Rajasthan

An Ideal Bio Technology Destination

 

1.0      Introduction

 

Bio Technology is a frontier area of Science and Technology with a high promise for the welfare of humanity. A new generation of biotechnology developed as a result of intensive work in India has opened up new opportunities for economic development in the country.

 

The country is also rapidly emerging as a major market for biotech products. The current consumption of biotechnology products in India is of the order of Rs. 87 billion which is expected to increase to Rs. 234 billion by 2010. The healthcare sector would contribute 38% of the market, agriculture 32% and industrial products 30%. The small scale sector is expected to play a major role in the growth of the biotech industry.

 

There is widespread acceptance of the fact world over that Biotechnology alongwith Information Technology is going to be a major thrust area in the times to come. Of late, the announcement of Human Genome sequence and the progress made in the fields of Biogenetic and Bio Informatics in the last two decades have led to the growth of Biotechnology as a prominent industrial activity.

 

Rajasthan is very rich in Bio resources. The State provide tremendous bio diversity, rarely to be found in any other State. Agricultural and Forest produce have been the main source of the state economy for quite some time now. It is, therefore, necessary to lay more stress on this sector. Biotech application such as transgenic crops can significantly benefit this sector. The State is a leading producer of mustard, rapeseed, soyabean, barley, maize, wheat, cotton, groundnut, milk, etc. Fruits and vegetables, such as Potato, Tomato and Onion are also available in abundance. There is vast scope of quality improvement of cotton. In addition, there are various varieties of exotic Indian spices in the State. Thus, integrated horticulture development would improve the availability of raw material for food processing industries in the State.

 

Rajasthan is very rich in cattle breed also. Improved species of camel, sheep, rathi cows, nagouri bullocks etc hold great promise of research and development in biogenetics. State has highest livestock population and there is good potential in animal husbandry and genetic engineering.  Thus Rajasthan has great potential to create immense industrial activity in Biotechnology and modern Biotech products involving recombinant DNA based products and Bio Informatics.  In line with the developed world, the Government would make all efforts to focus on modern processes in the area of agriculture industry, floriculture, human and animal health care (medical and veterinary science) and environment to provide good commercial opportunities in the field of Biotechnology.

 

2.0      Biotechnology Industry - India

 

Biotech in India began during the mid- 1980s, but was concentrated with large domestic or multinational drug firms. Several small biotech companies have recently been established. In 1999 the biotech market in India was estimated at US$ 800 million and is expected to be around US$ 5 billion in 2001. Indian biotech industry employs about 10,000 people, which is expected to grow to 50,000 (research 50%, technical / services 35%, management 15%) by the end of 2008.

 

In the global biotech market, Indian share is presently about 2%. Consumption of biotech products in India was to the tune of INR 71,540 mn during 1997, which is expected to grow up to INR 145,870 mn by the end of year 2008. Around 72% of the consumption of biotech products in 1997 was met through local production.

 

While there are about 800 companies operating in all sectors of biotechnology in India, there are only about 30 companies that are working in modern biotech sectors. Few players have teamed up with foreign companies for sourcing technologies, and are experimenting with new products produced by foreign technologies with a view to introduce them in the Indian market, within the frame work of Indian laws.

 

India is taking steps to rationalise its policies to be in conformity with the provisions of the WTO. There are several advantages in the setting up of modern biotech industries in the country as it has core competence in some areas like skilled manpower and several R&D institutes. Research institutes and centres like CSIR, ICAR, ICMR, CDFD, CCMB, IISc and IICB presents large technical resource base. Indian biotech sector is showing an impressive growth mainly due to increasing collaboration of multinational companies or big Indian pharma companies with these indigenous research institutes. Although most of the biotech products are currently produced by imported technologies, but few diagnostics, plant tissue culture products, and a recombinant hepatitis B vaccine have been developed and marketed locally.

