sunrise industry by sanghaviharshil

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ASHISH   JAIN (NM COLLEGE) – 9820842680

          SUBJECT: ECONOMICS

     E-mail id: ashish1310@gmail.com
       One Delhi based headhunter described it, “the current job scene is
filled with rampant optimism.” And then he adds that almost every company
seems to be “buying people” these days. Our optimism headhunter hasn‟t
really revealed sensitive information on shady defense deals, so what
explains his hesitation to come on record? While he is still sure about the
future, there is the apprehension that he might be forced to eat crow due to
short term titanic events.
       “It was just take an Iraq war for the party to end,” says Rajeev Thakur,
CEO, Grassik consultants, who quickly add that the Indian job market has
expanded by 30-40 percent since last year. So what‟s really happening out
there and what kind of jobs are up for grabs?
       Well the sunrise industries do speak it all for them. Yes the sunrise
industry is the future industry and they will offer immense job opportunities
for skilled as well as unskilled persons. The biggest sectors where there in
expected sunrise are in biotechnology and the I.T enabled services. Apart
from these the others are telecom, retail business, insurance, housing
finance, tissue culture, flori culture, aqua culture and the like. Now let‟s see
some of these in brief.




                      BIOTECHNOLOGY
       If Information technology marked India‟s debut into the global big
league, biotechnology is being tipped to be the next big thing, which could
help the country firmly establish itself on the global science and technology
map. Going by the report of industry and research bodies, the sector holds
immense potential for India‟s economy.

        GLOBAL BIOTECH DEVELOPMENT – INDIA‟S ROLE:

       Given India‟s share at only 2% in the global biotech market, her role
in the field of biotechnology has till now been a supplementary one. The
country has trained and supplied high quality human resources and scientists
for U.S universities and biotech industry. “The Indian industry has played
the role of being a provider of skilled professionals in the biotech industry,
especially in collaborations with institutes abroad.
       Recent times have also seen many mergers and tie-ups between Indian
industry and global corporations. This is just the beginning. The future will
witness more such collaborations and alliances particularly between biotech
companies to accelerate the process of commercialization and to cut down
the costs.
       With the world recognizing the plethora of Indian intellect in the
country and the international intellectual property rights coming into play
after 2005, the stage is all set for the Indian biotech companies to take the
genomic battle to the global war field and play a significant role in the
development of the industry worldwide.




      COMPARISION INDIA AND CHINA IN BIOTECHNOLOGY

       Low cost R&D capabilities, speed of innovation and the value of IPRs
are going to be the key factors in determining success in biotechnology. It is
inevitable that in this context, china and India will compete for leadership
position in the region. India has the “English speaking” advantage while
china has the “mindset advantage.” China already has an early mover
advantage in that it has taken proactive as well as pragmatic steps in
biotechnology by being a key participant of the Human Genome Project,
embracing GM crop technology and encouraging recombinant therapeutics
in its healthcare programs. In contrast India is still grappling with ethical and
moral issues relating to clinical research, safety issues surrounding GM
crops and debating the merits.
        India has better capabilities in Pharma/biotech, while china has strong
manufacturing capabilities and in sequencing as well as in doing genomics
and proteonomics based research.
        India is perhaps better placed from the point of view of the setup of
research institutes and the strength of computer proficiency than china.
There are more than 400 universities, research institutes, and companies and
a total of over 20,000 scientists and researchers involved in biotechnology in
china. But this number is far higher in India. However in agricultural
biotechnology, China is more advanced as compared to India in Agri-
biotechnology. China is developing more plant bio technology products than
any country outside of North America.
        Both India and china are offering vast growth potential for
biotechnology investments and currently have a huge untapped market. The
biotechnology industry of china has generated a net revenue over 2 billion
dollars in 2000 in contrast to the 25 billion dollars generated by the U.S.
Nevertheless, at present, China and India are far behind the US and other
Western countries in biotechnology. Both the countries can, however,
potentially outpace Western countries in the development of biotechnology.



 BIOTECH BUSINESS SEGMENTATION AND GROWTH FORECAST
                       2002-2010
                      FOR INDIA
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                             1. AGRI BIOTECH


      India being a large agrarian economy, agriculture is an important
source of foreign exchange for the country. Also, rapid growth of
agricultural, by increasing productivity on the existing land becomes
essential in order to ensure future security for the growing populace. In
March 2002, Monsanto‟s seed partner in India received commercial
approval for its insect protected hybrid cotton seed from the Indian Genetic
Engineering Approval Committee (GEAC). This was a major step in Indian
agricultural biotechnology sectors.

