S.L.V. PLANT TECHNOLOGIES PRIVATED LTD

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CHAPTER 1

INTRODUCTION


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EXECUTIVE SUMMARY

Biotechnology considered with its widest meaning encompasses all practical applications

of properties of living organisms to create value. Defined this way, biotechnology refers

to use of yeast to make beer as well as the use of a retrovirus in order to modify the

genetic patrimony of complex living organism such as the human body. The common

dynamic of economic development related to these different technologies is not obvious.

Therefore, we tried to establish which techniques belonging to the range of biotechnology

were involved in remarkable technico-economic dynamics in the specific area of India.

Once these dynamics these evolutions both at the national and globallevels, and the

challenges the Indian companies have to face to take part in the reorganization.

Worldwide, the most striking dynamics are related with modern techniques derived formthe scientific advances in molecular biology and genetic engineering. The technique for

the genetic modification of unicellular or vegetal organisms is now mature enough to find

bacteria, and the development of hybrid varieties of plants through genetic manipulation

more recently, the sequencing and mapping of the human genome has opened numerous

new way of enhancing the method of new drug development. This study mainly focused

on the integration of these modern biotechnologies in the Indian economy.

The results of interviews carried out with numerous Indian companies and institutions

show that there are now happening a lot of things with modern biotechnologies, Namely,

several Indian companies are entering the market of biogenerics generic therapeutic

products produced through a process using modern biotechnologies with a view of


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becoming competitive provider for the global market, an ambition comforted by the

current commercial success of Indian chemical generic drugs.

INTRODUCTION

Biotechnology in India

Biotechnology is the application of scientific techniques to modify and improve plants,animals, and microorganisms to enhance their value. Agricultural biotechnology is thearea of biotechnology involving applications to agriculture. Agricultural biotechnology

has been practiced for a long time, as people have sought to improve agriculturally

important organisms by selection and breeding. An example of traditional agricultural

biotechnology is the development of disease-resistant wheat varieties by cross-breeding

different wheat types until the desired disease resistance was present in a resulting new

variety.

In the 1970s, advances in the field of molecular biology provided scientists with the

ability to manipulate DNAthe chemical building blocks that specify the characteristics

of living organismsat the molecular level. This technology is called genetic

engineering. It also allows transfer of DNA between more distantly related organisms

than was possible with traditional breeding techniques.

Today, this technology has reached a stage where scientists can take one or more specific

genes from nearly any organism, including plants, animals, bacteria, or viruses, and

introduce those genes into another organism. An organism that has been transformed

using genetic engineering techniques is referred to as a transgenic organism, or agenetically engineered organism.


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Many other terms are in popular use to describe these aspects of todays biotechnology.

The term genetically modified organism or GMO is widely used, although genetic

modification has been around for hundreds if not thousands of years, since deliberate

crosses of one variety or breed with another result in offspring that are genetically

modified compared to the parents. Similarly, foods derived from transgenic plants have

been called GMO foods, GMPs (genetically modified products), and biotech

foods. While some refer to foods developed from genetic engineering technology as

biotechnology-enhanced foods, others call them frankenfoods. For the reasons

discussed later in this publication, controversy affects various issues related to the

growing of genetically engineered organisms and their use as foods and feeds.

Increased crop productivity

Biotechnology has helped to increase crop productivity by introducing such qualities as

disease resistance and increased drought tolerance to the crops. Now, researchers can

select genes for disease resistance from other species and transfer them to important

crops. For example, researchers from the University of Hawaii and Cornell University

developed two varieties of papaya resistant to papaya ring spot virus by transferring one

of the virus genes to papaya to create resistance in the plants. Seeds of the two varieties,named Sunup and Rainbow, have been distributed under licensing agreements to

papaya growers since 1998.

Further examples come from dry climates, where crops must use water as efficiently as

possible. Genes from naturally drought-resistant plants can be used to increase drought

tolerance in many crop varieties.

Improvements in food processing

The first food product resulting from genetic engineering technology to receive

regulatory approval, in 1990, was chymosin, an enzyme produced by genetically

engineered bacteria. It replaces calf rennet in cheese-making and is now used in 60


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percent of all cheese manufactured. Its benefits include increased purity, a reliable

supply, a 50 percent cost reduction, and high cheese yield efficiency.