 

In India the largest market segment has been for the health care biotech products, which accounted for 53% of the total biotech industry in 1995. In the year 2000 it has risen to 60% but still the largest market share. Biotech products related to human health in the country are mostly for diagnostic and research purposes, such as antibodies for disease immunodiagnosis, tissue typing, and other clinical tests. Kits for blood grouping and detection for pregnancy, amebiasis, typhold, hepatitis B, and malaria have been developed locally.

 

The Indian pharmaceutical market is also growing exponentially, its value in 1997 was US $ 3bn, and is expected to rise to US$ 9 bn by the year 2008. Accordingly to Fici-McKinsey study Indian pharmaceutical industry is poised to grow to an innovation-led US$ 25 bn industry by 2010 with a market capitalisation of almost US$ 150 bn from the current US$ 5 bn generic-based drug industry.

 

Health care biotech market in India is primarily divided into:-

 

Vaccine market:- The vaccine market at present is estimated at US$ 100 mn and is growing at 20 percent annually.

Diagnostic market India's diagnostic market is expected to be around US$ 200 mn in 2001, with increasing demand for veterinary vaccines, diagnostics, therapeutics and protein feed.

Veterinary biotech:- With increasing domestic demand for veterinary vaccines, diagnostics therapeutics, and protein feed, the market for veterinary biotech products is expected to reach US$ 500 mn by the year 2008. Many multinationals have set up subsidiaries in India; for example, ELi Lilly- Ranbaxy will be marketing Monsanto's DNA recombinant bovine growth hormone to increase milk production.

 

India has a tremendous potential in Agbio being the second largest food producer in the world after China. As there is an increasing pressure to produce more food using lesser resources, GM food products is expected to hit the Indian markets in the next five years. Being agriculture based country; India has huge opportunity in agricultural biotechnology R&D and in its commercialisation. About 400 organisations are doing commercial research on agriculture: 200 research labs, 150 companies and 50 service firms, Medical foods and nutraceuticals sectors are also under development. Today, nutraceuticals market stands out to INR 25,000-30,000 mn (US$ 532-638 mn).

 

India aspires to become the world's largest exporter of agricultural products by the year 2010. The market for seeds in India was about US$ 750 mn in the year 1999, of which genetically engineered seeds account for US$ 250 mn. The total seed market is expected to increase to US$ 5 bn by the year 2008, where genetically engineered seed market stands out to be US$ 500 mn. There are about 50 private seed companies in India with total annual sales of US$ 0.5 mn. Monsanto, one of the largest agricultural companies in India, it planning to Introduce genetically engineered corn, soybean, and cotton to India.

 

Consumption of Biotech Products in India and Future Estimates (INR mn)

 

Particulars of Biotech  Sub-sectors

Consumption 1997

Consumption Estimate 2000

Consumption Estimate 2008

1.  Human & Animal Health care

26,370

(36.9)

35,320

(37.6)

57,480

(39.5)

2.  Agriculture (including seeds)

20,270

(28.3)

28,880

(30.7)

47,680

(32.8)

3.  Industrial Products

24,470

(34.2)

28,500

(30.3)

36,470

(25.0)

4.  Other Biotech Products

430

(00.6)

1,300

(01.4)

3,970

(02.7)

5. TOTAL

71,540

(100)

94,000

(100)

145,600

(100)

In US$ mn

1789

2186

3236

 

(Source: "Future of Biotechnology in India", Dr. P.K. Ghosh, Adviser, DBT. Figures in brackets indicate contribution in % of the total)

 

Among the industrial products, new investment opportunities are foreseen in industrial enzymes (over INR 500 mn), and in amino acids production where investment of over INR 700 mn is expected to come up to meet both domestic and foreign market needs.

 

India with its wide scientific pool and widening, resource base is slowly but steadily preparing itself for the biotechnology challenge. The emphasis today is on technology absorption, more influx of funds by venture capitalists and strengthening of links between the industry, academic and government institutions.

