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INDUSTRY REPORT
SUBMITTED BY
TUSHAR PAREEK
MBA BIOTECHNOLOGY
PUMBA
Over the last two decades, world biotechnology has been dominated by the US and Japan.
US-based life sciences companies generate a lion‘s share of over US$ 500 billion in
revenues, followed by Japan. Biotechnology industry continues to grow rapidly, with over
6000 companies engaged in activities related to discovery, consumables and equipment and
the number is increasing at 6% annually. It is noteworthy that in spite of much larger R&D
investments in the pharmaceutical sector, more and more approvals granted by the US FDA
are for bio-drugs.
India which has earned a name worldwide as the most prefered location for global
information technology outsourcing and software services firms, is gradually making a mark
in another high-tech sector- Biotechnology. The large pool of scientific talent available at a
reasonable cost, a wealth of R & D institutions, a rich and varied bio-diversity, a flourishing
pharmaceutical industry, strong IT skills and an English speaking population have all placed
India favorably in the global market. This sunrise sector which has seen which has seen the
entry of many new players both Indian and International, is poised to take the country to the
big league with investment flowing in from all corners. India has an enormous potential in
becoming a leading player in the global biotechnology industry. The Indian biotech sector
stands 4th in terms of volume and 13th in terms of value. The sector is one of the fastest
growing knowledge-based sectors in India and experts predict that biotechnology is going to
play a key role in shaping India's rapidly developing economy. The country has traditionally
done well in pharmaceutical and drug industry. As a derivative of thepharmaceutical industry
the Biotechnology sector took shape over the last decade with many entrapreneurs making
substantial investment in it. India is ranked among the top-12 biotech destinations in the
The Indian Biotechnology Industry can be classified into five different segments, Bio-Pharmaceutical,
Bio-Agriculture, Bio-Services, Bio- Industrial & Bio- informatics with each concentrating on a
particular area.
Agri-biotech: deals with hybrid seeds and transgenic crops, bio pesticides and bio fertilizers.
Bio informatics: deals with creation and maintenance of extensive electronic databases on various
biological systems.
Bioservices: market deals with clinical trial, contract research and manufacturing activities.
Bio Industrial: industry deals with enzyme manufacturing and marketing companies and these
enzymes are used in detergent, textile, food, leather, paper and pharmaceutical industry.
At present there are more than 350 biotech companies in India providing employment for over 20,000
scientists. Most of the companies are located in the six major cities of Delhi, Mumbai, Pune, Chennai,
Bangalore, Hyderabad and Ahmadabad. The leading companies in India are Biocon, Serum Institute
of India(in the biopharma space),Mahyco Monsanto, Rasi seeds(in the agribio tech field),Strand
Genomics, GVK Biosciences (in the bioinformatics arena),Syngene and Quintiles in the (in bio
services).
Each sector plays an important role in the growth and development of the Industry. Biopharmaceutical
sector has been the largest contributor to the industries growth with a value contribution of US $ 1.32
billion accounting for a 69.73% contribution in 2006-07 to value contribution of US $ 1.96 billion
accounting to 60% contribution in 2009-2010.
The Indian Biotechnology industry was growing at an astounding 34% growth rate till 2006 and it
was during this period that it was expected to cross the US $ 5billion mark by 2010, but then the
2007-08 recession hit the biotechnology industry growth rate and it came down to 18% in 2008-09
The biopharma sector contributed nearly three-fifth to the industry's revenues at US$ 1.9 billion, a rise
of 12 per cent, followed by bioservices at US$ 573 million and bioagri at US$ 420.4 million in the
year 2009-10. The remaining revenue came from the bioindustrials US$ 122.5 million and
bioinformatics US$ 50.2 million segments.
The Indian biotech industry can be broken down in to three clusters Western Cluster, Southern Cluster
and Northern cluster. The Western Biocluster emerged as the biggest contributor to India‘s
Biotech sector revenues followed by the Southern Biocluster contributing US $ 1.23 billion.
Western India continued to dominate India‘s biotech industry with 46% share in the overall
revenues of US $ 1.47 billion from 137 companies in the region. The Northern Biocluster
contributed just about one-seventh of the revenues at US $ 451 million.
West is home to top Bioagri companies such as Monsanto, Mahyco and Ajeet Seeds and
MNCs like GlaxoSmithKline, Roche, Aventis Pharma, Wyeth, Quintiles. Four of India‘s top
10 services companies (CROs) are also based out of West, including the No 1 CRO in the
Indian industry – Quintiles India (Rs 375 crore).
India‘s National Capital Region (NCR), home to the Top 3 companies, Panacea (Rs. 703
crore), Jubilant (Rs. 249 crore) and Eli Lily (Rs. 187 crore), contributed 56% of the revenues
from North. This cluster is better known for its research institutes and of course, government
bodies. Of the three large companies in the North, Panacea is the only one that grew at
17.86%, a growth rate higher than the industry growth rate.
South continues to remain India‘s largest Biotech cluster in terms of the number of
companies adding 9 new biotech companies, highest in the country during the year. The
region has 172 biotech companies which posted revenues of Rs 5537.68 crore during the year
making up 39% of the overall revenues. Eastern India does not add any significant revenues
to the country‘s overall BioTech pie.
TamilNadu - Chennai Tamilnadu is the first state to have introduced a separate Bio Tech
policy. Tamil Nadu presents an attractive market for medical biotechnology products as it
accounts for about 11% of the pharmaceutical market in the country. The Government of
Tamil Nadu has also announced the establishment of Biotechnology Enterprise Zones (Bio-
Valleys) along the lines of Silicon Valley to exploit the bioresources of the State. Chennai has
some of the top pharma companies like Orchid Pharma, Shasun Pharma and Bafna
Pharmaceuticals and few Biotech companies like ABL Biotech and Proalgen Biotech. Tamil
Nadu also has reasearch centres like Centre for Biotechnology, Anna University Centre for
Plant Molecular Biology, Tamil Nadu Agricultural University, Coimbatore, and Centre for
Research in Medical Entomology, Madurai, Department of Biotechnology, School of
Bioengineering, SRM University, Rajiv Gandhi Centre for Biotechnology, School of
Biotechnology, Madurai Kamaraj University, School of Chemical and Biotechnology –
Sastra University. Tamil Nadu has opportunities in the area of Stemcell Research and
Nanotechnology.
Gujarat: Gujarat accounts for 28 per cent of national pharmaceutical production (2006-
2007). First state to manufacture APIs and finished dosage forms. It is a home to 902
allopathic manufacturing units and 2,122 contract manufacturing units. Gujarat accounts for
exports worth US$ 1.4 billion (2006-2007). It has number of clinical research organisations
in India and over 100 companies with WHO-compliant manufacturing units, academic and
research institutions providing over 4,600 technically-skilled man power per annum. India‘s
largest biotech park of 700 acres is being developed at Savli, Vadodara. Key players are
Zydus Cadila, Torrent Pharma, Sun Pharma, Intas Pharma, Alembic, Dishman Pharma.
Mumbai is home to the two major pharmaceutical associations including Indian Drug
Manufacturers Association (IDMA) and organisation of Pharmaceutical Producers of India
(OPPI).
The top ten biotech companies by revenue for the year 2009-10 are as follows.
6 Quintiles 83.3
AMERICA: Birthplace of modern biotechnology and also the first application of this
technology, the United States in the development of bio-pharmaceutical industry lead the
world. The United States currently has more than 1000 biotechnology companies,
biotechnology market capitalization more than 400 billion dollars, US spends over 50 billion
JAPAN: Japan's pharmaceutical industry is also developing rapidly. The country is also
focusing on bio-and nanotechnology, Information technology, disease-related genes and the
resulting protein structure, in order to develop "genetic drugs" as the goal to promote the
biotechnology industry in Japan. Currently, Japan already has 65% of the biotechnology
company engaged in biomedical research; Japanese company's technical strength has been
among the highest in the world.
ASIA PACIFIC: Asia-Pacific countries other than Japan are also developing rapidly in the
field of biopharmaceuticals; especially Australia, China and India, these countries continue to
attract investment in their Biopharmaceutical market.
01 Roche/Genentech $36,017
02 Amgen $14,642
07 Genzyme $3,562
09 Allergan $1,310
* CSL's financial year ran from July 1, 2008 to June 30, 2009
ROCHE/GENENTECH:
AMGEN:
NOVO NORDISK:
MERCK
Merck & Co., Inc. (Merck) is a global health care company. Merck delivers health solutions
through its prescription medicines, vaccines, biologic therapies, animal health, and consumer
care products, which it markets directly through its joint ventures. The Company‘s operations
are principally managed on a products basis. Merck‘s operates in four segments: the
Pharmaceutical, Animal Health, Consumer Care and Alliances segments. The Pharmaceutical
segment includes human health pharmaceutical and vaccine products marketed either directly
by the Company or through joint ventures. Human health pharmaceutical products consist of
therapeutic and preventive agents, sold by prescription, for the treatment of human disorders.
BAXTER:
Baxter International Inc., is an American health care company with headquarters in Deerfield,
Illinois. The company primarily focuses on products to treat hemophilia, kidney disease,
immune disorders and other chronic and acute medical conditions. The company has sales of
$12.3 billion, across three manufacturing divisions (BioScience, producing blood plasma
proteins; Medication Delivery producing intravenous therapy products and liquids; and Renal
producing equipment for dialysis and the treatment of kidney disorders). The company is also
involved in the production of a vaccine for the H1N1 influenza. Baxter‘s BioScience
revenues were up 5% to $5.6 billion in 2009.
BIOGEN IDEC:
GENZYME:
CSL:
ALLERGAN:
Allergen Inc. is a global specialty pharmaceutical company. Their product ranges include
ophthalmic pharmaceuticals, dermatology products, and neurological products.
The company‘s most notable neurologic product is Botox, used around the world to treat a
variety of debilitating disorders associated with muscle over activity and also well-known—
under the trade names Botox Cosmetic and Vistabel—for the treatment of facial lines. It‘s
most important manufacturing plants are in Waco, Texas; Westport, Ireland; and San Jose,
Costa Rica.
ALEXION PHARMACEUTICALS:
Vaccines
Vaccines had the largest pie in biopharma with an estimated sale of Rs 2,180 crore over last
year's figure of Rs 2,000 crore. The vaccine segment, human as well as animal
vaccines accounted for approximately 60 percent of the total Biopharma market. Total
estimated sales from the human vaccine business stood at Rs 1,750 crore over the 2008-2009
figure of Rs 1,550 crore. Domestic sales of human vaccines have just crossed Rs 1,000 crore.
In FY 2008-2009 this figure stood at Rs 900 crore. Export sales are estimated to have
generated Rs 750 crore, as compared to Rs 650 crore in FY 2008-09. Animal Vaccines
registered a marginal decline with sales of Rs 430 crore over last year's figure of Rs 450
crore. In animal vaccines, poultry vaccines clocked Rs 220 crore, cattle and sheep vaccines
registered Rs 210 crore. The vaccine market will continue to drive the growth of the
biopharma segment growing in the range of 10-13 percent in the next 5 years. The factors
that will drive this include education and awareness about disease prevention, increase in
disposable income and participation by government.
Major Investments:
Investments, along with outsourcing activities and exports, are key drivers for growth in the
biotech sector. According to data released by the Department of Industrial Policy and
Promotion (DIPP), the drugs and pharmaceuticals sector has attracted foreign direct
investment (FDI) worth US$ 1.82 billion between April 2000 and September 2010.
Swiss Pharma company Lonza AG, plans to invest around US$ 55.33 million through its
Indian subsidiary in a phased manner in Genome Valley project, Hyderabad, said Stefan
Borgas, CEO, Lonza.
Biotechnology major Biocon plans to invest around US$ 64 million - US$ 107 million over
the next three years to set up plants that would supply generic biotechnology drugs to Europe
and the United States, said Murali Krishnan K N, President-Group Finance, Biocon.
The Defense Research and Development Organization (DRDO), which caters primarily to the
armed forces, plans to spend US$ 63.5 million to upgrade and custom-make its existing line
of biotech products for civilian use.
% share % share
Segment Exports Domestic Total
Exports Domestic
Export sales of Indian biopharmaceutical products are currently rising at an annual rate of
47%, while domestic sales of Indian biopharmaceutical products have gone up only 4–5% per
annum for each of the past two years. The above data makes it clear that the Indian
Biopharmaceutical sector is an export driven sector
* BioSpectrum estimates
Biocon:
Biocon is India's leading integrated biotechnology enterprise focused on the development of
biopharmaceuticals. Since its inception Biocon has evolved from an enzyme manufacturing
company to a fully integrated biopharmaceutical enterprise, focused on healthcare. Biocon
has successfully forayed into drug discovery and development. It has developed innovative
and effective bio molecules in diabetology, oncology, cardiology and other therapeutic
segments. Biocon delivers products and solutions to partners and customers in over 50
countries.
First Indian company to manufacture and export enzymes to USA and Europe.
Second Indian company to cross the $ 1 billion mark on the day of listing.
Panacea Biotec:
NovoNordisk:
Novo Nordisk is a global healthcare company with 87 years of innovation and leadership in
diabetes care. The company also has leading positions within hemophilia care, growth
hormone therapy and hormone replacement therapy. Novo Nordisk manufactures and
markets pharmaceutical products and services that make a significant difference to patients,
the medical profession and society. With headquarters in Denmark, Novo Nordisk employs
more than 29,000 employees in 81 countries, and markets its products in 179 countries.
A pioneer in the field of biotechnology, Shantha Biotech is the first Indian company to
develop, manufacture and market a recombinant human healthcare product in India. Shantha
Biotech is currently focusing its R&D efforts in the development of generic biologicals, novel
therapeutic antibodies, proteins and vaccines. Shantha conducts exploratory research in the
fields of Oncology, Infectious Diseases and Platform technologies. Shantha Biotech produced
the first Indian Hepatitis-B vaccine to be pre-qualified by WHO, Geneva, for supplying to
UN agencies globally SHANVAC-B. Today, Shantha caters to major international markets
including Asia-Pacific, Africa, CIS and Latin America in addition to supra nations like
UNICEF and PAHO.
Indian Immunologicals:
The National Dairy Development Board (NDDB) set up Indian Immunologicals Ltd. (IIL) in
1982 with the objective of making Foot and Mouth Disease (FMD) vaccine available to
farmers at an affordable price. The technology for FMD vaccine manufacture was obtained
from M/s. Wellcome Foundation Limited, United Kingdom. The plant in Hyderabad today
has a capacity to make 80 million trivalent doses of FMD vaccine. Following the successful
introduction of Foot &Mouth Disease Vaccine-Raksha, IIL launched the tissue culture
vaccine "Raksharab" in 1989. This was the first Indian tissue culture vaccine in the market.
Subsequently IIL has developed many biologicals through its own R&D efforts and launched
several vaccines in the Indian market at affordable prices. IIL is today the fifth largest animal
health player in the Indian market and the market leader in veterinary biologicals in India. It
operates one of the largest plants in the world for veterinary vaccines and is WHO-GMP and
ISO-9001 certified. IIL exports its products to several countries and exports contributed
substantially to the company's turnover. IIL operates a facility in Ooty to manufacture the
Vero cell culture rabies vaccine for use in human beings.
Bharat Biotech:
Bharat Serums:
Since inception in 1971, BSV develops, manufacture and market specialized biological,
pharmaceutical and biotechnology products.Today, BSV is one of the fast growing Indian
bio-pharmaceutical companies. The product portfolio comprises of a wide range of products
such as plasma derivatives, monoclonals, hormones, equine antitoxins and serums,
antifungals, anaesthetics, cardiovascular and diagnostic products.BSV is managed by an
experianced Board of Directors, who are assisted by a team of dedicated and qualified
professionals drawn from various disciplines. The management team comprises of qualified
doctors, professionals and postgraduates having rich experience and expertise in their
respective fields.
In the Indian pharmaceutical market there are a number of companies that have entered into
merger and acquisition agreements in the context of the global market scenario. In 2009 there
have been a number of small scale out bound deals but the one deal that stands out as the
blockbuster is the Dr. Reddy‘s Labs acquisition of Beta Pharma a $ 560mn deal which was ap
art of Dr. Reddy‘s Labs inorganic growth strategy. Other deals worth mentioning are as
follows
Nicholas Piramal has taken the ownership of 17% of Biosyntech that is a major
pharmaceutical packing organization in Canada.
Torrent has got the ownership of Heumann Pharma, a general drug making company and,
formerly, a subsidiary of Pfizer.
There are a number of opportunities for the major pharmaceutical products and services
providers in the Indian pharmaceutical sector as the price controls have been relaxed and
there have been significant changes in the medicinal requirements of the Indians. The
manufacturing base in India is also strong enough to support the major international
pharmaceutical companies from the performance perspective.
This may be said as the Indian pharmaceutical market is varied as well as economical. It is
expected that in the coming years the Indian pharmaceutical companies would be executing
more mergers and acquisitions. It is expected that the regulated pharmaceutical markets in the
United States and Europe would be the main areas of operation.