Improved nutritional value

Genetic engineering has allowed new options for improving the nutritional value, flavor,

and texture of foods. Transgenic crops in development include soybeans with higher

protein content, potatoes with more nutritionally available starch and an improved amino

acid content, beans with more essential amino acids, and rice with the ability produce

beta-carotene, a precursor of vitamin A, to help prevent blindness in people who have

nutritionally inadequate diets.

Better flavor

Flavor can be altered by enhancing the activity of plant enzymes that transform aroma

precursors into flavoring compounds. Transgenic peppers and melons with improved

flavor are currently in field trials.

Benefits for developing countries

Genetic engineering technologies can help to improve health conditions in less developed

countries. Researchers from the Swiss Federal Institute of Technologys Institute for

Plant Sciences inserted genes from a daffodil and a bacterium into rice plants to produce

golden rice, which has sufficient beta-carotene to meet total vitamin A requirements in

developing countries with rice-based diets. This crop has potential to significantlyimprove vitamin uptake in poverty-stricken areas where vitamin supplements are costly

and difficult to distribute and vitamin A deficiency leads to blindness in children.

Conventional and Modern Technology


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Biotechnologys broadest definition can be given as the population of all natural

sciences and engineering in the direct or indirect use of living organisms or part of

organisms, in their natural or modified forms, in an innovative manner in the production

of goods and services and/or to improve existing industrial process. The market

application of outputs is typically in the general areas of human health, food production,

and industrial bio-processing and other public good and environmental settings.

PUBLIC ENVIORNMENT OF THE BIOTECHNOLOGY IN INDIA

As a set of technologies with a broad range of application domain, biotechnology is under

the influence or the action of numerous public bodies. These actions basically relate to

three main groups which are

Public expenditure,

Regulation,

Public initiative.

The fields where public expenditure has a critical role to play in the development of a

sector such as the biotechnology one are basically human resource development, public

research, and infrastructure development. The second group of public action is gathered

under the name of regulation, that is, the definition of the legal environment, for example

concerning the protection of the intellectual property, but also the appointment of public

agency in charge of the different control procedures, as well as the definition of the

different fiscal, trade, and investment norms.

The third group of public action gathers the actions that have principally a role of

acceleration of emergence of a certain type of institutions. These actions are implemented

in order to accelerate the development of a certain kind of activities and to direct this

development in a certain ways (geographical location, technical choices, etc.)

After becoming an IT bellwether, India is now shifting its focus to the most promising

industry of the future, Biotechnology. With its large pool of scientific talent, world-class

information technology industry, and vibrant pharmaceutical sector, India is well

positioned to emerge as a significant player in the global biotech arena.


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Biotechnology is perceived as a revolution throughout the world. Scientists, through

Research and Development (R&D), have developed and are continuing to develop cures

for diseases that have affected people for decades and even centuries. Scientists recently,

have also, clinically developed crops that can withstand the brutalities of weather

changes, helping poor farmers of the developing countries to retain their yield and

increase their output manifold.

Biotech, considered a boon by some, provides great hope to many around the world, and

its benefits are and will be realized by more and more people over the years. On the

threshold of this new revolution, numerous companies have sprung up to take a piece of

the exponentially growing Biotech market worldwide. The ever-decreasing physical

boundaries enable biotech companies from the West to tap large markets around the

world.

India to this extent holds a good advantage over many other countries of the world. With

its large population of over a billion people there is a huge market for products and

services. Indias population has a very interesting demography that creates almost a

perfect environment for biotech companies to shift bases here.

In addition the Indian sub-continent, which occupies only 2.4% of the total global surface

area, has the most varied species of flora and fauna. A study shows that, in percentage

terms, India has about 7.6% of total mammal species, 12.6% of bird species, 11.7% of

fishes and roughly 6.0% of total flowering plants that are present in the world.

Biotech companies, by moving to India, can utilize this immense Bio-diversity, can easily

find samples and, also conduct field research much more efficiently. Adding to this, India

has one of the largest agriculture sectors in the world, and varied climatic zones that can

help in research and development of different agri-biotech products applicable

worldwide.


