BIOTECHNOLOGY
Unprecedented Growth
Opportunity
March, 2005
Biotechnology
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March, 2005
India - An Introduction
Population
Over 1 bn
States/UTs
35
Geographical Area
3.3 mn sq kms
Languages recognised
22
Business language
English
Per Capita Income**
US$ 534
 GDP**
US$ 650 bn
**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
March, 2005
Source:CSO Statistics
India - Fast pace Growth
 Largest democracy
 4th largest economy by PPP index
 6th largest energy consumer
 ForEx reserves skyrocket from US$ 42 bn (2001) to
US$ 133 bn (February, 2005)
 GDP growth to continue between 6-8%
 3rd largest economy by 2050: Goldman Sachs
 Leading in IT & BPO
 Oil & Gas and Biotechnology sunrise industries
March, 2005
India - Leading the world
 Hero Honda - largest manufacturer of motorcycles
 Moser Baer - among the top three media manufacturers
in the world
 Pharmaceutical Industry - 4th largest in world
 Walmart, GAP, Hilfiger sources more than
USD 1bn worth apparel from India
 100 Fortune 500 have set R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
March, 2005
Biotechnology
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March, 2005
Biotech Market - Dynamic and growing
Size (2004-05)
US$ 1090.5 mn
Largest segment
Biopharma
Revenue from exports (2003-04)
Total investment (2003-04)
Rate of growth over 202-2003
March, 2005
56%
US$ 137 million
26%
Biopharma leads the way
Composition of Indian Biotech Sector (2004-05)
Bio Agri
6.95%
Bio-IT
2.09 %
Bio
Industrial
6.74%
Bio Services
8.95%
Bio Pharma
75.24 %
Source:Biospectrum-ABLE Survey
March, 2005
Market - A consistent uptrend
25% growth in investment
2002-03
70% growth in employment
74% growth in R&D
manpower
US$ 5 billion annual
revenues
2010
1 million skilled jobs
10% of global industry
March, 2005
Source: Confederation of Indian Industry (CII)
Biotechnology
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March, 2005
Indian Players
March, 2005
MNCs Scripting Success in India
March, 2005
Biotechnology
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March, 2005
Investments
Year
US$ million
Growth
(%)
2000-01
54
2001-02
108.9
102
2002-03
137.2
26
• Annual investments in this sector will be of the order of US$ 150
mn and are growing at the rate of 25%.
• An additional investment of US$ 216 mn is
expected in FY2005
March, 2005
Invest in Biopharmaceuticals
Vaccine
Sales of US$ 383.6 mn (2004-05)
Therapeutic
Marketing licenses granted for
over 25 recombinant therapeutic
proteins
Diagnostics Sales market - US$ 138.2 mn (2004-05)
March, 2005
India: The Vaccine Hub
• Indian firms estimated to supply 90% of global
demand for the measles vaccine, in the near
future.
• Serum Institute, Pune is believed to be the
world`s largest manufacturer of DPT vaccines.
• Indian Immunologicals operates the world`s
second largest plant for veterinary vaccines and
is also the world`s largest manufacturer of the
vaccine against Foot and Mouth Disease.
March, 2005
Invest in Biopharmaceuticals
Therapeutic
Accounts for 16.7% of total biopharma
sales
Diagnostics
Forecast to grow by 35-40% in 2005
Immuno diagnostic market to increase
4 to 5 folds by 2005
March, 2005
Invest in Bioinformatics
By 2006 bionformatics market to grow
2004-05
US$ 22.9 mn
By 2006
US$ 120 mn
Source: International Data Corporation (IDC)
Data mining
Opportunities for
investment
Gene annotation
Software bioinformatics
interface development
March, 2005
Invest in Genomics and Industrial Biotech
Genomics
Industrial Biotech
Size (2004-05)
March, 2005
US$ 73.5 mn
Invest in Agri Biotech
Biofertilisers
GM Crops and seeds
March, 2005
Biofuels
Biopesticides
Invest in Agri Biotech
Biofertilisers
GM Crops and seeds
March, 2005
Biofuels
Biopesticides
Clinical Trials - Destination India
Quality

Quality guidelines conformed
Speed

Patient enrolment rates upto six times
higher than US
Technology

CROs to benefit from India’s IT
strengths in data management
Disease Profile

High incidence of infectious/lifestyle
diseases
Investigators

Excellent pool of qualified & trained
doctors and physicians
Genetic diversity
Ethics
March, 2005
Biotechnology
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March, 2005
The India Advantage
Excellent network
of research laboratories
Rich biodiversity
Well-developed
base industries
Extensive clinical trials
opportunities
Trained manpower
and knowledge base
March, 2005
The Infrastructure Advantage
40 National Research
Institutes
15,000 scientists
300 life sciences
colleges
500,000 graduates
per annum
120 medical colleges
17,500 medical graduates
per annum
200 biotech companies
Employing 25,000
scientists in R&D
100 teaching hospitals
Employing medical &
paramedical professionals
March, 2005
The R & D Advantage
Genetic Engineering
Biotech
R&D
strengths
spread
across
range of
segments
DNA technologies
New Drug Delivery Systems
Rational drug design
Stem cell research
Bioinformatics
March, 2005
The Policy Advantage
India has transitioned from a process patent regime to a
product patent regime w.e.f January, 2005
150% weighted deduction on R&D expenditure
 Single window application processing proposed by DBT
 New biotech proposals to be cleared within 150 days
 Formation of a SME Growth Fund to provide equity support
to small & medium units in the biotechnology sectors (Union
BudgetMarch,
2005-06)
2005
Union Budget 2005-06
The Biotech Park Advantage
 Benefits enjoyed by Export Oriented Units (EOU) extended
to Biotech Parks
- 100% FDI permitted through automatic route
- BTP units exempt from payment of Income Tax
- Export proceeds to be realised within 12 months
- BTPs allowed to retain 100% export earnings in the EEFC
account
March, 2005
Biotechnology
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March, 2005
Contact in India
Confederation of Indian Industry (CII)
The Mantosh Sodhi Centre
23 Institutional Area
Lodi Road
New Delhi 110003
Tel 0091 11 24629994 - 7
Fax 0091 11 24626149/24615693
E-mail c.banerjee@ciionline.org
March, 2005