Indian real estate is no longer relying purely on the IT sector to grow. Biotechnology could be the next big driver

Jones Lang LaSalle Meghraj report :

An estimated 100 million sq. ft of space would be required by the biotechnology industry by 2010. As in the case of IT, biotech parks would house manufacturing units within a self-supporting, integrated complex.

Growth :

6 biotech parks in India are already functioning, and 19 more are in the pipeline. The Indian biotech industry registered a 33% increase in 2006-07, and is slated to achieve USD 5billion in revenue in 2010, and create a million jobs.

Investment :

Biotechnology, with investments having trebled in three years between 2003 and 2006. In 2003, Rs 14 crore was invested and in 2006, the figure more than doubled to Rs 36 crore.

Location :

Biotechnology is expected to push up demand for biotech hubs in Hyderabad, Bangalore, Chennai, Mumbai, Pune and the NCR.

Global Corporations :

Apart from domestic biotech players like Biocon, Panacea and Wipro, global players are also present in India. International firms like Glaxo Smithkline and Pfizer are investing in the industry, which will boost real-estate demand.

Incentives :

100 per cent foreign equity investment
Customs duty exemption
100 per cent tax rebate on resource and development expenditure
The report says various incentives offered by the government have made this sector attractive.

Biotechnology Policy :

Karnataka was the first state in India to announce a "millennium" biotechnology policy as early as 2001 to promote this sunrise industry.
Maharashtra, Tamil Nadu, Himachal Pradesh and Andhra Pradesh followed it with their own biotechnology policies during the year.
Later other states like Haryana (2002), Punjab, Kerala, Madhya Pradesh (2003), and Uttaranchal, Uttar Pradesh, Rajasthan (2004) and Gujarat joined the bandwagon by announcing their respective state policies.

One of the salient features of these biotech policies is setting up of dedicated biotech parks.

Though Karnataka was the first to announce a Biotech plan for the state, it was Andhra Pradesh, which seized the opportunity.

Shapoorji Pallonji (SP) Biotech Park :

The Andhra Pradesh government was able to put its act together to identify and develop the facilities for biotech entrepreneurs. It entered into a public–private partnership with Shapoorji Pallonji & Co Ltd with 11 percent equity stake and incorporated Shapoorji Pallonji (SP) Biotech Park Pvt Ltd (SP Biotech Park) for developing and managing the Park at Shamirpet, near Hyderabad.

International Biotech Park (IBP), Hinjewadi, Pune :

Similarly the Maharashtra government too adopted a public-private partnership model for developing the biotech park in the state.

110- acre International Biotech Park (IBP) is a joint venture project between the Maharashtra Industrial Development Corporation (MIDC) and TCG Urban Infrastructure Holding Ltd (TCGUIH), a Chatterjee Group company.

With a total investment of Rs 250 crore in the project, MIDC will hold approximately 12 percent of the paid-up capital while TCGUIH will hold the remaining 88 percent.

Pune Infotech Park-Phase II is located, adjacent to PIP-Phase I, spread over a staggering 600 acres

Kharadi Knowledge Park is located close to the airport and within easy access of Pune Cantonment area.

For detail information, please, visit Mahabiotech website of Maharashtra Biotechnology Commission.

Pune Real Estate :

Thanks to MIDC! Pune real estate never had to rely on any single industry. Pune real estate has a team of drivers; Small scale industries, auto industry, biotechnology, IT, Health care and education (industry?) !

Pune real estate Indian real estate Biotechnology Indian biotech industry Jones Lang LaSalle Meghraj growth investment location jobs IT park Biotech park Hyderabad real estate Bangalore real estate Chennai real estate Mumbai real estate NCR real estate Global Corporations incentives for biotechnology parks Biotechnology policy millennium biotechnology policy of karnataka government Andhra Pradesh Shapoorji Pallonji Biotech Park Pvt Ltd (SP Biotech Park) International Biotech Park (IBP), Hinjewadi, Pune public-private partnership Maharashtra Government Maharashtra Industrial Development Corporation (MIDC) TCG Urban Infrastructure Holding Ltd (TCGUIH) Chatterjee Group Kharadi Knowledge Park Maharashtra Biotechnology Commission