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Indian Advantage:

India, today, holds a small share of the global biotech market, but has all the capabilities

to become a dominant player. The consumption of biotech products in India is expected

to quadruple in the next decade. The human and animal segment of the industry alone is

growing by at least 20%.

India has a rich human capital, which is the strongest asset for this knowledge-based

industry. India has a large English speaking base and, according to Confederation of

Indian Industry estimates, produces roughly 2.5 million graduates in IT, engineering and

life sciences, about 650,000 postgraduates and nearly 1500 PhDs qualified in biosciences

and engineering each year.

India has proved its competency in selected areas of biotechnology such as, to name a

few: capacity in bioprocess engineering, skills in gene manipulation of microbes and

animal cells, capacity in downstream processing and isolation methods, and its

competence in recombinant DNA technology of plants and animals. India has also

allowed assisted stem cell research that permits researchers to use embryos from fertility

clinics upon informed consent of the donors, thus giving it a clear head start in this new

and promising field in Biotech.

Clearly, India has the strength and capabilities in this industry, and a definite advantage

to forge ahead and become the chosen location for many biotech companies looking for

large markets and low cost qualified manpower to work in their R&D division.


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State Level Initiatives

Many state governments have also realized the benefits/importance of this industry. State

governments namely Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra have

begun to formulate their policies, develop R&D centers to encourage and nurture the

Biotech industry. Following is a brief outline of some of the initiatives taken by a few

state governments:

Karnataka

The Karnataka government has announced a biotech policy to promote this sector and

is setting up an institute for bioinformatics in Bangalore.

In addition the state government is also creating a biotechnology fund that will have

inflows from the biotech companies. This could be used for incubation of new

projects and promotion of the sector in the state.

Karnataka has planned to launch Indias first state sponsored biotechnology venture

capital fund to boost their initiatives.

Endused based categorization of biotechnology

Health care biotechnology Medicines

Vaccines

Diagnostics

Gene therapy

Agricultural biotechnology Hybrid seeds

Biopesticides

Biofertilizers

Plant extraction

Industrial biotechnology Industrial Enzymes

Polymers

Biofuels


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Fermentation Products

Environmental biotechnology Effluent & Waste Water Management

Bioremediation

Biosensors

Creation of Germplasms

In these four segments, I am doing organizational study about agricultural biotechnology.

Agricultural ones are the most talked about in the Indian and the international media. The

agricultural biotechnology, with the appropriation of genetically modified crops has

raised many questions more or less rational around the world.

Agri Biotech Segment

India being the second largest food producer, offers a huge market for biotechnology

products, especially agribiotech products.

India has an excellent scientific infrastructure in agriculture, rich bio-diversity and

skilled and low cost human-power.

In a report by Ernst & Young it is expected that the Nutraceuticals market is roughly

US $532-638 million presently and growing.

With its 8000 kilometer of coastline including Andaman & Nicobar and

Lakshwadeep islands, India has a rich aqua culture and its Marine resource

development holds great potential.


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INDUSTRY PROFILE

AGRICULTURAL BIOTECHNOLOGY

Humans have always relied on plants and animals for food, shelter, clothing and fuel, and

for thousands of years farmers have been changing them to better meet our evolving

needs. Societys demand for resources provided by plants and animals will increase as the

worlds population grows.

The global population, which numbered approximately 1.6 billion in 1900, has surged to

more than 6 billion and is expected to reach 10 billion by 2030.

The United Nations Food and Agriculture Organization estimates world food production

will have to double on existing farmland if it is to keep pace with the anticipated

population growth. Biotechnology can help meet the ever-increasing need by increasing

yields, decreasing crop inputs such as water and fertilizer, and providing pest control

methods that are more compatible with the environment.

Plant biotechnology has been adopted by farmers worldwide at rates never before seen by

any other advances in the history of agriculture. In 2009, biotech crops were grown

by 14 million farmers on 134 million hectares in 25 countries.


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The reason for such impressive adoption rates is simple -- plant biotechnology delivers

significant and tangible benefits, all the way from the farm to the fork. Plant

biotechnology has enabled improved farming techniques and crop production around the

world by increasing plants' resistance to diseases and pests; reducing pesticide

applications; and maintaining and improving crop yields.

