india : innovation and patents sector report_august 2013

Source: Planning Commission, Aranca Research

Note: R&D - Research and Development

Seventh-largest R&D

investor

• In 2012, India had the world’s seventh-largest annual R&D investment, accounting for 2.8

per cent of global R&D expenditure; this is expected to increase to USD45.2 million by

2013, accounting for 3.0 per cent of global R&D spending

Pharma sector driving

R&D growth

• India’s pharmaceutical industry, which accounts for about 1.4 per cent of the global

pharmaceutical industry in value terms and 10 per cent in volume terms, is expected to

remain a major R&D growth driver

Rapidly growing

overseas investment • Cumulative overseas direct investments by India has expanded at a CAGR of 47.4 per

cent to USD146 billion during FY13 from USD21 billion in FY06

World’s sixth most

innovative country

• India stood sixth in terms of the most "innovative" country in General Electric's Annual

Global Innovation Barometer in January 2013

• The engineering sector is delicensed; 100 per cent FDI is allowed in the sector

• Due to policy support, there was cumulative FDI of USD14.0 billion into the sector over April 2000 – February 2012, making up 8.6 per cent of total FDI into the country in that period

Growing demand

Source: 2012 R&D spending estimate by Battelle, Automotive Research Association of India, Aranca Research

Notes: IPR - Intellectual Property Rights, CoE - Center of Excellence, PPP - Public Private Partnership, TRIPS - Trade Related Aspects of

Intellectual Property Rights, NMITLI - New Millennium Indian Technology Leadership Initiative, E - Estimate, NIC - National Innovation Council

Robust demand

• Rising income and evolving lifestyles have led to higher demand for aspirational products

• Indian companies’ investments in R&D is not surprising given the importance of innovation to sustain competitive edge

Attractive opportunities

• Vast opportunities in IT, pharmaceuticals, automobiles, biotechnology and agriculture

• India is the largest exporter of IT products and has the third largest pharma sector with a fast growing contract research segment

Policy support

• PPP for promoting exchange of scientific knowledge and R&D

• Strengthening educational infrastructure

• Amendments to the Patents Act (1970) to make it TRIPS-compliant

• Setting up of NIC in 2010

• Adoption of Science, Technology and Innovation Policy 2013

High ratings

• Establishment of CoEs in various areas; NMITLI initiative on PPP basis

• Increased investments by private players; setting up of R&D centers

• During FY07–13, IPR applications increased at a CAGR of 11.8 per cent from 137,900 to 269,500

2011

R&D

spending:

USD38

billion

2013E

R&D

spending:

USD45.2

billion

Advantage

India

Source: Korn/Ferry International, Asia-Pacific Research center, Stanford University, Aranca Research

Notes: TRIPS - Trade Related Aspects of Intellectual Property Rights, WTO - World Trade Organisation

• Indian Patents

and Designs Act

(1911)

• Dependence on

bulk imports

• Establishment

of CSIR, DRDO,

ICAR, ISRO and

IITs

• Patents Act (1970)

• Recognition of

process patents only

• Restricted foreign

ownership in Indian

companies

• Focus on ‘reverse

engineering’ among

pharmaceutical

companies

• TRIPS under WTO

(1995)

• Amendments to the

Patents Act (1970)

to make it TRIPS

compliant

• Reintroduction of

product patents

• Reduction in tariff

and non-tariff

measures

• Easing FDI norms

• Shifting focus in

pharma towards

clinical research

and new drug

development

Before 1970

Introductory Stage

1970 to early 1990s

Indigenisation

Stage

Early 1990s to 2005

Liberalisation and

Transition Era

2005 onwards

Growth Era

• Augmentation of network of

centrally-funded institutions

and universities

• Increase in R&D and exports

in sectors such as IT, pharma,

electronics and automobiles

• Innovations in automobiles

such as Nano, the world’s

least expensive car

• Focus on discovery of new

chemical entities by pharma

companies

• Numerous innovations from

rural India

• Setting up of National

Innovation Council

• Adoption of Science,

Technology and Innovation

Policy 2013

Source: Department of Industrial Policy

and Promotion, Aranca Research

Intellectual

Property (IP)

