The current year has been a golden period for the Indian Pharmaceutical industry as reflected in the steadily increasing exports from major pharmaceutical hubs across the country.
According to Pharmaceutical Exports Promotion Council (Pharmexil) Executive Director P A Appaji, Indian pharma industry has now been completely sensitised to the requirements of global markets.
In the current fiscal, exports from Mumbai climbed to the top with Rs 4,133.25 crore, followed by Nhava Sheva (Rs 3,629.46 crore). Hyderabad had moved to the third position with an impressive growth at Rs 2,000.905 crore
Industry insiders say that the current patent regime is also understood to have a positive impact on the industry.
Current Status Of The Indian Biotech Industry
India comprises a large market for biotech based products, however most of these products are not developed here but are imported by domestic and foreign firms. The Indian biotech industry is set to touch 11,000 Crores in 2001. Of this $1.5 billion (60%) would be for health biotech alone, with agricultural & veterinary accounting for 20% each. The industry is subsequently expected to reach 4,40,000 Crores in 2020
The current demand for Biotech Products in India according to the Technology Information Forecasting and Assessment Council (TIFAC) report is as seen in the pie chart; the main contributors to the industry in India include:
1: Fermentation based products in vaccines.
2: DMA products and antibiotics among healthcare products.
3: Alcohol, organic acids, enzymes, amino acids, baker's yeast and other industrial products.
There were about 400 firms in India with biotechnology-related activities in 1995. This number has risen to 800. India's biotech-industry is small compared to its pharmaceutical industry (about 16,000 small and large drug manufacturers).
Biotech in India began during the mid-1980s and was concentrated within the large domestic or multinational drug firms. In 1986, the Government of India established the Department of Biotechnology (DBT) within the Ministry of Science and Technology. Several small biotech companies have been established since then.
The Indian biotech industry employs more than 10,000 people, which is expected to grow to 20,000 (research 50%, technical/ services 35%, management 15%) by 2001 (Monsanto Knowledge Centre). The sector players in the industry can be divided into the following companies:
1: Contract Research Organizations : Sygene Labs, Biological E, Bangalore Genie, Avestha Gengraine etc.
2: Biotech Companies that do basic research using recombinant DNA technology and develops & launches its products: like Shanta Biotech, Bharat Biotech & Biocon India.
3: Biotech Wings or subsidiaries of pharmaceutical/ agri-tech organizations, doing customized research using recombinant DNA technology: Lupin Labs, Wockhardt, RPG Life Sciences, Monsanto, Cadila Healthcare, Dr Reddy's Labs, etc.
4: Companies that do not use recombinant DNA technology but apply biotechnology principles to Industry: here we can include Floriculture, Tissue Culture Companies and industrial application of biotechnology like Enzymes Industry, Fermentation & Bio-Chemicals.
There is a need to look into each sub-market, or industry that is affected by biotechnology, or comprise the biotech industry in India.
Indian Enzyme Market
Indian Enzymes Industry is estimated to be Rs. 1200 million in the year 2000-01 (Chemical Business, January 2000). The consumption of enzymes in India is predominantly in the detergents market (32%), followed by the Starch Market (15%) .
In comparison with the world market, the use of enzymes in India is rather limited. Moreover, 70% of domestic demand is imported. However, Indian enzyme market is growing, because of increased awareness of eco-friendly processes. Indian players include Biocon India, EPIC Enzymes, ABL Limited etc. Multinational players include Novo Nordisk, and Genecor who have approximately around 30% of the market share.
Vaccine Market
The vaccine market in India is approximately around $100 million and growing at the rate of more than 20% per year. India produces many traditional vaccines but imports major ones such as Hepatitis A and B vaccines. The largest markets for vaccines in India exist for (in ascending order): Tetanus Toxoid, Polio, DPT, Typhoid & Hepatitis B (determined by million doses requirement of Vaccines in 1999-2000. Major private sector pharmaceutical companies with vaccine business in India are banking on a ten-fold increase in demand for vaccines when the government includes Hepatitis B vaccine in the expanded program of immunization.
Diagnostic Market
India's diagnostic market is around $50 million. Monoclonal and Polyclonal antibodies for disease immunodiagnosis, tissue typing, clinical assays and research constitute a huge portion of the market. Immunology, kits for pregnancy detection, blood grouping, amoebiasis, filariasis. leishmaniasis, typhoid, hepatitis B, HIV, TB and malaria have been developed locally and capture a small portion of diagnostics arena.
Veterinary Biotech
Animal Health
The animal health biotech market is yet another expanding field. It is expected to reach $200 million by 2001 (Monsanto knowledge Center). Demand for veterinary vaccines, diagnostics therapeutics and protein feed is ever increasing.
Agribiotech
Agricultural biotechnology is an important R&D and business sector in India. India is the world's largest producer of fruits and the second largest producer of vegetables and milk. Some analysts predict that by 2020 India can become the world's largest exporter of agricultural products. The genetically engineered seed market has an estimated value of $250 million.
The total seed market has been estimated at $500 million (The sector is still very low-tech, with 70% of sales coming from farmer bred seeds, 26% from public bred, and only 4% from researched hybrids) with expected sales of $1.5 billion by 2001. At present, out of an estimated 400-odd seed companies in the country, only 18 belong to the public sector and 10 to the cooperative sector. The remaining units are established in the private sector, of which, about 25 to 30 are in the large private sector, while over 300 are medium and small size units.
However, a large number of unorganized family owned units remain a typical feature of the Indian seed industry. About 400 organizations are doing commercial research on agriculture: 200 research labs, 150 companies and 50 service firms. Medical foods and nutraceuticals are also under development. Based on areas of leadership & strength, Indian seed companies would naturally grow into multi-nationals, with direct investments, joint ventures, and licensing arrangements to produce Indian-bred cultivars in other countries.