For thousands of years, farmers have been using breeding techniques to "genetically

modify" crops to improve quality and yield. Modern biotechnology allows plants

breeders to select genes that produce beneficial traits and move them from one organism

to another. Plant biotechnology is far more precise and selective than crossbreeding in

producing desired agronomic traits.

Crop Biotechnology

Farmers and plant breeders have relied for centuries on crossbreeding, hybridization and

other genetic modification techniques to improve the yield and quality of food and fiber

crops and to provide crops with built-in protection against insect pests, disease-causing

organisms and harsh environmental conditions.

Stone Age farmers selected plants with the best characteristics and savedtheir seeds for

the next years crops. By selectively sowing seeds from plants with preferred

characteristics, the earliest agriculturists performed genetic modification to convert wild

plants into domesticated crops long before the science of genetics was understood.

As our knowledge of plant genetics improved, we purposefully crossbred plants with

desirable traits (or lacking undesirable characteristics) to produce offspring that combine

the best traits of both parents. In todays world, virtually every crop plant grown

commercially for food or fiber is a product of crossbreeding, hybridization or both.
http://www.croplife.org/public/benefits_of_plant_biotechnologyhttp://www.croplife.org/public/benefits_of_plant_biotechnology


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Unfortunately, these processes are often costly, time consuming, inefficient and subject to

significant practical limitations. For example, producing corn with higher yields or

natural resistance to certain insects takes dozens of generations of traditional

crossbreeding, if it is possible at all.

Improving Crop Production

The crop production and protection traits agricultural scientists are incorporating with

biotechnology are the same traits they have incorporated through decades of

crossbreeding and other genetic modification techniques: increased yields; resistance to

diseases caused by bacteria, fungi and viruses; the ability to withstand harsh

environmental conditions such as freezes and droughts; and resistance to pests such as

insects, weeds and nematodes.

Natural Protection for Plants

Just as biotechnology allows us to make better use of the natural therapeutic compounds

our bodies produce, it also provides us with more opportunities to partner with nature in

plant agriculture.

Through science, we have discovered that plants, like animals, have built-in defense

systems against insects and diseases, and we are searching for environmentally benign

chemicals that trigger these natural defense mechanisms so plants can better protect

themselves.

Biotechnology will also open up new avenues for working with nature by providing new

biopesticides, such as microorganisms and fatty acid compounds, that are toxic totargeted crop pests but do not harm humans, animals, fish, birds or beneficial insects.


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Because biopesticides act in unique ways, they can control pest populations that have

developed resistance to conventional pesticides.

Herbicide Tolerance

Good planting conditions for crops will also sustain weeds that can reduce crop

productivity as they compete for the same nutrients the desired plant needs. To prevent

this, herbicides are sprayed over crops to eliminate the undesirable weeds. Often,

herbicides must be applied several times during the growing cycle, at great expense to the

farmer and possible harm to the environment.

Using biotechnology, it is possible to make crop plants tolerant of specific herbicides.

When the herbicide is sprayed, it will kill the weeds but have no effect on the crop plants.

This lets farmers reduce the number of times herbicides have to be applied and reduces

the cost of producing crops and damage to the environment.

Environmental and Economic Benefits

Beyond agricultural benefits, products of crop biotechnology offer many environmental

and economic benefits. As described above, biotech crops allow us to increase crop

yields by providing natural mechanisms of pest control in place of chemical pesticides.

These increased yields can occur without clearing additional land, which is especially

important in developing countries.

In addition, because biotechnology provides pest-specific control, beneficial insects that

assist in pest control will not be affected, facilitating the use of integrated pest

management. Herbicide tolerantcrops decrease soil erosion by permitting farmersto use

conservation village.

Because farmers in many countries have grown biotech crops for years, data are now

available for assessing the magnitude of the environmental and economic benefits

provided by biotechnology. In the past few years, a number of independent researchers

have produced reports documenting these benefits.


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According to the National Center for Food and Agricultural Policys (NCFAP) 2004

report, in 2003 the 11 biotech crop varieties adopted by U.S. growers increased crop

yields by 5.3 billion pounds, saved growers $1.5 billion by lowering production costs,

and reduced pesticide use by 46.4 million pounds.

