enabling entrepreneurship for inclusive economic development by kiran mazumdar shaw, biocon, march...

Innovative Science Affordable Medicine

Enabling Entrepreneurship for Inclusive Economic Development

www.biocon.com

Kiran Mazumdar Shaw CMD, Biocon Ltd

CII: ‘Entrepreneurship as a Growth Engine for Karnataka’ Bangalore, 15th March, 2013

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India: Fastest Growing Economy by 2060

• India will outpace China in growth by 2060

Source OECD Report: 2060

18%

16%

3%9%14%

28%

28%

2060India

United States

Japan

Europe

Other OECD

Other non-OECD

China

Global GDP Percentage in 2005 PPPs

Global GDP is taken as sum of GDP for 34 OECD and 8 non-OECD G20 countries

Growing from 7% to 18%

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GDP per Capita Gap Shrinks but Difference Persists

• China & India will experience sevenfold increase in per capita Income

• India’s per capita income will still remain amongst the lowest

Per Capita Income 2060

China 25% above current USA level

India Half of current USA level

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Sectoral Imbalance

Sector GDP Employment

Agricultural 14% 52%

Industrial 28% 14%

Service 58% 34%

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Key Challenges in Agriculture

India’s Arable Land: 2.3% of World’s Land Mass

Food Security for 17.5% of World Population

India : Poor Crop Yields

India with 158 million hectares of arable land

249 million tons of cereal

China with 110 million hectares

483 million tons of cereal

USA with 163 million hectares

420 million tons of cereal

Biotechnology Can Usher a Second Green Revolution

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• ~ 9.9 million hectares under Bt cotton cultivation • 35.5 million bales (7.1 mn tons) of cotton/annum • India today a net exporter of cotton • ~6 million farmers cultivate Bt Cotton

Bt Cotton: A Success Story

India is World’s No 2 cotton producer

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Manufacturing: India Lagging Behind

Has the potential •To Grow six fold to $ 1 Trillion •To Create 90 Billion jobs •To Generate 20-25% of GDP

Need to unleash the potential Source: McKinsey Report

by 2025

Textile Exports India China

2011 $ 34 Bn $ 94 Bn

Global Market Share

1.5% 11%

India Vs China

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Indian Contract Manufacturing Sector

• India is the Preferred Outsourcing Partner for global pharma & biotech

• Indian CMO currently at $ 2.3 Bn estimated to attain a size of $10 Billion by 2025

India offers Largest no. of USFDA approved plants outside of USA

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Indian National Biofuel Policy: Focus on Ethanol blending and Biodiesel

BIO-FUELS: Emulate Brazil and develop other resources like seaweed & algae,

+ Waste to energy

BioEnergy : Reducing the Oil Bill

Global Biofuel Production 100 billion litres (2010)

Brazil 2nd Largest Producer of Biofuels Between 1975-2005 oSaved $100 Bn as foreign exchange oReduced Green House Gases by 570 million tons

Source:ABLE report

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High Value Bio Services

• India: Laboratory for the World • Offers world class cost effective research capabilities • Large Scientific Talent Pool

Indian Research Services 2011

Revenue: $ 765 million

Growth: 15.5%

Skilled Cost effective talent pool

Large diverse patient population

Regulatory Infrastructure

Growth Drivers for BioServices in India

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Conclusion

• S

Bio-Agriculture

Bio Manufacturing

Bio Services

Strategy for 2nd Green Revolution based on safe genetic technologies to bridge the productivity gap

Fermentation based Bio-manufacturing as a global leadership strategy for drugs, vaccines, enzymes and biofuels for affordable solutions

Enabling policies for exponential investment in innovation for global healthcare

Indian Biotech

• Indian Biotech at $ 7.5 Bn • BioAgri at $ 4 Bn the largest segment • Followed by Biopharma/ manufacturing at $ 2.5 Bn and

BioServices at $ 1 Bn

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Indian Biotech Sector Most Balanced

2.5

1.04.0

Indian Biotech Sector

Biopharma/ Manufacturing

Bio Services

Bio Agri

in US$ Bn

Innovative Science Affordable Medicine

Thank You kiran.mazumdar@biocon.com

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