 

SWOT ANALYSIS

 

Strengths

Constraints

i.   Trained manpower and knowledge base

ii.  Good network of research laboratories

iii. Rich bio diversity

iv. Well developed base industries e.g. pharmaceuticals, seeds

v.  Access to intellectual resources of NRIs in this area

i.   Missing link between research and communication

ii.   Lack of venture capital

iii. Abysmally low R&D expenditure by industry

iv. Lack of innovative R&D culture

v.  Image of India industry - doubts about ability of Indian products to meet international quality standards

 

 

Opportunities

Threats

i.   Large local market

ii.  Export potential

iii. Base for contract research for international companies due to rising costs of R&D abroad

iv.  Large number of patients covering wider range of diseases

i.   Other developing countries like China is investing heavily and giving policy push to this sector

ii.  Danger of anti-biotech propaganda gaining grounds

iii. IPR policies

iv. Inadequate policy framework

 

3.0      Opportunities in Rajasthan

 

The opportunities in Biotechnology are numerous and multi-faceted. They are growing in diversity and market value very rapidly.

 

3.1     Bio Informatics and Genomics.

 

Information Technology is going to play a major role in the functional development of new genomic medicines, the expected market for which shall be 200 billion US dollars around 2010. Infotech professionals from the State shall get work from large industries and international genomic houses, which are likely to out-source their requirements. Bioinformatics, broadly means, the interface between Biology and information Technology. This uses computing and data based techniques to describe and analyses the complex information on protein and gene sequences derived from such work as the Human Genome Project.

The Human Genome Project (HGP) was the first mega project in biology, involving international participation and public and private partnership.

 

3.2      Agriculture

           Agriculture food products like mustard, soyabeen, rapeseed, barley, maize, wheat, cotton, groundnut, fruits and vegetables, spices etc. which have a strong presence in Rajasthan, could be targeted for Biotechnology research.

 


    Rajasthan is leading producer of the following crops in the country

 

Sr.

 

Crops

Qty. (in million Tonnes)

Rank in India

 

Mustard

2.65

I

 

Guar

0.23

I

 

Isabgol

0.06

I

 

Barley

0.37

II

 

Soyabean

0.60

III

 

Wheat

6.73

V

 

Ground Nut

0.26

VI

 

Maize

0.97

VI

 

Reference: Economic Intelligence Service, CMIE, Nov.'2001

 

A few more areas of focus in agriculture based sector are:-

Bio Pesticides and Bio Fertilizers,

Development of heritable traits responsible for various abiotic stresses like drought, temperature and salinity in crop improvement.

Genetic improvement of Animal breeds,

Transgenic Seeds for Dry farming,

Development of Bio fuel.

Development of genomic medicines.

               

3.3      Pharmaceuticals and Contract Research Organisations

 

The trend to outsource low cost R&D capabilities in biotechnology is increasing. This represents a tremendous opportunity for Indian companies to do contract research for overseas corporations. The current global spends on out sourced R&D is approximately $7 billion and is expected to grow at 30% per annum for the next 5 years. Typically, opportunities exist in basic gene sequencing work, DNA library preparation, genetic research related to medical diagnostics, new crop varieties and early stage drug development. Large multinational corporations follow a strategy of subcontracting parts of their R&D programmes to smaller and lower cost companies and derive benefits in costs as well as time.

The key stakeholders in this segment would be pharma companies, entrepreneurs, research institutions (public & private), R&D facilities, funding agencies and educational institutes.

Contract Research Organisations (CROs) have great potential to function as export oriented units and are comparable in their activity to the software development activities in the IT sector. Software services were outsourced by the large overseas IT companies in a very similar manner, starting initially with the sub-contracting software development of small modules of complex software and a decade later, the Indian IT sector is now capable of handling the entire software, the primary reason for the prolific growth in the IT sector. Contract research in Biotechnology offers the same template of growth and the Government of Rajasthan is firmly committed to supporting these organizations

 

4.0      Existing Resources

 

4.1 Premier Institutions in Rajasthan

 

The premier institutions in Rajasthan which are offering education and research facilities in Biotechnology are Agriculture University, Udaipur; Rajasthan Agriculture University, Bikaner; University of Rajasthan, Jaipur; Agriculture Research centre, Durgapura, Jaipur; Birla Institute of Scientific Research, Jaipur; Central Arid Zone Research Institute (CAZRI), Jodhpur ; etc. These institutes are involved in R&D activities covering Medicinal Plants, Tissue Culture, Plant Genetics etc.