Based on increased yields and reduced production costs, growers realized a net economic

impact or savings of $1.9 billion. Three new traits for corn and cotton were introduced in

2003, and the NCFAP study takes into account six biotech cropscanola, corn, cotton,

papaya, soybean and squash.

In its report Conservation Tillage and Plant Biotechnology, the Conservation Tillage

Information Center (CTIC) at Purdue University attributes the recent improvements in

tillage reduction to the increased use of the herbicide tolerant varieties produced through

biotechnology. CTIC concludes that the increase in conservation tillage associated with

herbicide-tolerant crops decreases soil erosion by 1 billion tons of soil material per year,

saves $3.5 billion per year in sedimentations costs and decreases fuel use by 3.9 gallons

per acre.

According to the International Service for the Acquisition of Agri-Biotech Applications,

a single biotech crop, Bt cotton, has led to the following environmental and economic

benefits for farmers in developing countries:

From 1999 to 2000 in China, insecticide usage decreased by 67 percent and yields

increased by 10 percent, leading to income gains of $500 per hectare.

Extensive field trials in India from 1998 to 2001 demonstrated a 50 percent reduction

in insecticide spraying and a 40 percent increase in yields, which equals an increase

in income from $75 to $200 per hectare.


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Small farmers in South Africa gained through a 25 percent yield increase and decreased

number of insecticide sprays from 11 to four, reducing pesticide costs by $45 per acre.

The higher cost of Bt seed (up to $15 per hectare for small farmers) resulted in an

average economic advantage of $35 per hectare.

AGRICULTURE-BIOTECHNOLOGY - KEY ELEMENTS

Agriculture-Biotechnology or Plant-Biotechnology (herein after referred to as the Agri-

biotech sector), is the application of the science of biotechnology in agriculture and its

related processes and products. Agri-Biotech focuses on one or all of the following:

1. Crop yield

Using the techniques of conventional plant breeding or modern biotechnology, one or

two genes may be transferred to a highly developed crop variety to impart a new

character that would increase its yield. However, while increases in crop yield are the

most obvious applications of modern biotechnology in agriculture, it is also the most

difficult one. Current genetic engineering techniques work best for effects that arecontrolled by a single gene. Many of the genetic characteristics associated with yield

(e.g., enhanced growth) are controlled by a large number of genes, each of which has a

minimal affect on the overall yield.8 there is, therefore, much scientific work to be done

in this area.

2. Reduced vulnerability of crops to environmental stresses

Drought and excessively salty soil are two important limiting factors in crop productivity.

Using Biotechnology, crops may be developed with genes that will enable them to

withstand biotic and a biotic stresses and effectively meet such limiting factors. .

3. Increased nutritional qualities


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Proteins in foods may be modified to increase their nutritional qualities. Proteins in

legumes and cereals may be transformed to provide the amino acids needed by human

beings for a balanced diet. A good example is the work of Professors Ingo Potrykus and

Peter Beyer in creating Golden rice.

4. Improved taste, texture or appearance of food

Modern biotechnology can be used to slow down the process of spoilage so that fruit can

ripen longer on the plant and then be transported to the consumer with a still reasonable

shelf life. This alters the taste, texture and appearance of the fruit. More importantly, it

could expand the market

5. Reduced dependence on fertilizers, pesticides and other agrochemicals

Most of the current commercial applications of modern biotechnology in agriculture are

on reducing the dependence of farmers on agrochemicals such as fertilizers, pesticides,

herbicides and insecticides. For example, Bacillus thuringiensis (Bt) is a soil bacterium

that produces a protein with insecticidal qualities. Traditionally, a fermentation process

has been used to produce an insecticidal spray from these bacteria.

In this form, the Bt toxin occurs as an inactive protoxin, which requires digestion by an

insect to be effective. There are several Bt toxins and each one is specific to certain target

insects. Plants have now been genetically engineered to contain and express the genes for

Bt toxin, which they produce in its active form. When a susceptible insect ingests the

transgenic crop cultivar expressing the Bt protein, it stops feeding and soon thereafter

dies as a result of the Bt toxin binding to its gut wall. Bt corn is now commercially

available in a number of countries to control corn borer (a lepidopteran insect), which is

otherwise controlled by spraying (a more difficult process). Bt Cotton was introduced in

India a few years ago amidst bio-safety and toxicity concerns.