       In order to commercialize biotech products, both entrepreneurs and
major business firms would have to get involved. On the investment front, as
the Indian biotech industry is largely involved within the pharmaceuticals or
agricultural industry, and because of the experience of major firms, biotech
investment has been conservative and less risk prone unlike in the Western
countries.

      Biotechnology and genetic engineering (with focus on technology
department, research on gene and protein based drugs, molecular
immunology, crop plant transgenic, food biotech products, veterinary
biologics) could play a major role in growth of the Indian economy with
opportunities for global export from India. Experts say in India, agricultural
biotechnology advances are being desperately promoted in the name of
eradicating hunger and poverty. Agricultural biotechnology has enormous
potential. The use of this technology could increase in future. However,
speeds with which it will be adopted depend on the consumer‟s expectance
of technology.

      In comparison china is a leading player in the area of agricultural
biotechnology with a multitude of genetically improved crops, fast making it
one of the leading players in the world market.

       India comparatively has been a slow starter in this field, even though
our foray into biotech research started much early. In the years to come
India, with interesting products in the pipeline and attractive projects will be
a player to reckon with. “India has the potential to be the regional leader in
agricultural biotechnology. South Asia represents close to 20% of the
world‟s population. In order to dominate the South Asian market, Indian
industry will need to focus on the R&D relative to the market. With the
world focus on the agricultural biotechnology, Indian companies will need to
trend carefully on how they approach these markets and ensure that there is
no opportunity for negative public perception to arise.




                 BIOTECHNOLOGY IN HEALTH CARE

DIAGNOSTICS:

      The market for diagnostics in India stood at about 100 million$ during
1997 and is estimated to reach 200 million $ by the end of the year 2003.
There is an increased consumption of diagnostic devices and tests in public
hospitals. There are more that 11000 hospitals and 14000 diagnostic
laboratories in India that consumes large volume of diagnostics.

VACCINES:

       The domestic vaccine market in currently in the region of $100
million and this is growing at the rate of more than 20% per year. The
potential for these products is immense with the possible market for all types
of diarrhea vaccine alone being about $200 million.

      Vaccine against titanus, diphtheria pertusis and their combinations
and measles are produced in the country. A manufacturing unit with an
annual production capacity of $100 million doses of oral polio vaccine has
been set up by the central government at Bulandsahar (UP).

RECOMBINANT THERAPEUTIC PROTEINS:

       The Indian government has granted marketing licenses for about 25
recombinant therapeutic proteins. These include insulin, alpha inter feron
hepatitis B surface antigen based vaccine, GM-CSF, G-CSF, blood clotting
factor, erythropoietin, streptokinase, human growth hormone and follicle
stimulating factor. Several causes including WORKHARDHT, PIRAMAL
and DABUR are exploring the manufacture OF biogenerics. In addition
DABUR INDIA is developing plant machines and is working in a natural
substance based immunodulateor.



       BIOTECHNOLOGY IN INDUSTRIAL MANUFACTURING

       Biotechnology in industry employs the techniques of modern
molecular biology to reduce the environmental impact of manufacturing.
Industrial biotechnology also works to make manufacturing processes more
efficient for industries such as textiles, paper and pulp, and specialty
chemicals. Some observers predict biotechnology will transform the
industrial manufacturing sector in much the same way that it has changed
the pharmaceutical, agricultural and food sectors. Industrial biotechnology
will be a key to achieving industrial and environmental sustainability.

                         What Is Industrial Sustainability?
      According to the Organization for Economic Cooperation and
 Development (OECD), industrial sustainability is the continuous innovation,
 improvement and use of clean technology to reduce pollution levels and
 consumption of resources. Modern biotechnology provides a number of
 avenues for achieving these goals.

        In practical terms, industrial sustainability means employing
 technologies and know-how to lessen material and energy inputs, maximize
 renewable resources and biodegradable substances as inputs, minimize the
 generation of pollutants or harmful waste during product manufacture and
 use, and produce recyclable or biodegradable products.




