Introduction:

The Diagnostic and Biotech sector is a rapidly growing industry in India, with significant potential for
growth in the coming years. The purpose of this research process report is to analyze the sector's
current state, its outlook, and the potential for growth in the Indian market. We will also conduct a
supply chain analysis, competition analysis, SWOT analysis, financial analysis, and company-specific
analysis to gain a comprehensive understanding of the sector.

1. Selection of geography: India

India is one of the fastest-growing economies in the world and has a large market for the Diagnostic
and Biotech sector.

India is among the Top 12 destinations for biotechnology worldwide and 3rd largest destination for
biotechnology in Asia Pacific. In 2022, India’s Biotechnology industry has crossed $80.12 Bn, growing
14% from the previous year. The Indian Bioeconomy has witnessed a manyfold increase in valuation
in the past ten years, with COVID-19 giving the industry a much-needed push. India is poised as one
of the leading destinations for bio innovation and biomanufacturing, and hence is identified as a
sunrise sector. India’s Biotechnology sector is categorized into Biopharmaceuticals, Bio Agriculture,
Bio IT and Bio Services.

2. Sectoral classification:

a. Manufacturing - Pharmaceuticals, Medical Devices

b. Services - Clinical Services, Diagnostics, Research and Development

c. Trade - Import and Export of Pharmaceutical and Biotech Products

d. Agriculture - Agricultural Biotechnology

e. Investment Sector - Venture Capital Firms Investing in the Biotech and Pharma Industry

3. Outlook:

a. Short Term - The Diagnostic and Biotech sector in India is expected to grow at a CAGR of 8.2% over
the next five years.

b. Medium Term - The sector is expected to continue to grow at a CAGR of 8-9% over the next
decade.

c. Global Outlook - The global Biotech and Pharma market is expected to reach $2.2 trillion by 2026.

d. Domestic Outlook - The Indian Biotech and Pharma market is expected to reach $100 billion by
2025.
4. Identify pattern and predictive model:

The Diagnostic and Biotech sector in India has shown consistent growth over the past decade and is
expected to continue to grow at a steady pace in the coming years.

Biopharmaceuticals: India is one of the biggest suppliers of low-cost drugs and vaccines in the world.
India also leads in biosimilars, with the greatest number of biosimilars approved in the domestic
market.

Bio Agriculture: With nearly 55% of Indian terrain under agriculture and allied activities, India is one
of largest producer of BT-Cotton and has the 5th Largest Area of Organic Agriculture Land Globally.

Bioindustrial: The application of biotechnology to industrial processes is transforming manufacturing

and waste disposal across the country.

Bio IT & Services: India offers a strong capability in contract manufacturing, research and clinical
trials, and is home to the most US FDA approved plants globally outside of the US.

5300+ biotech startups, estimated to reach 10000 by 2025.

760+ biotech companies

750+ Biotech Products in market

1Mn+ skilled biotech workforce

4th Largest Ethanol Producer

5th Largest Area of Organic Agriculture Land Worldwide

7th Largest Destination for Clinical Trials

100% FDI is allowed under the automatic route for greenfield pharma.

5. Supply chain analysis:

a. Backward - The production side involves the sourcing of raw materials, manufacturing of products,
and quality control.

b. Forward - The sales side involves the distribution and marketing of the products.

6. Competition analysis:

a. Tangible parameters - Market share, revenue, profit margin

b. Intangible parameters - Quality of products, research and development, innovation

c. Nearest competitors - Biocon, Dr. Reddy's Laboratories, Serum Institute of India

d. Benchmarking analysis - Comparison of financial and non-financial parameters with competitors

7. SWOT analysis:

Strengths:

- India has a strong and talented manpower including renowned scientists.

- India has 280 registered biotech and 180 bio suppliers contributing to the total biotech market
worth a hundred billion dollars.

- Indian biotech firms are establishing a strong position.

- World pharmaceutical companies have or are willing to set up their R&D centers in India.

- India is emerging as a key player in biotechnology-related activities and investments.

- Biotechnology employs more than 10,000 people and generates roughly US$ 500 million in revenue
annually.

- The biotechnology market has increased its sales from Rs. 50 billion in 1997 to Rs.70 billion in 2000
and is expected to cross Rs. 240 billion by the year 2010.

Opportunities:

- India is established as a mega-biodiversity country, and biotechnology offers opportunities to

convert biological resources into economic wealth and employment opportunities.

- India had proved its potential to develop a large domestic market in the field of science and
technology.

- A large number of biological products, crops, fruits, flowers, and engineering goods are exported.

- Many foreign firms are interested in contract research programs in India.

- The government of India extends a supportive hand in the field of foreign collaborations to assure a
better output in science and technology.

Weaknesses:

- Biotechnology has had limited appeal so far on Indian capital markets, and there are less than a
dozen biotech companies listed.

- The regulatory environment for genetically modified products is stringent.

- Lack of adequate infrastructure for research and development.

- Lack of adequate funding for biotech startups.

Threats:

- Strong competition from other countries in the biotech industry.