Patents

Trademarks

Geographical

Indications

Industrial Designs

Layout Designs

Plant Variety

Protection

Copyright

Source: Battelle, Aranca Research

Notes: GERD - Gross Domestic Expenditure on R&D,

R&D - Research and Development

Forecasted Expenditure of World’s Leading R&D

Investors in 2013 (USD Billion)

In 2012, India was the seventh-largest country in terms of

R&D investments, up from eighth largest in 2011

It is expected to retain this position in 2013, with R&D

investments increasing to USD45.2 billion from USD38

billion in 2011

32

39

42

45

51

58

91

162

220

424

Brazil

Russia

United Kingdom

India

France

South Korea

Germany

Japan

China

United States


Notes: CAGR - Compound Annual Growth Rate;

PPP - Purchasing Power Parity, F - Forecast

R&D Spending in India (USD Billion) India’s share of global R&D spending rose to 2.8 per cent in

2012 from 2.6 per cent in 2010 and is forecasted to reach

3.0 per cent by 2013

India’s R&D investment growth is likely to outpace overall

GDP growth. During 2010–13, R&D spending (in terms of

PPP) is expected to expand at a CAGR of 11.6 per cent to

USD45.2 billion, while GDP (in terms of PPP) would

increase at a CAGR of 7.8 per cent

The Planning Commission of India expects to double the

government’s R&D spending from the current 0.9 per cent

of GDP to 2 per cent by 2017

33

38 40

45

0.80%

0.85%

0.85%

0.90%

0.75%

0.78%

0.81%

0.84%

0.87%

0.90%

0.93%

0

10

20

30

40

50

2010 2011 2012 2013F

R&D expenditure (PPP) AS a % of GDP -RHS

Source: Reserve Bank of India, Battelle, Aranca Research

Cumulative Overseas Direct Investment

(USD billion)

Cumulative overseas direct investments increased to

USD146 billion in FY13 from USD21 billion

This has led to significant amount of technology transfer

through industrial acquisitions

For instance, Tata Steel’s takeover of Corus brought with it

more than 80 patents and 1,000 researchers

21

38

56

100

125

146

FY08 FY09 FY10 FY11 FY12 FY13

Source: Department of Industrial Policy and Promotion

Aranca Research

Break-up of Intellectual Property Rights (IPR)

Applications (FY13)

During FY13, the total patent applications stood at 269.5

thousand

Trademark applications accounted for the largest share (79

per cent) of total applications at 212,900

Patent and design applications accounted for 17.6 per cent

(47,300 applications) and 3.4 per cent (9,200) share,

respectively

18%

3%

79%

Patent-LHS

Design -LHS

Trade markapplication -LHS

Source: Department of Industrial Policy and Promotion

Aranca Research

Intellectual Property (IP) applications (‘000) During FY07–13, intellectual property rights (IPR)

applications increased at a CAGR of 11.8 per cent from

137,900 to 269,500

Trademark applications expanded at a CAGR of 12.8 per

cent over FY07–13 to 212,900

Patent and design applications rose at a CAGR of 8.6 per

cent and 8.9 per cent, respectively, during the same period

Growing IP application activity indicates increased in-house

R&D and innovation in India 0

50

100

150

200

250

300

0

50

100

150

200

250

FY07 FY08 FY09 FY10 FY11 FY12 FY13

Patent-LHS Design -LHS

Trade mark application -LHS Total IPR applications -RHS

Source: Zinnov Consulting, The Indian R&D Landscape, 2012

Notes: CAGR - Compound Annual Growth Rate,

R&D - Research and Development,

MNC R&D Centers in India The number of MNC R&D centers in India has grown at a

CAGR of 16.4 per cent to 871

Around 30 per cent of the top 1,000 global R&D spending

organisations have centers in India

Most of the centers are located in metro cities – Bengaluru,

Delhi, Mumbai, Chennai and Hyderabad. However, MNCs

have begun spreading out to tier-2 cities after 2005

India’s robust talent pool of over 200,000 engineers has

grown at an average rate of 9 per cent over the last five

years; this has been supporting increased R&D activity

191

297

517

699

780

871

Pre 2000 2002 2004 2006 2008 2011

CAGR: 16.4%

Source: Zinnov Consulting, The Indian R&D Landscape, 2012

Notes: CAGR - Compound Annual Growth Rate,

R&D - Research and Development

MNC R&D centers Distribution in India (2012) Bengaluru (erstwhile Bengaluru) has 43 per cent of MNC

