Biotechnology sector in India has registered 39 per cent growth with a turnover of Rs 3,265 crore in 2003-04. The number of companies in the sector has grown to 235 from 150 in 2002-2003, according to the second ABLE (Association of Biotechnology Led Entrepreneurs) BioSpectrum Biotechnology Survey conducted here recently.

The first ABLE Bio-spectrum survey in 2003 had estimated the industry size as Rs 1,840 crore.

"The Indian biotech sector is gathering momentum with revenues of over $700 million (Rs 3,265 crore) in 2003-04 and is on its way to cross $ 1 billion in the current year. If the momentum continues, the industry will reach goal of $ 5 billion in 2010," stated Kiran Mazumdar-Shaw, president, ABLE.

During the year, two leading biotech companies: Serum and Biocon surpassed the Rs 500 crore mark and accounted for a third of the industry size. While Serum was the largest biotech group with revenues of Rs. 555 crore, Biocon was a close second with Rs.549 crore. The company held on its leadership slot in the BioSpectrum Top 20 ranking for the second consecutive year with biotech revenues of Rs 502. Pune-based Serum Institute part of the Poonawalla Group is the largest exporter of vaccines and immuno-biologicals from India was ranked No.2 with revenues approximately of approximately Rs 491 crore from sale of biotechnology products in 2003-04.

New Delhi-based Panacea Biotech is the third largest company with Rs.149 crore of biotech product sales. While Mumbai-based Nicholas Piramal was ranked fourth followed by Novo Nordisk at fifth slot. Their respective business biotech businesses stood at Rs 130 crore and Rs 110 crore. All the five companies grossed in excess of Rs 100 crore in sales. With the total biotech revenues of Rs 1,382 crore, the top five alone accounted for about 42 per cent of the total market share.

For this year's analysis, BioSpectrum considered biopharma products under four categories of vaccines, therapeutics, diagnostics and others like statins. Products made from fermentation or animal cell culture (not animal extracts) and plant cell culture (not plant extracts) were taken into account. In the agri sector, transgenic crops, bio-pesticides and bio-fertilisers were considered along with biomarkers and agri research services. The other sectors considered included Bioinformatics, bio-industrial mainly consisting of enzymes and bio-services mainly falling into the clinical trials and custom research.

Though the overall industry grew by 39 per cent, the sub-segments within the segments had different rates of growth. The biopharma sector is the second largest with a total market share close to 76 per cent. The sector had been led by strong growth in the statins market by Biocon. The vaccine business is the largest contributor to the biopharma sector. It accounted for almost 28 per cent of the market share. While the exports for the human health vaccine manufacturers nearly remained same, the animal healthcare segment grew by 25-30 per cent.

While the total biotech exports accounted for Rs 55.65 percent share of the total biotech sector, the domestic business accounted for 44.35 per cent market share. Bio Pharma sector accounted for the largest share of exports.

The next biggest sector was the bio services industry with a total sales of Rs 275 crore which accounted for 8.42 per cent of the total biotech market. It witnessed over 100 per cent growth.

The bio-cluster in the western region in the country is the clear leader among the regions. Interestingly, though West is leading the biotech sector in terms of revenue, the southern region which houses over 60 per cent of the biotech companies is doing well in terms of the growth rate over the previous year. The south is growing at the rate of 46 per cent while the west is growing at the rate of 41 per cent which is attributed to good working environment, government support and initiatives for the growth of the industry.

The manpower in the biotech sector grew over 42 per cent to 9,100. The investments have grown by 25.99 per cent to Rs 635 crore. In 2004-05, the sector is forecasted to grow by 33.86 per cent to Rs.850 crore.

The bio-suppliers market grew from Rs 561.40 crore in 2003 to Rs 820 crore in 2004. It is pre dominantly an importers market with domestic sales accounting for 97 per cent of the total industry size. Most of the leading global suppliers have their presence in India either directly or indirectly. The top five companies are Agilent Technologies, Becton Dickinson, Thermo Electron, Lab India and Millipore. These five companies accounted for 40 per cent of the total suppliers market with a total business of Rs 343 crore. The sector is expected to grow by about 40 per cent in 2004-05.