Published & Updated as on - 2010-02-19

Ansal API, the Rs 700-crore real estate firm, is planning to set up an 80-acre biotech park in Lucknow at an investment of close to Rs 1,000 crore. The proposed biotech firm, expected to be launched by year-end, would house around 42 biotech firms and a central processing zone with state-of-the-art facilities including high-tech labs.

According to sources, Ansal API is in talks with Kiran Mazumdar Shaw-led Biocon Ltd, besides a few other overseas companies, to set up the central processing zone. The realty firm is also keen on an exclusive tie up with a single company to set up this zone, which is proposed to function as a common resource pool for all other firms in the park.

Biotech Consortium of India Ltd (BCIL), a consultancy firm jointly promoted by department of biotech, financial institutions like ICICI, IDBI among others and corporate firms including Ranbaxy Labs, Lupin Labs, has been commissioned to draw up a detailed business plan for the project.

This venture would be located amidst the sprawling Sushant Golf City, a mega township project of Ansal API spread across around 3,500 acre in Lucknow.

Ansal API’s executive director PN Misra confirmed the company’s plan to set up the biotech firm. Commenting on the rationale of investing in a biotech park, Misra said, “Our association and experience with IT parks has been of great help.

Biotech is a high growth area and we see a lot of promise in the sector. However, we are still finalising details of this project”.

The Indian biotechnology market was valued at $2.86 billion in 2008. Biopharma remains the biggest sector within the biotech pie, accounting for nearly 70% of the total revenue in 2008. By 2012-13, the size of the biopharma sector alone is expected to touch $5.7 billion.

The company estimates that once completed, the project would employ around 1,500 high-skilled professionals, while the park is projected to generate another 5,000 direct employment. The total investment in the park could be in the range of Rs 1,500 to Rs 2,000 crore, of which Ansal’s investment is likely to be in the range of Rs 800 to Rs 1,000 crore, inclusive of the land cost. While a large chunk of investment involves the land bank that the company already owns, the rest of it would be met through internal accruals, a company executive said. “The balance would be invested by companies that become partners in the project.

Source:The Financial Express