In the recent years the Indian pharmaceutical companies have been venturing into mergers
and acquisitions so that they can gain access to the big names of the international
pharmaceutical scenario.
The market is set to grow and double by 2015. Higher spending on healthcare, increasing
middle class incomes, and rising penetration in rural areas will help spur growth in the
domestic market. This is also the reason why increasingly global Pharma player are looking
Promoters are asking for higher and higher valuations, and some of them have even realized
their aspiration. In fact there are only getting better with each deal, with a substantial upward
trend in purchase prices - the Daiichi Sankyo transaction was done at 4 times sales, the $783
million Sanofi- Shantha acquisition at 8 times sales while Abott bought Piramal at 9 times
sales .
One of the major features of the mergers and acquisitions in the pharmaceutical sector of the
Asia-Pacific region has been the integration of the local pharmaceutical companies. This has
happened especially in India and China. Acquisition has made it convenient for a number of
companies to do business in various pharmaceutical markets.
The biopharma companies are expecting to cut down the drug discovery time line by half and
achieve double-digit growth rates by exploiting the ‗Blockbuster‘ drug/therapy strategy.
Unfortunately Biopharma companies have not been able to fulfil those expectations. The
average time line for a new drug candidate to be on the market is still around 16 to 20 yrs.
Drug discovery is a long journey fraught with risks as well as painstaking research and
testing. Thus, companies are willing to invest in any process that could accelerate the drug
development. The industry is a classic winner-takes-all example as the first-mover with a new
drug usually gets over 75% of the market.
Given that situation, there is no doubt that in biopharma corporations‘ new operating
structures enabling collaborative relationships and cost-effective management are needed.
Global Market
The global market for Biopharmaceuticals is projected to reach US$182.5 billion by 2015,
registering a CAGR of 12.4% during the period 2006-2015. Intense research efforts made
Patent Scenario
With the advent of globalization, more Indian biopharma companies started looking at the
western markets in general and the US market in particular as their target for expansion. This
has led to the need for the companies to seek patent protection for their inventions in those
countries besides making a foothold there. The whole perspective of Indian
biopharmaceutical companies changed when the accession of India to WTO brought
obligations to implement the agreement on Trade Related Aspects of Intellectual Property
Rights (TRIPS). For the industry, the critical issue was the (re-) introduction of the product
patent regime and the limitations that this change has imposed on its ability to produce
technologies through reverse engineering.
Considering the biopharma patent scenario in India, the US patent holdings of Indian
companies have been very less. Only 57 Indian biopharma companies have US patents.
Altogether 19 biotech and 425 pharma patents are held by these companies. The pharma and
biotech patents have been obtained since 1990 and 2001 respectively. These patents protect
both the processes and products. The largest number of patents protects pharma inventions.
This reflects the importance of this industry in present scenario.
The number of biotech patents is 19 as compared to 425 pharma patents, which is 20-fold
greater. The interesting fact about the patents granted to Indian biopharma sector is that the
pharma patents are granted to biotech companies whereas the biotech patents have been
granted to companies with pharma background. For example, two-third of the patents granted
to Biocon, are categorized as pharma. Similarly, in case of Reddy U S Therapeutics, there are
three biotech patents. Although the biotech numbers have increased in the past few years, a
consistent year on year increase is not visible yet.
INDUSTRY OVERVIEW
Agriculture continues to be a fundamental instrument for sustainable development and
poverty reduction in India. India resides in its villages and according to the 2001 census 72.2
per cent of the people are in rural areas. The agriculture sector contributes only about 18 per
cent of the total Gross Domestic Product (GDP). Indian agriculture has made rapid strides
from food shortages and imports to self-sufficiency and exports. It has moved from
subsistence farming to intensive and technology led cultivation. Agriculture is at the core of
socio economic development of the country. Growth of other sectors and overall economy
depends on performance of agriculture to a considerable extent. Not only it is a source of
livelihood and food security for a large population of India, but also has a special significance
for low income, poor and vulnerable sections. However, several constraints such as
preponderance of small and marginal holdings accounting for about 82 per cent of total
holdings, imperfect market conditions and lack of backward and forward linkages have
contributed to the stagnation of the sector.
While more specifically the BioAgri sector has come of age in India. In 2004-05, Rasi Seeds
became the second company in India to make commercially available Bt cotton. With the
entry of Rasi, the entire Bt cotton seeds business changed. The release of RCH 2 Bt in 2004
by Rasi has created greater confidence in the farmers about Bt technology. The farmers have
understood that they get maximum benefit using hybrids with Bt technology and there is huge
demand.
Agriculture in India, the pre-eminent sector of the economy, is the source of livelihood of
almost two thirds of the workforce in the country. The contribution of agriculture and allied
activities to India's economic growth in recent years has been no less significant than that of
industry and services. The importance of agriculture to the country is best summed up by this
statement: "If agriculture survives, India survives".
Agri biotech is the third largest contributor to Indian biotech industry in FY 2009-2010 with a
total segment turnover of Rs 1,936 crore, accounting for almost 14.6 percent of the total
biotech revenues. Registering a growth of 37 percent over last year, BioAgri emerged the
industry's fastest growing segment. India is the fourth largest country in the world with
almost 8.4 million hectares of area under Bt cotton.
BioAgri is the third largest contributor to Indian biotech industry in FY 2009-2010 with a
total segment turnover of US$ 427.86 million (Rs 1,936 crore), accounting for almost 14
The BioAgri market, consisting of Bt cotton in the seeds category and bio pesticides and bio
fertilizers, with a total share of 6 percent was Rs 110 crore. The Hybrid seeds were estimated
at about Rs 180 crores. India is the fourth largest country in the world with almost 8.4 million
hectares of area under Bt cotton. The number of companies selling Bt cotton seeds in India
has increased dramatically over the last eight years since the first commercialization in 2002.
Today, there are over 30 companies marketing Bt cotton seeds in the country. Nuziveedu
Seeds is the largest seller with 25 percent of the market share. Rasi Seeds is close second with
19 percent market share of Bt cotton seeds. Other significant players include Ajeet Seeds.
Bio-Agri is sub categorized into three categories they are as follows
1] Tissue Culture
Plant tissue culture is a technique through which cells tissues, organs and even the whole
plant can be grown in the laboratory according to one's will throughout the year without
seasonal constraint. It is a rapid method of multiplication and thus saves time, money and
space. Within very small area large number of plants can be grown. This method is especially
important for propagation of plants in which natural propagation is difficult due to absence of
viable seeds/propagules. Thus, it is a very powerful tool for propagation and conservation of
plants in general and that of rare and endangered species in particular.
The major consumers of tissue culture plants (TCPs) are the State Agriculture Department,
Agri Export Zones (AEZs), sugar industry and private farmers. The paper industry, medicinal
plant industry and State Forest Departments are using TCPs in a limited scale. Nowadays,
PTC is used on various types of fruits, flowers, medicinal plants and even trees.
Volume Value Volume Value Volume Value Volume Value Volume Value
Banana 21613 1945 27537 2478 35808 3223 47470 4272 64060 5765
Pineapple 4618 693 5080 762 5588 838 6147 922 6761 1014
Grapes 926 232 975 244 1026 257 1080 270 1137 284
Sugarcane 14791 592 16271 651 18709 748 22449 898 28055 1122
Potato 6 10 22 43 83
Large 2000 140 2000 140 2000 140 2000 140 2000 140
Cardamom
Cardamom
Medicinal 2100 105 11510 576 11741 587 11995 600 12275 614
and
aromatic
plants
Ornamentals 20290 3044 18120 2718 18944 2842 19973 2996 21172 3176
Trees 3000 750 3380 845 3824 956 4342 1086 4951 1238
Total 71579 7660 87567 8607 100436 9793 118499 11404 143731 13592
India has a production capacity of 300 million plants per annum, of which around 70 percent
is actually produced by conservative measures; the market size is estimated to be more than
Rs 200 crore with an annual growth of 20 percent. Indian laboratories and companies
currently cater mostly to international markets. However, with increasing awareness about
the advantages of tissue culture raised plants, such as improvement in yield and quality; there
is a noticeable increase in the domestic consumption as well. The major domestic consumers
of tissue culture raised plants include the State Agriculture Department, agri-export zones
(AEZs), Spice Board, the sugar industry and private farmers. Apart from this, the paper
industry, medicinal plant industry and state forest departments also constitute this market.
Bio-pesticides- The Biopesticide market is growing very rapidly. This share is grow to about
4.2% by 2010 while the market value is estimated to reach more than US$ 1 billion However,
the overall growth rate of biopesticides is estimated to be about 10% per annum for the next 5
years.
Region wise, North America consumes the largest share (40%) of the global biopesticide
production followed by Europe and Oceanic countries accounting for 20% each.
Indian scenario-
Organic cultivation (crops) in India is estimated at 100K hectare; Current supply stands at
approx. 3160 metric ton while estimated demand is approx.1 metric ton. Bio-fertilizer
increases yield by 8-24% to make agriculture a viable proposition. Indian bio-fertilizer and
bio-pesticides industry estimated at approx. $20M in 2008-2009; growing at a CAGR of
approx. 3% and expected to grow at a CAGR of 10%-15% till 2012. Phosphate-solubilising
micro-organisms market witnessed the most growth among bio fertilizers. Leading players
include Biotech International, Excel, and Multiplex. Many research universities and institutes
pursuing research in bio-fertilizers, for example, University of Hyderabad, National Research
Centre for Plant Biotechnology etc.
Market scenario
Global-
Global value of the biotech seed market alone was valued at US$11.2 billion in 2010 with
commercial biotech maize, soybean grain and cotton valued at ~US$150 billion for 2010.
Indian Scenario-
The Indian Government had promulgated the Rules for dealing with Genetically Modified
Organisms (GMOs) in 1989
Indian Bio-Crop Industry estimated at approx $462 per hectare in 2008-2009; growing at a
CAGR of approx 8%.
India is the 4th largest adopter of Biotech crop in the world, outpacing Canada.
Bt crop accounts for approx 3% of total crop harvesting area.
Approx 97% of untapped market representing huge opportunity.
Bt crops improves yield by 31%.
Target for Bt crop seed replacement rate set from 20% to 35% in the ongoing 11th five year
plan
Allows a much wider selection of traits for improvement: e.g. not only pest, disease and
herbicide resistance (as achieved to date in plants) but also potentially drought resistance,
improved nutritional content and improved sensory properties
These advantages could, in turn, lead to a number of potential benefits, especially in the
longer term, for the consumer, industry, agriculture and the environment:
Improved agricultural performance (yields) with less labour input and less cost input.
Benefits to the soil of ―notill‖ farming practice. Reduced usage of pesticides and herbicides
Ability to grow crops in previously inhospitable environments (e.g. via increased ability of
plants to grow in conditions of drought, soil salinity, extremes of temperature, consequences
of global warming, etc.). Improved processing characteristics leading to reduced waste and
lower food costs to the consumer. Prevention of loss of species to endemic disease (e.g. the
Cavendish dessert banana which is subject to two fungal diseases that have struck Africa,
South America and Asia, but could be reprieved by GM development of a disease resistant
version).
1] Environment:
Unintended environmental impacts include harming no target and/or beneficial species in the
case of crops with engineered insecticidal properties, as well as the development of new
strains of resistant pests. Additionally there is concern that pollen from genetically
engineered herbicide resistant crops could reach wild, weedy relatives of the crop and create
so called
superweeds. This is of particular concern in the U.S. with crops such as canola and squash.
2] Health:
At present, there is no evidence to suggest that GM foods are unsafe. However, there are no
absolute guarantees, either. Unintended health impacts from GMOs concern allergens,
antibiotic resistance, decreased nutrients, and toxins.
Allergens Because protein sequences are changed with the addition of new genetic material,
there is concern that the engineered or modified organism could produce known or unknown
allergens. A recent National Research Council committee report on GMOs recommended the
development of improved methods for identifying potential allergens, "specifically focusing
on new tests relevant to the human immune system and on more reliable animal models."
Antibiotic resistance Plant genetic engineers have frequently attached genes they are trying
to insert to antibiotic resistance genes. This allows them to readily select the plants that
acquire the new genes by treating them with the antibiotic. Sometimes these genes remain in
the transgenic crop that has lead critics to charge that the antibiotic resistance genes could
spread to pathogens in the body and render antibiotics less effective. However, several panels
of antibiotic resistance experts have concluded that the risk is miniscule.
Decreased nutrients Because the DNA of genetically engineered plants is altered, there is
concern that some GMOs could have decreased levels of important nutrients, as DNA is the
code for the production of nutrients. However, it must be noted that nutritional differences
also have been documented with traditionally bred crops.
Introduced toxins Residual toxins resulting from introduced genes of the bacteria Bacillus
thuringiensis in so called Bt crops are unlikely to harm humans. This is because the toxin
produced by the bacteria is highly specific to certain types of insects. Prior to its inclusion in
GE/GM crops, Bt has been used as a biological insecticide, causing no adverse effects in
humans consuming treated crops.
Naturally occurring toxins There is concern that genetic engineering could inadvertently
increase naturally occurring plant toxins. However, traditional plant breeding also can result
in higher levels of plant toxins.
Bio-fuels in India are still in their infancy - about 66 million gallons of ethanol is utilized
in10 Indian states. Domestic and foreign collaborations are expected to boost India‘s bio-
diesel production to 1 million tons per year in the next 2-3 years. India has developed high-
yielding varieties of jatropha seeds. Government has been testing bio-diesel in public
transport locomotives and buses. Commercial bio-diesel production units have been set up by
Southern Online Biotechnologies and Natural Bioenergy Ltd. Bio-diesel companies have
collaborations with companies in the US and Europe. National biofuel policy of India is to
realize 20% blending of petrol and diesel with green-fuels by 2017. Ethanol and Biodiesel
blending requirements estimated to be approx 3.3 metric ton and approx. 17 metric ton by
2016 respectively.
KEY FACTS
Agriculture biotech grew at 37% in FY 2009-10.
It accounts for 14.6 per cent of the country's gross domestic product (GDP) in 2009-10, and
10.23 per cent (provisional) of the total exports. The sector provided employment to 55 per
cent of the work force (about 50% for males and about 68% for females) is still in agriculture.
The total geographical area of India is 328.7 million hectares of which 140.3 million hectares
is net sown area, while 193.7 million hectares is the gross cropped area, according to the
Annual Report 2009-10 of the Ministry of Agriculture. India's agriculture and allied sector
grew by 3.8 per cent in the first six months of the current fiscal (2010-11), against one per
cent in the year-ago period on the back of better Kharif crop output. According to the GDP
data released by the Central Statistical Organisation (CSO) on November 30, 2010, the
country's farm sector grew by 2.5 per cent and 4.4 per cent each in the first two quarters of
the current fiscal, against 1.9 per cent and 0.9 per cent, respectively, in the same period last
year.
The segment will grow at an average of 26% in the next 5 years. Capital investment in
agriculture has increased from US$ 1.2 billion in 2007-08 to US$ 3.26 billion in 2010-11
(inclusive of State Plan Scheme Rashtriya Krishi Vikas Yojana), as per a Ministry of
Agriculture press release dated August 3, 2010. The total geographical area of India is 328.7
million hectares of which 140.3 million hectares is net sown area, while 193.7 million
hectares is the gross cropped area, according to the Annual Report 2009-10 of the Ministry of
Agriculture.
The various ministries within the Government of India and other agencies responsible for the
development of the agricultural sector include.
Ministry of Commerce and Industry (commodity boards for rubber, coffee, tea and
spices)
FDI Policy
100 per cent FDI is allowed under the automatic route in floriculture, horticulture,
development of seeds, cultivation of vegetables and mushrooms under uncontrolled conditions
and services related to the agriculture and allied sectors.
100 per cent FDI is allowed in the tea sector, including tea plantations, under the government
route, subject to the following conditions:
Prior approval of the state government, in the event of any future land use change.
1] FLORIGENE
Florigene has a subsidiary division in the Netherlands and other production operations around
the world.
History
Florigene has long been associated with genetic engineering floriculture. Founded as Calgene
Pacific Ltd in 1986 with institutional backing from Amcor, CP Ventures Ltd and the Japan-
Australia Venture Capital Fund, it was one of Australia's first biotechnology companies.
In 1991, Florigene's research team announced that it had isolated the gene responsible for the
expression of the color blue in petunias, beating out rivals around the globe by a matter of
weeks. This breakthrough paved the way for the acquisition of Dutch rival, Florigene, in
1993. Calgene assumed Florigene's corporate name in 1994 to capitalise on that firm's
international reputation. Since then, Florigene has developed naturally long-life and disease
resistant carnations, new morphologies of gerberas and natural color modifications of the
three main cut flowers - roses, carnations and chrysanthemums, which it exports throughout
the Americas, Europe, the UK and Asia.
Ownership
In 2003, Japanese brewing giant and long term partner Suntory acquired 98.5% equity in
Florigene from Nufarm.
