What exactly are BioChemicals?
Unlike other chemicals, the biological ones are found at the bottom of a test tube, but from living, breathing organisms. Some of these bio chemicals are Carbohydrates, Nucleic acids, Lipids, Amino acids, Proteins and Other enzymes.
Bio technology is an extremely vital branch of science, as it deals with various researches being used to benefit the lives of human beings.
The use of biochemical as weapons, has led to some truly wonderful operations, such as bioinformatics, the famous Nano-technology, genomics and protein engineering. Bio technology has turned out to be the most rapidly growing field in India’s current knowledge economy. So is being done in this field, such as animal husbandry, medicinal plans, aromatic plans, aquaculture, bio fuels and so on. This field just keeps on evolving, with no signs of slowing down.
The various enzymes that are produced by microorganisms are adding up to the already vast industrial enzyme market. These enzymes are being used is numerous other sectors, which is acting as a cost saving technique. Bio gas systems are also been developed in new and improved ways. This is hugely benefiting the agricultural and ecological environment of the country. Farming is becoming so much advanced and improved; the future of agriculture in India is supremely bright. In the years to come, nano technology is going to be smartly applied into the field of discovery of new drugs. Think of all the possibilities this will open up to the humankind.
Let’s talk Biotechnology and its money making power
With the emergence of biotechnology, the Indian knowledge economy will never be the same as before. The potential for money making is huge and unmeasurable at this point. The production of goods and services is going through a tremendous change, thanks to the application of biological systems in the manufacturing processes. Various research and development process based on biotechnology are underway.
Instead of using inorganic and potentially dangerous methods of producing insecticides and pesticides, new and improved biotechnological methods are being used to fight of insects and pests. This will not only help the productivity of farms, but will also promote a very ‘green’ agro culture. Bio pesticides contribute a good percent of the total insecticide market of India. Also, the growth rate of this sector is almost 10 percent per annum. This might seem very small in a global context, but the growth rate of bio pesticides is nothing to sneeze upon.
Biotechnology is slowly and steadily making it possible for us to grow, industrially and economically, in a very sustainable and safe manner. Thanks to the ever prevalent demand for going green, performing the social responsibility and the growing environmental consciousness among the general populace, bio technology could be an answer to many of our industrial questions. The potential for growth and profit is humongous. Anyone wanting to start up a business in this field will have no dearth of investors, customers, end-consumers and the technology needed to see it through. This field is picking up a lot of global heat.
Growing at a faster pace, in comparison with the previous years, the Indian biotech industry witnessed YoY growth of 57.14 per cent in FY16; the total industry size stood at US$ 11 billionby FY16 and is estimated to reach US$ 11.6 billion by FY17
Fast-paced growth is likely to continue; the industry is expected to increase in size to US$ 11.6 billion by 2017, driven by a range of factors such as growing demand, intensive R&D activities and strong government initiatives
The Indian biotech industry holds about 2 per cent share of the global biotech industry. The biotechnology industry in India, comprising about 800 companies, is expected to be valued at US$ 11.6 billion in 2017. The government has to invest US$ 5 billion to develop human capital, infrastructure and research initiatives if it is to realise the dream of growing the sector into a US$ 100 billion industry by 2025, as per Union Minister for Science and Technology, Mr Harsh Vardhan.
Biopharma is the largest sector contributing about 62 per cent of the total revenue followed by bio-services (18 per cent), bio-agri (15 per cent), bio-industry (4 per cent), and bio-informatics contributing (1 per cent).
The high demand for different biotech products has also opened up scope for the foreign companies to set up base in India.
India has emerged as a leading destination for clinical trials, contract research and manufacturing activities owing to the growth in the bio-services sector.
According to the report, global biotechnology market was valued at over USD 56.4 billion in 2015, is expected to reach above USD 94.6 billion in 2021 and is anticipated to grow at a CAGR of slightly above 9.0% between 2016 and 2021.