BITS, Pilani is offering courses in Bio Tech and Bio Science such as M.Sc., ME, M.Pharma, B.Pharma etc. BITS Pilani is also engaged in research in various areas of Bio technology and Bio sciences and working on various projects for leading companies. This premier institutes can provide consultancy, contractual research, training etc. in the Bio-technology sector.

4.2     Facilities available at R&D Centers in Rajasthan.

The R&D Centers located at Agriculture Research Station, Durgapura, Jaipur; Rajasthan Agriculture University, Bikaner and Birla Institute of Scientific Research, Jaipur; Birla Institute of Technology and Science, Pilani are having sophisticated labs equipped with following facilities:

Trinocolar Microscope with Micro-Zoom Photographic attachment

Elisa Reader

Refrigerated Centrifuge

Micro-Refrigerated Centrifuge

Ultra-Centrifuge

Deep Freezer (-80°)

Disc/slab Gel Electrophoresis

Densitometer

Gel Documentation system with Image Analysis Software

Audio-Visual Equipments

Genetic Analyser

Tissue Culture Laboratory

Reverse Osmosis Water Purifier System

Rain-Out-Shelters

Transilluminator

Growth Chambers

Green Houses

 

5.0 RIICO extends a special land package to Modern Bio Tech Industries and Institutes in the designated Bio Tech Parks

 

Now the land allotment for setting up of various Bio-Tech and Bio-Informatics industries including projects covered under Modern Bio Technology, will be made at the rate of development charges prevailing in the area. The following entitled land rebate by way of reimbursement shall be allowed after stipulated minimum fixed investment is actually made on the allotted plot within the period stipulated for investment in the package.

 

1.   Major Bio Technology and Bio Informatics Companies (annual turn over of more than Rs. 100 crores in this field as per the latest audited balance sheet) - For the industry which is set up on the allotted plot with a minimum fixed investment of Rs. 10 crores within a period of 4 years from the date of allotment in a specially designated Bio Technology parks/ zones, entitled land rebate shall be @ 60% of the allotment rate for the plot upto maximum of 10 acres area.

 

2.  General Bio Technology and Bio Informatics Units- For the industry which is set up by any entrepreneur on the allotted plot in a specially designated Bio Technology parks/ zones with a minimum fixed investment of Rs. 15 lacs per 1000 sqm. within a period of 5 years, entitled land rebate shall be @ 40% of the allotment rate for the plot upto maximum of 5 acres area. Additional discount of 10% on allotment rate may also be allowed if the plot allottee commences commercial production within 3 years from the date of allotment.

 

3.  General Bio Technology and Bio Informatics Training Institutes- No rebate in the allotment rate shall be allowed. However, RIICO may consider land allotment in any industrial area on the rate prevailing in the area.

 

4. Bio-Technology Industries outside the Bio-Technology Parks in Identified Industrial Areas - For the Bio Technology industries which is proposed to be set up outside the Bio Technology Parks in the Identified Industrial Areas, entitled land rebate shall be @ 10% of the allotment rate for the plot upto maximum of 4000 sqm. area.

 

Notes-

a)      In case of failure to observe the terms and conditions regarding investment and time schedule mentioned in the package, the concessional amount shall be recovered from allottee with interest from the date on which concession amount has been reimbursed.

b)      In each case the decision of RIICO shall be final as to what qualifies as Bio-Tech Industry / Institute for the purpose of above said incentive.

c)      For reimbursement of the concessional amount, the plot allottee would be required to inform RIICO office by a registered AD letter sent prior to the scheduled date regarding the building construction. After verification by the Unit Head, the cheque or rejection letter, as the case may be, will be sent by RIICO within 30 days by registered AD letter.

d)      A committee of F.A., Advisor (Infra), Add.GM (T-Girish Gupta) and DGM (F-IP&I) shall identify industrial areas based on pace of allotment and put up to MD for approval, so that 10% rebate on prevailing rate of development charges subject to maximum of 4000 sqm. may be allowed.

      e) Definition of Modern Bio Technology:

·         R&D and /or Manufacturing activities involving recombinant DNA Technology for bio Pharma, Agriculture, Health and Environment.