R&D centers, followed by Mumbai and Pune at 19 per cent

Until 2005, Tier-1 cities were the favourite destination for

MNCs due to the availability of rich talent, favourable

policies, and better quality of life

However, post-2005, MNCs have started expanding to Tier-

2 cities, as they offered benefits such as higher catchment

area, lower attrition, and cost arbitrage

Bengaluru 43%

Mumbai/ Pune 19%

Hyderabad 13%

NCR 11%

Chennai 10%

Others 4%

Source: Financial Express, Value Notes, Aranca Research,

Notes: R&D - Research and Development, IT - Information

Technology; CAGR - Compound Annual Growth Rate

R&D Outsourcing in India (USD Billion) R&D outsourcing has increased at a CAGR of 33.5 per cent

during 2003–11 to USD13.1 billion

Companies across sectors (such as IT, consumer

electronics, personal devices, medical electronics, telecom

and automobiles) are now offshoring complete product

responsibility

India has become one of the most preferred location for

engineering offshoring

By 2020, USD42 billion worth of work related to R&D of

product engineering is expected to be outsourced to India 1.3

13.1

2003 2011

CAGR: 33.5%

Source: Organisational websites, Aranca Research

Notes: R&D - Research and Development

Organisation Business description

Council of Scientific and Industrial Research (CSIR)

• CSIR is India’s largest R&D organisation, with 39 laboratories and 50 field stations. In FY12, CSIR had over

1,872 active patents in India, 813 in the US, 328 in the EU, 147 in Japan and 829 in other countries

• It is engaged in scientific industrial R&D for economic, environmental and societal benefits for the country

• Its research areas span across aerospace, biotechnology, chemicals, energy, foods, information

dissemination, leather and metals, minerals and manufacturing etc.

Defence Research and Development Organisation (DRDO)

• DRDO is engaged in design and development of weapon systems and equipment in accordance with the

requirements of the military services

• In 2012, DRDO had a network of 50 labs and establishments to carry out research. It has over 5,000 scientists

and about 25,000 other scientific, technical and supporting personnel

• Its research areas include aeronautics, armaments, combat vehicles, electronics, instrumentation engineering

systems, missiles, materials, naval systems, advanced computing, simulation and life sciences

Indian Council of Agricultural Research (ICAR)

• ICAR is one of the largest national agricultural organisations in the world. It consisted of 99 institutes and 53

agricultural universities across India in 2012

• It is the apex body for coordinating, guiding and managing research and education in agriculture, including

horticulture, fisheries and animal sciences in India

*This list is indicative


India Space Research Organisation (ISRO)

• ISRO is engaged in development of space technology and its application to various national tasks

• The organisation has 19 centers across India to pursue R&D activities

• Its research areas include communication satellites for television broadcast, telecommunications and

meteorological applications, and remote sensing satellites for management of natural resources

Indian Council of Medical Research (ICMR)

• ICMR is the apex body in India for the formulation, coordination and promotion of biomedical research and

one of the oldest medical research bodies in the world

• The council has a fleet of 21 institutes, six regional medical research centers and five units engaged in

medical research

• The council’s research priorities encompass the areas of communicable diseases, fertility control, maternal

and child health, nutritional disorders, and non-communicable diseases such as cancer, cardio-vascular

diseases, blindness and diabetes

Centre for Development of Advanced Computing (C-DAC)

• C-DAC is a premier R&D organisation of the Department of Information Technology (DIT)

• It is engaged in research in the areas of supercomputers, applied electronics, technology, applications and

health informatics.