The significance of Florigene's technology is the brand potential of its novel flower varieties -
a blue rose is a marketer's dream. In 2004, after 20 years and $45 million worth of exhaustive
research and prolific patenting, Florigene and Suntory scientists announced to the world the
development of the first rose in the pipeline to a true blue rose. It is expected to be
commercialized in the coming years.
Products
Florigene - Moon Carnations are an exquisite range of unique carnation varieties. The color
of these flowers is absolutely novel for carnation, and offers the floral industry new uses for
carnation. Always excellent in vase life, carnation can now be a sensational centre piece or
bouquet.
Australia, Canada, United Arab Emirates, Germany, Holland, Japan, Sweden, United
Kingdom, USA, Russia
Revenues:
History:
Bayer Crop Sciences has products in crop protection and non-agricultural pest control. It also
has activities in seeds and plant traits. In 2002 Bayer AG acquired Aventis Crop Science and
fused it with their own agrochemicals division (Bayer Pflanzenschutz or "Crop Protection")
to form Bayer Crop Science. The company is now one of the world's leading
innovative crop science companies in the areas of crop protection (i.e. pesticides), non-
agricultural pest control, seeds and plant-biotechnology. In addition to conventional
agrochemical business it is involved in genetic engineering of food. The Belgian biotech
company Plant Genetic Systems, became part of the company by the acquisition of Aventis
Crop Science. Also in 2002, Bayer AG acquired the Dutch seed company Nunhems. Bayer
Crop Science is involved in a joint project with Archer Daniels Midland
Company and Daimler AG to develop jatropha as a biofuel.
Products:
In Bayer‘s Bio Science Business Unit growth would be seen in their core crops - canola,
cotton, rice and vegetables. Bayer is also expanding the business to soy and wheat and is
exploring solutions for corn and sugarcane as well. Crop seeds with enhanced yield and
quality properties for the benefit of agriculture, food and fibre manufacturers, consumers and
the environment are developed by Bayer Crop Sciences. Bayer employs modern breeding
Countries of Operations:
Germany - headquarters of the holding company as well as the subsidiary companies Bayer
Crop Science,
Revenues:
(**Values in $ Billions)
3] DOW AGROSCIENCES
Agricultural sciences- Dow AgroSciences provides 7% of sales of the entire DOW group,
and is responsible for a range of insecticides (such as Lorsban), herbicides and fungicides.
Genetically modified plant seeds are also an important, growing area. Dow AgroSciences
sells seeds commercially under the following brands: Mycogen (grain corn, silage corn,
sunflowers, alfalfa, and sorghum), Atlas (soybean), PhytoGen (cotton) and Hyland Seeds in
Canada (corn, soybean, alfalfa, navy beans and wheat).
Countries of Operation:
Monsanto scientists became the first to genetically modify a plant cell in 1982. Five
years later, Monsanto conducted the first field tests of genetically engineered crops.
Products:
Monsanto offers farmers a wide range of corn, soybean, cotton, wheat, canola, sorghum and
sugar cane seeds. We use our elite seed genetics and cutting-edge traits and technologies to
create products that meet farmers‘ wants and needs. These products are offered through
various brands – each of which provides farmers around the world with the solutions that best
fit their farms.
Countries of Operation:
North/ Central America, South America, Europe, Middle East, Asia Pacific, Africa
5] SYNGENTA
Products:
Syngenta has eight primary product lines. The company develops markets and sells products
worldwide.
Countries of Operations: Switzerland, USA, UK, France, China, Brazil, India, Singapore
Revenues of Indian Bioagriculture companies (in Cr Rupees) for the period 2009-2010.
1] AJEET SEEDS
History:
Ajeet Seeds Ltd established in 1986, when the Green Revolution was progressing, Ajeet
seeds participated and shared its role in this. This company is formed by a son of farmer and
industrialist Shri Padmakarrao Mulay, keeping in mind to avail best quality seeds at
reasonable rates to farming community. With the humble beginning the company started
production and marketing of public bred hybrids & varieties. Simultaneously ‗Research wing
Products:
Cereals and crops: jowar, bajra, maize, paddy, wheat, gram, pegion pea, green gram, black
gram,
Vegetable crops: hybrids of okra (bhendi), tomato, chilli, brinjal, bottle gourd and ridge
gourd. Seeds of bitter gourd, cowpea and clusterbean.
Competencies:
Plant Tissue Culture: Mass propagation, Development of novel hybrids and isogenies lines.
Infrastructure:
State of Art plant tissue culture facility, green houses. Molecular biology facilities for gene
isolation. Diagnostic facilities for all Immunology based and PCR based assays.
Oil Seed Crops: Soybean is of importance both as an oil seed and as a pulse. The crop is,
however, confounded by two major problems, the presence of the antineutrient trypsin
inhibitor in the seed and pod shattering. The plant Biotechnology Centre endeavours to
address both these problems.
Molecular Biology Engineering Resistance to Biotic Stress: Almost all the vegetable crops
grown in tropical climate are invaded by fungal and viral pathogens at one or the other stage
of their life cycle. The Plant Biotechnology Centre is actively involved in the development of
transgenic expressing anti fungal peptides for resistance to fungal pathogens.
DNA Finger Printing: We use DNA finger printing on a regular basis to validate
transformation events. In recent times we are also concentrating on the development of use of
DNA finger printing for MAS breeding programme. The commercial services are available
for SSR microsatellite based DNA fingerprinting.
Development of Diagnostic Tools: Embarked upon the development of DNA and protein
based diagnostic tools and kits for pest and virus disease indexing.
ELISA Kits for Rapid Test: Immunology based ELISA test kits are available for Bt
diagnosis of –
Cry 1 EC gene
PCR Kits for Rapid Test: PCR kits are available for –
35S promoter.
SSU promoter.
OCS terminator.
SSU terminator.
2] JK AGRIGENETICS:
The company has two business segments namely 'Seeds, Allied Products & Services' and
'Investments'. JK Agri Genetics has reported a sales turnover of Rs 5.30 crore and a net loss
of Rs 7.82 crore for the quarter ended Dec '10. For the quarter ended Dec 2009 the sales
turnover was Rs 7.72 crore and net loss was Rs 4.22 crore.
Seeds
Field crops: cotton, bajra, jowar, paddy, castor, mustard, redgram, soyabean, maize,
sunflower, wheat.
Vegetables: tomato, bhendi, chilli, bottle gourd, Watermelon, radish, cabbage, sweet corn,
cucumber, coriander.
During the year under review, the Company achieved a turnover of Rs.123.77 Crores with
Operating Profit of Rs. 15.71 Crores and the Profit before Tax of Rs. 10.99 Crores. The sales
turnover increased by 20% over the same period of the previous year. The sale of Cotton,
Maize, and Vegetables & Rice increased while the area under cultivation of Jowar shrunk.
The profitability improved due to increased sales, as well as overall better operational
efficiencies. The Company has launched several new hybrid vegetables which have been
well received by the market. During the year the company also launched number of new Bt.
Cotton hybrids which have started finding good acceptance in the market. Even though some
of these products have been introduced this year these are likely to be major growth drivers of
sales and profitability over the next few years.
The Company has intensified its research efforts in developing differentiated superior
products for the major segments in mandate crops. Accordingly, promising products are fast
tracked so as to select the best products whilst ascertaining the performance and stability at
several locations under varying agro climatic conditions. Simultaneously, production is taken
up so as to scale up the volumes rapidly. Various biotech tools are being applied for
introgressing the biotech traits within shortest span of time to bring down the product
development cycle time. The company has widened its collaborative network with national
and international Institutions as well as global agri-biotech companies to source out the latest
technologies/ traits. The company has already started reaping the benefits of this strategy.
Several Bt. cotton hybrids with stacked gene technology were launched during the year. In
addition, several superior virus tolerant hybrids in Tomato and Bhendi were launched.
Similar focused efforts are going on in the other crops which will start showing the results in
the next year or two, to take your company to play significant role in the market.
A Pioneer Indigenous Seed Company established 30 years ago, it is one of the most
experienced seed companies in India. It has strong all India marketing network & brands. It
has strong research & testing facilities all over the country. Also, it has competitive range of
pipeline products in major field and vegetable crops.
Nath-Biogenes (I) Ltd, independently and jointly with the Global Transgenes Ltd(Sister
Concern), have been investing in one of the most intensive product development R & D
programs in the country, using Conventional Breeding Systems as well as GM Technologies.
COTTON:
BAJRA: - NBH-1999
SORGHUM
NCH-886
NMZ-1001
NCH-861
NMZ-1002
4] RASI SEEDS:
History: Rasi Seeds was envisioned by Mr.M.Ramasami, and was initiated in the year 1973
in Attur located in Salem District, India. Rasi Seeds has made rapid advances from seed
production and supply ventures to a commendable position in Research and Development
(R&D) Having excelled in the Research and Development in cotton seeds, it went on to
expand into a multi-crop, multi-location quality research movement and has proved beneficial
to the farming community.
Present: The Company, already well known for its leadership in Bt Cotton is now operating
its vegetable seed business under ‗HyVeg‖ brand. Rasi Group also explores the new trends in
the industry like the corporate and contract farming, which will provide a win-win solution to
Corporate/Farmer, Spinner, Ginner and Seed Company.
R & D:
Rasi Seeds is the 2nd company to obtain regulatory approval for its popular RCH 2 Bt. Well-
maintained Research Farm of 140 acres and about 55000 Sq.Ft. contained Green House. State
of art fibre testing lab (HVI). Well equipped seed testing laboratory. Separate dehumidified
cold storage facility for Germplasm and Breeding lines. A modern high throughput biotech
Services Offered-
Contract farming is the best effort they take to fulfill our dream of creating a unique
organization with BREEDING TO BRANDING in house and consultations to large
corporates involved in farming are an end-to-end solution which is also unique.
R&D assistance to required corporate.
Technical services for contract farming.
Identifying, producing and supplying of high quality seeds to marketing companies
Marketing agro based products and inputs
Conducting multilocational trials/testing of hybrids on contract.
The cotton hybrids RCH2, RCH 20, RCH 134 and RCH 138 were among the top
ranking hybrids evaluated in the All India Co-ordinated Cotton Improvement Project
Development of 1405 hybrids of diverse characteristics
Testing centers in various zones for multi-location trials to evaluate hybrids for
suitability
R&D is capable of Breeding intra Hirsutum (H X H), intra Barbadense (B x B) and
inter specific (H X B) hybrids and hybrids with high ginning percentage
5] DUPONT INDIA
It is a subsidiary of US-based $26.1 billion E. I. du Pont de Nemours and Company, a 208 -
years old Science and Technology company. DuPont is a global supplier of products and
services in a variety of industries from transportation and construction to agriculture and
energy
R&D: The center will support research and development activities in crop and industrial
biotechnology for global markets. Research teams will work together with local farmers and
6] KF BIOPLANTS
KF Bioplants is India‘s premier producer and exporter in the high-technology field of plant
tissue culture. The Company was established as a joint venture between Kumar Gen Tech &
Tissue Culture Company (KGTC) and Florist de Kwakel b.v., Holland.
Infrastructure
The process begins at the in-vitro stage, and for this purpose, KF Bioplants has a massive
90,000 sq. ft. state-of-art laboratory in Pune. There are separate initiation rooms to safeguard
the quarantine status of the main facility. Rigorous procedures ensure that our contamination
rate is well below the world average. Our 22 growth rooms can store over 10 million plants at
any given time. Highly qualified personnel handle every stage of the process. KF Bioplants
employs over 425 lab technicians to ensure constant production and quality management. For
post in-vitro production, our facilities in Pune have over 4 hectares of completely controlled
greenhouses provided with cooling, heating, benches and energy screens. Finally, KF
Bioplants has world-class grading & packing facilities handling plants for safe, assured
export to the far corners of the world. Plants are sent to customers in agar, ex-agar or fully
hardened, depending on their requirements.
Products
Gerbera
Carnation
Lilium
Zantedeschia
Phalaenopsis
Gypsophila
Pot Plants
Strawberry
7] KRISHIDHAN
Krishidhan Seeds Limited is a pioneer & dynamic agricultural biotech company delivering
high quality seeds for the Indian seeds market. Krishidhan is a research-based organization.
Its R&D activities and research stations are recognized by the Department of Scientific and
Industrial Research (DSIR), Govt. of India. The company is actively involved in research,
RECENT HAPPENINGS
In March 2010, Bharti Walmart Private Limited, the joint venture between Bharti Enterprises
and Walmart Stores Inc, launched the sustainable agricultural programme in Punjab. The
programme provides sanitation and energy-efficient solutions through community toilets and
bio-gas plants that impact the yield and quality of the farm produce. Key domestic deal in
2010: The largest deal in the sector was the acquisition of Agro Dutch Industries Ltd by Penta
Homes Pvt. Ltd., Vishwa Calibre Builders Pvt Ltd, and a private investor for US$ 85.4 million
(INR 3.9 billion).
In March 2010, the Mauritius-based private equity fund, India Agri Business Fund, agreed to
invest US$ 10 million (INR 460 million) in The Global Green Company Limited, the foods
division of the Avantha Group.
In July 2007, Cadbury India Ltd and the Tamil Nadu Horticulture Department entered an
agreement to promote cocoa farming. The five-year agreement aims to bring 50,000 acres
under cocoa farming, which would provide coconut farmers an additional income of US$ 17.4
million (INR 80 million) a year.
In August 2006, Reliance Retail entered an agreement with the Punjab government for
agricultural and retail projects entailing an initial investment of US$ 108.7 million (INR 5.0
billion). The company plans to set up rural hubs for procurement of vegetables, fruits, pulses
and other farm produces.
In 2003, Mahindra Shubhlabh Services Ltd, a subsidiary of Mahindra & Mahindra Ltd, and
Punjab Agro Food grains Corporation, entered an agreement to divert about 100,000 acres of
land from paddy (rice) to maize under contract farming.
Vibha Seeds Group, specializing inprivate crop genetics and plant breeding researches, has
invested ~$43M to setup a multi-crop seed processing facility inA.P.
Bayer CropScience AG, a subsidiary of Germanybased global crop sciences major Bayer AG
and GVK Biosciences Private Limited (GVK Bio) of Hyderabad have entered into a research
cooperation agreementin the area of early discovery chemistry.
5 Karnataka Marigold & Caprica Chili AVT Natural Products Ltd 4,000
Investment
Total investment in the agriculture and allied sectors in 2008–09 amounted to US$ 28.87
billion (INR 1,386 billion), of which the private sector accounted for 82 per cent (US$ 23.78
billion).
Sugar 41.7
Total 4,023.8
Biodiesel
The National Biofuel policy was approved by the Union Cabinet on 11 September, 2008.
Biofuels is in its infancy, with only about 66 million gallons of ethanol utilised in Ten Indian
States. Domestic and foreign collaborations are expected to boost India‘s biodiesel production
to one million tonnes per year in the next two to three years. India has developed high-yielding
varieties of Jatropha seeds. The government has been testing bio-diesel in public transport
locomotives and buses. Commercial bio-diesel production units have been set up by Southern
Online Biotechnologies and Naturol Bioenergy Ltd.
April, 2003 Demonstration phase 2003 to 2007: Ministry Public & private sector, state
of Rural Development appointed as nodal government, research institutions
ministry to cover 400,000 hectares under (Indian and foreign) involved in
jatropha cultivation. This phase also proposed the program achieved varying
nursery development, establishment of seed degrees of success.
procurement and establishment centres,
installation of trans-esterification plants,
blending and marketing of bio-diesel.
2008 Self Sustaining Execution phase 2008 to 2012: Lack of large scale plantations,
Targeted to produce sufficient biodiesel for 20 seed collection and extraction
percent blending by end of XIth (2008-12) five infrastructure, buy-back arrange-
year plan ments, capacity and confidence
building measures among
farmers impeded the progress of
this phase.
Meat 4.65
Eggs 4.62
Fish 4.58
Oilseeds 2.94
Vegetables 2.51
Source: Report of the Steering Committee on Agriculture and Allied Sectors for Formulation
of the 11th Five Year Plan, Planning Commission
New technology
Though modern harvesters and planters will do a better job than their predecessors, the
combine of today still cuts, threshes, and separates grain in essentially the same way it has
always been done. However, technology is changing the way that humans operate the
machines, as computer monitoring systems, GPS locators, and self-steer programs allow the
most advanced tractors and implements to be more precise and less wasteful in the use of
fuel, seed, or fertilizer. In the foreseeable future, some agricultural machines will be capable
of driving themselves, using GPS maps and electronic sensors to become agricultural robots.
Even more esoteric are the new areas of nanotechnology and genetic engineering, where
submicroscopic devices and biological processes may be used as machines to perform
agricultural tasks.
Business wise Growth- The marketing sector suffers from long and fragmented supply
chains resulting in high waste and low efficiency. Within this sector, horticulture and
floriculture is especially sensitive to handling and transport infrastructure and evidence shows
that these costs are particularly high in India. A recent study found that the farm gate price of
horticultural products is less than 15% of the price at the importing destination. This means
improvement in production conditions and decreases in production cost will have minor
impacts on prices and shares in world markets. The major impact will come from addressing
the cost build-up from the farm gate to the world markets. Its f.o.b. prices are in most cases,
Road Ahead
The country's demand for horticulture products is expected to grow by over 20 per cent to
touch 360 MT in 2020-21, according to a study conducted by the Horticulture Society of
India. The report said that rising income will create more demand for horticultural products,
which will further push the production of such crops in India.
