ENZYMES
(Project Cost Rs.10 Cores) Consultancy fee – Rs.50 Lakhs Indian biotech industry can develop enzymes (natural, protein molecular machines, which can catalyse chemical reactions) that require higher ambient temperature than those available in the West. They can take advantage of the low cost and export them to generate additional revenues. Biotech companies should develop industrial enzymes and market them in the West for it is home to more than 80% of global biotech products, said Utkarsh Palnitkar, director, Ernst and Young India. The entry barriers are the least in the case of industrial enzymes, since there are no social or regulatory risks, he added. The Indian industrial enzymes market is valued at Rs 127 crore and is growing 15-20% annually. Whereas the US agricultural and industrial enzymes market is estimated at $2.6bn. Currently, Indian companies are exporting enzymes in limited quantities to the US and Europe. They are mainly exporting to China, Southeast Asia, Middle East, Bangladesh, and Sri Lanka. Focusing on markets of US and Europe could be lucrative. With a low cost production process, Indian companies have capabilities to produce enzymes in various forms. Enzymes cater to international markets in baking, fruit juice, wine, grain processing, textile, pulp and paper and many other industrial applications. With strengths in solid state fermentation, submerged fermentation technology, we can produce an impressive range of enzymes, from fungi and bacteria. Development and application of modern enzymes are in a stage of infancy in the country. Enzymes has various applications. The Indian market during 1997-98 for enzymes is estimated at Rs.800 million. The major markets are today in textile, detergent, leather, pharmaceuticals and dairy industry. Enzyme usage in textile sector can be classified into mainly five areas viz., desizing, bio-polishing, bio-washing, bleach clean and fibre modification. As for denim jeans processing, enzymes are key material. India’s textile enzyme market is expected to grow considerably. Most of the major branded jeans companies in the world have established their presence in India. India’s textile market is expected to grow considerably in future.
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Enzyme usage in leather segment is also anticipated to grow considerably in volume terms. India is today the fourth largest leather producer in the world and with environmental regulations becoming increasingly stringent, Indian tanneries will be forced to use more and more enzymes partly replacing currently used chemicals for tanning, dyeing, etc. as far as possible. This is expected to result in a significant reduction in the volume of harmful effluents generated, and the cost of the treatment and disposal. Enzyme usage in detergent Sector is also a major sector where the usage of enzymes is expected to grow rapidly in the near future. Detergent enzymes have the largest market of Rs.14 crore and accounts for nearly 33 percent of total market. Household laundry, household dish-washing and industrial laundry are the three segments of the market for enzyme-based detergents. Proteases, amylases, lipases and cellulases are the main enzymes used here. Currently very few companies like Procter and Gamble (Ariel), Hindustan Lever (Surf) and Henkel (Henko) are using detergent enzymes but lots of other small detergent manufacturers in India have started using enzymes and the detergent enzymes market is expected to grow very soon. Enzymes are also used in starch, food and beverages industries to modify carbohydrates like starch, sucrose, glucose, fructose etc. Enzymes modifying proteins, like rennet used in manufacturing of cheese and protease used in tenderisation of meat or production of protein hydrolysates. Enzymes modifying lipids for hydrolysis of oils and fats to give monoglycerides, diglycerides and free fatty acids. The market for starch conversion and use in beverages is also likely to grow very fast. The growth of baked confectionery segment has been very high in India. There is good scope for setting up of enzyme manufacturing units. TYPES OF ENZYMES CARBOHYDRASES Regular Liquefying and Saccharifying Alpha-Amylases Alkaline Alpha-Amylase Beta-Amylase Cellulase
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Dextranase Alpha-Glucosidase Alpha-Galactosidase Glucoamylase Hemicellulase/Pentosanase/Xylanase Invertase Lactase Naringanase Pectinase Pullulanase PROTEASES Acid Protease Alkaline Protease Bromelain Ficin Neutral Proteases Papain Pepsin Peptidases Rennet/Rennin/Chymosin Subtilisin Thermolysin Trypsin LIPASES AND ESTERASES Triglyceridases Phospholipases Pregastric Esterases Phosphatases Phytase Amidases Aminoacylase Glutaminase Lysozyme Penicillin Acylase ISOMERASES Glucose Isomerase OXIDOREDUCTASES Amino Acid Oxidase Catalase Chloroperoxidase Glucose Oxidase
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Hydroxysteroid Dehydrogenase Peroxidase LYASES Acetolactate Decarboxylase Aspartic Beta-Decarboxylase Fumarase Histadase TRANSFERASES Cyclodextrin Glycosyltranferase LIGASES
GLOBAL MARKET FOR INDUSTRIAL ENZYMES TO REACH $2.4 MILLION BY 2009 With the environment and cost issues surrounding conventional chemical processes being subjected to considerable scrutiny, biotechnology is gaining ground rapidly due to the various advantages that it offers over conventional technologies. Industrial enzymes represent the heart of biotechnology processes. The field of industrial enzymes is now experiencing major R&D initiatives, resulting in both the development of a number of new products and in improvement in the process and performance of several existing products. According to a soon-to-be-released updated report from Business Communications Company, Inc. (www.bccresearch.com) RC-147U Enzymes for Industrial Applications, the global market for industrial enzymes is estimated at $2 billion in 2004. Volume growth of industrial enzymes is between 4% and 5% AAGR (average annual growth rate), which is accompanied by decreasing prices, due to the increase in the number of smaller players competing in the market. As a result, the market is expected to rise at an AAGR of a little over 3% over the next five years, and the total industrial enzyme market in 2009 is expected to reach nearly $2.4 billion. The industrial enzyme market is divided into three application segments: technical enzymes, food enzymes, and animal feed enzymes. The growth of animal feed enzymes is somewhat higher, expected to be close to 4% AAGR, helped in large part by increased use of phytase enzyme to fight phosphate pollution. Technical enzymes for detergent and pulp and paper manufacturing among
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others are the largest segments, with a 52% share. Growth will parallel the overall market. The confectionery and sweetener segment is the largest sector in food applications and is expected to grow at a healthy AAGR of around 3%. Overall, the enzymes in various food application sectors will be showing healthy growth, with an AAGR of 3.1%. Among the specific types of industrial enzymes, protease and amylase lead the market with current shares of 25% and 20%, respectively. Both markets are expected to grow at approximately the same AAGR of 2.8% through the forecast period. Geographically, the North America market is currently leading with 36% of total market share and will continue to do so through the forecast period. New and emerging applications have helped to drive demand and the industry is responding with a continuous stream of innovative products. Significant growth in future will require investments by all of the participants in research and applications development. Industrial Enzyme Classes Commodity enzymes High volume (tonnes p.a) Low purity (but not necessarily so) Low cost (e.g. $5-40 per kg) Low profit margins Speciality enzymes Low volume (g – kg) High purity High cost ($5 – 10,000 per g) High profit margins Enzymes in Industry Distribution of enzymes by substrate Protein hydrolysing Carbohydrate hydrolysing Lipid hydrolysing Speciality (analytical, pharma, research) 59% 28% 3% 10%
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Enzymes in Industry
Textile processing Grain processing Food processing Cleaning Feed enzymes Diagnostic/pharma Waste management
Process
Textile processing Grain processing Food processing Cleaning Feed enzymes Diagnostic/pharma Waste management Other
% by value
10 12 18 44 4 4 4 4
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