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Bangalore , Sept. 25

THE biotechnology industry, valued at Rs 1,830 crore during 2002-03, is poised to grow at the rate of 25-30 per cent this year.

Hailed as the next big thing for India after infotech, the biotech sector will also see investments doubling over the next two years. The total investment in 2002-03 stood at Rs 635 crore, up from Rs 505 crore during the previous year, according to a joint survey by the Association of Biotechnology-Led Enterprises and Biospectrum magazine. This is said to be the first ever study of the Indian biotech industry.

Towering over the 100-odd companies that were surveyed is Bangalore-based Biocon India, with a turnover of Rs 255 crore, and is followed by another Bangalore major, the Rs 98.5-crore Wipro Health Science, which is ranked at number 3 position. The survey puts Delhi-based Panacea Biotec, Wockhardt and Haffkine among the top five players.

The survey has listed the top 50 companies by revenue and profiles of over 120 promising ones in the country. It has "taken into consideration the biopharma, bio-agri and bio-industrial 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," a release by ABLE said.

But that is not to say that all is hunky-dory with the biotech sector. ABLE President and Biocon India CMD, Ms Kiran Mazumdar-Shaw, said, "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 ventures signifying the intrinsic belief in biotechnology being the business of the future."

Of the various segments, the biopharmaceuticals sector - with vaccines, therapeutics, diagnostics, accounts for 70 per cent or Rs 1,275 crore of the market share; the bio-industrial segment - including enzymes, organic amino acids, yeast and yeast-based products - for 13 per cent or Rs 235 crore in sales; bio services - including clinical research, contract research and contract manufacturing - for 7 per cent or Rs 135 crore in revenues.

The bio-IT market is estimated at Rs 75 crore. e bioagri market, consisting of Bt cotton in the seeds category and biopesticides and biofertilisers, adds up to 6 per cent or Rs 110 crore. Hybrid seeds alone are estimated at Rs 180 crore.

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

The biotech sector today employs 6,400 people and is concentrated in the South, North and the West, with the South accounting for 39 per cent of the business done, and the presence of 19 of the top 50 companies. The single largest southern contributor is Biocon. Infrastructure and R&D account for 80 per cent of the total investments. Manpower has grown 68 per cent from 2001-02.

Exports, put at 53 per cent or Rs 975 crore excluding suppliers, have been the driving force of the sector, compared to Rs 855 crore coming from domestic sales.

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