The Indian organic product market, currently pegged at US$ 322.41 million, is expected to
reach US$ 2.15 billion in the next five years, as per Mukesh Gupta, President International
Competence Centre for Organic Agriculture.
Demand side growth alone with government The Indian population is projected to reach
initiatives expected to help India to become approximately 1.6 billion in 2050, thereby creating
a leading agro country. a huge domestic demand for agricultural products.
Agricultural inputs expected to grow due to With the production levels expected to grow, agricultural
increased production levels. input such as fertilizers, farm equipment and machinery,
irrigation facilities , institutional credit, and research and
development, are expected to be driven towards the
higher target
Private sector involvement expected to Private equity players have invested US$ 300 million in
boost Indian agriculture further food processing & agri based companies during Jan-June
2010.
Indian agriculture is in a state of crisis, both from the economic and ecological points of
view. India has to shift from viewing food security at the aggregate level to ensuring
nutrition-security at the level of each individual. This will call for concurrent attention being
paid to availability, access and absorption. In India there is still a gross mismatch between
production and post-harvest technologies. This results in the spoilage of food grains and
missed opportunities for value addition and agro-processing. The use of agricultural biomass
is generally wasteful and does not lead to the creation of jobs or income. Unless attention is
paid to soil health care and enhancement, water conservation and efficient use, adoption of
climate resilient technologies, timely supply of needed inputs at affordable prices, credit and
insurance and producer-oriented marketing, a higher growth rate in agriculture cannot be
realized.
Bio industrial sector or Industrial biotechnology, also known as white or even environmental
biotechnology, is the modern use and application of biotechnology for the sustainable
production of industrially useful products like bio chemicals, biomaterials and Biofuels from
renewable resources, using living cells and/or their enzymes. This results generally in cleaner
processes with minimum waste generation and energy use. Enzymes which constitute a major
segment of this sector, are used in industrial processing of starch, distilleries, alcohol, textile
& garments, leather processing as well as for supplementing healthcare products. Current
practice in industrial biotechnology demonstrates that the social (People), Environmental
(Planet) and economic (Profit) benefits of bio-based processes go hand in hand. Substantial
reductions of 17-65% greenhouse gas emissions could potentially account for up to 20% of
the global Kyoto target.
The
Industrial
Biotechnolo
gy Value
Chain
The above figure shows the industrial biotechnology value chain. Raw materials, including
crops and organic by products from agricultural sources and households, are converted into
Textile bleaching is usually done using hydrogen peroxide followed by at least two rinses in
hot water (80-95°C). With the use of an enzyme that degrades residual peroxide during the
second post-bleach rinse, water heated to 30-40°C can be used and less energy is needed.
Another application of enzymes in the textile industry is in the treatment of cotton fibres.
Traditionally, before cotton can be dyed, it goes through numerous processes including a
series of chemical treatments and rinsing in water. With a biotechnology process, it is
possible to reduce the use of chemicals and therefore the amount of water needed to rinse the
fibres by as much as 30-50%. Compared to the traditional chemical process, the enzymatic
process reduces the pH (acidity) from 14 to 9 (7 = pH neutral) and temperature from 95°C to
55°C, meaning that there are important energy savings. Also, the rinse water required is
reduced by half, which in combination with the energy savings makes the process cheaper.
Finally, fibre strength and softness are improved and, because the process is milder on the
cotton, a higher yield is achieved.
Converting wood into paper is an energy, water and chemical intensive process. The
conventional chemical process requires boiling wood chips at around 160°C before bleaching
the pulp with chlorine dioxide. With the application of biotechnology processes, it is now
possible to reduce the amount of chlorine chemicals by 10-15% and to cut the energy used
during the bleaching process by 40% which means lower emissions during power generation.
Chemicals industry
Biotechnology can be used to produce various bulk and fine chemicals that are currently
produced from fossil fuel based feedstock. Bio-based substances can also act as building
blocks for many other materials provided that they are cost competitive. Since 1990, most
chemical processes have been replaced by fermentation. Producers now use yeasts or fungi in
a single integrated biological process. The move to bio processing for production of vitamin
B2 resulted in a 40% cost reduction and in a drastic reduction of wastes and pollutants.
The energy used in the chemical and the biotechnological processes is about equal: chemical
synthesis uses more steam (energy) which comes from fossil fuels, but fermentation involves
more electricity. However, compared to chemical synthesis, fermentation has reduced the use
of non-renewable resources by 80%, volatile organic compounds by 50% and emissions to
water by 66% while the residuals (34%) are inorganic salt and biomass.
Car engines are not the only way to reduce fuel consumption & the impact of vehicles on the
environment. Tyres can play a crucial role: out of every five full tanks of fuel, one is
Tyres made using this technology weigh less than traditional tyres & have a 20% reduction to
rolling resistance. Combined, these two advantages have shown a decrease in fuel
consumption of up-to 5 % in tests. Moreover, this new technology decreases CO 2 emissions
by 7,7g/km (0,2g/km in the production process of the filter & 7,5g/km as a result of lower
rolling resistance).
Bio-fuels
Several studies have been published on the eco-efficiency of biofuels, reporting CO2 savings
with the present biofuel technologies between 20 and 80% (depending on the feedstock and
conversion process) compared with using conventional petrol. And it is estimated that this
can increase to 90% and higher for second generation biofuels such as cellulosic ethanol.
Further innovation in the biofuel supply chain, such as high energy feedstock, less fuel
intensive cultivation of crops and low carbon conversion processes could help to achieve
further CO2 savings as well as a more sustainable use of biomass.
Food industry
Enzymes have been used in food manufacturing for hundreds of years, mainly based on
fermentation by micro-organisms. The last 10 years in particular has seen an increase in new
Enzymes that remove hair during the tanning process reduce the sulphide requirements for
the process. Comparison of conventional and enzyme-assisted bovine soaking and de-
hairing/liming processes indicates that the application of enzymes in the tanning industry is
justified by considerable energy savings and considerable reductions in the processes‘
Dye industry
Enzymes can help to reduce the potential environmental impact of dyes; bioprocesses to
produce bio-based colorants have been developed and recently patented as an alternative to
traditional chemical synthesis. While the creation of chemical-based dyes requires
temperature up to 70-90°C in harsh conditions, the enzymatic synthesis of these colorants can
be obtained at ambient temperature, under mild conditions. A life cycle analysis24 has shown
that on an industrial scale, enzymatic processes could help to reduce CO2 emissions and
toxicity towards the environment.
The segment grew 16 percent in FY 2009-10. Though the overall enzyme consumption figures of
India are comparatively low with respect to other countries and 60-70 percent of domestic demand is
imported, the segment on an average has been growing over 15 percent in the last five years.
In India, the industrial enzyme consumption is predominantly in the detergents market (40 percent),
followed by the starch market (25 percent). The other important segments are food and feed, textiles,
Bio Industrial sector will grow over 15% for next 5 years. The leading players in this segment include
Novozymes which has over 50 percent market share followed by Advanced Enzyme Technologies
holding 25-30 percent market share. Other important players are Maps, Genecor, Lumis and Kerry
Biosciences. Besides, a new entrant Anthem Cellutions, a part of Anthem Biosciences group has
gained significant market share over a short period of time.
Apart from focusing on the local market, companies like Advanced Enzyme Technologies are looking
at other markets such as China. Considering the potential opportunity in the other markets Advanced
Enzyme has registered good growth in its export sales. The Indian companies are reporting a good
growth; a lot of R&D is happening in these companies and new applications are being explored.
Indian companies are looking at technologies from Europe, China and Australia. However, with
respect to global enzyme industry India still needs to do a lot of catching up.
BIO FUELS:
The Indian Bio fuel market has been consistently witnessing growth and developments for
past few years. The Government of India is injecting huge amount of money and resources
into the development of this sector in an attempt to reduce dependency on imported oil. High
volatile oil prices and production levels have further enlightened the need for continuous
developments of this sector.
Industrial biotechnology can address emerging challenges resulting from global population
growth. Bio-based technologies can expand economic opportunities in rural areas while
reducing the burden on the environment. Bio-based technologies are an evolution, not a
revolution Modern uses of biotechnology, including industrial biotechnology, are just starting
and there are vast opportunities to use these tools in new and valuable ways. The world‘s
population will surpass 7 billion later this year and 9 billion by 2050, meaning 150,000 new
people in the world every day and an increasing need for energy. Industrial biotechnology
can provide additional sources of energy and help reduce dependence on fossil fuels.
We recognize that the future of industrial biotechnology will be based on collaborative
partnerships and no one company or country can go it alone given the complexities involved.
That is why companies like DuPont are actively engaged in global partnerships on bio fuels
technologies that produce energy from farm wastes and fuels with unique performance
properties and are delivering products from renewable feed stocks that are enabling
everything from clothing, carpets, car parts and cosmetics to airplane de-icing fluids. To
succeed in world markets, new bio-materials cannot be simple substitutions. They must result
in innovations that are more environmentally sustainable with cost parity and performance
superior to petrochemical-based equivalents. Various DuPont science-powered innovations
will yield products with fuller renewable and recyclable content, and the use of non-food feed
stocks for larger volume technologies. Biotechnology has a great impact on rural
development where renewable feed stocks are abundant. Industry is now increasing its
emphasis on bio fuels and other chemicals i.e. apart from enzymes the industry is trying to
increase its base area from one product dominated to multiproduct line so that the risk
associated with a single product line is reduced and growth prospects are also increased. In
future the share of Bio fuels and chemicals would also become very significant in this sector.
ENZYMES
Novozymes, India:
Novozymes is the largest supplier of industrial enzymes and microorganisms in India,
catering to requirements in the detergent, food, feed, textile, leather, oils & fats, beverage
alcohol, and biofuel industries. The Company‘s enzymes and microorganisms save energy
and raw materials while reducing waste. The result is higher productivity, lower costs, and a
Biocon:
Biocon was founded on November 29, 1978 as a joint venture between Biocon Biochemicals
Ltd. of Ireland and an Indian entrepreneur, Kiran Mazumdar Shaw. In 1979, Biocon became
the first Indian company to manufacture and export enzymes to USA and Europe. Biocon is
India's largest producer and exporter of enzymes. It manufactures and markets a broad range
of industrial enzymes, food additives and process aids. Biocon is the first enzyme company
globally to receive the ISO 9001 accreditation. Enzymes manufactured by Biocon are:
Amylases, Amyloglucosidases, Cellulases, Catalase, Lipases, Glucanases, Hemicellulases,
Phytases, Proteases, and Pectinases.
Recognized one of the industry's premier enzyme & specialty chemicals specialist, The
Company is in the manufacture of Textile, Spinfinish, Coning Oils, Sewing Thread
Lubricants and Knitting Oil, Construction Chemicals, Laundry Chemicals, Animal Health
Care and Nutrition, Pharmaceuticals Products. Manufacturing facility is spread over l0
acres of lush greenery at Village Naroli, Silvassa near Vapi.
With a history spanning more than half a century, Advanced Enzymes Technologies Ltd
(Advanced Enzymes) has emerged as a worldwide leader in the production of plant,
microbial and animal-based enzymes. In 1957, founder, Mr. L.C. Rathi, pioneered the
extraction of papain, an enzyme complex derived from papaya fruit and widely used for
pharmaceutical and medical purposes. Advanced is the largest manufacturer of Enzymes in
the Indian Sub-Continent.Advanced Enzymes is one of the few manufacturers in the world
that produces a full-spectrum of enzymes derived from all four natural origins: plant, fungal,
bacterial and animal. They also manufacture probiotics, especially Bacillus coagulans and
Saccharomyces boulardii. Their state-of-the-art ISO 9001:2008 certified manufacturing
facilities utilize the most advanced, surface and submerged fermentation technologies
available. Extensive research advances have led to the development of more than 400 unique
enzyme products, making Advanced Enzymes a major value provider to Healthcare and
Processing industries worldwide. With the strength of 42+ enzymes today, Advanced
Enzymes through its technical enzyme experts is able to create value, and provide solutions,
to its clients in 37+ countries globally. Advanced Enzymes operates in four key verticals:
Human Healthcare, Animal Healthcare, Food Processing and Industrial Processing. For each
of these verticals they have created subsidiaries which focus exclusively on delivering
solutions to the industries that operate within that vertical. Advanced Vital Enzymes Ltd
(Advenza) is the human healthcare vertical, while Advanced Bio-Agro Tech Ltd (Bio-Agro)
Zytex:
Zytex was established in 1996 starting with textile enzymes; that is how the name Zytex was
coined. Zytex has a world-class R & D research lab & application support lab, which is
approved by DSIR (Department of Science and Industrial Research), Govt. of India. Since the
last decade Zytex has been the leader in India in the textile enzyme business. In 2007, they
made a strategic technical collaboration with Giovanni Bozzetto, Italy, the leading European
textile auxiliaries‘ manufacturer since 1919. Zytex research is based on fermentation
technology and with prime focus on nutraceuticals and cosmoceuticals. Zytex has established
a new manufacturing facility at Savli Biotech Park, Baroda where it will produce products,
which will be sold to Nutraceuticals. Today Zytex products are sold for Nutraceutical,
Cosmetics, Textile, Ethanol, Animal Feed and Baking industry.
BIOFUELS
BIODIESEL TECHNOLOGIES:
Biodiesel Technologies is headquartered in Kolkata. It was conceived in 2002 in response to
the serious environmental and health hazards arising out of the various polluting emissions
casing our environment. The feedstock used is organic in character which produces Biodiesel
as per the ASTM, EN and BIS Standards. Since the operation of the first Biodiesel processing
Plant in Hyderabad, Biodiesel Technologies has built a strong reputation as a leading pioneer
in the manufacturing, fabricating and assembling Biodiesel Processing Plants.
PRAJ INDUSTRIES:
Praj is a global Indian company that offers innovative solutions and adds value in bio-
ethanol, alcohol, brewery plants, process equipment and water and wastewater treatment
systems for customers, worldwide. Praj is a knowledge based company with expertise and
experience in Bioprocesses and engineering. Praj addresses the entire value chain for
processing of alcohol/ethanol as well as beer production, right from feedstock handling to
fermentation, distillation and waste water treatment and re-utilization. The solutions are end-
to-end and comprehensive. Praj also offers water & wastewater treatment solutions for
various applications with a focus on recycle, reuse, reduce and recover. Praj has over 450
references in more than 60 countries across 5 continents with its own offices in Bangkok
(Thailand), Johannesburg (South Africa) and Sharjah (UAE), apart from India. Praj is also
present in USA, The Netherlands, Brazil, Colombia and Guatemala.
Enzymes
Novozymes:
Sapphire Energy:
It is a privately held company founded in May 2007. Its headquarters and primary lab are in
San Diego, California; Engineering and project management, Orange County, California;
Research and Development Facility, Las Cruces, New Mexico; Integrated Algal Bio-
Refinery, Columbus, New Mexico.
POET, LLC:
It is a privately held company. POET is a leader in biorefining through its efficient, vertically
integrated approach to production. Today, POET has a network of 27 plants in seven states.
POET provides turnkey development, design, engineering, construction, management and
marketing for the plant network. The 27 POET Biorefineries are owned by various investors
most of whom purchased shares in the biorefineries in a private offering. Almost all of the
biorefineries are organized as limited liability companies. Project LIBERTY is POET's large-
scale cellulosic ethanol plant. The Iowa-based company plans on using corn waste -- cobs,
husks, and leaves -- as feedstock for the ethanol plant. The plant is expected to begin
commercial operations in 2012, and POET plans on producing 3.5 billion gallons of
cellulosic ethanol by 2022.
Range Fuels:
Range Fuels is a privately held company funded primarily by greentech venture capital
companies, including Khosla Ventures, LLC, arguably the top venture firm in the U.S.
focusing on alternative, clean energy systems. Range Fuels is one of six companies selected
by the United States Department of Energy (DOE) for financial support in building
commercial cellulosic ethanol plants and is the first to break ground.
Among the industrial enzyme markets, animal feed and ethanol production will both achieve
above average advances, while the food and beverage market will grow at a healthy pace.
Animal feed enzymes will achieve their fastest growth in developing markets where rising
per capita incomes will continue to increase demand for meat in the local diets. However,
demand for ethanol production enzymes will slow from the torrid pace of 2003 to 2008 as
countries re-evaluate the use of food-derived raw materials for ethanol production. While the
development of second generation biofuels derived from cellulosic raw materials will help
sustain demand growth, a variety of processes -- including some that do not use enzymes - -
will be employed, restraining advances. Food and beverage enzyme demand growth will
moderate to a below average pace through 2013, reflecting the challenging environment in
North America and Western Europe. Similarly, growth in the cleaning product and other
industrial markets will also be below average.
