Aquaculture Industry Analysis and Market Attractiveness of Fish Vaccines in India

120 Pages·2013·4.5 MB·English

Aquaculture Industry Analysis and Market Attractiveness of

Fish Vaccines in India

By
Mahendra Kumar Pallapothu
University of Prince Edward Island

EMBA Signature Project Report Submitted to

The University of Prince Edward Island, Charlottetown, Prince Edward Island

In Partial Fulfillment of the Requirements for the
Executive Masters in Business Administration

June 30, 2012
Charlottetown, Prince Edward Island

© Mahendra Kumar Pallapothu

Advisor: Juergen Krause, Ph.D.
Director, UPEI Centre for Health & Biotech Management Research
Associate Professor, Biotech Management
School of Business

Preferred Citation Format:
Pallapothu, M. K. (2012). Aquaculture industry analysis and market attractiveness of fish
vaccines in India. (Unpublished EMBA Signature Project Report). University of Prince Edward
Island, Canada. Retrieved from http://www.islandscholar.ca/download_ds/ir:4141/PDF
PERMISSION TO USE SIGNATURE PROJECT REPORT

Title of Signature Project: Aquaculture Industry Analysis and Market Attractiveness of Fish Vaccines
in India

Name of Author: Mahendra Kumar Pallapothu

Department: School of Business

Degree: Master of Business Administration Year: 2012

Name of Supervisor(s): Juergen Krause, Ph.D.

In presenting this signature project report in partial fulfilment of the requirements for a Master of
Business Administration degree from the University of Prince Edward Island, the author has agreed
that the Robertson Library, University of Prince Edward Island, may make this signature project
freely available for inspection and gives permission to add an electronic version of the signature
project to the Digital Repository at the University of Prince Edward Island. Moreover the author
further agrees that permission for extensive copying of this signature project report for scholarly
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Address: UPEI School of Business
550 University Avenue
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Mahendra Kumar Pallapothu Page 2 of 120
Table of Contents
Acknowledgements ......................................................................................................................... 6
List of Abbreviations ....................................................................................................................... 7
Executive Summary ....................................................................................................................... 11
Introduction .................................................................................................................................. 15
The Global Aquaculture Segment ............................................................................................. 15
The Indian Aquaculture Segment ............................................................................................. 16
Aims and Objectives ...................................................................................................................... 19
Literature Review .......................................................................................................................... 20
Macro-Environment Factors ..................................................................................................... 20
Methodology ................................................................................................................................. 20
Analysis ......................................................................................................................................... 21
Competition in Fish Vaccines Segment in India ............................................................................ 21
The Political Landscape in India .................................................................................................... 22
Political Structure and System .................................................................................................. 22
The State of Politics in India ...................................................................................................... 23
Governance in India .................................................................................................................. 23
Important Policies in India ........................................................................................................ 24
Regional Disparities................................................................................................................... 25
Economic Landscape ..................................................................................................................... 26
Economic and Tax Reforms ....................................................................................................... 26
I(cid:374)(cid:282)(cid:349)(cid:258)(cid:859)(cid:400) Financial and Capital markets ....................................................................................... 28
International Trade and Relations of India ............................................................................... 29
Biotechnology Sector Performance in India ............................................................................. 30
I(cid:374)(cid:282)(cid:349)(cid:258)(cid:859)(cid:400) F(cid:349)(cid:400)(cid:346)(cid:286)(cid:396)(cid:349)(cid:286)(cid:400) “(cid:286)(cid:272)(cid:410)(cid:381)(cid:396) P(cid:286)(cid:396)(cid:296)(cid:381)(cid:396)(cid:373)(cid:258)(cid:374)(cid:272)(cid:286) ....................................................................................... 31
Overall Economic Performance in India ................................................................................... 32
Environmental Landscape ............................................................................................................. 33
Environmental Framework, Policies and Schemes of India ...................................................... 33
Sector Specific Policies .............................................................................................................. 34
International Treaties on Environmental Change Ratified by India ......................................... 35
Environmental Impacts ............................................................................................................. 35
Policy Implementation and Performance ................................................................................. 40
Socio-cultural Factors ................................................................................................................... 42
Mahendra Kumar Pallapothu Page 3 of 120
The Social Structure in India ..................................................................................................... 42
Social Welfare Policy and Programs in India ............................................................................ 43
Social Security Programs in India .............................................................................................. 43
Skills, Literacy Rates, Education, and Training the of Indian Population .................................. 45
The Healthcare and Nutrition Programs in India ...................................................................... 46
Census and Demographics of India ........................................................................................... 47
Socio-Economic Status in India ................................................................................................. 48
The National and Organizational Culture of India .................................................................... 49
Technological Factors in India ....................................................................................................... 53
I(cid:374)(cid:282)(cid:349)(cid:258)(cid:859)(cid:400) K(cid:374)(cid:381)(cid:449)(cid:367)(cid:286)(cid:282)(cid:336)(cid:286) B(cid:258)(cid:400)(cid:286) (cid:258)(cid:374)(cid:282) H(cid:437)(cid:373)(cid:258)(cid:374) C(cid:258)(cid:393)(cid:349)(cid:410)(cid:258)(cid:367)............................................................................. 53
The Policy Framework and Programs ....................................................................................... 54
The Institutional Infrastructure in India .................................................................................... 57
Business Models and Technologies in the Indian Agriculture, Food and Health Sectors ........ 58
R&D Expenditure in India .......................................................................................................... 62
Cost Advantages in India ........................................................................................................... 63
The Indian Innovation Capacity (Publications, Patents and Accomplishments) ...................... 63
The Legal Environment in India .................................................................................................... 66
The Legal Structure and Framework in India ............................................................................ 66
The Industrial Acts, Legislation, Taxation, and Regulations of Business Concern in India ....... 66
Establishing a Business in India ................................................................................................. 68
Intellectual Property Rights in India ......................................................................................... 69
The Indian Biotechnology and Fisheries Regulations ............................................................... 69
The Effectiveness of the Indian Legal System ........................................................................... 72
Limitations of the Research .......................................................................................................... 75
Discussion...................................................................................................................................... 76
Competitor Analysis .................................................................................................................. 77
The Political Landscape ............................................................................................................. 77
The Indian Economy .................................................................................................................. 77
Environmental Aspects ............................................................................................................. 78
Socio-cultural Aspects ............................................................................................................... 80
Technological Aspects ............................................................................................................... 82
The Legal Landscape ................................................................................................................. 83
Conclusion ..................................................................................................................................... 86
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Tables ............................................................................................................................................ 89
Figures ........................................................................................................................................... 98
References .................................................................................................................................. 107

