Unprecedented Growth Opportunity

BIOTECHNOLOGY

Biotechnology

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India

India - An Introduction

Population

States/UTs

Geographical Area

Languages recognised

Business language

Per Capita Income**

GDP**

Over 1 bn

35

3.3 mn sq kms

22

English

US$ 534

US$ 650 bn**(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 - 3rd largest optical media

manufacturer in 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%

Bio Agri6.95%

Bio Pharma75.24 %

Bio Services8.95%

Bio-IT2.09 %

Biopharma leads the way

Composition of Indian Biotech Sector (2004-05)

Bio Industrial6.74%

Source:Biospectrum-ABLE Survey

Market - A consistent uptrend

2002-03

2010

25% growth in investment

70% growth in employment

74% growth in R&D manpower

10% of global industry

1 million skilled jobs

US$ 5 billion annual revenues

Source: Confederation of Indian Industry (CII)

Biotechnology

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India

Indian Players

MNCs Scripting Success in India

Biotechnology

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India

Year US$ millionGrowth

(%)

2000-01 54

2001-02 108.9 102

2002-03 137.2 26

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

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)

Invest in Biopharmaceuticals

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 14% of total biopharma sales (2004-05)

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 mnSource: International Data Corporation (IDC)

Opportunities for

investment

Data mining

Gene annotation

Software bioinformatics

interface development

Genomics

Industrial Biotech

Invest in Genomics and Industrial Biotech

Size (2004-05) US$ 73.5 mn

Invest in Agri Biotech

Biofertilisers

GM Crops and seeds Biopesticides

Biofuels

Invest in Agri Biotech

Biofertilisers

GM Crops and seeds Biopesticides

Biofuels

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

Clinical Trials - Destination India

Biotechnology

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India

The India Advantage

Trained manpower and knowledge base

Rich biodiversity Extensive clinical trials opportunities

Excellent network of research laboratories

Well-developed base industries

40 National Research Institutes

300 life sciences colleges

120 medical colleges

200 biotech companies

100 teaching hospitals

The Infrastructure Advantage

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

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

The Biotech Park Advantage

Biotechnology

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India

Contact in India

Confederation of Indian Industry (CII)

23 Institutional AreaLodi RoadNew Delhi 110003

Tel 0091 11 24629994 - 7Fax 0091 11 24626149/24615693E-mail sandhya.tewari@ciionline.org