Global Scenario:
Nowadays, multinational firms dominate the bio industrial market. For example, Monsanto,
Dupont, Syngenta, Novartis, Basf, Pioneer and so forth have jumped into the industry much
earlier than others, absolutely controlling the global market. As for the recently popular
genetically modified seeds, companies from the United States, Switzerland and Germany
account for 96% of the global market. The global market for industrial enzymes is estimated
at $3.3 billion in 2010. This market is expected to reach $4.4 billion by 2015, a compound
annual growth rate (CAGR) of 6% over the 5-year forecast period. Detergents (37%), textiles
(12%), starch (11%), baking (8%) and animal feed (6%) are the main industries, which use
about 75% of industrially, produced enzymes. Technical enzymes are valued at just over $1
billion in 2010. This sector will increase at a 6.6% compound annual growth rate (CAGR) to
reach $1.5 billion in 2015. The highest sales of technical enzymes occurred in the leather
market, followed by the bio ethanol market. The food and beverage enzymes segment is
expected to reach about $1.3 billion by 2015, from a value of $975 million in 2010, rising at a
compound annual growth rate (CAGR) of 5.1%. Within the food and beverage enzymes
segment, the milk and dairy market had the highest sales, with $401.8 million in 2009.
The growth strategies all have their specific advantages and disadvantages, but currently,
most industrial biotech companies only use a very limited set of these strategies. The
preferred strategy is organic growth based on internal R&D for established markets and
technologies. Especially start-ups/SMEs use this strategy to move from a service-oriented to
An option for established companies to access new technologies involves R&D co-operations
with specialized biotech start-ups/SMEs. This growth strategy has often been used in the past
and nearly all industrial biotech companies have such co-operations (e.g. R&D co-operations
of BASF, DSM, Henkel and others with Brain as example from the chemical industry and co-
operations of Shell with Codexis or Total with Gevo in the area of biofuels). They are of
special importance for industrial biotechnology as this ensures the technology transfer of
research results from universities and research institutions to established companies. In
contrast, R&D co-operations between start-ups to realize synergies on the technological as
well as the market side are rare, because of strong competition between start-up companies
for co-operation projects with established companies.
Joint ventures to open new markets are rather seldom in the area of industrial biotechnology
and mainly used to obtain access to emerging markets like China and India. With increasing
maturity of the industrial biotech sector such partnerships will grow in importance and
synergistic risk/reward sharing deal structures will begin to appear. Start-ups/SMEs avoid a
time and cost consuming development of new markets, while the market oriented partner is
able to incorporate innovative and state-of-the-art technologies into their own product
portfolio. Another growth strategy with increasing importance are M&A transactions
between established companies and start-ups/SMEs (e.g. the sale of Biopract by DSM) or
between SMEs (e.g. acquisition of Jlich Fine Chemicals through Codexis).
Novozymes
In July 2006 Novozymes acquired UK Company Delta Biotechnology Ltd (now Novozymes
Delta Ltd) from the sanofi-aventis group. The Nottingham-based company generated sales of
around DKK 100 million in 2006 and has around 100 employees. The acquisition has brought
additional know-how and technology in the market for recombinant human serum albumin
(rHSA). Novozymes Delta‘s most important product is Recombumin ®, an FDA-approved
rHSA product. Its uses include extending the shelf-life of vaccines. As well as several other
rHSA projects, Novozymes Delta has a development project in recombinant transferrin, a
protein which is particularly good at transporting iron. The acquisition has also given
In December 2006 Novozymes acquired Australian listed company GroPep Ltd (now
Novozymes GroPep Ltd). The Adelaide-based company generated sales of around DKK 70
million in the 2005/06 financial year and has around 80 employees. Its most important
product is an insulin-like growth factor (IGF) analogue. Novozymes GroPep Ltd also markets
a number of other recombinant cell culture ingredients for the biopharmaceutical industry and
has a specialist sales organisation which works with the big distributors on marketing these
ingredients to the biopharmaceutical industry. The company has various pharmaceutical
projects under development.
Mumbai-based Advanced Enzyme Technologies Ltd (AETL), the country‘s second largest
natural enzyme manufacturers, set up base in China by acquiring minority stake in two
Chinese technology companies. AETL has earmarked an investment of Rs 10 crore for the
acquisition and has equity collaboration with the Japanese enzyme major-Higuchi. The
company is eyeing China not only market expansion but technology exchange as well,
according to C L Rathi, managing director of AETL. ―China has a well developed enzyme
market and we are scouting for ideal partners to leverage our capabilities both in terms of
market potential as well as technology exchange. However, it is very early to reveal the
details of the investment,‖ he said. The Rs 100 crore company has its research centre and
manufacturing facilities in India and plans to set up three new manufacturing plants in the
country. Rathi said that the additional manufacturing facilities are coming up at Indore in
Punjab, Jalna and Vasinj in Maharshtra. AETL had set up a research centre and a production
plant in US recently
DuPont
On 10 January 2011, American chemical company DuPont had announced that they will
acquire Danisco, a Danish food ingredients and enzymes producer for US$5.8 billion. The
deal is seen by many analysts as a way for DuPont to enter the niche market of chemical food
additives, which has long been dominated by their smaller rival International Flavors and
Fragrances Inc. It is also expected that the deal will see increasing cooperation between the
two firms in the field of technology for advanced bioethanol. The acquisition of Danisco will
be the largest by DuPont since it bought modified seed-maker Pioneer Hi-Bred International
Inc. for US$7.7 billion in 1999. Analysts estimate that during the past year there has been
US$84.8 billion worth of chemical -company takeovers in the past year, with an average
premium on shares of 26%.
Nalco Chemical Company is the largest manufacturer and marketer of water treatment and
process chemicals and services in the world. Nalco Chemical Company announced it has
acquired the pulp and paper enzyme business of Ciba Specialty Chemicals Inc., formerly
Codexis
On February 22, 2005 Codexis, Inc., a privately held biosciences company announced it has
acquired Germany's Julich Fine Chemicals GmbH (JFC), a leading supplier of specialty
enzymes (biocatalysts) for organic synthesis and chiral building blocks to pharmaceutical and
chemical companies worldwide. The acquisition has made a positive cash contribution to
Codexis in its first full year of operations. Additional financial terms were not disclosed. JFC
is one of Europe's leading providers of products and services for the biocatalytic production
of chiral pharmaceutical intermediates. JFC will operate as an independent, wholly owned
subsidiary of Codexis. JFC offers a wide range of off-the-shelf specialty enzymes and chiral
intermediates useful in pharmaceutical development. JFC will be an outlet for several of
Codexis' proprietary enzymes, while Codexis will continue to focus on using its Molecular
Breeding(TM) directed molecular evolution technology to provide proprietary, customized
solutions directly to leading pharmaceutical companies worldwide."The acquisition of JFC is
part of Coedix strategic expansion into international markets, in particular Europe. We
believe it will accelerate adoption of Codexis' biocatalytic approach to pharmaceutical
process research and manufacturing, an area historically dominated by synthetic organic
chemistry," said Alan Shaw, Ph.D., President and Chief Executive Officer of Codexis.
The world is facing many serious challenges. A fast-growing human population and the
consequent growing demand for food, energy and water are the most serious. In addition,
anthropogenic climatic change is a severe threat to mankind and requires that we significantly
reduce our current greenhouse gas (GHG) emissions to avoid detrimental consequences for
the globe. Only the use of new technologies will allow us to bridge the gap between
Future Challenges
Despite the great relevance of bio-based products for many industries, experts still see
numerous technical, strategic and commercial challenges that need to be overcome before
any large-scale commercialization of the industry can succeed. Most importantly,
biorefineries will have to employ the best possible technologies (for fermentation,
gasification and chemical conversion, and also for pre-treatment and storage) to ensure that
bio-based products break even. This will require the concerted action of many non-traditional
partners – such as grain processors, chemical companies, and technology players – to cover
all aspects of the complex biomass value chain, from feedstock production to end-user
distribution. Another significant challenge is to establish the necessary infrastructure (supply
chain and distribution infrastructure) and raise the high capital costs required. The latter are
typically beyond the financial reach of individual private companies, and may therefore
require public funding. In the United States, a recent report from Sandia showed that the US
Industrial biotechnology takes the biotech tools developed to fight disease and cure illness
and applies them to the greatest challenges in industrial manufacturing, chemical synthesis,
and renewable energy production. Industrial biotechnology has not gained the recognition it
deserves, but the years ahead will see more acknowledgement of its strength. The future
major thrust area will be fuel and energy, pollution control and enzymes and products derived
from petroleum oil/crude. This area includes polymers such as plastics.
There are two important reasons for increased impetus on bioindustry: first of all, it is a
possible substitute for petroleum/ fossil fuel-based economy: Secondly, it is safe and
environment friendly. The status of bioindustry is limited since, until now, the importance of
biotechnology was mostly attributed to the pharmaceutical segment and, latterly, the
agriculture sector. Industries benefiting from biotechnology include textiles, chemicals,
pollution prevention / bioremediation, pulp and paper and metals. An important development
occurring is the replacing of hydrocarbon-based materials with renewable resources. These
resources are based on both plant and microbes and the estimates suggest that, by 2015, this
will affect the chemical industry to the tune of USD160 billion. This enormous potential
could surpass the revenue generated from the pharmaceutical and agricultural sectors.
The technologies applied in bioindustry are no different to those benefiting healthcare and
agriculture. These technologies include recombinant DNA, genomics, proteomics, gene
shuffling and high-throughput screening and advanced fermentation. An advantage of
biotechnological processes is their ability to occur at normal temperature and pressure in
more neutral conditions. This leads to fewer air emissions and therefore a reduction in plant
pollution. This means that, although bioindustrial processes require significant energy levels,
the economies favor these processes when we consider the following facts:
• Higher energy requirements can be met by generating indigenous energy at the plant using
biomass.
• The elimination/reduction of many pollution-controlling processes resulting in cost
Collection and delivery of agricultural residues will require substantial investment in supply
infrastructure, including new planting and one-pass harvest equipment, an enhanced rail
freight network, and greater adoption of no-till cropping. Farmers can expect to recover much
of their necessary investment through residue sales - a 1,000-acre farm could expect to
recover additional costs in as little as 2 years - but government support is also needed to
speed development.
New markets that commoditize the environmental benefits of no-till farming could provide
even greater incentive for farmers to convert to no-till cropping with residue collection. New
mandatory greenhouse gas limits in California and the Northeast could help farmers earn $10
per acre or more from the sale of carbon credits.
Processing just 30 percent of U.S. corn Stover into bio fuels would reduce net U.S.
greenhouse gas emissions by 90 to 150 million metric tons of carbon dioxide equivalent
annually, enough to, Offset the CO2 emissions of 10 typical 1,000-megawatt coal-fired
power plants. More than offset recent annual growth in emissions from all sectors of the U.S.
economy.
A recent study from the University of Tennessee ("25% Renewable Energy for the United
States by 2025: Agricultural and Economic Impacts", Nov. 2006) found that:
An analysis by the Natural Resources Defense Council found that an investment of $1 billion
in R&D and demonstration should cut the cost of producing cellulosic ethanol in half by
2015, saving consumers $20 billion per year in fuel costs by 2050 ("Growing Energy",
NRDC 2004).
Clinical research
Contract manufacturing
Contract research
Consultancy
With increasing pressures on R&D cost containment across the global pharmaceutical
industry, there is an increased focus on reducing the cost of clinical development, which
accounts for two-thirds of the development costs. This is in addition to the pressure of
accelerating the pace of the entire process of drug development. These challenges have led to
a paradigm shift in the approach of major pharmaceutical companies.
Clinical Research: The process of drug discovery and development takes 14.2 years
(average) and costs $802 million. Clinical trials are the most significant direct costs related to
drug discovery and development. The cost attached is about $282 million and takes about
seven years to complete. These place significant strains on a company‘s resources and
management time and hence significant amounts of these activities are being outsourced.
Besides contract research and manufacturing, India is also emerging as a global hub for
clinical trials. India is being projected to grow in this field on account of adequate patient
population having a wide spectrum of diseases, from common to the rarest, qualified medical
professionals, good communication network and IT capabilities.
Quintiles, Specialty Ranbaxy, Siro Clinpharm, Eli Lilly, Clingene International (a subsidiary
of the Biocon India Group), Lotus labs, Clintec International, Pfizer, Novo Nordisk, Lambda
Therapeutic Labs, Novartis, etc. are some of the companies conducting clinical trials in India.
Contract research: Outsourcing has become the mantra of the industry and contract research
has evolved into a huge market. India is in a unique position to tap this new business
opportunity because of three factors—a large pool of qualified English speaking
professionals, India‘s traditional strength in the pharma business and the cost-effectiveness.
And there are organizations doing contract research and trials for other companies
(independent CRO) like Quintiles Spectral, SIRO Clinpharm and Syngene. Aurigene,
Shantha Biotechnics and Chembiotech. Syngene International, a Biocon Group company, set
up in 1994 was India‘s first integrated CRO in the area of drug discovery
Contract research is very innovative, capital intensive, involving lots of R&D. Further, the
field is not process but product-driven and cannot be operated on a large scale.
Contract manufacturing: Contract manufacturing has become a big industry as India offers
a strong manufacturing base at competitive costs, supported by a well-developed engineering
base and an abundance of scientific talent. Eli Lilly, Bharat Biotech and Shreya Biotech are
some of the important contract manufacturing companies.
Clinical Research
Clinical research is a branch of medical science that determines the safety and effectiveness
of medications, devices, diagnostic products and treatment regimens intended for human use.
These may be used for prevention, treatment, diagnosis or for relieving symptoms of a
disease.
The term clinical research refers to the entire biography of a drug from its inception in the lab
to its introduction to the consumer market and beyond. Once the promising candidate or the
molecule is identified in the lab, it is subjected to pre-clinical studies or animal studies where
different aspects of the drug (including its efficacy and toxicity) are studied.
These human studies are conducted in four phases in research subjects that give consent to
participate in the clinical trials.
Phase 1 trials: mainly targeted to identify the safety, tolerability and the mechanism of
action of drug. Studied drug investigated in minor number of healthy volunteers.
Phase 2 trials: Goal is to identify appropriate dosage and minimize safety risk for future
research subjects. Trial requires more than 100 patients to demonstrate the relevant results.
Phase 3 trials: Done to study the effectiveness of the studied drug in a variety of
demographic and socioeconomic subjects with variants of disease under study. A comparison
is usually made with standard drug available in the market. More than 1000 subjects are
exposed to the studied drug. Post this stage a New Drug Application (NDA) is filed with the
FDA
Phase 4 trials: Aim is to further characterize the safety of the drug through the identification
of unknown adverse reactions and to potentially research new therapeutic indications.
Further trials: Clinical research continues throughout the lifetime of the drug to include post
marketing surveillance where a periodic 'progress report' is submitted to the regulatory
authorities once every 2 years after the drug is released into the market, and
pharmacovigilance where the safety of marketed drugs, biologics or medical devices are
monitored. The focus of clinical research is wide enough to include important items such as
data management, medical writing, regulatory consultation, and biostatistics.
Clinical trials is the most expensive stage of the drug development chain and India possess
resources that would allow the country to offer clinical research services at very competitive
cost. The international biopharmaceutical sector finds India‘s pool of highly skilled doctors,
Global Market
The market for clinical trial services has been expanding rapidly, with impressive revenue
growth and expansion of the sector in recent years. Ageing populations, increasing
prevalence of chronic diseases, growing demand for improved therapies and high growth of
the pharmaceutical and biotechnology markets worldwide are driving the clinical trials sector
and market. The globalization of development programs and the increasing complexity of
trials – with regulatory developments – are heightening the need for larger trials and greater
numbers of trials. Many pharma companies are outsourcing clinical trials to gain cost
savings/efficiencies, greater flexibility and specialist expertise. The emerging clinical trial
destinations, including CEE countries, India and China, are achieving double-digit growth.
Pharmaceutical and biotechnology companies in the US spent approximately $59 billion on
R&D, which equates to roughly 18% of their sales. A significant portion of R&D budgets are
used for the outsourcing services offered by the CRO industry, approximately $15 billion.
This figure is expected to grow at 15% over the next seven years and should increase further
with the broadening of the spectrum of services outsourced to cover the entire value chain. As
outsourced services in developing countries such as China and India move up the value chain
to cover phase 1 and 2 trials, the total contracts value may go up to $20 billion. Further,
certain therapeutic areas within pharmaceutical development are slated for an even greater
growth curve, namely the oncology class, expected to see continued growth of upwards of
21% over the next few years due to the large target market, strong unmet medical need, and
overwhelming number of drugs currently in development (667 for cancer vs. 252 for CNS
disorders, 206 for cardiovascular disorders, and 186 for infections). There are over 1,100
companies in the world. It is a very fragmented industry with the top 10 controlling 56.1% of
the market.
Regulations
The Central Ethics Committee on Human Research (CECHR) of the Indian Council of
Medical Research (ICMR), New Delhi, issued Ethical Guidelines for Biomedical Research
on Human Subjects in 2000.