• CDAC has filed 16 patent applications in FY11


Notes: R&D - Research and Development *This list is indicative


Indian Institutes of Technology (IITs)

• It is a group of autonomous engineering and technology oriented institutes of higher education

• In FY11, IITs filed the highest number of patent applications amongst all the institutes and universities in India.

IIT Bombay filed 77 patent applications in 2011, an increase of 400 per cent from that in 2006

National Dairy Research Institute (NDRI)

• NDRI is engaged in research, teaching and extension activities in areas of dairy production, processing,

management and human resource development

• Its research activities focus on improving dairy productivity, innovating milk processing technologies and

disseminating information to the various stakeholders in dairy business to make dairying a self-sustaining

business

• In 2012, R&D activities comprised 71 in-house and 46 externally funded research projects, including 20 NAIP

projects in consortium mode with financial outlay of USD7.1 million

Indian Institute of Science (IISc)

• IISc is one of the earliest instances of PPP for a research institute in India

• It is engaged in research in various departments of science such as biological, chemical, electrical,

mathematical, physical and mechanical sciences

• In FY10, the institute filed the third highest number of patent applications amongst all the institutes and

universities in India


Notes: R&D - Research and Development *This list is indicative

http://www.ndri.res.in/ndri


The Energy and Resources Institute (TERI)

• TERI is engaged in developing solutions to global problems in fields of energy, environment and sustainable

development

• The important research areas include biotechnology, earth science and climate change, technology

development, social transformation, and modelling and economic analysis

Institute of Life Sciences (ILS)

• ILS undertakes basic and translational research in frontier areas of life sciences

• The institute’s research interests are in the areas of infectious disease biology, gene function and regulation,

and translation research and technology development

Indian Institute for Advanced Studies (IIAS)

• IIAS is a residential centre for advanced research in humanities, social sciences and natural sciences

• Its major research areas include social, political and economic philosophy; comparative studies in philosophy

and religion; education, culture and arts; natural and life sciences; and national integration and nation building



*This list is indicative


Hindustan Unilever Limited

• HUL is credited with innovations in product areas such as structured bar soap, fairness cream, zero alcohol

soap, poly-coated scouring bar for dishwashing, fortified salt, instant tea, critical components for a water

purifying device, and value-added (nature care) tea

• Worldwide, HUL has over 20,000 registered patents and patent applications

• The company filed 57 patent applications and was one of the top Indian patentees in FY11

Tata Steel Limited

• Tata Steel undertakes research in areas such as raw materials and coke, iron and ferro alloys, steel making,

coated products, materials characterisation and joining, materials modelling and product design, and

refractory technology

• The company filed 42 patents in FY12, taking its IP portfolio (filed and granted patents and copyrights) from 32

in FY2000 to 493

Cipla Limited

• Cipla’s R&D division focuses on new product development and new drug delivery systems across a range of

therapies

• In FY12, the company’s total R&D spending stood at USD59.2 million, a growth** of 13.6 per cent from a year

ago

• In 2011, Cipla filed 260 patent applications across the globe of which 13 were filed in India


Notes: R&D - Research and Development, Growth** - In terms of INR *This list is indicative

Reaper Windrower

Machine

• For easy and timely

harvesting of

soybean crop

• Prevents shattering

of soybean pods due

to non-availability of

labourers for

harvesting the crop

in time

Hand Operated Water

Lifting Pump

• For convenient

water-lifting at a

good discharge rate

and low cost

• The pump was built

in response to a

dearth of available

pumps that could be

afforded by small

farmers

Bamboo Lathe

Machine

• For stripping off the

outer covering of

bamboo to develop

a smooth surface for

making interior

decoration and utility

items

• Reduces the time

and labour required

to do the job

manually

Pedal Operated

Washing Machine

• For washing clothes

while exercising on

a pedal machine

• An affordable and

convenient way of

washing clothes in

rural India which

experiences

frequent power

shortages

Source: Rediff Business, Aranca Research

Source: Times of India, Economic Times, The Hindu, Defence Now

Notes: ICBM - Inter-Continental Ballistic Missile, DRDO - Defence Research & Development Organisation, HSL - Hindustan Shipyard Limited

INS Vikrant

• India Indigenous

Aircraft Carrier (IAC)

