AP a hot destination for investors

The presence of mature biotech manufacturers and a strong representation in the bioagri sector make Andhra Pradesh a much sought-after hub.

The biotech industry in Andhra Pradesh is about Rs 455 crore, contributing to nearly 10 percent of the size of the industry in India, according to the BioSpectrum-ABLE Top 20 survey. It accounts for 24 percent of the total biotech revenue generated by companies in south India (Rs 1,898.47 crore). The survey also shows that out of the top 20 home grown biotech companies, six are from Andhra Pradesh. These six companies - Shanta Biotechnics, Bharat Biotech, Krebs Biochemicals, Indian Immunologicals, Biological E, Dr Reddy Labs, contribute about Rs 280 crore.

The biotech industry in Andhra Pradesh comprises mainly biopharmaceutical, bioagriculture, bioinformatics, bioservices and industrial biotechnology companies. Hyderabad being the pharma capital of the south, the biopharma sector has a strong base in Andhra Pradesh and it consists of diagnostics, therapeutics, and vaccines for human beings as well as for animals. More than 60 percent of the biotech companies are from the biopharmaceuticals sector.

Companies such as Shanta Biotechnics, Bharat Biotech, Krebs Biochemicals, Indian Immunologicals are leading companies in the animal biotech space. Biological E, GVK BioSciences, Jupiter Biosciences, Suven Life Sciences and Dr Reddy's Laboratories have been doing well in the biopharmaceutical space. These companies are mainly into therapeutics and vaccines business. Shanta Biotechnics is the first biotech company in the country to indigenously produce rDNA-based Hepatitis B vaccine. With this launch, there has been no looking back for the biopharmaceutical sector in India. Then came Bharat Biotech, another leading name in the Indian biotech space.

With its strong base for the biopharma industry, Andhra Pradesh has attracted entrepreneurs to invest in allied sectors like clinical research, bioservices and bioinformatics that are essential for the growth of the biopharma industry.

In the bioinformatics space, companies such as Tata Consultancy Services, Satyam Computer Services and BioMed Informatics are offering bioinformatics tools, services and solutions to pharmaceutical and biotech companies. These companies have ensured a good growth of the sector.

The Andhra Pradesh government has identified the biotech sector as one of the "Engines of Growth" in the Vision 2020 document. The government will leverage the existing strengths of the state for rapid commercialization of biotechnology to produce innovative biotech products and services in a wide range of areas. While most states are still talking about wooing investors and trying to build infrastructure or drafting biotech policies, Andhra Pradesh has already begun to think on the next step forward after putting a strong foundation for the niche biotechnology industry. The government proposes to redraft the biotech policy and introduce positive changes that would enable an investor-friendly environment. This shows the government's commitment to biotech industry.