Subsequently in 2001, a central expert committee was set up by the Central Drugs Standard
Control Organization (CDSCO) to develop Indian GCP guidelines in line with the latest
WHO, ICH, FDA, and MHRA guidelines. A continuation of this regulatory revolution has
been revision of Schedule Y.
Schedule Y deals with regulations relating to clinical trial requirements for the import,
manufacture, and of obtaining marketing approval for a new drug in India. The procedure for
applying for marketing approval depends on the status of the new drug. When the revised
Schedule Y fully comes into force, it will confirm India‘s image as a reliable clinical research
destination.
Dar Pharma: Mexican company which offers services (clinical trials as well as research), for
development of the new products.
Euromedex: manufactures medicines for human as well as veterinian use, health products
and medical equipment.
Matrix contract limited is also a leading service CRO having abundance experience in
paper-based project (research projects) and e-process development in clinics.
Rostrum is also known for designing as well as delivering training for different
pharmaceuticals companies.
Cetero Research is an industry leading CRO in clinical pharmacology, bio analytical, and
specialty Phase II-IV services.
Diteba is a research and testing laboratory that provides GMP analytical services and GLP
bioanalytical services to the pharmaceutical, biotechnology and natural health products
industries.
PRA International conducts clinical trials in more than 75 countries across 6 continents and
provides services through all phases of clinical development.
Pacific BioLabs: offers testing and research support services in the medical device,
pharm/biopharm, and other industries.
Jubilant Clinsys
Jubilant Clinsys, Inc., a Jubilant Life Sciences company, is a therapeutically focused clinical
research organization headquartered in Bedminster, New Jersey. It provides pharmaceutical,
biotechnology and medical device companies with a broad range of clinical research services
in support of Phase I-IV drug and device development, including project management,
clinical monitoring, scientific and medical support, investigator and patient recruitment, site
management, biostatistics, data management, drug safety, quality assurance, regulatory
affairs, and medical writing. Clinsys has expertise in a wide range of highly specialized
therapeutic areas, including oncology, cardiovascular, central nervous system, dermatology,
respiratory and allergy/immunology. The company has operations in Bedminster, New
Jersey; Raleigh, North Carolina; Ottawa, Ontario Canada; Düsseldorf, Germany; and Noida
and Bangalore, India.
Kendle India
Kendle International Inc. is a leading global clinical research organization providing the full
range of early- to late-stage clinical development services for the world's biopharmaceutical
industry. Kendle focuses is on innovative solutions that reduce cycle times for the customers
and accelerate the delivery of life-enhancing products to market for the benefit of patients
worldwide. As one of the world‘s largest global providers of Phase I-IV services, it offers
experience spanning more than 100 countries, along with industry-leading patient access and
retention capabilities and broad therapeutic expertise.
Ensuring ethical evolution - With so much attention focused on the financial aspects of the
clinical trials market in India, it is important that issues such as ethics do not take second
place. There have been occasional allegations that poor and illiterate patients in India are
being used, often unknowingly, by some CROs in India as ―human guinea pigs‖ to test new
drugs. This, of course, is unacceptable and the industry must send a clear message to its staff
about the high standards it expects for the conduct of clinical trials. All those involved in
drug development must ensure that they adhere to international and local regulations in order
to protect patients. Sponsors must verify, and not just assume, that investigators completely
understand and respect ICH–GCP, the consent process and the need for documentation of the
consent process, and the ethics process. There should also be a formal training of clinical
trials staff so that the required standards can be upheld.
CONTRACT MANUFACTURING
“Businesses today thrive by focusing on what they do best and leaving the rest to others.”
Contract manufacturing seems to fit neatly into this practice. In addition to allowing
companies to focus on core competencies, contract manufacturers offer numerous other
advantages over in-house manufacturing, including lower costs, flexibility, access to external
expertise and reduced capital. In most cases, the manufacturer will also handle the ordering
and shipment processes for the client. As a result, the client does not have to maintain
manufacturing facilities, purchase raw materials, or hire labour in order to produce the
finished goods. In manufacturing, much of the cost competitiveness comes from the
manufacturing process yield. This yield can be increased through an accurate control and
handling of the manufacturing equipment, careful selection of materials and their proper
handling on the product line. The general concept of contract manufacturing is not limited to
the production of goods. Services such as telecommunications, Internet access, and cellular
services can also be supplied by a central vendor and private branded for other customers who
wish to sell those services. Doing so allows the customer to establish a buy rate from the
vendor, and then resell the services at a profit to their own client base.
The success of contract manufacturing depends on the mutual understanding between the
contract manufacturer and the customers. The former must know how to service the latter,
and must make clear his requirements (to the customer) in advance. The relationship depends
on mutual trust, and hence the communication between the two parties must remain open.
This will help both the sides to understand the requirements of maintaining the partnership.
History/Trend
Contract manufacturing became popular in many industries during the 1990s as a way to
counter rising costs and to reinvestment. The pharmaceutical industry has been slow to adopt
this practice because of its absolute need for secrecy.
With the onset of global economic recession, several countries in the developed world began
scouting for ways to minimize expenditure on drugs. Resultantly, pharmaceutical companies
were compelled to seek ways of minimizing cost of drugs, which in turn forced them to
evaluate opportunities for manufacturing outsourcing. Despite tough times faced by
companies in the pharmaceutical contract manufacturing industry during the recession,
overall market maintained a positive growth posting only a moderate slowdown in growth.
However, a drop in venture capital funding due to the recession has compelled many
pharmaceutical and biotechnology companies to cut down on spending, affecting the fortunes
of contract manufacturers worldwide. As a result, several projects were kept on hold and new
project starts were delayed, cascading the impact of the pharmaceutical industry to the
outsourcing industry as well.
Global pharma industry has been witnessing drastic changes such as increasing competition
in generic markets, declining research and development (R&D) productivity, shrinking
average patent life, and mounting governmental pressure to reduce drug prices. Further, the
drug development process is known to extend over a period ranging from 8 to 15 years, and
the cost of bringing out a single new molecule into the market is more than US$800 million.
With limited new blockbuster drugs, the decisive factors for growth and sustainability are
faster new drug development and cost containment. When the drug gets regulatory approval,
Pharma companies will require large quantities of product supplies for marketing and
distribution. Given the considerable timelines of drug development, it is not only difficult to
project a company's manufacturing needs but also challenging to procure extensive capital
requirements. As a result, Pharmaceutical Contract Manufacturing (PCM) outsourcing
emerged to bail out Pharma companies from these manufacturing uncertainties. Initially, it
gained popularity in the US and Western Europe. Over the years, PCM outsourcing shifted its
base to low-cost nations. Today, manufacturing capacity constraints are only one of the
reasons for outsourcing. Pharmaceutical manufacturing entails sophisticated technology
(cGMP synthesis and scale up, impurity profiling, lyophilization) and strict regulatory
compliance (good manufacturing practices - GMP). Outsourcing such activities to Contract
There is the guarantee of steady work. Having contracts in place that commit to certain levels
of production for one, two and even five year periods makes it much easier to forecast the
future financial stability of the company
There is no need to purchase or rent production facilities, buy equipment, purchase raw
materials, or hire and train employees to produce the goods. There are also no headaches
from dealing with employees who fail to report to work, equipment that breaks down, or any
of the other minor details that any manufacturing company must face daily. All the client has
to do is generate sales, forward orders to the manufacturer, and keep accurate records of all
income and expenses associated with the business venture.
Global Scenario
Global Pharmaceutical Contract Manufacturing Market to Reach US$40.7 Billion by 2015,
the pharmaceutical contract manufacturing market is expected to grow at a CAGR of around
12% during 2010-2012.
Countries like India, Brazil, Ukraine, Mexico, China and Singapore have been emerging as
the key destination for contract manufacturing. Several factors like low cost of manufacturing
and highly developed infrastructure have boosted growth in the contract manufacturing
industry. It has been observed that pharmaceutical companies are increasingly adopting the
concept of ‘virtual pharma’, wherein they retain the marketing rights while outsourcing all
manufacturing activities and related processes. This allows companies to deliver goods at a
faster rate than an internal plant would allow.
The global market for pharmaceutical contract manufacturing witnessed robust growth in
recent years, and the future continues to hold tremendous prospects for the industry.
Factors that have led to the establishment of several CMOs in India and Reasons for high
growth in this sector:
This is driven by its ability to create a differentiating cost value proposition powered by its
lower manufacturing costs, as the cost of secondary manufacturing in India is around 13%-
15% of the cost in the US, the UK and Germany
Skilled manpower- India has more than four times the total drug manufacturing staff
than the US and more than 12 times that in the UK
Strong technical capabilities- The existence of more than 80 US FDA approved
manufacturing facilities makes India the only country outside the US to have the
highest FDA-certified manufacturing facilities.
Reliability of suppliers
Improvements in IP policy are in line with world standards, and are factors that have
led to the establishment of several CMOs in India.
Indian Companies
Ranbaxy Dr Reddy's Divi's Laboratories Zydus Cadila
Laboratories
API costs account for around 30 per cent of the total cost of a generic drug. This does
not impact patented products as much as cost competitive generic medications. The price of a
generic formulation is highly dependent upon the cost of APIs and companies attempt to
determine firms, which can provide APIs with stable costs. This has resulted in a growing
demand for contract manufacturers who produce pre-determined products at prices fixed in
advance.
India has a cost advantage unrivalled by many countries, while offering state-of-the-art
manufacturing facilities.
The US Senate has approved the Healthcare Bill, which entails expanding the insurance
coverage to citizens either employed with smaller companies or unemployed. It is estimated
that around 3.2Cr US citizens would now receive additional healthcare access. This
development augurs well for Indian CMO industry
Recently major bulk drug companies of India have come under FDA scanner Examples:
Ranbaxy's Paonta Sahib & Manesar Mfg unit were under the FDA scan & 30 drugs banned in
US. Sun Pharma's Carcao Mfg. unit (Detroit) - was the victim of FDA rage. Cipla has been
questioned for deviation from US FDA Mfg. process
Logistics
Logistics and distribution has been Outsourcing companies‘ most perceived risk area. The
market size of Indian pharmaceutical logistics has been growing at an average annual growth
rate of four percent Latent information asymmetry; loss of logistics innovative capacity;
hidden costs; dependence on the third party logistics (3PL) providers; loss of control over the
3PL providers.
Mergers & acquisitions in the global pharmaceutical industry that have led to reduction in
outsourced research work have hit Indian contract drug manufacturing and research services
or CRAMS companies. The impact is being felt by both large firms such as Jubilant Life
Sciences as also mid-sized firms such as Dishman Pharmaceuticals and Shasun
Pharmaceuticals. Analysts say global consolidation poses a challenge for Indian CRAMS
firm‘s revenues for the future.
Estimated USD 103 bn worth of global generic drugs are at the risk of losing their patents by
2012 India is significantly ahead in chemistry services such as analogue preparation,
analytical chemistry and structural drug design, which will provide the country with ample
avenues in the field of contract manufacturing approved facilities and 200 cGMP
manufacturing facilities
TRIPS agreement
The introduction of the new patent regime in India from January 2005 has boosted the
confidence of multinational companies looking to outsource the manufacturing of branded
drugs with the protection of intellectual property rights (IPRs). Amendment to Schedule Y to
allow parallel phase clinical trails
Government Subsidy
15 per cent capital subsidy for manufacturing facility investment and equipment projects.
SEZ – Pharmaceutical exclusive setups : Vizag and Himachal Pradesh
Domestic Market
The growing domestic market with TRIPS agreement in place presents opportunity for direct
investments of Pharma MNCs in India
1 Quintiles $ 2.5 bn
2 Covance $ 1.8 bn
5 Parexel $ 930 mn
6 ICON $ 887 mn
7 Kendle $ 590 mn
8 Pharmanet $ 470 mn
10 Aptuit $ 370 mn
• Technical Support.
• Data Credibility.
The cost of trials in India may be just 20-60 percent of the cost in western countries. At
present, about 20-30 percent of the clinical development activity is outsourced to developing
countries like India. Indian clinical trials market is expected to grow at a CAGR of nearly
36% between 2006 and 2011 to register revenues worth US$ 546 Million in future. India by
2011 will be conducting more than 15% of the total global clinical trials.
2 Syngene International 56
Research
Quintiles India
Quintiles helps pharmaceutical, biotechnology and medical device companies develop and
market innovative therapies. It is the largest pharmaceutical contract research organization
(CRO) in the world. As the global pioneer in pharmaceutical services, Quintiles helps deliver
new drugs and cures for the world‘s most challenging diseases. For more than 25 years,
Quintiles has built its work on scientific rigor, therapeutic expertise and unparalleled service.
With offices in more than 50 countries, Quintiles is positioned to accelerate new therapies to
market — ensuring a higher level of healthcare for the people all over the world. Quintiles
has helped develop or commercialize all of the top 30 best-selling drugs. Quintiles is the only
fully integrated bio and pharmaceutical services provider offering clinical, commercial,
consulting and capital solutions. It has 22,000 employees in 60 countries that have helped to
develop or commercialize all of the top 30 best-selling drugs.
Siro Clinpharm
SIRO Clinpharm is a leading full service Clinical Research Organization that specializes in
providing solutions to the twin challenges of speed and cost in clinical drug development.
SIRO Clinpharm is among one of the leading global Clinical Research Organizations
(CROs), offering full scope services, conducting clinical trials in the pharmaceutical,
biotechnology and medical devices sectors in compliance with international standards. The
company has offices in India, USA, Israel and in Europe at Germany, Romania, Estonia,
Greece, Czech Republic and Spain.
Recent Happenings
Due to the tremendous growth shown by this sector, many new global companies have been
born. Also recently many mergers and acquisitions have taken place. Some of them are as
follows:
SIRO Clinpharm having presence in India, Western & Central Eastern Europe, and
US has now entered into an alliance with DreamCIS Inc., a leading CRO based out of
Seoul in South Korea. The company has also signed an agreement with Virginia
Contract Research Organization (VCRO), a Taiwan-based CRO to offer a range of
services to Taiwan companies. And, it is not just Asia Pacific market that the
company is looking at. SIRO is expanding operations in the developed markets like
USA and Europe as well. It has entered an alliance with Advanced Clinical Trial
Solutions, Flemington, NJ, USA
Veeda Clinical Research, which has completed five years of existence in January
2010, has opened its office in South East Asia by signing a collaborative agreement
with the Malaysian Ministry Health to open a Phase I and Early Clinical Development
Unit in the Ampang Hospital in Kuala Lumpur.
Future of CROs
Firstly, it is unlikely that the drug development industry and process will change in any
radical fashion within the next three to five years. CROs must be mindful of these technology
advances and be prepared to mine the benefits of proven approaches. And this must be done
without either destroying the CRO‘s current infrastructure or mortgaging its future by
investing in any and all related technologies. One approach to ensure that clients have access
to the latest discovery and development technologies is to weave together a number of world-
class providers of different technologies under one service offering. Secondly, CROs must
get the ‗service‘ aspect of their business right. They have proven that they can deliver a
quality product, now they must convince the client (through actions, not words) that they can
do it consistently. Consistency in the CRO industry service starts with the staff. This means
that they must focus on developing an environment that allows staff to develop personally
and professionally, reducing the high turnover that has plagued particularly the clinical
research side of the business. Clients will reward such consistency with increased loyalty and,
ultimately, a willingness to develop closer, deeper and more strategic relationships.
Lastly, once they address the ‗service‘ issue mentioned above, CROs need to find ways to
develop and solidify more strategic (ie, deep and long-lasting) relationships with sponsors
(notably Pharma). In order to accomplish this they will have to engage senior executives
within Pharma and Biotech. These are the people who have the appropriate holistic view of
the R&D process within their respective companies and understand the value/benefits that a
more strategic, broad-based approach to outsourcing can bring – particularly to a company
that is vertically integrated. If sponsors feel comfortable that their chosen strategic CRO
partner is capable of delivering on its promise of performance – routinely and consistently –
they will invest the time required to define, negotiate and develop a close strategic
relationship.
Having made significant strides in the areas of quality and scientific expertise, CROs have
legitimately established themselves as a) alternatives to Pharma‘s internal resources, and b)
expert drug development resources for Biotech that have (rightfully so) little internal
CROs provide services that form the pharmaceutical R&D value chain, including drug
discovery, product development and formulation, pre-clinical and clinical trial management
spanning phase I–IV. The share of CROs in the industry‘s research operations is 27%. Indian
CROs provide substantial global capacity to drug developers with full-service and specialised
CROs taking the biggest pieces of the pie. The present CRO market size is estimated at $10
billion and growing, with revenue increasing at an annual rate of 14-16%. An extensive
evaluation of the current scenario and incorporating the necessary improvisation has become
the need of the hour for making the Indian CRO sector emerge as a forerunner amongst the
highly competitive global CRO market. India has to cross the critical path with proactive risk
management approach in this world of innovations and new technology. India with its
strength will be able to outweigh inherent weakness. The opportunities are appealing and
attractive and the threats are manageable. Thus, Indian industry can carve out a niche for
itself in the global market place. Then the time is not far when India will be CRO
superpower.
