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