Enabling Entrepreneurship for Inclusive Economic Development

1. Innovative Science
Affordable Medicine
Enabling Entrepreneurship for Inclusive Economic Development
CII: ‘Entrepreneurship as a Growth Engine for Karnataka’
Bangalore, 15th March, 2013
Kiran Mazumdar Shaw
CMD, Biocon Ltd
www.biocon.com

2. India: Fastest Growing Economy by 2060
• India will outpace China in growth by 2060
Growing from 7% to 18%
Global GDP Percentage in 2005 PPPs
2060
India
18% United States
28%
Japan
16% Europe
28% Other OECD
3%
14% 9% Other non-OECD
China
Global GDP is taken as sum of GDP for 34 OECD and 8 non-OECD G20 countries
2
Source OECD Report: 2060

3. GDP per Capita Gap Shrinks but Difference Persists
• China & India will experience sevenfold increase in per
capita Income
• India’s per capita income will still remain amongst the
lowest
Per Capita Income 2060
China 25% above current USA level
India Half of current USA level
3

4. Sectoral Imbalance
Sector GDP Employment
Agricultural 14% 52%
Industrial 28% 14%
Service 58% 34%
4

5. Key Challenges in Agriculture
India’s Arable Land: 2.3% of Food Security for 17.5% of
World’s Land Mass World Population
India : Poor Crop Yields
India with 158 249 million tons of
million hectares of cereal
arable land
China with 110 483 million tons of
million hectares cereal
USA with 163 420 million tons of
million hectares cereal
Biotechnology Can Usher a Second Green Revolution
5

6. Bt Cotton: A Success Story
• ~ 9.9 million hectares under Bt cotton cultivation
• 35.5 million bales (7.1 mn tons) of cotton/annum
• India today a net exporter of cotton
• ~6 million farmers cultivate Bt Cotton
India is World’s No 2 cotton producer
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7. Manufacturing: India Lagging Behind
India Vs China
Textile Exports India China
2011 $ 34 Bn $ 94 Bn
Global Market 1.5% 11%
Share
Has the potential
•To Grow six fold to $ 1 Trillion
•To Create 90 Billion jobs
by 2025
•To Generate 20-25% of GDP
Need to unleash the potential
7
Source: McKinsey Report

8. Indian Contract Manufacturing Sector
• India is the Preferred Outsourcing Partner for
global pharma & biotech
• Indian CMO currently at $ 2.3 Bn estimated to
attain a size of $10 Billion by 2025
India offers Largest no. of USFDA approved plants outside of USA
8

9. BioEnergy : Reducing the Oil Bill
Indian National Biofuel Policy: Focus on Ethanol blending and Biodiesel
BIO-FUELS: Emulate Brazil and develop other resources like seaweed & algae,
+ Waste to energy
Global Biofuel Production
100 billion litres (2010)
Brazil 2nd Largest Producer of Biofuels
Between 1975-2005
oSaved $100 Bn as foreign exchange
oReduced Green House Gases by 570
million tons
9
Source:ABLE report

10. High Value Bio Services
• India: Laboratory for the World
• Offers world class cost effective research capabilities
• Large Scientific Talent Pool
Indian Research Services 2011
Revenue: $ 765 million
Growth: 15.5%
Growth Drivers for BioServices in India
Skilled Cost effective Large diverse patient Regulatory
talent pool population Infrastructure
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11. Conclusion
Bio-Agriculture
Strategy for 2nd Green Revolution based on safe genetic
technologies to bridge the productivity gap
• S Manufacturing
Bio
Fermentation based Bio-manufacturing as a global leadership
strategy for drugs, vaccines, enzymes and biofuels for
affordable solutions
Bio Services
Enabling policies for exponential investment in innovation
for global healthcare
11

12. Indian Biotech
• Indian Biotech at $ 7.5 Bn
• BioAgri at $ 4 Bn the largest segment
• Followed by Biopharma/ manufacturing at $ 2.5 Bn and
BioServices at $ 1 Bn
in US$ Bn
Indian Biotech Sector
2.5 Biopharma/ Manufacturing
Bio Services
4.0
Bio Agri
1.0
Indian Biotech Sector Most Balanced
12

13. Innovative Science
Affordable Medicine
Thank You
Reach out to Kiran Mazumdar-Shaw:
kiran.mazumdar@biocon.com