Biotechnology Industries
Biotechnology Industries In India
Today, the Indian biotech industry encompasses around 235 companies and has generated revenue of over USD 700 million (INR 3265 crore) in fiscal year 2003-04, with a registered growth rate of ~ 39% over the previous year (Source: Biospectrum ABLE industry
survey).
The industry can be broadly categorized under five major sub-segments in terms of the market share:
- Biopharmaceuticals
- Bioservices
- Bioindustrial
- Bioagri
- Bioinformatics
Considering the inherent knowledge base and the strong enabling infrastructure in the country, it is estimated that the biotechnology market is expected to reach USD 5 billion by the year 2007.
Convergence Effect in Global Biotechnology Industries
The Drivers of Bitechnology in Gujarat
The State of Gujarat is well poised to witness the emergence of a strong biotech industry. As a result of the convergence effect, the biotech industry in the State has grown at a rapid pace. The growth drivers that enable the State to build a firm base in
the biotech realm and would ensure a sustainable growth in future as well include:
The Convergence Effect
Gujarat can unarguably be associated with the provenance of industrial revolution in the country with its established base of traditional industry that provides the necessary technical and financial support to foray into the biotechnology industry. In order
to meet the rapidly evolving regulatory and business requirements, many traditional companies are revisiting their business models, to ensure that they are futuristic, technology oriented and globally competitive.
Gujarat, with its thriving pharmaceuticals and chemical industry presents tremendous opportunities for the biotech industry to flourish. While, the industrial belts of Gujarat such as Vapi, Ankleshwar, Valsad etc., are home to several bulk drugs companies,
Ahmedabad-Baroda corridor has the presence of large formulation companies, both of domestic and multinational origin. Traditional chemical companies like Alembic Ltd., Sarabhai Chemicals etc., today have transformed their business model to operate in niche
biotechnology segments in the area of human and animal healthcare.
The chemical industry in Gujarat has further created a platform for the bio-agri inputs industry comprising of fertilizers, pesticides, agrochemicals etc. Companies such as Gujarat State Fertilizers Corporation and Gujarat Narmada Fertilizer Corporation who
have been the pillars of the agro industry in the State are presently pursuing agri-biotech has one of their core areas of focus.
Further, industrial friendly policy and harmonious labour force have enabled the State to take advantage of their future foray into biotechnology sector. Over the last 5 years, several companies have forayed into biotechnology industry. In all, the industry
in Gujarat coupled with India's ability to match the global technology standards has made way for several new initiatives and enterprises in the area of biotechnology.
Risk taking ability of Entrepreneurs
Entrepreneurs, who by virtue of their skill sets, risk taking ability and sharp business acumen have been able to successfully commercialize science in the larger interest of the mankind, have further driven the industry in Gujarat. These entrepreneurs were
able to recognize the potential of this knowledge intensive industry and effectively translate their conviction into strategic business propositions.
To illustrate this further, one could retrace the success story of Torrent Pharmaceuticals, wherein Shri U.N. Mehta, the Chaiman of the company began his career in 1944 as a clerk with the Government. His desire to excel led him to take up the job as a medical
representative for Sandoz. In 1959, with INR 25,000 that he received as severance pay from Sandoz and 13 years of experience in the industry as his investments, he established an entity, which today is one of the most formidable forces in the Indian biopharma
industry.
It has been observed that, in line with the worldwide biotech industry scenario, traditional industries located in Gujarat are typically entrepreneur driven and have flourished in clusters. The close proximity of these companies have encouraged collaboration,
generated competition and enabled spin-off development.
Proactive Government Initiatives
The success, besides the entrepreneurial spirit of Gujaratis, has an inevitable element in the form of pro-active and consistent policy initiatives of the Government of Gujarat (GoG) all these years. The Industrial Policy of the State strives to offer incentives
in the form of creation of a business-friendly environment, to attract the attention of discerning investors.
The State Government has always been recognized for its hospitality and a welcome disposition towards investors.
The Government has undertaken several initiatives in the past to provide a strong foundation for the industrial activity in the State, which have been discussed elaborately in the latter section of this document.
Competent Academic Machinery
Indeed, another significant building block of the biotech industry in Gujarat has been the presence of the academic institutions and Universities in the State. The unique combination of technical training institutions like LM College of Pharmacy since 1947
and the Bombay College since 1960s, the B. V. Patel Pharmaceutical Education & Research Development (PERD) Centre, Ahmedabad (the first and only private multi-disciplinary postgraduate research and service institution in the country) coupled with leading management
institutions such as IIM Ahmedabad, NIRMA, Mudra Institute of Communications (MICA) etc., have been able to constantly churn out well trained professional workforce to meet the demands of the industry.
Other reputed Universities such as the Gujarat Agricultural University and the Maharaja Sayajirao University (MSU) of Baroda have been contributing significantly towards the growth of the cluster. The Universities have enhanced their role further by working
closely on industry partnership programs. For instance, M S University of Baroda has been conducting collaborative research with Indian Council for Agricultural Research (ICAR) laboratories and several other industry organizations. Gujarat Life Sciences is
a unique example of a Joint Venture between Gujarat Agricultural University, State Government and the industry.
The said background sets the tone for the emergence of major biotechnology hub in the form of Gujarat. To fuel the growth of the biotech industry in the State, the Government has initiated several steps under the aegis of the Gujarat State Biotechnology Mission.
Hence, towards this end, the Gujarat State Biotechnology Mission has created an Analytical Report (a ready reference document) for the biotech industry stakeholders, to present the current state of the biotech industry along with a value chain analysis. Besides
studying the key biotech segments, there are several other activities being undertaken, in the State that have been discussed to provide a complete landscape of the biotechnology industry in the State.
The report has been supplemented with a list of biotech players in the State ("The Compendium of Biotechnology Organizations in Gujarat") which would facilitate sharing of knowledge, resources within the biotechnology industry stakeholders in the State.