- Rapidly evolving technology requires continuous investments in research and development.

- The possibility of negative public perception of biotechnology and regulatory changes in response
to such perception.

- The possibility of the government reducing or eliminating subsidies for the biotech industry.

Overall, the biotech industry in India has great potential for growth and development, but faces
challenges such as limited funding, regulatory hurdles, and strong competition. However, with
supportive policies from the government and an established base of talented scientists and biotech
firms, India is well-positioned to become a major player in the global biotech industry.

Industry Scenario
Valued at $ 80.12 Bn in 2022, the Indian Biotechnology Industry is
targeted to reach $ 150 Bn by 2025 and $ 300 Bn by 2030. 
The growth of the Indian biotechnology sector is fueled by rising demand at both a domestic and
international levels. The rise in domestic demand is fueled by initiatives such as Aatmanirbhar
Bharat and Make in India, while overseas demand for Indian vaccines and biopharmaceuticals is
due to the globally competitive efficacy of Indian products. India exports vaccines to over 150
countries and is a leading destination for contract manufacturing and clinical trials. In order to
contain healthcare costs, companies are leveraging generics and biosimilars, and India has poised
itself as a hub to deliver affordable access to innovative and inclusive healthcare solutions. 
Department of Biotechnology has funded 51 Biotech-Kisan hubs connecting Indian farmers with
best scientists and institutions out of which 44 are operational. These hubs are located in
15 Argo-climatic zones of the country and are conducting activities in 169 districts.  
Under the Union Budget 2023, the government announces - "500 new ‘waste to wealth’ plants
under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme will be established
for promoting circular economy". These will include 200 compressed biogas (CBG) plants,
including 75 plants in urban areas, and 300 community or cluster-based plants at total investment
of INR 10,000 crore. 
India's bioeconomy has grown eight times in the last 8 years from $10 Bn in 2014 to over $80 Bn
in 2022.
 The percentage share of the biotechnology segments is:
 Biopharmaceuticals- 68%
o Diagnostics- 33%
o Therapeutics- 13%
o Vaccines- 22%
 BioAgriculture-13%
o BT-Cotton- 12%
o Biofertilizers, Biopesticides & Bio Stimulants- 1%
 Bioindustry- 12% 
 Biofuels- 7%
o
Enzymes- 5%
o
 Bio IT & BioServices- 7%

10. Case study of recent similar transactions:

Jan 04, 2023

Granules to use Greenko's clean energy for proposed INR 2,000 crore plant in
Kakinada & other units

Nov 03, 2022

JVS Biofuel makes headway on grain-based distillery unit project in Jatwar.

Sep 07, 2022

Eyestem raises $6.4 mn to solidify cell therapy platform and move their product of
Dry AMD through early clinical trials to an international standard.

Jul 25, 2022

Biological E to invest Rs 1800 crore in Hyderabad.

13. Potential industry: The Diagnostic and Biotech sector is a rapidly growing industry in India with
significant potential for growth in the coming years. The sector is expected to continue to grow at a
steady pace, driven by factors such as an aging population, an increase in lifestyle diseases, and
advancements in technology. The sector also presents significant investment opportunities for
venture capital firms and private equity investors looking to invest in the Biotech and Pharma
industry.

The biotech industry in India has tremendous potential for growth and is likely to become a
significant contributor to the economy. Here are some potential industry ideas that investors
could explore:

 Biotech R&D: India is already an attractive destination for global pharmaceutical

companies looking to set up R&D centers. Investors could explore investing in R&D-
focused biotech firms that are involved in developing new drugs, diagnostics, and
therapies. With India's vast pool of talented scientists and a growing ecosystem of
research institutions, there is significant potential for growth in this area.
 Biotech Manufacturing: With India's large population and diverse ecosystem, there is
tremendous potential for biotech manufacturing. Investors could explore investing in
firms that produce vaccines, biologics, biosimilars, and other biotech products for
both domestic and export markets.
 Agri-biotech: India is a mega-biodiversity country, and there is enormous potential
for using biotechnology to develop new crops, improve crop yields, and enhance
 food security. Investors could explore investing in firms that are focused on
developing genetically modified crops, biofertilizers, and biopesticides.
 Medical Devices: With the growth of the healthcare industry in India, there is
significant potential for medical device companies. Investors could explore investing
in firms that produce diagnostic equipment, imaging devices, and other medical
devices.
 Contract Research: India's low cost of research and development has made it an
attractive destination for global companies looking to outsource their R&D activities.
Investors could explore investing in firms that offer contract research and
development services to global clients.

Overall, the Diagnostic and Biotech sector in India presents a promising investment opportunity for
investors looking to invest in a rapidly growing industry with significant potential for growth. A
comprehensive analysis of the sector's current state, outlook, and growth potential is essential for
investors looking to make informed investment decisions in the sector. The research process report
outlined above provides a framework for conducting a thorough analysis of the sector, including a
supply chain analysis, competition analysis, SWOT analysis, financial analysis, and company-specific
analysis, which can be used to guide investment decisions in the sector.