"To make biotech a big success, the industry should motivate new and small businesses"

In an exclusive interview, Vivek Singhal shares his experiences and views with BioSpectrum.

What was the reaction when you ventured into biotech in 1993?

That was the time when people were asking me why I chose a different field from IT. In fact, the IT industry too was not that big a success in India at that time. The IT boom had stuck. In that period, I was establishing BIL into biotech. I had mixed reactions from my friends. But now people are getting attracted towards biotech industry. Now you have a list of IT majors coming into the biotech or planning to come into it.

Which areas of biotech industry does BIL target? How competitive are BIL products with international standards? What are your future plans?

We incorporated BIL in January 1993, with an ingenious mandate for "In Harmony With Nature". Targeting the agriculture and public health sectors, the company deals in ecologically safe biotechnology-based products. BIL is the sole company in India having "Biological Input Umbrella" for agriculture and health sectors.

Our products compete with international standards and have been established for their efficacy on various pests and vectors prevalent in India. They have been evaluated for toxicology under Indian conditions and eight of our products have obtained registration from the Central Insecticides Board, Government of India. Apart from India, our products have been tested and proved to be amongst the best in Africa, the Middle East, South East Asia, Australia and
Europe.

We wish to enter the health-care segment with products like diagnostics, vaccines, therapeutic biomolecules and herbal medicines. We are currently involved in the development of high quality, efficient and crop non-specific biofertilizers with multiple crops benefiting characteristics.

What is the major cause for the adverse scenario of the Indian farmers and agri-industry?

Losses due to pests and diseases in the agriculture production account for losses to a tune of Rs 90,000 crore. Moreover, agricultural commodities worth Rs 4,000 crore get rejected by the foreign buyers on account of presence of chemical pesticide residues. Further, there have been cases of numerous suicide deaths by farmers, who have come under heavy burden of debts for procurement of agricultural inputs, including chemical pesticides, which are no longer effective in the control of the dreaded pests and diseases. This leads to pests becoming increasingly resistant to pesticides. In addition, it is a known fact that chemical pesticides have ill- effect on human beings causing dreaded diseases like central nervous system disorders, cancers and reproductive dysfunction. It was these facts that made me to introduce the use of bio-pesticides on a large-scale commercial basis in India.

What are the basic roles and objectives of AIBA?

The objective of AIBA is to promote and safeguard the overall interests of biotechnology as a science, profession, industry or trade. Collection of all information on matters affecting the members is also a part of the association. We make representations to the various authorities in the interest and betterment of the constituent members. The main idea behind its formation is to cooperate with other individuals, associations, groups and bodies within the country and abroad having similar aims and objectives. AIBA also encourages and gives its support to any association or Government Policy for the improvement of laws relating to biotechnology.

What has been AIBA's contribution to the Indian biotech Industry?

The basic idea of forming AIBA is liaison between the biotech industry and the government. AIBA helps the industry in taking up its problems to the government and solving the same and thereby promoting biotechnology in the country.

In 1998, AIBA opened its Southern Chapter in Hyderabad to cater to the needs of the southern states and initiated the starting of the biotechnology park and biotechnology council. The Northern chapter was opened in 2000 in Chandigarh and the Western Chapter in 2001 in Gujarat. The contributions of AIBA to the industry include organizing international seminars/conferences and exhibitions in this hi-tech area. The Southern and Western Chapters of AIBA are facilitating alliances between the SMEs and foreign collaborators. Last year, joint ventures worth Rs 100 crore were established. Recently, AIBA initiated formation of Biotech Export Promotion Forum approved by the Government of India.

What are the future prospects of biotech industry in India?

We have seen a good growth in recent times in conventional biotechnology. This includes vaccines, diagnostics and antibiotics in the health care area, hybrid seeds, tissue culture etc. The rest comes under the industrial product area such as alcohol, citric acid, lactic acid and glucose from starch, cheese, penicillin acylase. There are certain specialized areas like production of restriction endonucleases, oligonucleotides, culture media, plastic wares, automatic pipettes, and microtips. The modern biotech product areas are also gaining momentum. Consumption of biotech products in India was to the tune of Rs 7,154 crore during 1997 and that demand by 2005 is estimated to go up to Rs 14587 crore. In 1997, about 72 percent of the biotech product consumption was met through local production itself. At present, there are about 110 units in health care products, 140 units in the agriculture and about 300 in the industrial and other biotech products in India.

To make biotech a big success the industry should motivate new and small businesses. Big Players of the BT Industry should have to work accordingly to promote this segment of the industry. To grow this emerging industry, growth of small entrepreneurs is vital. IT industry in India has witnessed a good growth of small companies. It was the small enterprises which made the IT boom. Same sort of involvement from small or medium enterprises is also needed for the biotech industry, to post another successful impact on Indian economy.

A common belief is that the yield using chemical fertilizers is more than that by biofertilizers. Is it so?

It is true that chemical fertilizers on one side give us higher yields through fertility of our soil. Switching over to nature, biofertilizers, gives us equally good results, if not better. About 85 percent of our agricultural land depends on rain water. Chemical fertilizers cannot be used on that. Therefore, biofertilizers have a great importance. At present, the country needs 50,000-60,000 tonnes of high quality biofertilizers. We hardly produce around 5,000 tonnes. Also they are not up to the standards. Right type of sterilized carrier using radiation technology can give high quality product. Most of the biofertilizers available today have a shelf life averaging not more than four-six months. By the time the product reaches farmers it is about two-four months and the product does not remain effective. This is one of the reasons why biofertilizers is not catching up in our country, whereas, in Europe, the US and Australia, it is becoming extremely popular.

What is the future of biopesticides and biofertilizers?

The future is looking great. But the rate of awareness needs to grow at a rapid speed. Opportunities for investment in this sector are likely to increase substantially in the coming years as the products are being established in the country's agricultural activities. We can expect fresh investments worth Rs 80 crore in the production of biopesticides and other bio-control agents over the next five years. In the biofertilizers category, the consumption of rhizobium biofertilizers in India may rise to 8,000-10,000 ton per annum over the next five years. The use of biofertilizers is expected to increase substantially. The investment opportunity for biofertilizers production is expected to be over Rs 200 million over the next five years.

Which are the areas that the Indian biotech industry lags behind on a global comparison?

Unfortunately, we have lot of areas like that. But we are not working on those—such as tissue culture and flowery culture. But we are exploring these areas and catching up with the world market. At present, the plant tissue culture activities are confined to production of ornamental and flowering plants in India. More units are likely to be set up. As demand for flowers is increasing, India is taking greater interest to develop this field.