• Total displacement

of over 40,000

tonnes

• Being built by

Cochin Shipyard

Limited

• To be inducted by

2014-16

Agni-V missile

• Successfully test

fired in April 2012

• India joined an elite

group of nations

having ICBM

technology

• Indigenously

developed by DRDO


2014-15

Arihant Class

Submarines

• With its launch in

2009, India joined

an elite group of

nations having

nuclear-powered

submarines

• Developed by HSL

• To be commissioned

by 2012-13

Tejas

• Second supersonic

aircraft to be

developed

indigenously by

Hindustan

Aeronautics Limited

(HAL)


2015 at a cost of

USD103.1 million

Source: Battelle, Electronics for You, Organisational websites, Aranca Research

Notes: PPP - Public Private Partnership, R&D - Research and Development, NMITLI - New Millennium

Indian Technology Leadership Initiative, CoE - Centre of Excellence, NIC - National Innovation Council

Policy support

PPP in R&D

Strengthening educational

infrastructure

Amendments to the Patents Act &

Setting up of NIC

Inviting Resulting in

Growing Demand

Evolving consumer lifestyles

Liberalisation and increasing competition

Proximity to future

growth markets

Increasing Investments

Establishment of CoEs, NMITLI initiative

Providing support to global projects from

India

Increasing corporate R&D investments

Source: Aranca Research

R&D spending by top six pharma giant in FY12

(USD million)

India’s pharmaceutical market is highly fragmented, with

300 large and 18,000 mid-sized and small companies

The country’s pharma industry accounts for about 1.4 per

cent of the global pharma industry in value terms and 10 per

cent in volume terms

The healthcare sector in India is expected to reach USD100

billion by 2015 from the current USD65 billion

This would help drive R&D growth in India; the average

R&D expenditure by Indian pharma companies is close to 6

per cent of total revenues

In FY12, total R&D spending by top six pharma companies

was USD503.5 million

130 124

98

59

39 36

16

Dr.

Re

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Lab

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PPP in R&D

• Exchange of scientific knowledge between research centers, national laboratories,

institutes of higher learning and the industry

• The Indian Government plans to involve the private sector in R&D mainly for sectors like

vaccines, drugs and pharmaceuticals, super computing, solar energy and electronic

hardware

• The government has shell out a USD1.1 billion public-private partnership fund to support

research and development in India

Funded Institutions and

Foreign Universities

• Increasing the number of Indian Institutes of Technology (IITs) to 16, establishing 3 new

Indian institute of Science Education and Research (IISER) and 30 central universities

• Foreign universities permitted to enter the higher education system in India by establishing

their own campuses or joint ventures with existing universities

Tax Incentives

• Government offers 200 per cent deduction for capital and revenue expenditure incurred by

manufacturing companies with in-house R&D

• Income tax exemption of 125 per cent to 175 per cent on donations made to universities,

colleges and other scientific associations

Source: Battelle, Electronics for You, Organisational websites, Aranca Research

Notes: PPP - Public Private Partnership

Patents Act • Amendments to the Patents Act, 1970 to make it TRIPS compliant

• Increased incentives to domestic firms to conduct R&D

• Increased likelihood of technology transfer from developed nations

National Innovation

Council (NIC)

• In 2010, NIC was set up to implement strategies for inclusive innovation in India and

prepare a roadmap for innovation over 2010-20

• Tasks of NIC include creating a framework to encourage innovation by central and state

governments, universities, R&D institutions and SMEs


Notes: SMEs - Small and Medium Enterprises

Source: Aranca Research

Introduction of STI

Policy 2013

• In January 2013, the government of India introduced the Science, Technology and

Innovation (STI) policy 2013 at the centenary sessions of the Indian Science Congress

held at Kolkata

Vision of STI Policy • The STI policy is aimed at helping India become one of the top five global scientific

powers by 2020

Rising Involvement of

The Private Sector

• STI aims to boost innovation through research and development (R&D) led by the public-

private partnership (PPP) mode thereby increase the investments on research and

development (R&D) to 2 per cent of GDP by 2017 from current 1 per cent

Increase in Human

Resources

• The policy seeks to increase the number of full-time R&D personnel by 66 per cent over

