The Indian Biotechnology sector, although nascent at the present time and accounting for a mere 2% of the global Biotechnology market, is poised for exponential growth over the next 5 years with an expected global market share of 10%. Indigenous Biotech products and services presently accounted for the year 2006-2007 for approximately US$ 1 billion. (4800 crores). With the sector finally crossing the 1 Billion US Dollars mark industry analysts are saying that the Biotechnology industry has finally arrived in India. The industry recorded a robust 36.55 % growth compared to the previous year’s revised figure of Rs 3,475 crore ($788 million). In 2003-04, there were just four companies with revenues in excess of Rs 100 crore. Now two more companies crossed this landmark. More importantly these are not the companies from the health care pharma biotech sector, which so far occupied the top five positions. Venkateshwara Hatcheries is an animal health care company and Mahyco-Monsanto Biotech is an agribiotech company.
The top five home grown Biotech Companies are (1) Biocon, (2) Serum Institute of India, (3) Paneac Biotech, (4) Venkiteshara Hatcheries (5) Mahyco Monsanto
The high growth sector has resulted in a 30% increase in investment which is expected to reach 50% in the next two years.
Venture capital funding of about Rs. 3000 million has been estimated as needed for the biotech sector Small Industries Development Bank of India (SIDBI) and Indian Credit and Investment Corporation of India (ICICI) have committed about 35% each .
Banks still remain the major financing source for biotechnology with venture capital accounting for less than 20% of funding in various survey.
Health care products will dominate the scene and may account for about 40% of the market by 2010. Contribution of biotechnology in agriculture may also rise to nearly 33.7% from its share of 29.8% in 1999
Bangalore as a BT HUB
Today most of the biotech companies want to harness the prowess of IT to develop products and Bangalore, a global IT hub, makes it a natural choice. Bangalore has also demonstrated several successful collaborative partnerships. And entrepreneurial culture is highly prevalent here. That is the reason for seeing several start-ups. Strand Genomics, Metahelix, Molecular Connections and Gangagen are a few examples. A proactive and supportive state government is an attraction for investors. This is the reason why Bangalore has attracted several companies in past few years. ReaMetrix, MWG Biotech, Cancer Genetics, ClinWorld, ClinTec and Jubilant Biosys are just a few examples. Bangalore is a known global brand; It has a strong international technology culture; it has several R&D establishments like NCBS and IISc. and Astra Zeneca to leverage upon.
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