Make in India campaign will boost production of bio-based industries: Vikram Prabhu

Every year, DuPont commissions annual study to gauge consumer awareness and attitudes towards green & bio-based products with an objective to better understand the needs of its customers and the markets in which the company operates. The DuPont Green Living Survey: India, conducted by TNS Global, established that India’s confidence in green & bio-based products is highest in global index. The study found that a majority of Indian consumers are familiar with green products, have confidence that green products are better for the environment, and feel that bio-based ingredients enhance the desirability of a product.
 
In conversation with Rakesh Rao, Vikram Prabhu, Regional Business Director, Asia Pacific – DuPont Industrial Biosciences, discusses the market potential of bio-based ingredients and role India can play in the global industrial biotechnology arena.
 
According to the Green Living Study, consumer awareness of green products in India is more than China. Does that mean even the market potential (or market size) for eco-friendly products is high in India compared to China?
India’s confidence in green and bio based products is the highest in global index since we started the survey, four years ago. Driven by the younger generation, India’s consumers believe bio based ingredients enhance the desirability of green products. In a country like India, where nearly 50 percent of India's current population is below the age of 25, and over 65 percent below the age of 35; there is a huge opportunity for the growth of green and bio-based products. Young, educated consumers appreciate value of green products because they are sensitised to the issues around environmental sustainability and believe that bio-based ingredients enhance a product’s desirability and its performance. Hence, market potential is very big in India. We expect the ‘Make in India’ campaign will boost manufacturing in bio-based industries, to meet this growing market demand.
 
Which are the end-user industries that are leading users of bio-based ingredients (globally and in India)?
In India, bio-based ingredients are found in many different applications – including items that are commonly used in your household.  Bio-based ingredients can be found in everything from your carpet to dish and laundry detergents to clothing, creams, lotions, toothpastes and packaging for the foods and beverages we consume. Additionally, industries such as textile processing use the latest bio-based enzyme technologies to make their industrial process more energy efficient, while using less water and reducing discharged waste.
 
The US Department of Agriculture estimates there are over 20,000 products made with bio-based ingredients globally on the market today. Most recently we launched Sorona renewably sourced material for the premium saree segment in India; here again bio-based Sorona offers more than ‘green’, including premium feel, texture and performance which brings increased value to consumers as well.
 
What is the market size of eco-friendly products (that use bio-based ingredients as raw materials) in India? Compared to other developing markets where does India stand?
According to a 2010 report titled, ‘The Future of Industrial Biorefineries’, commissioned by the World Economic Forum, agriculture & bio-based industries will generate $230 billion and create more than 800,000 jobs by 2020. Bio-based product industry alone is projected to generate $15 billion in revenues.
 
India represents 17 percent of the world’s population and as the survey has revealed that majority of Indian consumers have confidence in bio-based products; there is an opportunity across many industry sectors for growth of bio-based products including food, beverages, feed, detergents, personal care, textiles and apparels.
 
Can India emerge as the manufacturing hub for bio-based ingredients market?
We can look at India both as manufacturing for the Indian consumer as well as from a broader perspective; firstly we see significant demand from Indian consumers and as the industry scales up, one can see leveraging that expertise into other markets. We only need to look to the recent past with the success of the pharmaceutical industry for India becoming a strong player. That industry validated that the full value chain for bio-based products from starting ingredients through finished goods quality can be developed and established in India.
 
Different players with different strengths need to come together to make this work, and we continue to emphasise a collaboration model to develop this industry. India has strong potential as a consumer of bio-based products as evidenced in our ‘Green Living Survey’, and local consumption is likely to drive supply chain for ingredients.
 
What are the challenges in front of bio-based ingredients manufacturers in India?
The world population is intensifying pressures on the planet’s resources. To meet the demands of strong consumption societies, we need to develop innovative technologies that work in harmony with nature, whilst still delivering on performance and price. In some areas it is simply efficiency, ie, the competitive cost of manufacturing. In other areas, it may be more of an investment to develop and scale new technology that is creating value in the market place. If we think of manufacturing in the context of the full value chain and satisfying a large growth opportunity, then manufacturing becomes part of the business model.
 
What are your growth plans for DuPont’s Industrial Biosciences business in India? Which of the end-user industries offer high-growth potential for DuPont’s Industrial Biosciences business?
India is of strategic importance for DuPont’s Industrial Biosciences business and we are expanding our biosciences presence and capabilities in India. We are investing in top talent and developing them for future leadership that we will need for growth of our business; this is one of our (and my) highest priorities.
 
We see strong potential for industrial biotechnology in industries of food, beverages, animal feed, detergents, personal care, textiles and apparel. We have invested in a new application development centre for Industrial Biosciences at the DuPont Knowledge Centre in Hyderabad. We are focusing on local application development in partnership in these industries. Already, we have seen local innovations emerge as a result of some of the on-going collaborative projects with our customers. Further our collaborations with customers and partners allow us to test concepts for new growth opportunities, and we are rapidly developing our pipeline of new offerings.
 
Do you intend to manufacture your bio-based ingredients in India?
Our approach is to work collaboratively with the right partners and develop the full value chain for products either for Indian consumers or for export. We are making good progress in a few key projects under development. We see DuPont Industrial Biosciences offering solutions to our customers and partners to enable them to produce finished products using bio-based technology or ingredients. So we see us playing a strong role in local manufacturing.