Bio Technology

Global Biotech Industry is growing at a fast pace through continuous research and development with net incomes in 2014 touching an unprecedented high of USD 14.9 billion. India is amongst the top 12 Biotech destinations in the world and a major Biotechnology hub in the Asia Pacific region growing at a CAGR of 23% over the last decade. India also has the 2nd highest number of USFDA–approved plants. With the highest number of Biotech companies in India choosing to be located in Karnataka, the state is a natural hot bed for innovation, growth and monetisation in the field of Biotech making it the No.1 Biotech hub with total revenue of USD 1.18 billion in 2013-14. Karnataka is committed towards creating a supportive environment by enabling infrastructure, skill development and network opportunities through a holistic policy framework.

Key drivers for growth in the segment:

The sector has seen high growth with a CAGR in excess of 20% and the key drivers for this growth are increasing investments, outsourcing activities, exports and the government’s focus on the sector. Cost-effective manufacturing capabilities enable strong domestic growth. Also, this makes Karnataka a preferred destination for global companies looking to economise production through outsourcing. Adding to these is, fast developing clinical capabilities, making the country a popular destination for clinical trials, research and manufacturing activities. Growing demand for these products in the country as well as in other emerging economies makes this sector more lucrative with opportunities to address the demand and supply gap.

The presence of a thriving Biotechnology ecosystem across the value chain stands Karnataka in good stead. It is also the first state in the country to bring out Biotechnology Policy and set up a Vision Group comprising of industry experts, sector experts, government and academia to guide policy interventions and implementation. Karnataka is the knowledge hub for biotechnology industry with the sector employing more than 19,000 highly qualified professionals. This can largely be attributed to the premiere Biotech educational institutions and training centres in the state that harness talent and develop skill in the field. The presence of world class laboratories and infrastructure for Research and Development ventures and the development of joint IT-BT parks in the state to leverage information technology for research and development in BT at a single hub makes Karnataka the destination to be for the Biotech industry. Bio-Ventures Fund and Incubation Centre with state-of-the-art laboratory facilities are being established to attract new ventures and investment to the state.

Track Record:

Karnataka is home to the highest number of Biotech companies in India (~60%) with Bengaluru having a track record of being the No.1 Biotech city in Karnataka. It is also a popular destination for start-ups in Biotechnology such as Criyagen Agri & Biotec; Theramyt Novobiologics, Anthem Biosciences, Mir Life Sciences, etc. and is focused on producing many more with a growth rate of 30% annually. Bengaluru is a leading knowledge hub with world class establishments in scientific Research and Development such as IISc, JNCASR, NCBS, NIMHANS, CFTRI, IBAB, CHG, IABT to name a few. The achievements of these leading institutions in various areas like Raman Spectra, Ramachandran Plot, Mission Mars, Crop Hybrids, Bt Cotton, Insulin Production, Diagnostic kits, Nano Materials, Crystal Structures and Computer Modelling etc have set base for bringing in foremost companies in Biotechnology. The state also records the highest R&D spend in southern India. These factors make Biotech in the state thrive across diversified industrial groups like Agro, chemicals, consumer products, etc.

The Millennium Biotech Policy II 2011 was created to provide incentives; logistics and, funding support to make Karnataka a globally competitive destination in the Biotechnology sector. The Karnataka State Industrial policy provides for additional incentives in production facilities. Karnataka has pioneered the first Multi-Sector start-up policy in the country aimed at creating a globally competitive start-up ecosystem through strategic investment and policy interventions to complement the robust innovation climate of the state. Karnataka is also the organizer of the largest annual Biotechnology focused summit in the country- The Bangalore India Bio Summit. The summit having successfully completed 15 editions since 2001, demonstrates the sustained commitment by the Government of Karnataka to promote Biotechnology in the state.

Focus areas for investment include:

Agri Products
Biotech Crops (Pulses, Cereals, Plantation Crops)
Aerobic Rice (water savings)
Sugarcane-Alternative Products

Pharma
Vaccine technologies
Drug Discoveries (new antibiotics and other natural entities)
Synthetic Biology

Environment
Conversion of Waste to useful products
Bioremediation

Energy
Bio fuels
Marine Biology

Investment opportunities in Infrastructure:

Five Bio -Innovation Clusters & parks with investment requirement of USD 20 mn +, have been identified to cater to the growth in this sector

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