The biotechnology market has been classified into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. With the largest shares in total consumption, biotechnology reagent market was dominated by North America in 2014. This region is expected to be the fastest-growing market in near future owing to the development of new products, government support, advanced healthcare sector and large investments for biotechnology . This growth was mainly supported by U.S. due to successfully completion of human genome project and increased use of in molecular biology. Moreover, biotechnology market in Asia Pacific is likely to witness high growth during the forecast period because of the rise in R&D sector.
The Biotechnology industry in India has the potential of making it big on the global scene. Formidable pool of medical knowledge, a large patient population—that will not only make clinical research viable but also be a significant market for biotech medicines—besides low manufacturing and R&D costs could lead to a major spurt in business activity. Equally important, a large amount of business could be outsourced by international biotech companies.
A quick glance at the Top 20 companies in the Biopharma business shows that only six are multinationals, while the rest 14 are home grown companies. Take for example the two leading Indian companies in the Biopharma sector, Serum Institute of India and Biocon Group.
The biotech industry is well spread across the country. Several states have biotech policies and biotech parks to promote the industry. The biocluster in The Western region is the largest in terms of revenues generated. It is centered on the cities of Aurangabad, Ahmedabad, Mumbai, and Pune and comprises over 280 companies. The Western region has been a major base for the Indian pharmaceutical industry, companies like Wockhardt, Nicholas and Intas as well a number of large international companies including GlaxoSmithKline, Novartis, Pfizer, Johnson & Johnson, Abbott, Aventis Novo Nordisk, etc. It is also the home of The Serum institute of India, which as the largest manufacturer of vaccines. Biocluster in the southern region houses nearly 60% of the biotech companies in India, Bangalore is home to the country’s largest biotech group Biocon, Hyderabad is home to a number of mature biotech manufacturers like Indian Immunologicals, Shantha Biotechnics, Bharat Biotech and Dr Reddy’s. A proactive and supportive state government is an attraction for investors. The biocluster in the National Capital Region, which is comprised by the cities of Delhi, Nodia and Gurgaon, houses a number of large national and international biotech companies including giants like Valiant, Ranbaxy, and Eli Lilly.
India’s biotech sector has attracted significant amount of attention over the past two decades. Several global companies have aggressively joined hands with Indian companies due to India’s strong generic biotechnology potential. Some of the recent investments and developments in this sector are as follows:
- The Telangana state government’s flagship pharma and biotech event – BioAsia 2017 attracted investments to the tune of Rs 3,382 crore (US$ 507.3 million).
- During the Vibrant Gujarat Global Summit-2017, 54 MoUs worth Rs 5,022 crore (US$ 736.1 million) in the biotechnology sector were signed by 37 companies.
- Syngene International Ltd, the contract research services arm of Biocon Ltd, is setting up a drug discovery and development center in Bengaluru for Amgen Inc., a biotechnology company based in the US.
A Network of Technology Centres and promotion of start-ups by Small Industries Development Bank of India (SIDBI) are among the steps taken by the Government of India to promote innovation and entrepreneurship in the agro industry proposed by the Ministry of Micro, Small & Medium Enterprises (MSME) in a new scheme. The Government of India has taken several initiatives to improve the biotechnology sector in the country as well as offer enough scope for research in this field. The Department of Biotechnology (DBT) along with other government funded institutions such as National Biotechnology Board (NBTB) and many other autonomous bodies representing the biotechnology sector, are working together in order to project India as a global hub for biotech research and business excellence. Some of the recent major initiatives are as follows:
- In the Union Budget 2017-18, the Department of Biotechnology (DBT) received Rs 2,222.11 crore (US$ 333.31 million), an increase of 22 per cent, to continue implementing the department’s national biotech strategy and target increasing the turnover from the sector to $100 billion by 2025 from $7 billion in 2016.
- The Telangana government also inked an MoU with PE firm Cerestra to explore a ‘Life Sciences Infrastructure Fund’ with a corpus of Rs 1,000 crore (US$ 150 million) to create a sophisticated modular plug and play infrastructure for pharma, biotech and medical devices industry.