Indian analytical instruments commands a market share of $750 million out of a global market value of $33,000 million. The Indian market is expected to grow by five fold in 2010 going by the current demand from the pharma, biotech and research labs in the country.

There are three drivers in the instrumentation market. They are pharma-biotech manufacturing, research activities including in drug development and focus on generics for the regulated markets. Secondly, the growing contracts manufacturing and research services (CRAMs). Thirdly, the significant growth expected from the clinical trial business which is currently estimated to be valued at $100 million and to grow to $1 billion in the next five years, said K Venugoplan, President, Waters India.

Indian pharma-biotech companies have invested five years ago to gear up for the Post 2005 regime. There have been substantial investments from drug majors like Ranbaxy, Dr.Reddys, Sun Pharma, Biocon, Micro Labs which has seen an escalation in sales for instruments, stated an official from Wipro Biomed.

Another development is the increasing support by the government labs to private pharma-biotech sector in terms of industry-institute initiatives which is leading to a positive growth of the sector. Not only that there has been a marked improvement and refurbishment in the scientific labs conducting tests for government clearances. These include the state drug control department's drug test centres which are being revamped through World Bank aid.

In Karnataka too, the State drugs control lab received assistance to the tune of Rs 4.21 crore from the Union government's granted under the World Bank assistance scheme. The amount is being utilized to strengthen the lab in terms of lab equipment to speed up the testing process.

Despite all this growth, lab majors at the Analytica Anacon pointed out that it is still not viable for Indian companies like Millipore, Waters, VWR and Pall to set up a manufacturing outfits in India. The exorbitant costs and ability to handle sensitivity production standards make it unviable proposition. It is still cheaper to ship them from parent companies, they averred.

Another observation is that the Indian sales of instruments are miniscule compared to the US and Europe. We have a long way to catch up. Today Indian pharma-biotech and research and development centres have a variety to choose from. Yet the sales of chromatography in the country is only 2,000 units which is substantial compared to 800 units five years ago, stated Venugoplan.