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Acknowledgements

I dedicate this work to my wife, Pushpa and my daughters, Sushmitha and Sonya who have supported me
all along in completing this journey of accomplishing the Executive Masters of Business Administration (EMBA)
degree. Without their support I could have not been able to attain this goal.

I take the opportunity to thank few important people whom I worked with during the course of
completing my EMBA Degree at the University of Prince Edward Island (UPEI). First, my supervisor and mentor
Dr. Juergen Krause for all his support, guidance and scholarship. His expertise in the field of biotechnology, sound
advice and encouragement motivated me to complete this Signature Project report, for which, I am very grateful
to him.

I would like to thank the faculty of the EMBA program. I appreciate the opportunity to have experienced a
rich learning environment and self-development which they provide. I would also extend my acknowledgement to
the EMBA program co-coordinator, Ms. Grace McCourt and EMBA administrative assistant, Ms. Angie MacDonald
for their excellent and timely support on various administrative aspects.

I am indebted to many of my fellow classmates and cohorts for their insightful and enriched discussions in
the classroom sessions. I would also extend my gratitude to my group mates: Jamie Whynacht, Jodi Murphy, Liz
Sajdak, and Marla Haines; Bus720 team: ToyIn Ojo, Omar Hashem, and Jeremy Moore; Bus701: Beth Pearce, John
Davidson, and Gregg McCardle; Bus702 team: Edward Cross and Kent Nicholson for their dedication, hard work
and contributions in the group assignments. You made the EMBA experience memorable, challenging and
gratifying, and for that, I consider you all the greatest of friends.