          SWOT ANALYSIS OF INDIAN BIOTECH SECTOR

         STRENGTHS                                      WEAKNESS
 STRENGTHS
      Trained manpower and knowledge base.
      Trained manpower and
     Good network of research laboratories. Missing link between research
      Knowledge base.
      Rich biodiversity.                        and commercialization.
      Well developed base industries.
      Access to intellectual
      Good network of in this area.
     Resources of NRI‟s research               Lack of venture capital.
      laboratories.
      Extensive clinical trials and research- access to vast and diverse
        disease populations.
      Rich biodiversity.                         Relatively
     Bio-diversity – Opportunity for genomic research. low R & D
                                                  expenditure by industry.
 WEAKNESS
    Well developed base                        Image of Indian industry-
      Missing link between research and commercialization
      doubts
     industries.
        Lack of venture capital                    about ability of Indian
      Relatively low R&D expenditure by industrycompanies to develop
original
    Access to intellectual                    products for international
      resources of NRI’s in this                 markets.
      area.
    Image of Indian industry-doubts about ability of Indian companies to
     develop original products for international market.

OPPORTUNITIES

    Large market
    Export potential
    Base for contract research for International companies due to Rising
     costs of R & D abroad
    Large number of patients covering wider range of diseases-clinical
     research/trials.


THREATS

    Danger of anti-biotech Propaganda gaining ground
IPR policies.

                      EMERGING OPPURTUNITIES

       India‟s pre-eminent role as a global software provider creates the
impetus realm of biotechnology (BT). A large reservoir of scientific human
resource, centers of academic excellence in the biosciences, a vibrant
pharmaceutical industry and fast developing clinical capabilities collectively
point to a booming biotechnology sector in the future.

       The biotechnology sector, although nascent at the present time and
accounting for a mere 2% of the global biotechnology market, is poised for
exponential growth over the next five years with expected global market
share of 10%. Indigenous biotech products and services presently account
for approximately $150 million. The current segmentation is shared equally
between the human therapeutics such as vaccines and biogenerics, contract
research services including r-DNA technologies, genomics and
bioinformatics and industrial products such as industrial enzymes,
diagnostics and bioprocessing equipment and instrumentation. An emerging
segment is agri-biotech, which is expected to realize rapid growth over the
next five years and will account for at least 15 % of the total indigenous
biotech market. The consumption of biotech products in India is estimated to
increase tenfold to $1.5 billion by 2007 and to $4.5 billion by 2010.
HUMAN RESOURCE:
      India‟s rich human capital is believed to be the strongest asset for this
knowledge-led industry. An English speaking skill base comprising three
million graduates, 700,000 postgraduates and 1500 Ph.D.s qualify in
biosciences and engineering each year. A large percentage opts for overseas
opportunities. It is estimated that 10% of researchers and 15% of scientists
engaged in pharma/biotech R&D in the US are of Indian origin.

       The software sector and the emerging biotech sector now provides
large employment opportunities. A services model ensures large levels of
gainful employment. Currently the IT sector employs in excess of 250,000
engineers and scientists. The nascent biotech sector in contract employs a
fraction of this. The current employment statistics indicate approximately
10,000 scientists in the Indian biotech sector. However, the CRO
opportunity alone has the potential of harnessing 50,000 professionals the
next five years.

EVOLUTION OF BIOTECH SECTOR IN INDIA:

       Indian BT has had an interesting evolution that has started with strand
of activity on various academic and industry fronts which are now
intertwined to provide a strong interface between industry and academia.
The future of Indian BT will henceforth follow the format of academica
generating intellectual capital for commercialization by industry. It is
invisaged that these will scientists to pursue entrepreneurial aspirations.

BIOENABLERS THE POLICY FRONT:

       The Indian government had the foresight to identify BT as a thrust
sector for development of biotechnology as a nodal agency for policy
making and development. Initially, the DBT focused on generating trained
manpower and development and over the years it has extended its reach to
other areas of focus such as genomics, proteomics, trangenics, stem cell
research and product development.

       The budgetary allocation to biotechnology has increased from an
amount of $150 million during the first phase: 1986-1988 to $300 million in
the fiscal year 1997-1998 and $500million in the fiscal year 2002-2003. the
ministry of science and technology also plans to introduce additional venture
capital funds in line with its technology development fund with its
technology development fund to promote small and medium biotech
enterprises.