2013–17 and expand the number of publications from the current 3.5 per cent of global

share to around 7 per cent by 2020

2013

• Jan 13: DuPont is planning to

double their R&D activities in India

• Jun 13: Huawei will be setting up

a new research and development

(R&D) centre in Bengaluru with an

investment of USD150 million

2012

• Mar 12: Aditya Birla Group

launches R&D centre at Navi

Mumbai, developed at a cost of

about USD52 million

• Apr 12: Maruti Suzuki announces

an investment of USD500 million

to set up an R&D facility at Rohtak

• Jun 25: Chinese equipment maker

Huawei will invest USD2 billion to

set up global R&D center

• Nov 23: General Electric will

invest USD60 million to expand its

R&D facility; its is expected to

develop 30 new products by 2015

Source: India Electronic News, Moneycontrol, CNBC, Economic Times, Appliancemagazine.com,

Business Standard, The Hindu, Company websites, Aranca Research


2011

• Apr 11: Hitachi to invest

USD400 million to set up

R&D center in Bengaluru

• May 11: ISRO announces

setting up of spacecraft

R&D center on 530 acres

land at Chitradurga

• Oct 11: Saab AB and

Mahindra Satyam open an

R&D center in Hyderabad

for conducting research in

aerospace, defence and

civil security

2010

• Jan 10: Huawei allocates

USD500 million investment

for R&D center in

Bengaluru

• May 10: Bridgewater

opens center of Excellence

in Gurgaon for telecom

software R&D

• Aug 10: Alstom earmarks

USD39 million to establish

R&D center for power

products at the Infosys

campus

2009

• Jun 09: LG Electronics

doubles its annual R&D

investment outlay to

USD83 million

• Oct 09: Tata DoCoMo sets

up R&D center for value-

added services (VAS) and

mobile applications

• Oct 09: Hyundai sets up

R&D center at Hyderabad

at an investment of USD25

million







Centers of Excellence

(CoEs)

• The government has set

up CoEs based on the

PPP model for technology

development and transfer,

scientific research, human

resource development and

economic outreach

• CoEs have been set up in

the areas of telecom,

wireless technology, bio-

informatics, lasers and

optoelectronic devices and

nano-electronics

NMITLI

• The programme identifies

areas for development

based on national

consultation and invites

best partners from

institutions, academia and

private sector to play a role

in the process

• NMITLI has initiated 60

largely networked projects

in diverse areas involving

85 industry partners and

280 R&D groups from

different institutions with

investment outlay of

USD114 million

Centrally Funded

Institutes

• The government proposes

to establish 8 new IITs, 3

IISERs, 10 NITs and 20

IIITs by 2012

• These institutes together

account for over 80 per

cent of the total PhDs in

engineering in India

• The institutes are also

amongst the top Indian

applicants for patents from

the ‘institutes and

universities’ category

Central and Foreign

Universities

• Government is expected to

have set up 30 new central

universities by 2012

• New universities in 16

uncovered states

• The remaining 14 new

Central Universities will be

set up as world class

centers of excellence at

different locations

• Foreign universities

permitted can enter higher

education system in India

by having their own

campuses or joint ventures

with existing universities

Source: Lupin website

Note: API - Active Pharmaceutical Ingredient, CNS - Central Nervous

System, NSAIDS - Non-Steroidal Anti-Inflammatory Drugs, TB -

Tuberculosis, NCE - New Chemical Entity

Patents filed by Lupin Lupin is a renowned pharma player having a wide range of

quality, affordable generic and branded formulations and

APIs

Lupin has emerged as the fifth largest and among the top

five fastest-growing companies in the US

It is one of the world’s largest manufacturers of TB drugs

and has significant market share in the cardiovascular,

diabetology, asthma, paediatrics, CNS, Anti-infectives and

NSAIDs therapy segments

By FY12, Lupin’s total patent filing reached 1,024 up from

600 in FY08

38

26

75

42

26

84

42

12

5

14 17

43

FY09 FY10 FY11 FY12

Formulation Patents API/Process patents NCE patents

Source: Lupin website

Note: CAGR - Compound Annual Growth Rate

CAGR* - Growth in INR terms

Lupin net sales (USD million) Its revenues increased from USD822.5 million in FY09 to