·         Areas of Genomics, Proteomics, Bio-informatics and Gene-Cloning.

·         Plant Tissue Culture research and development (Land upto maximum of 4000 sqm. may be allowed).

·         Active ingredient identification and preparations of Medicinal and Aromatic Plants and Herb- Bio processing.

·         Quality Assurance/ Quality Control Labs for recombinant DNA products/ GM Products.

·         Production of Industrial Enzymes.

   f)  The cases for land allotment to Bio-Technology projects in Bio-Technology Parks and Identified Industrial Areas shall be put up to the Committee of GM(IT-BT), Advisor (Infra), F.A. and Add.GM(GG)- Member Secretary for view on project classification as Modern Bio-Tech or conventional Bio-Tech and to determine the permissible land rebate. MD is also authorised to review and make necessary changes in the guidelines for providing RIICO land for Modern Bio-Technology units from time to time.

        

6.0      Infrastructure for the Development of Biotechnology

 

6.1      Bio Tech Parks by RIICO

 

Bio Tech Parks at two locations namely Sitapura-Jaipur and Chopanki, Bhiwadi (Alwar) has been set up by RIICO. The necessary common facilities such as incubators, R&D Centre etc.  will be encouraged in private sector.

 

(i) Bio Tech Park at Sitapura, Jaipur:-

 

RIICO has developed Bio Tech Park in an area of about 23.5 acres at Sitapura, Jaipur. The Park is located on Jaipur, Kota national highway, just 4 kms. away from the Airport and about 15 Kms. from the City Centre.

 

15 nos. of plots have been developed in the Park. The size of the developed plots is ranging from 700 sq. mtrs. to 20,000 sq. mtrs. Good quality Infrastructure such as Earth Station (for high speed data com facility), Power, Telecom, Roads, Educational Institutions, Water supply etc. are available in the park.

 

Presently plots are not being allotted/offered.

 

(ii) Bio Tech Park at Chopanki-Bhiwadi (Alwar)

 

RIICO has developed Bio Tech Park in an area of about 14.5 acres at Chopanki (Bhiwadi). The Park is located about 5 kms. from the Bhiwadi. 13 nos. of plots have been developed in the Park. The size of the plots is ranging from 3000 sq.mtrs. to 4000 sq.mtrs. Good quality infrastructure such as power, telecom, roads, water supply etc. is available in the park.  

 

Presently plots are not being allotted/offered.

 

6.2     The State Govt. will also encourage development of Bio Technology Parks in private sector. State Govt. would consider extending concessions to such Bio-Technology Parks on case to case basis, to be decided at the level of SLEC/BIDIP.

7.0      Manpower:-

BITS, Pilani; Rajasthan Agriculture University, Bikaner; Agriculture University, Udaipur and other Institutions offers courses (under graduates and Post graduates) in Bio Tech, Bio Sciences etc.

Most of Universities and Colleges in the State are now offering B.Sc.(Bio-Tech) and M.Sc.(Bio_Tech) courses.

 

8.0      Venture Capital Fund

 

RIICO in association with SIDBI is operational a Venture Capital Fund known as Rajasthan Venture Capital Fund (RVCF) for providing Venture Capital to IT, Biotech and other knowledge based industries.

 

 

For details, please contact:

 

A.K. Gupta, General Manager/

Dinesh Pahadia, Dy. General Manager

RIICO Limited, Udyog Bhawan,

Tilak Marg, Jaipur -302005

Tel. No.:  0141- 2227751/5113201,  Fax No.: 0141-5104804,

Email : akgupta@riico.co.in  OR  dpahadia@riico.co.in OR riico@riico.co.in