Mahendra Kumar Pallapothu Page 6 of 120
List of Abbreviations
AP Andhra Pradesh
APHIS Animal and Plant Health Inspection Service
BB Bharat Biotech Ltd
BC Backward Caste
BFDI Biotechnology Foreign Direct Investment
BI Biocon India Ltd
BIPP The Biotechnology Industry Partnership Program
BIRAC Biotechnology Industry Research Association Council
BTIC Biotechnology Incubation Center
cGMP current Good Manufacturing Practices
CAA Coastal Aquaculture Authority
CAC Command and Control
CAGR Cumulative Annual Growth Rate
CCMB Centre for Cellular and Molecular Biology
CDSCO Central Drugs Standard Control organization
CEP Central Energy Planning
CFR Code of Federal Regulations
CIBA Central Institute of Brackish Water Aquaculture
CIFE Central Institute of Fisheries Education
CIFT Central Institute of Fisheries Technology
CMFRI Central Marine Fisheries Research Institute
CO2 Carbon Dioxide
CSIR Council of Scientific and Industrial Research
CSO Central Statistics Organization of India
CPCB Central Pollution Control Board
CTD Common Technical Document
DAHDF Department of Animal Husbandry, Dairying and Fisheries
DBT Department of Biotechnology
DCG(I) Drug Controller General (India)
DLC District Level Committee
DSIR Department of Scientific and Industrial Research
DST Department of Science and Technology
EBSCO Elton B. Stephens Company
EA Environmental Auditing
EI Education index
EIA Environmental Impact Assessment
EMA European Medicines Agency
EPA Environment (Protection) Act
EPF Employee Provident Fund
EPFO E(cid:373)(cid:393)(cid:367)(cid:381)(cid:455)(cid:286)(cid:286)(cid:400)(cid:859) P(cid:396)(cid:381)(cid:448)(cid:349)(cid:282)(cid:286)(cid:374)(cid:410) F(cid:437)(cid:374)(cid:282) O(cid:396)(cid:336)(cid:258)(cid:374)(cid:349)(cid:460)(cid:258)(cid:410)(cid:349)(cid:381)(cid:374)
EPI Environmental Performance Index
EPS Employee Pension Scheme
ETO World Trade Organization
EYEI Energy-GDP-Emissions Index
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FAD Fisheries and Aquaculture Department
FAO Food and Agriculture Organization
FFDA Fish Farmers Development Agencies
FY Fiscal Year
GCI Global Competitive Index
GDP Gross Domestic Product
GDPI Gross Domestic Product Index
GEAC Genetic Engineering Approval Council
GH Growth Hormone
GHG Green House Gasses
GIS Geographical Information System
GMO Genetically Modified Organism
GNI Gross National Income
GNP Gross National Product
GOI Government of India
GST Goods and Services Tax
FDI Foreign Direct Investment
FDA Food and Drug Administration
NACA Network of Aquaculture Centers in Asia-Pacific
NIF National Innovation Fund
NOC No Objection Certificate
HACCP Hazard analysis and critical control point
HDI Human Development Index
IBSC Institutional Biosafety Committee
ICAR Indian Council of Agricultural Research
ICH International Conference on Harmonization
ICICI Industrial Credit and Investment Corporation of India
IDV Individualism
IICT Indian Institute of Chemical Technology
IISC Indian Institute of Science
IIT Indian Institute of Technology
IMNC Indian Multi National Company
IMF International Monitory Fund
INR Indian Rupee
IP Intellectual Property
IPC Indian Pharmacopoeia Commission
IPO Indian Patent Office
IPR Intellectual Property Rights
JFM Joint Forest Management
Kgoe Kilograms of Oil Equivalent
KHV Koi Herpes Virus
LEI Life Expectancy Index
LMO Live Modified Organism
LTO Long Term Orientation
mAB Monoclonal Antibody
M&A Mergers and Acquisitions
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MAS Masculinity
MDR Multi Drug Resistance
MNC Multi National Company
MNREG Mahatma Gandhi National Rural Employment Guarantee
MoA Ministry of Agriculture
MoEF Ministry of Environment and Forests
MoST Ministry of Science and Technology
MPEDA Marine Products Export Development Authority
MRL Maximum Residue Limits
NBFGR National Bureau of Fish Genetic Resources
NEP National Environmental Policy
NFDB National Fisheries Development Board
NGO Non-Governmental Organization
NIF National innovation Foundation
PACE Partnership to Advance Clean Energy
PB Panacea Biotech
PBPG Pre-Biotechnology Process Generator
PCI Planning Commission of India
PDI Power Distance Index
Ph. Eur. European Pharmacopeia
PIL Public Interest Litigation
PPP Purchase Power Parity
R&D Research and Development
RBI Reserve bank of India
RCGM Review Committee on Genetic Manipulation
RDAC Recombinant DNA Advisory Committee
r-DNA Recombinant Deoxyribo Nucleic Acid
SB Shanta Biotechnics Ltd
SBCC State Biosafety Coordination Committee
SBIRI Small Business Innovation Research Initiative
S&P Standard and Poor
S&T Science and Technology
SC Scheduled Caste
SEBI Securities and Exchange Board of India
SEZ Special economic zones
SH&E Safety Health and Environment
SII Serum Institute of India Ltd
SLC State Level Committees
SPC Summary of Product Characteristics
SPCB State Pollution Control Board
SPS Sanitary and Phytosanitary
ST Scheduled Tribe
TRIPS Trade Related Aspects of Intellectual Property Rights
UAI Uncertainty Avoidance Index
UNCTAD United Nations Conference on Trade and Development
UNFCCC UN Framework Convention on Climate Change
Mahendra Kumar Pallapothu Page 9 of 120
UNICEF United Nations International Children's Emergency Fund
UPA United Progressive Alliance
USD United States Dollar
USDA United States Department of Agriculture
USPTO United States Patent and Trademark Office
USTR United States Trade Representative
VAT Value Added Tax
VICH Veterinary division of ICH
WB West Bengal
WHO World Health Organization
WIPO World Intellectual Property Organization

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