REGULATORY FRAMEWORK:

      A well conceived regulatory framework is in place to approve GM
crops and r-DNA products for human health based on independent appraisal
and approval bodies to ensure high levels of human and environment safety.
A proactive government policy allows stem cell research in the country
based on sound ethical guidelines.

PATENT REGIME:

      The Indian government is committed to a product patent regime by
2005 in total compliance with the provisions of of WTO and TRIPS. While
key aspects and relevant provisions of TRIPS, Paris convention and Doha
declarations have been taken on board, available flexibilities have been
incorporated to safeguard national security and protect varied interests of the
nation including public health.

BIO-CLUSTERS:

       Several states have been taken strong initiatives in developing bio-
clusters based on intrinsic academic and entrepreneurial strengths. Key
features of these clusters are biotech-parks, fiscal incentives, centers of
biotech excellence, incubators etc.

PRESENT STATUS:
       A comprehensive survey conducted by the confederation of Indian
industry, indicates that there are currently 160 registered BT companies in
the country. Of these 60 are distinctly engaged in molecular and
recombinant biotechnology. Around 50% of these companies are located in
Banglore, and Hydrebad and 75% of these companies have been established
in the last five years. The total revenues of this sector stand at $150 million
in 2002 of which $60 million are revenues.


                    IT-ENABLED SERVICES
      IT and IT-Enabled services contribute significantly to the growth of
Indian economy through primarily the sale of skills in software area, by
providing software services to other nations.

       Since the early 90s, software has been the driving engine of the Indian
IT industry. The potential of its high capacity to generate wealth, foreign
exchange and employment has caught the imagination of India's
businessmen, citizens, economists, bureaucracy and politicians alike.
Software driven IT industry is today at the top of India's national agenda as
an instrument and a model for the modernization of the Indian Economy.

      ITES, which includes call centers, has already provided jobs to over a
lakh people.

      By 2008, it could add another million jobs. The figure would be even
higher, if one takes into account a recent study, which states that 70% of all
global ITES work will be outsourced in India.

       Along ITES, the consultancy services, call centers and BPO are
definitely sunrise industries for the upcoming future.

      Consider consultancy services:-
               TATA consultancy services in India itself provide jobs for
more than 5000 employees.
              They project to employees about 40000 employees at least by
2010.
      Also BPO (Business Process Outsourcing) is a booming sector.

        Example:
        Reshma Taranum, 25-year old team leader at I-Seva Systems, a
Bangalore based call center, with a Rs.2.4 lakh annual packet (excluding
perks), she chooses to work for graveyard shifts.
        Her logic: It allows her to crash out at 4.30 am, get up by 12.00 and
still have the part of the day with her before reporting at 6.30 p.m.
        “I can still contribute more to household chores and do some personal
work. Although my family feels I spend less time with them, it‟s O.K. since
I‟m unmarried,” she explains.

      The call centers mostly recruit “agents”, the people who answer
customers call (or call up potential customers), whose starting salary even in
a top notch company like GE, would range between Rs. 6000-10000 a
month.

      IT enabled services are expected to grow 15 fold by 2008, providing
   vast opportunities for Indian players.

       Apart from IT enabled services, other promising businesses of the
future seem to be web-based applications development like the data
warehousing, data mining, embedded systems applications and Java
applications.



   FUNCTIONS:

    Customer Interaction Services
    Business Process Outsourcing/ Management; Back Office Operations
    Insurance Claims Processing
    Medical Transcription
    Legal Databases
    Digital Content
    Online Education
        o Data Digitization / GIS
    Payroll / HR Services
        o Web site Services

         Customer Interaction Services
         Business Process Outsourcing/ Management;
CONCLUSION: Back Office Operations
           Insurance Claims Processing
•IT is a fast-growing, export-oriented sector
           Medical Transcription
          Legal Databases
•Also definite potential for contributing to broad-based growth – much more
          Digital Content
than software exports
          Online Education
•its successData Digitization / GIS areas where reform is needed
             exposes key bottlenecks and
          Payroll / HR Services
             Web site Services
•Policy initiatives have to be general, not sector-specific, or narrowly
targeted – IT as “the thin end of the wedge”
•IT can also contribute to broader economic development – governance,
education, operational efficiency, market efficiency.




