inaugurated today by Karnataka chief minister B S Yeddyurappa and Karnataka minister for IT & BT, Information, Excise and BWSSB, Katta Subramanya Naidu.

In this inaugural address, chief minister Yeddyurappa said, “Karnataka is home for five of the of the top 10 biotech companies in India. In order to produce employable and skilled manpower to the industry, the state government is encouraging Biotech finishing schools, of which 10 will come up this year. Government has also proposed to set up Bio-Venture fund of US$ 10 million. Sector specific Biotech Parks would be set up in Mysore, Mangalore, Dharwad and Bidar. With the aim to cut down 30 percent time of the drug discovery, the government proposed Bio-IT center in collaboration with JNCSAR, Strand Life Sciences, Center for Human Genetics and IBAB.”

Even though Karnataka is a pioneer and commands leadership position in India's biotech sector, the state is continuously working towards the industry's needs. New Millennium Biotechnology Policy of 2001 which was revised has now provided many incentives and concessions. As a result, the state has accounted for US$ 810 million revenues which is 26 per cent of India's biotech market of US$ 3 billion.

Among the first investment that came into the state in June 2009 included Kemwell’s bio pharma facility at an investment of around Rs 250 crore. The second is by Hindustan Petroleum Clean Energy and bio-fuels R&D lab at an investment of Rs 550 crore and Bangalore Helix, the state government’s biotech park is also expanding facility with an investment of over Rs 250 crore. There is also a Rs 200 crore investment from the state to set up the Nutraceutical Park in Mysore. Biocon has also invested Rs 200 crore for its R&D centre.

These investments indicate the potential opportunities for growth, said Kiran-Mazumdar-Shaw, chairperson Karnataka Vision Group on Biotechnology and CMD, Biocon Limited in her keynote address.

Bangalore has become a global hub for clinical data management and post marketing data management. Now we have most diversified bio-clusters in Karnataka. Of the 380 Biotechnology companies of India 198 are in Karnataka and 191 of them are in Bangalore. Having come a long way, now is the time to shift from western centric models. India and China can play a lead role in the world in the areas of food security and health-care, she added.

Knowledge led attributes of Bangalore are the drivers of the growth of Biotechnology industry in Bangalore and 11 of the 32 new biotechnology companies have come up in Karnataka in the past 12 months. The event which is into 10 edition has coincided with the Global Investors Meet and is expected to see more investments. The biotech exports from Karnataka was Rs 3,560 crore and it would cross Rs 4,000 crore (US$ 1 billion this fiscal, she stated

Indian biotech sector revenues including ancillary sector is Rs 14,199 crore (US$ 3 billion) in 2009-10 with a 20 per cent growth rate which was well on track to achieve the US$ 5 billion mark target set for fiscal 2010-11, said Shaw.

The key advantages for India and Karnataka biotech industry was the huge cost advantage, and attractive market for products driven by the dual disposable incomes. The country is also an important destination for the western economies which are looking for economies of scale in terms of cost and time. The pool of expertise with scientific focus is also a key component for the success of the sector, added Shaw.

The event is organized by the Department of Information Technology, Biotechnology and Science & Technology, Government of Karnataka, Vision Group on Biotechnology and MM Activ Sci-Tech Communications.

The other dignitaries present included Rob Norris, Minister of Advanced Education, Employment & Labour, Govt of Saskatchewan, Canada, S V Ranganath, chief ecretary, Govt of Karnataka, Richard Hyde, British Deputy High commissioner to Karnataka, professor Samir K Brahmachari – DG, CSIR and secretary, DSIR, Govt of India, Ashok Kumar C Manoli - Karnataka principal secretary for IT & BT and Science & Technology, Aravind Jannu, director, Directorate of IT & BT, Govt of Karnataka & managing director, KBITS.