USD1.7 million in FY13, at a CAGR* of 25.8 per cent

Advanced market formulations comprised nearly 52 per cent

of its revenues in FY12

822

1,007

1,271

1,474

1,742

FY09 FY10 FY11 FY12 FY13

CAGR*: 25.8%

Source: Office of the Controller General of Patents,

Designs and Trademarks 2009–10 Annual Report,

Company Annual Reports, Aranca Research

Indian IT Patent Applications (FY10) Infosys filed the highest number of patent applications in the

Indian IT sector, followed by LG Soft India and C-DAC

Research activity for different areas is allocated amongst

dedicated labs such as Software Engineering lab,

Convergence lab, Security and Privacy lab, Distributed

Computing lab and E-Com lab

6

6

6

7

23

SamsungIndia

Newgen

C-DAC

LG Soft India

Infosys

Source: Company Annual Reports, Aranca Research:

Note: CAGR - Compound Annual Growth Rate,

* CAGR calculated on rupee numbers

Income and net profit (USD billion) During FY06–13, the company’s revenues increased at a

CAGR* of 19.3 per cent to USD7.4 billion from USD2.2

billion

During the same period, net profit expanded at a CAGR of

17.8 per cent to USD1.7 billion from USD552 million

Infosys spent USD167 million in R&D expenses, up 80 per

cent from the USD92 million spent in FY10

Consequently, total R&D spending during FY13 came in at

2.3 per cent of total revenue

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

0

1

2

3

4

5

6

7

8

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Source: Economic Times, Company Annual Reports,

Aranca Research

Note: CAGR: Compound Annual Growth rate, * CAGR calculated in

Indian Rupee terms

Strong Research and Development Incorporated in 1933, HUL is India’s leading company by

sales in the fast-moving consumer goods (FMCG) sector in

India. British-Dutch company Unilever owns a majority stake

of 52 per cent in HUL

In 2012, Forbes recognised HUL as the world's sixth most

innovative company; it was the highest ranked FMCG

company in the list

Eighteen of HUL’s brands featured in the ‘100 Most Trusted

Brands’ 2012 survey carried out by Brand Equity

HUL was felicitated for receiving the highest number of

patents in 2009 at the Annual Intellectual Property Awards

2010

The company has over 20,000 registered patents and

patent applications worldwide

891 994

1,612

FY10 FY11 FY12

CAGR*: 34.5%

Source: Company Annual Reports, Aranca Research

Notes: FY09* represents data for 15 months (Jan 2008- march

2009) as the company changed it reporting period from calendar

year to Fiscal year,

CAGR* - Compound Annual Growth Rate;