The number of consulting firms has increased manifolds in a short span of time. It has
resulted in large number of Consulting Organization, Consultants / Domain Experts available
in India offering consulting services in almost all sectors of economic growth. With a view to
identify the key capabilities and expertise of the Indian Consulting industry and also make it
available to prospective clients both within and outside India, it is felt that a comprehensive
database of Consultancy organizations and Consultants/ Domain experts in India need to be
developed. Department of Scientific and Industrial Research (DSIR), Ministry of Science and
Technology, Govt. of India has taken initiative to prepare Industry Specific Sectoral National
Online Database of Consultants and Consultancy organizations
and has commissioned this assignment to Consultancy Development Centre (CDC), an
autonomous institution of DSIR.
Global Scenario
Global Consulting Industry Revenues (including HR, IT, strategy, operations management &
business advisory services) reached US$ 345 billion in 2010
Global Consultancies
McKinsey & Company
McKinsey is a privately held leading management consulting firm with over 80 offices
around the globe. McKinsey specializes in delivering thoughtful solutions to challenging
strategic and operational problems. The company has approximately 15,600 employees and
booked revenue in 2009 of US $6.60 Billion. McKinsey groups its practices into seven main
areas: business technology, corporate finance, marketing and sales, operations, organization,
risk, and strategy. McKinsey serves clients in numerous industry sectors, from automotive to
high tech to telecommunications
Deloitte
Deloitte Consulting is the consulting arm of Deloitte & Touche. Deloitte Consulting has 15,000
professionals in 33 countries and serves more than one-third of the companies in the Global Fortune®
500. Deloitte provides strategic and operational management consulting, tax advisory and financial
advisory services to many of the world's largest companies. Managing consulting practice areas
include human capital, technology/systems integration, and strategy and operations management. The
consulting practice focuses on nine industry groups: aviation and transport services; consumer
business; energy and resources; financial services; life sciences and health care; manufacturing; the
public sector; real estate; and technology, media, and communications.
KPMG
KPMG operates as an international network of member firms offering audit, tax and advisory
services. The company works closely with its clients, helping them to mitigate risks and grasp
opportunities.
PwC
PwC is one of the world‘s largest providers of assurance, tax, and business consulting
services. They believe that the best outcomes are achieved through close collaboration with
the clients and the many stakeholder communities. 161,000 PwC people in 154 countries
work hard to build strong relationships with others and understand the issues and aspirations
that drive them.
Indian Scenario
India's Outsourcing & Consulting Industry Revenues contributed to US$ 47 billion in the
year 2009. The rising opportunities and growing consultancy spectrum as a result of high
demand, consulting industry in India is well poised to grow at CAGR of about 30% to carry
forward its size to over Rs. 22,000 crores as against current size of nearly Rs. 16,500 crores.
It also holds that the consultancy opportunities for domestic project managers would enhance
engagements and occupation, numbering over 3.5 lakhs in next three years in nearly 9500 to
11000 consultancy firms in the field of projects management including turned key projects,
engineering, designing, financing & auditing consultancy, besides consultancies in medical
services, travel & hospitality. Currently, approximately 7000 consultancy firms are in
operations in major cities like Delhi, Bangalore, Hyderabad, Chennai, Cochin, Ahmedabad,
Mumbai, Pune, Chandigarh and even Dehradun.
The future prospects for consultancies particularly in project consultancy on turned key basis
are emerging to be more exciting as India is one of the largest economies in the world with its
strategic location giving access to vast domestic and South Asian market. The presence of
skilled manpower and professional managers are available at competitive cost as India‘s
manufacturing sectors providing ample opportunities for assimilation of consultancy in
variety of sectors. Other than economies of scale, the other countries that are looking for
Indian consultancy firms to provide them innovative ways for projects execution in the field
textile and garments, energy, geology & mining, agriculture, rural development,
transportation and tourism. In case of Indonesia, Uganda and Ethiopia, the most sought after
consultancy areas from India oil & gas, education, infrastructure, IT enabled services,
mining, water management, telecommunications, construction & health, information
technology, agriculture & petrochemicals and transportation, besides power.
The recession has affected Biosuppliers significantly. In FY 2009-10 they were hit hard with
the industry growth sliding to 7.5 percent, even though the overall scenario remains positive.
The overall supplier industry revenues stood at $ 865.11million as against $ 804.6 million in
2008-09. The downward trend of 2008-09, when the industry growth slipped to 16 percent
from earlier levels of 40 percent, continued in 2009-10 on account of number of MNCs
reporting flat or negative growth. However, the home-grown companies have done well-
posting healthy double digit growth. Waters India is the top biosupplier in country with a
growth of 21 percent. Top 20 bio supplier companies contributed 70 percent of the overall
supplier revenues of $ 865.11 million while the Top 20 Principals contributed about 60
percent of the revenues. Home-grown suppliers have seen stable year-on-year growth,.
Companies like Spinco Biotech, Imperial Life Sciences, and DSS Imagetech are worth a
mention. Backed by strong teams and a good strategy these have managed to grow in double
digits.
Ensure that customers make use of their products to the optimal extent, by packaging
experiment design and data analysis tool.
Continuous introduction of new products that meet the ever increasing high quality and low
price demands of customers while having to beat well entrenched & ―industry standard‖
competition.
2.2 Indian Biosupplier industry- Revenue and Growth Rate for 2002-10
47.75%
►8 of the fastest growing supplier companies were between $ 11.11 million- $ 17.77 million
in revenues
West North
25% 31%
South
44%
The table given below shows the top 20 global Bio suppliers along with their
revenues from 2005 to 2010.
Rank Company 2005-06 2006-07 2007-08 2008-09 2009-10 %
2009 Change
($ ($ ($ ($ ($ 2009-
millions) millions) millions) millions) millions) 10
6 Invitrogen - - - - 33.3 -
Bioservices
India
9 Sigma - - - - 22.2 -
Aldrich India
10 Merck - - - - 21.5 -
AGILENT TECHNOLOGIES
As the world's premier measurement company, Agilent offers the broadest range of
innovative measurement solutions in the industry. The company's three businesses --
Chemical Analysis, Life Sciences and Electronic Measurement -- provide customers with
products and services that make a real difference in the lives of people everywhere. Agilent is
committed to providing innovative measurement solutions that enable its customers and
partners to deliver the products and services that make a measurable difference in the lives of
people everywhere. The company has 18,500 employees and serves customers in more than
100 countries. Agilent had net revenues of $5.4 billion in fiscal year 2010.
Market Leadership
Agilent holds many product and market leadership positions, including being first worldwide
in overall test and measurement products, as well as in gas chromatographs and liquid
chromatography/mass spectrometry.
Within life sciences, their solutions are focused in the following markets:
Environmental Bioagriculture
Product areas
Markets Served
Thermo Fisher Scientific offers a complete and integrated portfolio of solutions and services
for laboratory research and analysis, healthcare and clinical science and manufacturing and
the field.
Lab equipment
Research consumables
Thermo Fisher Scientific healthcare solutions include a full range of supplies for hospitals,
clinical laboratories, reference laboratories and physician‘s offices. Its clinical diagnostic
products and services are used by healthcare facilities and independent laboratories to analyze
patient samples, such as blood. It includes-Clinical testing systems and supplies Diagnostic
products and services Clinical trial support services
Thermo Fisher Scientific provides products, solutions and services for process control and
optimization and for environmental monitoring, safety and security. Offerings include a
complete range of fixed and portable instruments for detecting radiation, explosives and
chemicals and instrumentation used in manufacturing to ensure quality control through
precise monitoring, measurement and analysis. It includes-Process instruments
Environmental analysis instrumentation Security and detection devices.
Brands
Thermo Fisher Scientific is the world leader in serving science supporting customers through
two premier brands - Thermo Scientific and Fisher Scientific - along with a family of
specialty product brands.
Thermo Scientific
Fisher Scientific
Fisher Scientific is our premier customer channel and services brand providing a complete
portfolio of laboratory equipment, chemicals, supplies and services used in healthcare,
scientific research, safety and education through the most convenient purchasing options
from a single purchase to a supply chain solution
Becton-Dickinson
BD is a leading global medical technology company that develops, manufactures and sells
medical devices, instrument systems and reagents. BD is focused on improving drug delivery,
enhancing the quality and speed of diagnosing infectious diseases and cancers, and advancing
BD Worldwide segments:
A.BD MEDICAL:
This segment deals with the supply of Medical Surgical Systems, Anaesthesia Products,
Infusion Therapy Products, Injection Products, Sharps Disposal Products, and Diabetes Care
Pharmaceutical Systems like:
B.BD DIAGNOSTICS:
C.BD BIOSCIENCES:
The Biosciences Division deals with Cell Analysis and Discovery Lab ware products some of
which are:
The revenues generated by each segment were US $ 3.796 billion, US $ 2.319 billion and US
$ 1.257 billion respectively.
Millipore
As scientists and engineers pioneering new cures to mankind's most challenging health
issues, they relied more on Millipore as a trusted partner who for more than 50 years has
supported them with a continuum of cutting edge tools, technologies and application
solutions to ensure success in research, development and production. Merck Millipore is part
of the Merck Group, a company with 40,000 employees in 64 countries that was generating
total revenues of US $ 11.11 billion in 2009. Merck Millipore, a division of Merck Group,
offers solutions that enable scientists to conduct life science research easily, efficiently and
economically. With a range of more than 40,000 products, Merck Millipore is one of the top
three suppliers of tools to the life science industry. The division comprises three business
units: Bioscience, Lab Solutions and Process Solutions.
A.Biosciences:
The Bioscience business unit is focused on helping customers in the pharmaceutical and
biotechnology industries, as well as academia, understand complete biological systems and
identify new therapeutic targets. It provides an increasing number of tools and services to
support researchers seeking to understand complex biological systems. The products help to
advance life science research in a wide variety of areas ranging from neuroscience, infectious
disease, oncology, and metabolic disorders to stem cells, cell signalling, nuclear function, and
chromatin biology. Bioscience products and services simplify the work flow for researchers,
offering consolidated and validated solutions.
B. Lab Solutions:
The Lab Solutions business unit supplies products for research, analytical and clinical
laboratories in a wide variety of industries. The company is one of the leading suppliers of
laboratory chemicals, lab water equipment and consumables. For inorganic chemistry, they
offer reagents of high purity such as salts, acids, caustics, volumetric solutions, buffers,
reference materials for instrumental analysis and products for inorganic trace analysis. For
organic chemistry, they supply a full range of basic products for synthesis; including building
blocks, reagents and solvents most commonly used in organic synthesis from laboratory scale
to bulk production. As a leading supplier of chromatography products, Merck Millipore is
also advancing the development of analytical separation technologies. The product focus is
on analytical high performance liquid chromatography (HPLC) and innovations to the
monolithic Chromolith® HPLC columns for ultrafast separations.
The Process Solutions business unit supplies products used by pharmaceutical and
biotechnology companies to develop and manufacture biopharmaceutical drugs safely and
efficiently. Millipore provides fully integrated solutions to biopharmaceutical customers and
an attractive range of development and regulatory services to biopharmaceutical
manufacturers.
Invitrogen Scientific
Numerous fluorescent reagents such as Qdot nanocrystals and Alexa Fluor and SYBR
dyes.
Invitrogen currently offers more than 25,000 products and services to support research in
cellular analysis, genomics, proteomics, and drug discovery, and has sought to leverage their
extensive technology portfolio to address research problems in developing fields, including
biodefense and environmental diagnostics, bioinformatics, epigenetics, and stem cell
research.
The pie diagram above shows the percent share of top 10 Indian bio supplier companies in
total revenue generate in year 2009-10
It is ranked No. 1 Bio-suppliers in India with a proven track record of 29 years in Analytical
& Life Science Instrumentation. The revenue of Spinco Biotech during the financial year
2009-10 was US $ 55.7 million, and the percentage change was 11.40. Spinco has been able
to cross many milestones like maximum number of HPLC in India, highest capacity
lyophiliser in India, largest field support team with more than 28 branches. Headquartered in
Chennai, and has more than 28 branches spanning north, south, east and west of India.
Chromatography-
Mass Spectrometry
Life Science
Lab Products
Chemistry and Consumables
Imperial has grown by leaps and bounds since inception in 1992 and the growth has been
consistent and well defined through these years. The revenue of Imperial Life sciences Pvt.
Ltd. during the financial year 2009-10 was US $ 25.07 million, and the percentage change
was 9.67. Its key customers include companies in the biopharma, biotech, agriculture,
veterinary sciences segment along with universities, medical colleges, drug discovery labs,
clinical trial and contract research facilities and research institutes.
Ranbaxy Fine Chemicals Limited is owned by ICICI Venture Funds Management Company
Limited, and is managed by a highly dynamic group of professionals which accounts for
approx. US $ 533.3 million business group. The revenue of RFCL during the financial year
2009-10 was US $ 20.71 million and the percentage change was 1.11. RFCL is soon going to
launch new reagents - JSB Stain-I & JSB Stain-II. It is headquartered at Delhi, and has
branch offices in Hyderabad, Bangalore, Ahmadabad, Mohali, Mumbai, Ghaziabad, Indore,
Kolkata, Pune, and Chennai. Recently Avantor has completed acquisition of RFCL Limited.
Genetix Asia is a retailer & Supplier of pharmaceuticals, health care, herbal, diagnostic
products, animal care products, finished pharmaceutical products, perfume, herb, skincare,
medical devices, bio pharmaceuticals, etc. The revenue of Genetix Biotech Asia during the
financial year 2009-10 was US $ 20 million, and the percentage change was 12.50. Genetix is
a world leader for supply of Kits, Reagents, Laboratory Plasticware and Filterware for use
within Molecular Biology, Genomics, Proteomics, Immunology and Cell Culture. It is
headquartered at Delhi, with branch offices at Chandigarh, Lucknow, Bhopal, Kolkata,
Mumbai, Pune, Hyderabad, Bangalore, Chennai.
Diagnostic
Medical devices
Laboratory products
Molecular diagnostics
Filtration Products
Molecular Biology / Industrial Enzymes
PCR Machine
DSS IMAGETECH
With the capital of $ 995,268 (Rs 4.5 crore) and 25 employees, the DSS IMAGETECH
engages into the manufacturing and sales of research reagents and kits. DSS Imagetech is
based on providing cutting edge technology solutions to Researchers and Clinicians in the
field of Life Sciences including Genetics, ART, Drug Discovery, Biotechnology etc. Products
and application areas include microscopy, image analysis software/systems, Genetic
workstation, ICSI workstation, DNA probes, Thermal Cyclers, Micro Array Readers etc. The
revenue of DSS Imagetech during the financial year 2009-10 was US $ 19.5 million, and the
percentage change was 12.05. Headquartered at New Delhi, with branch offices in Bangalore,
Chandigarh, Chennai, Hyderabad, Mumbai, Kolkata, Pune, Trivandaram,
Microscopy
Image analysis software / systems,
Genetic workstation,
ICSI workstation,
DNA probes,
Micro array readers,
TOSHVIN ANALYTICAL
It is the sixth largest company in biosuppliers and its revenue generation for year 2009-10
was US $ 18.9 million. Toshvin Analytical Pvt. Ltd. is one of the leading companies in India
in the field of analytical and laboratory instrumentation. Since 1948, Toshvin has been at the
forefront of bringing the latest, most sophisticated range of instruments to Indian companies
from leading manufacturers around the world. Its products range from analytical instrument,
water purification system, Chromatography Accessories to Consumables. It has a partnership
with Shimadzu Japan Company since from 1970. They offer the following range of product
like
Laboratory Instruments
Testing and Inspection
Balances and Scales
Life Science Lab Instruments
Medical Systems and Equipment
Industrial Equipment
NISHOTECH
Nishotech is well known in the Pharma, Food Processing and Biotech world for its Sterile
Process Piping Systems. With its vast experience in executing prestigious projects and a
highly skilled workforce, it uses latest techniques particularly in orbital welding technology
to integrate pipe work installation and end results are checked using Boroscopy with still /
video rendering. It also has partnership with Novasep process SAS. Novasep Process SAS
primarily concentrates on purification needs of pharmaceutical, food, cosmetic, agrochemical
and specialty chemical industries; using industrial processes. Novasep Process offers
solutions for producing pure products, from process development to optimization, from the
supply of laboratory purification equipment to the delivery of industrial turn-key purification
plants. Through synergies with Novasep Synthesis, Novasep Process technologies enable
straightforward and cost efficient global synthesis of new molecules, while helping to reduce
time to market. Novasep Process‘ core technologies are Chromatography, Crystallization, Ion
exchange, Membranes, Evaporation. DrM is a technology partner for Nishotech system for
their patented candle filtration design. There are over 1500 Filters in operation worldwide and
about 80 new systems are put in place every year; most of them in the chemical industry but
also in petrochemical, pharmaceutical, food and industrial waste water applications.
