Novozymes South Asia
Novozymes acquired Biocon's enzyme business for an agreed purchase price equivalent to DKK 551 million. With this acquisition, Novozymes aims to strengthen its position in India.
With the acquisition of Biocon's enzyme business, 2007-2008 proved to be a good year for Novozymes with high sales of Rs 225 crore. The company presently holds close to 65 percent share in the industrial enzymes market and plans to take this figure to 70 percent in the year ahead. In textiles it holds a 90 percent share followed by a number of formulators in the country and in starch again it has a 90 percent share.
Headquartered in Denmark, Novozymes is a group company of
Novo Nordisk. In India, the company is represented by Novozymes South Asia,
located in Bangalore. Through its wide network of sales and marketing
professionals, Novozymes South Asia is exploring the Indian market for the
product range offered by the
Novozymes last year acquired the Biocon's enzyme business for an agreed purchase price equivalent to DKK 551 million ($115m or €83.4m). With this acquisition Novozymes aims to strengthen its position in India. Commenting on the acquisition, GS Krishnan said, "After the acquisition we have become very much visible now. It has given us a leadership position in the market. Even before the acquisition we were in a leadership position, but now after the acquisition, we hold more than 65 percent of the market share. However, we are looking at a target of 70 percent."
Novozymes is building up new laboratory, repacking and office facilities in Bangalore which are expected to be ready in another one and a half years' time. Thereby, Novozymes establishes R&D operations in India in a big way for the first time. The R&D unit in India will initially focus on optimizing enzyme properties, and application development. Novozymes spends about 13 percent of its turnover on R&D. And around one tenth of its expenditure on R&D is used in new areas, in line with its strategy of building up new business areas beyond enzymes and microorganisms.
By 2010 the company aims to produce second-generation bioethanol that converts waste and agricultural residues into energy. This will be a radical development in the search for new renewable energy sources.
Sharing the company's future plans, GS Krishnan said, "We will be looking more into the Indian enzyme market, specific local applications, specific products to the Indian market and also get into some of the areas which are still going slow. Our long term plan is to get closer to some of the research institutes in developing certain applications relevant to the local market. We are watching biofuels and biodiesel areas very closely to see how we can contribute through our experience and our expertise. We want to bring Novozymes India on the map of Denmark."