CAGR is calculated in INR

Sales (USD billion) During FY05–13, HUL’s revenues increased at a CAGR* of

12.0 per cent to USD4.9 billion from USD2.6 billion

During FY12, the company spent USD336 million in R&D,

up 62 per cent from the USD218 million spent in FY11

2.6 2.9

3.7

4.7

3.8

4.5 4.8 4.9

2005 2006 2007 FY09* FY10 FY11 FY12 FY13

CAGR*: 12.0%


Note: CAGR* - Compound Annual Growth Rate

Total Application for Patents, Design and

Copyrights Filed

Tata Motors, a subsidiary of the Tata Group, is one of the

leading automobile company and has presence in 129

countries across six continents

Tata Motors is the leading commercial vehicle manufacturer

and the third-largest passenger vehicle manufacturer in

India

It is also the world’s fourth-largest truck manufacturer by

volume

During FY06–12, the number of applications for patents,

design, and copyrights filed by the company expanded at a

CAGR* of 16.4 per cent to 212 in FY12

Tata Motors’ Tata Indica is India's first indigenously

developed passenger car

Tata Nano, a USD2,100 car, is an indigenous example of

India’s innovation in the automobile segment

43 34

254

314

272

182 212

FY06 FY07 FY08 FY09 FY10 FY11 FY12

CAGR*: 16.4%


Notes: R&D - Research and Development, CAGR - Compound

Annual Growth Rate; CAGR is calculated in INR terms

Total Application for Patents, Design and

Copyrights Filed

During FY06–13, Tata Motors’ revenues increased at a

CAGR* of 31.8 per cent to USD34.8 billion from USD6.2

billion

The company’s R&D spend expanded at a CAGR of 16.4

per cent to USD323.1 million in FY12 from USD176.0

million in FY07

6

8 10

16

20

28

36 35

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

CAGR*: 31.8%

Source: ARAI, Business Standard, India Law Office, Aranca Research

Notes: IT - Information Technology, ARAI - Automotive Research

Association of India, NVH - Noise, Vibration and Harshness

Pharma and Healthcare

• Contract research is a fast growing segment in the Indian healthcare industry

• Indian pharmaceuticals market is anticipated to expand at a CAGR of 17.2 per cent over

2011-2016 to touch USD27.3 billion

• India’s huge population places it among the world’s largest markets for vaccines and

drugs

Information Technology

(IT)

• India is increasingly seen as a product development destination

• Companies are now offshoring complete product responsibility including complex services

like product management

Automobiles

• Research is being carried out by individual companies as well as industry associations

such as ARAI in various areas such as structural dynamics, safety, NVH and electronics

• India is the sixth largest auto market globally and is poised to become the third largest by

2020

Source: ARAI, Business Standard, India Law Office, Aranca Research

Notes: IT - Information Technology, ARAI - Automotive Research

Association of India, NVH - Noise, Vibration and Harshness

Biotechnology

• Protein and antibody production, and fabrication of diagnostic protein chips are promising

areas for investment

• Stem cell research, cell engineering and cell-based therapeutics are other areas, wherein

India will cash in its expertise

Agriculture

• India has the potential to become a major producer of transgenic rice and several

genetically modified (GM) or engineered vegetables

• Hybrid seeds, including GM seeds, represent new business opportunities in India based

on yield improvement

Automotive Research Association of India (ARAI) Survey No 102, Vetal Hill, Off Paud Road, Kothrud,

Pune - 411 038

Tel: 91-020 30231111

Fax: 91-020 25434190

E-mail: [email protected]

Website: www.araiindia.com

Indian Society for Clinical Research (ISCR) c/o Pfizer center, 5, Patel Estate, S.V.Road, Jogeshwari(West),

Mumbai-400 102

Tel: 91-022 26774140, 66932028

E-mail: [email protected]

Website: www.iscr.org

The South India Textile Research Association (SITRA) 13/37, Avanashi Road, Coimbatore - 641 014

Tel: 91-422 2574367, 6544188

Fax: 91-422 2571896

Email : [email protected]

Website: www.sitra.org.in

API: Active Pharmaceutical Ingredient

ARAI: Automotive Research Association of India

CAGR: Compound Annual Growth Rate

CoE: center of Excellence

DRDO: Defence Research and Development Organisation

FDI: Foreign Direct Investment

FY: Indian Financial year (April to March)

So FY10 implies April 2009 to March 2010

GDP: Gross Domestic Product

GERD: Gross Domestic Expenditure on Research and Development

HAL: Hindustan Aeronautics Limited

HSL: Hindustan Shipyard Limited

IAC: Indigenous Aircraft Carrier

ICBM: Intercontinental Ballistic Missile

IT: Information Technology

NMITLI: New Millennium Indian Technology Leadership Initiative

NVH: Noise Vibration and Harshness

PPP: Public Private Partnership

PPP: Purchasing Power Parity

R&D: Research and Development

TRIPS: Trade Related Aspects of Intellectual Property Rights

USD: US Dollar

WTO: World Trade Organisation

Wherever applicable, numbers have been rounded off to the nearest whole number

Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange Rates (Fiscal Year)

Year INR equivalent of one US$

2005 45.55

2006 44.34

2007 39.45

2008 49.21

2009 46.76

2010 45.32

2011 45.64

2012 54.69

2013 54.45

Exchange Rates (Calendar Year)

Average for the year

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