TOWA OPTICS
Towa Optics (I) Pvt. Ltd. is the authorized distributor of many reputable international
companies such as NIKON (Japan), Andor (UK) , Linkam (UK), Thermo Fischer Scientific (
USA & UK), Genikon (Italy) and Spectro Inc (USA). It manufactures various instruments
and equipment like Biological Microscopes, Imaging Systems, Cooled/UnCooled Scientific
Cameras, Semi-Conductor Inspection Equipment, Controlled Environment Equipment,
Histopathology /Cytology Products etc. It is a dedicated company in the field of Bio
science/Industrial and now expanded its activities into analytical products. With ten dedicated
offices, in different cities of India Towa provides the most prompt attention to the customers
for sales and service.
HIMEDIA LABORATORIES
Hi- Media Laboratories was founded in 1973 as a small, regional manufacturer of prepared
culture media. Over the past 28 years, it has added many diverse products, moving into a
current position as a full-service supplier for several disciplines in the laboratory. Its catalog
now includes microbial identification systems, quality control organisms, stains, reagents,
dehydrated culture media, prepared media and diagnostic test kits, including EIA test kits and
slide agglutination kits. It also encourages inquiries for products not listed in the catalog. It is
a leading manufacturer of products for microbiology, parasitological, immunology, serology
and virology. Their customers include clinical, industrial, research and academic laboratories
around the world.
Standardized Chemicals & Ingredients Various Fields of HiMedia product applications and
company's customers:
Academic Fields: Research Institutes and Education Institutes including Veterinary and
Medical Colleges.
Public Health Care: Water supply, Waste water disposal, Pollution control, Hospitals and
Clinical Laboratories.
1. Merck acquired all outstanding Millipore shares for $107 per share in cash, creating a
world-class partner for the life science sector.
3. Combination created a $2.9 billion partner for the life sciences sector and transform Merck
Chemicals.
Together, Millipore and Merck created a $2.9 billion world-class partner for the life sciences
sector, achieving significant scale in high-margin specialty products with an attractive growth
profile.
The Bio Supply Management Alliance has launched an industry initiative to meet the risk
management challenges in the emerging global market.
The Bio Supply Management Alliance was born of the need to create a worldwide
community of operations and supply chain management leaders and professionals in the
biotechnology industry. Based in the San Francisco Bay Area, home to more than 600 biotech
The major research areas of bioinformatics are Sequence analysis, Genome Annotation,
computational evolutionary biology, analysis of gene expression, analysis of regulation,
analysis of protein expression, analysis of mutation in cancer, comparative genomics,
Modelling Biological systems, high throughput image analysis, structural bioinformatics
approaches etc.
Bioinformatics involves the application of computer technology for analysis and management
of biological data. The computers are used to collect, analyze, store and merge the biological
data. The aim of bioinformatics is to collect the wealth of biological information and use it to
improve the living standards of human beings. Bioinformatics is applied in various fields like
human health, environment, agriculture, biotechnology and energy to advance the biomedical
research and development. It is used in the field of molecular medicine to produce the
customized medicines for the prevention or cure of the disease. Bioinformatics is today
rapidly growing field all over the world. Therefore one can start a career in Bioinformatics
and find employment opportunities in biotechnology, biomedical and pharmaceutical
sciences, in industries, hospitals and research institutions.
The scope of bioinformatics is in areas like database design and maintenance, sequence
assembly, proteomics, clinical pharmacologist, sequence analysis, informatics developer and
bio-analytics. Excellent job opportunities are available in Biotech and Pharmaceutical
companies in India. Indian companies like Wipro, Reliance, Satyam, TCS and companies like
Accelrys and IBM Life Sciences Pubgene, Silicon Genetics and Tessella offer good
employments to the bioinformatics candidates. Due to increasing demand of bioinformatics
candidates, a career in bioinformatics offer good prospects.
The Bioinformatics tools are the software programs for the saving, retrieving and analysis of
Biological data and extracting the information from them.
Factors that must be taken into consideration when designing these tools are:
The end user (the biologist) may not be a frequent user of computer technology and thus it
should be very user friendly.
Structural Analysis
Sequence Analysis
The term homology implies a common evolutionary relationship between two traits -whether
they are DNA sequences or bristle patterns on a fly's nose. Homologous sequences are
sequences that are related by divergence from a common ancestor. Thus the degree of
similarity between two sequences can be measured while their homology is a case of being
either true of false. This set of tools can be used to identify similarities between novel query
sequences of unknown structure and function and database sequences whose structure and
function have been elucidated.
Structural Analysis
These sets of tools allow you to compare structures with the known structure databases. The
function of a protein is more directly a consequence of its structure rather than its sequence
with structural homologs tending to share functions. The determination of a protein's 2D/3D
structure is crucial in the study of its function.
Sequence Analysis
This set of tools allows you to carry out further, more detailed analysis on your query
sequence including evolutionary analysis, identification of mutations, hydropathy regions,
CpG islands and compositional biases. The identification of these and other biological
properties are all clues that aid the search to elucidate the specific function of your sequence.
FASTA
A database search tool used to compare a nucleotide or peptide sequence to a sequence
database. The program is based on the rapid sequence algorithm described by Lipman and
Pearson. It was the first widely used algorithm for database similarity searching. The program
looks for optimal local alignments by scanning the sequence for small matches called
"words". Initially, the scores of segments in which there are multiple word hits are calculated
("init1"). Later the scores of several segments may be summed to generate an "initn" score.
An optimized alignment that includes gaps is shown in the output as "opt". The sensitivity
and speed of the search are inversely related and controlled by the "k-tup" variable which
specifies the size of a "word".
EMBOSS
EMBOSS (The European Molecular Biology Open Software Suite) is a new, free open source
software analysis package specially developed for the needs of the molecular biology user
community. Within EMBOSS you will find around 100 programs (applications) for sequence
alignment, database searching with sequence patterns, protein motif identification and
domain analysis, nucleotide sequence pattern analysis, codon usage analysis for small
genomes, and much more.
Clustalw
ClustalW is a general purpose multiple sequence alignment program for DNA or proteins. It
produces biologically meaningful multiple sequence alignments of divergent sequences,
calculates the best match for the selected sequences, and lines them up so that the identities,
similarities and differences can be seen.
RasMol
It is a powerful research tool to display the structure of DNA, proteins, and smaller
molecules. Protein Explorer, a derivative of RasMol, is an easier to use program.
Application Programs
JAVA in Bioinformatics:
Perl is also being used in the processing of biological data. One example of perl project is
BioPerl project.
Bioinformatics Projects:
BioJava: The Bio-Java Project is providing the Java tool for the processing of data in Java
BioPerl: The BioPerl project many modules for biological data processing.
BioXML: A part of the BioPerl project, this is a resource to gather XML documentation,
DTDs and XML aware tools for biology in one location.
Industry overview
The industry comprises of players in areas such as contract research and development (R and
D) services, clinical and proof of concept clinical investigation, clinical trials, contract
research, bio-engineering, stem cell research, contract manufacturing, bioinformatics and
drug development. We are also witnessing activity in the field of research and development
in biotechnology with companies like Ranbaxy, Dr Reddy‘s Laboratories and Nicholas
Piramal have been working on licensed molecules, clinical trials of drugs already formulated,
and bioprospecting from Ayurveda, which is India‘ s traditional medicine. The Indian
software companies have come up with the software tools to capture, manage and analyse the
voluminous amount of genetic data. India‘s skilled but low cost manpower is the reason why
MNCs are sending their genomic and proteomic data to India for analysis. A key advantage
of India is the availability of skilled but low cost manpower. Unlike IT, bioinformatics
requires a highly skilled work force with knowledge of IT, molecular biology, protein
separation chemistry, instrument control, data acquisition and data analysis tools. India is on
the verge of taking the global leadership in genomic studies. Analysis shows that pure cost
benefits for biotech companies will drive the bioinformatics industry in the country. Slated as
the next big opportunity for India in the global arena after the success of IT Services,
Bioinformatics and Life Science research is gaining attention from government, industry and
the academia. In today‘s fast paced scientific innovations, Bioinformatics plays a very crucial
role in the areas of contemporary biomedical research. With the introduction of
Bioinformatics, the focus of the pharmaceutical companies has shifted from the trial and error
process of drug discovery to a rational structure based drug design. India has several ethnic
populations that are valuable in providing information about disease predisposition and
susceptibility, which in turn will help in drug discovery. Many eminent research and
development institutes are in the process of developing a database of genetic profiles among
diverse Indian population in terms of ethnicity, demographics and ancestral roots. However,
as there is lack of records and data management capabilities, the biotech and pharma
companies need tremendous software support. With computers biological problems that can
be addressed are in the areas of DNA / Protein sequence characterization, Protein Structure
The understanding of genetics has advanced remarkably in the last thirty years. In 1972, Paul
berg made the first recombinant DNA molecule using ligase. In that same year, Stanley
Cohen, Annie Chang and Herbert Boyer produced the first recombinant DNA organism. In
1973, two important things happened in the field of genomics. The advancement of
computing in 1960-70s resulted in the basic methodology of bioinformatics. However, it is
the 1990s when the INTERNET arrived when the full fledged bioinformatics field was born.
Bioinformatics Network
India was one of the first countries in the world to establish a nationwide bioinformatics
network. The Department of Biotechnology (DBT) initiated a program on bioinformatics in
1986. The Biotechnology Information System Network (BTIS), a division of DBT, now
connects 57 key research centers, covering the entire country. More than 100 databases for
biotechnology have been developed. Two databases, namely one that covers data regarding
biotechnology research on coconuts and another that contains the complete genome of the
white spota syndrome of shrimp, have been released for public use. In addition, several major
international databases with applications for genomics and proteomics have been established
under the National Jai Vigyan Mission. BTIS also has decided to establish five advanced
research and training centers. These Centers of Excellence (COE) in Bioinformatics
undertake advanced research in bioinformatics, provide PhD and postdoctoral training,
develop new solutions to support the Indian Bioinformatics industry and its academic
institutions in India, help in solving complex biological problems, and retain required high-
end manpower.
Company Profile
Ocimum Biosolutions
Products
GeneSpring GX : It is a cutting-edge analysis tool for gene expression, genotyping, exon and
tiling microarrays. It has a database of over 1.5 million biological interactions extracted by
the powerful Natural Language Processing (NLP) - based text mining engine developed by
Strand. GeneSpring is developed on Strand's AVADIS platform and marketed worldwide by
Agilent Technologies, USA.
Handling Complexity
Reliable solvers
BioLego helps in
The product lines, software tools and other biometric applications were projected at an annual
market growth of 15.8% or US $3 billion for the year 2010. As it stands the bioinformatics
market is at stability where 20% of the applications discovered are based on genomics and
proteomics, which boosts growth of bioinformatics tools. A greater number of R&D centers
across the world are seeking a common base for transfer of data, information and knowledge
to enable an informatics-based decision support system. Given the said market structure there
is an emerging need to develop breakthrough drugs while shortening the discovery time and
costs. There is also need for forming mergers and partnerships of companies both at local and
international levels. Leading biotech firms like Compugen, DoubleTwist have come forward
with novel drug programs. Interestingly, India and South East Asian countries have
comparative advantage in terms of cheap labor, which can offer database solutions and
genome research for biotech companies globally.
Bioinformatics, one of the most vibrant industries in the current scenario, is at the forefront of
the biotech revolution. The market is projected to transform into a major industry within the
next few years. Driving the revolution is genomics, a set of advanced tools designed for large
data acquisition and analysis. New tools are not only pushing the development of drug
discovery, but also fundamentally changing the nature of biological research. The success of
Human Genome Project and breakthrough technologies in drug discovery initiatives spells
significant investment opportunities for the industry. As new players enter the market, and
existing companies grow in size and revenue, competition in the bioinformatics industry is
likely to intensify significantly.
The US represents the largest regional market for bioinformatics worldwide, followed by
Europe, as stated by the new market research report on Bioinformatics. However, Asia-
Pacific is projected to record the fastest growth over the analysis period. Japanese market is
projected to post a CAGR of 13.5% during the analysis period. Segment wise, Biocontent
represents the largest product segment in the global bioinformatics market. Bioinformatics
Software represents the fastest growing product segment. Demand for Bioinformatics
hardware is projected to rise by 9.5% during the analysis period. The global bioinformatics
industry is highly fragmented, with several companies offering only specific services and a
very few companies delivering comprehensive solutions for their clients‘ R&D needs. Large-
scale presence of smaller companies and high fragmentation is due to lower entry barriers and
existence of large IT companies in the sector.
Bioinformatics in India
Bioinformatics will be a potential star in bioscience field in the coming years after
considering the factors like bio-diversity, human resources, infrastructure facilities and
government initiatives. It has been reported that the pharmaceutical firms and research
institutes in India are looking forward for cost-effective, high-quality research development,
Bioinformatics has emerged out of the inputs from several different areas such as biology,
biochemistry, biophysics, molecular biology, biostatics, and computer science. Specially
designed algorithms and organized databases is the core of all informatics operations. The
requirements for such an activity make heavy and high level demands on both the hardware
and software capabilities.
South based companies generate almost 55 percent of the total CRO business in the country.
The biggest of number of Bioinformatics companies headquartered in a region is the South as
it accounts for 77 percent share of the total number of companies in the country. Northen
region accounted for 15 percent share of the total base. This field has generated such high
revenues mainly because it is home to almost all the top diagnostics companies.
Bioinformatics applications in drug discovery and development are expected to reduce the
annual cost of developing a new drug by 33%, and the time for drug discovery by 30%.
The pure-play BioInformatics companies in India include Strand Genomics, Ocimum
Biosolutions, SysArris, CytoGenomics and Molecular Connections. These companies have
come out with products that cater mainly to the needs of the pharmaceutical and
biotechnology companies. Most of these companies are small and medium enterprises based
at locations such as Bangalore, Hyderabad, and Pune. Much of this growth is because of the
linkages between IT and biotechnology. India's software engineers are established around the
globe. This breadth of expertise is, in turn, creating an engine for global biopharmaceutical
growth. In fact, because of India's global presence in bioinformatics, Indian scientists and
INDIA'S ADVANTAGES
The core R&D strength in Indian biotechnology is its relatively well-educated and trained
labor force, with a strong base of English-speaking scientists who are well versed in
mathematics, physics, and chemistry. Thus, the country has the scientific skills that
encompass capabilities for handling all aspects of biological information acquisition,
processing, analysis, and interpretation. India's well-known software skills are, of course,
another key advantage in global bioinformatics.
ON THE CONTRARY
Venture capital and other funding sources are still needed, though. This may require
concurrent support from government agencies, in the form of building infrastructure and
funding of small- and medium-sized entrepreneurs. Foreign companies can offer knowledge
Indian companies may lack, so partnering will likely become an important element in this
segment's growth, as Indian companies increasingly recognize that expertise in
bioinformatics is not enough without expertise in areas such as lead generation, toxicology
studies, regulatory affairs, and patenting.
Government Initiatives
In recognition of the need of training and education for generating interdisciplinary human
resource relevant to biotechnology, the Government of India and UNESCO, have taken a
joint decision to establish the Regional Centre for research, training and education in
biotechnology under the auspices of UNESCO. The UNESCO Regional Centre for
Biotechnology is scheduled to come up in Faridabad, Haryana by the end of 2010. Further,
the Department of Biotechnology (DBT), Government of India, has also decided to set up a
unique Health Biotech Science Cluster (HBSC) at Faridabad. Moreover, the government will
fast forward the process of setting up a National Biotechnology Regulatory Authority, to
stimulate public and private investment in biotechnology. Besides the central government
initiatives, individual states are also doing their bit to promote the biotechnology industry.
Karnataka takes the lead and the state's revised biotech policy offers many fiscal incentives
and concession to prospective investors in the industry. According to the Mr. B S
Yeddurappa, Chief Minister of Karnataka, a bio-venture fund with a seed capital of US$ 10
million will be set up to incubate start-ups by young entrepreneurs. Moreover, the state
government is setting up 10 biotech finishing schools in association with the industry and
academia to create a steady talent pool. Sector specific biotech parks are expected to be set up
at Mysore, Mangalore, Dharwad and Bidar in north Karnataka. Similarly, a bio-cluster will
be set up in the Bangalore Biotech Park on a public-private partnership mode.
DBT provides a single window processing mechanism for all mega Biotechnology
projects involving FDI of $ 22 million or more under the FIIA with its Fast Track
Committee (FTC)
Outside the US, India has the highest number of FDA approvals in the world
World class facilities for manufacturing that comply with GLPs, cGMPs and GCP
standards
Clinical trials can be outsourced to India as the Indian population has the similar
genetic profile as the US and European population, due to joint Aryan descent.
COLABORATIVE R&D: Indian companies partnering with foreign players to enter into
collaborative R&D efforts as an initial step towards focusing on R&D.
NEW REVENUE STREAMS: Revenues from patent licensing and litigation can redefine
existing business models completely and shift them to a higher value generation plan.
CAPTURING THE INDIAN: Indian companies can introduce entry barriers foreign players
in the Indian market by using IP to protect their own innovation.
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