Novozymes to develop products in India

Novozymes, the $1.18 million Danish enzymes' major which bought Biocon's enzymes business recently, plans to utilise India as a base for enzyme product development and commercialisation.

Speaking to Business Standard, Thomas Videbaek, vice-president sales and customer solutions, Novozymes, said the company planned to leverage on Biocon's local market understanding, research and development capabilities, and develop new enzymes concepts.

"The acquisition also gives a critical mass to Novozymes to push for enzyme penetration in India, which is low and also to develop and introduce second-generation products," he added.

The firm sees the acquisition as a strategic fit for its existing business and harnesses Biocon's strength in the local textile, brewing, food industry and grain processing sectors. It sees synergies in serving India and Saarc countries through increased distribution reach, expansion and complementation of product portfolios and integration of supply chain operations.

According to Videbaek, there has been strong growth in the enzyme market in Indian during the past few years driven mainly by macro-economic developments.

Enzyme use in India is still in its infancy, but the growing awareness of enzymes' potential and benefits make for attractive growth perspectives. The expected growth in the Indian enzyme market is more than 15 per cent per annum over the next 10 years.

According to a Biospectrum-ABLE survey, the Indian enzyme industry is estimated to be around Rs 350 crore and is growing around 15 per cent. US and China, the other big enzyme markets, are growing just below 10 per cent. Globally in 2006, enzymes market grew on an average 7 per cent and it is estimated to grow between 8 to 10 per cent in 2007.