Indian Biotech Industry Survey

The first ever survey of the biotech industry in India, conducted jointly by BioSpectrum and ABLE (Association of Biotechnology Led Enterprises), reveals that the total biotech industry size during 2002-03 was Rs 1,830 crore. This figure takes into consideration the biopharma, bioagri and bioindustrial products, bioinformatics, and the clinical trials and contract research services market into account. This does not include the hybrid seeds and the sale of equipment (the suppliers to the biotech industry). Including the suppliers business to the industry sizing, the total grows to Rs 2,305 crore.

"With this BioSpectrum-ABLE Survey, we hope to give the biotech industry in India a shape, size and an identity,” said BioSpectrum Editor-in-Chief , Mr Shyam Malhotra.

Bangalore-based Biocon India is the country's largest biotech company with a turnover of Rs 255 crore. The second and third spots were taken by Panacea Biotec of New Delhi ( Rs 169.88 crore) and Wipro Health Science, Bangalore ( Rs 98.55 crore). The survey lists India's Top 50 biotech companies by revenue and carries details of over 120 of the country's most promising biotech companies.

The industry in 2003-04 expects to register 25-30 percent growth and the investments are expected to double in the next two years.

"Investment in Biotech continues to remain inadequate, Venture funding is scarce, infrastructure is expensive and regulatory regimes are deficient. Despite this difficult environment, entrepreneurs are bravely setting up new venture signifying the intrinsic belief in Biotechnology being the business of the future,” commented ABLE President and Biocon Chairperson Ms. Kiran Mazumdar-Shaw. " The BioSpectrum-ABLE Index will now generate reliable national data with respect to the Biotech sector and will allow a systematic tracking of the various sub-sectors that constitute the biotechnology industry.”

Out of the total market of Rs 1,830 crore, the biopharma sector accounted for 70 percent of the market share, with total sales touching Rs 1,275 crore. Vaccines, therapeutics, diagnostics and animal health care products form the key products. Bioindustrial segment, consisting of enzymes, organic amino acids, and yeast and yeast-based products, accounted for 13 percent market share with total sales in excess of Rs 235 crore. Bio services--clinical research, contract research and contract manufacturing--accounted for 7 percent of the market share with Rs 135 crore in revenues. The bioagri market, consisting of Bt cotton in the seeds category and biopesticides and biofertilizers, with a total share of 6 percent was Rs 110 crore. The Hybrid seeds was estimated at about Rs 180 crores . The Bio-IT market was estimated at Rs 75 crore.

The Biotech pie changes significantly if the supplier's market is taken into account. It is the second largest market after biopharma with total sales of Rs 475 crore.

Interestingly, exports have been a major factor contributing to the growth of the industry. The total exports without considering the suppliers segment was Rs 975 crore, while the domestic sales stood at Rs 855 crore. Exports figure for 53 percent of the total market share as the biopharma, bioservices, and bioinformatics markets have seen significant exports. While the biopharma market has a ratio of 52:48 in favor of the exports figure, the bioservices and informatics market account for close to 85 percent share in exports.

The total investment in the industry in 2002-03 was Rs 635 crore, up from Rs 505 crore the previous year. Bulk of the investment has gone into setting up the infrastructure or for expansion, followed by R&D. The investments are expected to double in the next two years. These two account for about 80 percent of the total investments. The total investment on infrastructure activity was close to 40 percent of the total investments and R&D accounted for 20 percent. In terms of percentage share of the total sales, the infrastructure spending was 13.8 percent, and R&D was 7 percent.

The manpower employed during the year grew by about 68 percent over that in the previous year. The total manpower in the industry is estimated at 6,400. The same during 2001-02 was 3,800. Interestingly, the sales and marketing teams have been beefed up. The R&D manpower has grown over 74 percent, while the sales and marketing professionals have grown by 51 percent. Women form a significant part of the workforce in research intensive companies. They account for nearly 30 percent of the employees in this sector. However, biotech companies, which are primarily sales and marketing driven, are exceptions to the general trend of biotech companies having more women employees. Many of these companies are keen to induct women even in marketing, sales and technical functions, which require extensive traveling. Also, a large number of companies said they were actively pursuing steps to increase the diversity of the workforce.

The top 10 companies in the biotech industry including the suppliers include:

The biotech activities have been well spread across the country. The North, South and the West regions are the prime ones where the activities have been concentrated. Out of the total market of Rs 2,305 crore, South-based companies account for nearly 39 percent of the business done, while West accounts for 32 percent, and the North for 29 percent. The reason for South being the number one is obvious. Biocon is South-based and is the single largest contributor. With total sales of Rs 255 crore, the company is almost 1.5 times larger than the #2 company, Panacea Biotec, whose total biotech business was about Rs 169 crore. Further detailed representation shows that among the top 50 companies, 19 are from South, 17 from West and 14 from North. The third biggest company Wipro is also based out of South.