                               TELECOM

      Apart from regular working hours for „telecos‟, there‟s the option of
becoming a dealer. Reliance infocomm is believed to be recruiting agents
and in-house executives “like mad”. In fact, its manpower requirement could
be 36,000 people over the next years.

     Apart from agents the demand for salesperson will rise since there‟be
new products and services to sell.
Example:

       Pramit Jaiswal, a 27-year old from Meerut who was selling home
loans till recently is already thinking big after getting a Reliance Infocomm
dealership. “I want to earn in lakhs”, he says, “And if this is successful, I‟ll
try to become a franchisee for other reliance products. Maybe even own a
Reliance petrol pump at some stage.”

       At the moment however he expects to earn Rs. 20,000-30,000 from
the infocomm dealership.

       There is absolutely no doubt that mobile is going to be the key to the
growth of the telecom industry in India, as it has been the trend globally.
And hence the onus will be on the government to facilitate the expansion of
the market. It is desired that the government took some lessons from the
other nations of the world which have made rapid strides in this direction.

       Four words sum up today‟s telecommunication market:
      Private
      Competitive
      Mobile
      Global

      So, the writing on the wall is clear: if India‟s telecom sector has to
have a presence on the global map, it needs to promote mobile
communication, even if it means at the cost of age-old fixed line
communications.

       Thus, as long as the competition benefits customers, irrespective of
whether happier customers would mean healthier carriers or not, and price
cuts are driven by true competition and are not predatory in nature, let the
subscriber be the king. Anyways, availability and affordability are going to
be the challenges for the industry and the policy makers alike. Thus if
India‟s telecom sector has to have a presence on the global map, it needs to
promote mobile communication.
                        Housing Finance

       Housing finance is relatively safe and secured by mortgage of
property, with very low delinquency rate, which is what a banker ideally
looks for. Unlike the other modes of credit, which are of short term in
nature, housing finance is long term oriented and gives a better average
yield. The housing finance sector has been witnessing an exponential growth
in the last few years. The trend is likely to continue in the future also.
Considering the developing real estate market and growing importance given
to housing loans by banks and financial institutions as a part of their
portfolio, scenario is likely to remain very competitive.

      Things are moving certainly in favour of customers. Not only have
home loans become cheaper, but they also come with a host of value-added
services including property identification. The Indian property market has
been resilent and has picked up slowly. The year 2002 witnessed a growth
after the slump in 2001. Today there are better competitive options available
for the customer than before.




                                 Retail

       Today 18000 crore retail segment employs 35-40 million people
directly or indirectly. The organized retailers, who account for only 2% of
the market, could hire another 2 lakh people over the next 3 years. All large
corporates like TATA are already in business. (Over 250 new malls are
expected to come up in the next 2 years.) And if the government allows FDI
in retail, global brands like Walmart will also be eyeing the lucrative Indian
market. Retailers require shop floor supervisors whose income would be
Rs.20, 000 or less for just part time. However a manager in a mall could earn
up to Rs.50,000.
                              Insurance

       Insurance is tipped to become a $25 billion industry by 2010. It
continues to throw opportunities, especially for agents. Several private
insurers have been known to hire up to 2000 agents a month. Currently there
is a poor of 8.5 lakh agents in the country which is expected to rise by 2 lakh
per annum over the next few years.
Ritu Nanda, LIC‟s most successful agent says that, “The job allows a person
to be his or her own boss since one can work according to ones own wishes.
Insurance agents may be better place since private firms are sounding them
out with figures like Rs. 25000-50000 a month in the metros. There are 20
companies offering both life and general insurance products to Indian
customers. One of the biggest challenges for HR in this sector in talent-
recruitment is to identify sectors, which come close to the required
competencies in insurance and recruit people with experience in this sector.
The Indian Insurance opportunity has attracted the best of Indian companies
and MNCs.
      In this competitive scenario, organizations that are fast, productive
and willing to adapt will succeed. People, who can work as teams, learn and
deliver fast, think on their feet and accept ambiguity and diversity are likely
to succeed.




                         BIBLOGRAPHY




                                MAGAZINES:

                               CHARTERED FINANCIAL ANALYST

                               TEXT:

                              ECONOMICS – SAMUELSON

                              NEWSPAPERS:
     ECONOMIC TIMES
    FINANCIAL STANDARD




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