However, this natural development is blocked by export controls on breeder & foundation seed. Population is a major determinant of the potential size of a seed market. India, with a population of 1 billion presents one of the largest potential seed markets in the world. The Indian agrochemical market
India comprises a large market for biotech based products, however most of these products are not developed here but are imported by domestic and foreign firms. The Indian biotech industry is set to touch 11,000 Crores in 2001. Of this $1.5 billion (60%) would be for health biotech alone, with agricultural & veterinary accounting for 20% each. The industry is subsequently expected to reach 4,40,000 Crores in 2020
The current demand for Biotech Products in India according to the Technology Information Forecasting and Assessment Council (TIFAC) report is as seen in the pie chart; the main contributors to the industry in India include:
1: Fermentation based products in vaccines.
2: DMA products and antibiotics among healthcare products.
3: Alcohol, organic acids, enzymes, amino acids, baker's yeast and other industrial products.
There were about 400 firms in India with biotechnology-related activities in 1995. This number has risen to 800. India's biotech-industry is small compared to its pharmaceutical industry (about 16,000 small and large drug manufacturers).
Biotech in India began during the mid-1980s and was concentrated within the large domestic or multinational drug firms. In 1986, the Government of India established the Department of Biotechnology (DBT) within the Ministry of Science and Technology. Several small biotech companies have been established since then.
The Indian biotech industry employs more than 10,000 people, which is expected to grow to 20,000 (research 50%, technical/ services 35%, management 15%) by 2001 (Monsanto Knowledge Centre). The sector players in the industry can be divided into the following companies:
1: Contract Research Organizations : Sygene Labs, Biological E, Bangalore Genie, Avestha Gengraine etc.
2: Biotech Companies that do basic research using recombinant DNA technology and develops & launches its products: like Shanta Biotech, Bharat Biotech & Biocon India.
3: Biotech Wings or subsidiaries of pharmaceutical/ agri-tech organizations, doing customized research using recombinant DNA technology: Lupin Labs, Wockhardt, RPG Life Sciences, Monsanto, Cadila Healthcare, Dr Reddy's Labs, etc.
4: Companies that do not use recombinant DNA technology but apply biotechnology principles to Industry: here we can include Floriculture, Tissue Culture Companies and industrial application of biotechnology like Enzymes Industry, Fermentation & Bio-Chemicals.
There is a need to look into each sub-market, or industry that is affected by biotechnology, or comprise the biotech industry in India.
Indian Enzyme Market
Indian Enzymes Industry is estimated to be Rs. 1200 million in the year 2000-01 (Chemical Business, January 2000). The consumption of enzymes in India is predominantly in the detergents market (32%), followed by the Starch Market (15%) .
In comparison with the world market, the use of enzymes in India is rather limited. Moreover, 70% of domestic demand is imported. However, Indian enzyme market is growing, because of increased awareness of eco-friendly processes. Indian players include Biocon India, EPIC Enzymes, ABL Limited etc. Multinational players include Novo Nordisk, and Genecor who have approximately around 30% of the market share.
Vaccine Market
The vaccine market in India is approximately around $100 million and growing at the rate of more than 20% per year. India produces many traditional vaccines but imports major ones such as Hepatitis A and B vaccines. The largest markets for vaccines in India exist for (in ascending order): Tetanus Toxoid, Polio, DPT, Typhoid & Hepatitis B (determined by million doses requirement of Vaccines in 1999-2000. Major private sector pharmaceutical companies with vaccine business in India are banking on a ten-fold increase in demand for vaccines when the government includes Hepatitis B vaccine in the expanded program of immunization.
Diagnostic Market
India's diagnostic market is around $50 million. Monoclonal and Polyclonal antibodies for disease immunodiagnosis, tissue typing, clinical assays and research constitute a huge portion of the market. Immunology, kits for pregnancy detection, blood grouping, amoebiasis, filariasis. leishmaniasis, typhoid, hepatitis B, HIV, TB and malaria have been developed locally and capture a small portion of diagnostics arena.
Veterinary Biotech
Animal Health
The animal health biotech market is yet another expanding field. It is expected to reach $200 million by 2001 (Monsanto knowledge Center). Demand for veterinary vaccines, diagnostics therapeutics and protein feed is ever increasing.
Agribiotech
Agricultural biotechnology is an important R&D and business sector in India. India is the world's largest producer of fruits and the second largest producer of vegetables and milk. Some analysts predict that by 2020 India can become the world's largest exporter of agricultural products. The genetically engineered seed market has an estimated value of $250 million.
The total seed market has been estimated at $500 million (The sector is still very low-tech, with 70% of sales coming from farmer bred seeds, 26% from public bred, and only 4% from researched hybrids) with expected sales of $1.5 billion by 2001. At present, out of an estimated 400-odd seed companies in the country, only 18 belong to the public sector and 10 to the cooperative sector. The remaining units are established in the private sector, of which, about 25 to 30 are in the large private sector, while over 300 are medium and small size units.
However, a large number of unorganized family owned units remain a typical feature of the Indian seed industry. About 400 organizations are doing commercial research on agriculture: 200 research labs, 150 companies and 50 service firms. Medical foods and nutraceuticals are also under development. Based on areas of leadership & strength, Indian seed companies would naturally grow into multi-nationals, with direct investments, joint ventures, and licensing arrangements to produce Indian-bred cultivars in other countries.
However, this natural development is blocked by export controls on breeder & foundation seed. Population is a major determinant of the potential size of a seed market. India, with a population of 1 billion presents one of the largest potential seed markets in the world. The Indian agrochemical market