• 9 June 2011
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BioIndustrial Takes baby steps

BioIndustrial Takes baby steps
  • The bioIndustrial market in India clocked 625.94 crore in
  • 2010-2011
  • Novozymes remains leading player
  • Exports continue to drive the homegrown companies
The bioIndustrial market in India clocked 625.94 crore in 2010-2011, growing at a rate of 10.98 percent for 2010-2011, as against 564 crore in 2009-2010.
India has a marginal share in the global market for industrial enzymes, which is estimated to be at about $3.3 billion (14,904.4 crore). The segment is forecasted to grow at a CAGR of 15 percent till 2015.
Industrial enzyme consumption in India, is in the various sub-segments of detergents, pharmaceuticals, food and beverages and animal feed with detergents and pharmaceuticals having a lion’s share of the market. Other segments include textiles, leather and pulp.
Leading players in the segment include Novozymes, Danisco, Advanced Enzymes, Rossari Biotech, Maps (India), Zytex and Lumis, Kerry Biosciences. Novozymes continues to remain the top enzyme player in the market commanding a market share of 50 percent. Advanced Enzymes takes the second spot with a market share of 20 per cent. Rossari Biotech takes 13 percent, Maps (India) (6 percent), Zytex (3 percent) and Lumis, Richcore Life Sciences, Titan Chemcials, Kerry Biosciences split the remaining market share between themselves.
Though there is a prevailing domestic demand, the segment is largely export driven. Major export markets include the US (global share of 40 per cent), Europe (global share 25 percent) China (Global share: 20 percent). Others include Rest of Asia (Global share of 15 percent). Realizing the potential of the opportunities outside India, many Indian companies are expanding their base outside the country even into difficult markets such as China. Advanced Enzymes for instance, will start its European and Chinese subsidiaries for market expansion. And this is how the company expects to achieve its 1,000 crore revenue-milestone in the next five years.
The investment in research and development by the Indian companies continues to remain on the conservative side. Few companies have their own R&D and manufacturing set-ups. The common strategy for most of the homegrown companies is to import enzymes from foreign companies and then resell them into the Indian markets. India has a small share in the total global market due to the declining price points of enzymes every year. The price drop can be as much as 10 percent depending on the type of enzyme.
MNCs have dominated the market for a number of years, yet the segment is gradually witnessing the entry of Indian companies, who are building capacity and capability to compete with the MNCs.

Top 5 BioIndustrial Companies by Revenue (2010-11)
Rank Company Revenue in Crore
2010-11
Revenue in Crore
2009-10
Revenue in Crore
2008-09
Change over 2008-09 (%)
2010 (%)
Change over 2009-10 (%)
2011 (%)
1 Novozymes South Asia * 242.00 224.00 205.50 9.00 8.04
2 Advanced Enzymes 154.00 121.00 88.60 36.57 27.27
3 Rossari Biotech* 72.00 55.38 30.01
4 Zytex 21.00 18.00 14.00 28.57 16.67
5 Maps (India) 19.60 19.10 19.17 -0.37 2.62


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