Date:01/11/2004 URL: http://www.thehindubusinessline.com/2004/11/01/stories/2004110100581500.htm

Back Service industry sets store by life sciences, pharma, biotech

Anil Sasi

New Delhi , Oct. 31

A FEW years ago when the IT boom was in the offing, the service and ancillary industry frantically geared up for the business opportunity by tweaking products to meet the needs of the sector.

Today, the troika of pharmaceutical, biotechnology and life sciences sectors seems to have emerged as the new hot favourite with the service industry, including banks, logistics companies, HR firms and private education institutions, rushing in to offer tailor-made solutions.

The Indian subsidiary of Rabobank Nederland, Rabo India Finance, human resources firms Ma Foi Management Consultants and Kelly Services Inc, logistics firms DHL and TNT Express, Nasdaq-listed IT firm Network Appliances are among those specifically targeting the life sciences sector for increased business opportunities.

For instance, Rabo India has inked an alliance with a German bank to tap the growing cross-border mergers and acquisitions activity between the life sciences companies of both countries.

Germany, according to the bank, is one of the most favoured destinations for Indian life sciences companies aiming to carve a niche in the global arena.

Rabo India has been appointed as sole advisor to Sterling Biotech Ltd to identify and arrange for overseas acquisition opportunities in the European market.

It has extended a Rs 40-crore long-term funding facility to Sterling Biotech. Network Appliance, a US-based leading provider of enterprise network storage solutions, is also targeting the sector.

Among educations institutions, Delhi University has decided to introduce in 2005 an undergraduate course, B.Sc Life Science, in place of a general course.

A host of other private institutions also offer courses linked to biotechnology.

Among HR firms, Kelly Services Inc, a $4.4-billion US-based Fortune 500 company, is looking to provide a pool of scientists, researchers and lab technicians to pharma and biotech companies in need of specialised staff. Kelly Services will start a new division of its company in India, Kelly Scientific Resources.

"We are bullish on the science-based sectors and feel that this is where the maximum jobs are headed in the country. With not enough adequately specialised people in the country, we will focus on providing manpower from other Asian countries,'' said Mr Dhirendra Shantilal, Managing Director and Vice-President - Asia.

The logistics industry, led by DHL and TNT Express, too seems to be eyeing clinical research organisations with tailor-made solutions. DHL has developed a range of cold-chain services to meet the needs of the sector.

It has developed a patented packaging system to create a market-leading temperature-controlled logistics solution.

These temperature-controlled parcels, according to DHL executives, ensure safe transport of consignments in cooled, deep-frozen ambient state.

TNT Express is scouting for business in smaller cities such as Vellore and Lucknow, which are emerging as important centres for clinical research.