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BT Brinjal, presently undergoing deregulation through the testing and regulatory

approval process may be the first transgenic food crop to be introduced in India. Crops

have also been genetically engineered to acquire tolerance to broad-spectrum herbicide.

The lack of herbicides with broad-spectrum activity and no crop injury was a consistent

limitation in crop weed management.

Multiple applications of numerous herbicides were routinely used to control a wide range

of weed species detrimental to agronomic crops. Weed management tended to rely on

pre-emergencethat is, herbicide applications were sprayed in response to expected

weed infestations rather than in response to actual weeds present.

Mechanical cultivation and hand weeding were often necessary to control weeds not

controlled by herbicide applications. The introduction of herbicide-tolerant crops has the

potential of reducing the number of herbicide active ingredients used for weed

management, reducing the number of herbicide applications made during a season, and

increasing yield due to improved weed management and less crop injury.

Transgenic crops that express tolerance to glyphosate, glufosinate and bromoxynil have

been developede.g. Round up Ready Flex Genetic Trait. These herbicides can now be

sprayed on transgenic crops without inflicting damage on the crops while killing nearby

weeds. From 1996 to 2001, herbicide tolerance was the most dominant trait introduced to

commercially available transgenic crops, followed by insect resistance. In 2001,

herbicide tolerance deployed in soybean, corn and cotton accounted for 77% of the

626,000 square kilometers planted to transgenic crops; Bt crops accounted for 15%; and

"stacked genes" for herbicide tolerance and insect resistance used in both cotton and corn

accounted for 8%.

6. Production of novel substances in crop plants


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Agri-Biotechnology is being applied for novel uses other than food. For example, oilseed

can be modified to produce fatty acids for detergents, substitute fuels and petrochemicals.

Potatoes, tomatoes, rice tobacco, lettuce, safflowers, and other plants have been

genetically engineered to produce insulin and certain vaccines. If future clinical trials

prove successful, the advantages of edible vaccines would be enormous, especially for

developing countries. The transgenic plants may be grown locally and cheaply.

Homegrown vaccines would also avoid logistical and economic problems posed by

having to transport traditional preparations over long distances and keeping them cold

while in transit. And since they are edible, they will not need syringes, which are not only

an additional expense in the traditional vaccine preparations but also a source of

infections if contaminated.

In the case of insulin grown in transgenic plants, it is well-established that the

gastrointestinal system breaks the protein down therefore this could not currently be

administered as an edible protein. However, it might be produced at significantly lower

cost than insulin produced in costly, bioreactors. For example, Calgary, Canada-based

Symbiosis Genetics, Inc. reports that its safflower-produced insulin will reduce unit costs

by over 25% or more and approximates a reduction in the capital costs associated with

building a commercial-scale insulin manufacturing facility of over $100 million,

compared to traditional bio-manufacturing facilities.10 Development of new varieties of

seeds and crops and foods with above attributes which are beneficial for the health of the

people, can be seen in the market in a large number.

The evident technology and revenue gain from such products has encouraged the setting

up of new firms and companies in this field. This industry holds a great potential for

growth and generating revenue. As India being largely an agrarian economy, Agri-

Biotech sector tends to encourage agricultural activities since this would ensure the

disease-resistant, weather suited and higher yielding varieties of seeds which eventually


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produce crops, plants and foods benefitting farmers and breeders as well as contributing

to the economies.

As mentioned above, biosafety is one of the main concerns in this domain since farmers

and breeders rights need to be protected. These concerns main range from the

safeguarding of breeders and farmers rights by implementation of intellectual property

rights on the newly developed plant varieties to the various other forms of competition

issues that may arise in this sector.

Applications of Biotechnology for Functional Foods

A. Functional Foods

A relatively recent concept in the U.S. to describe the broad healthfulness of foods is the

term functional foods. These foods are defined as foods that provide health benefits

beyond basic nutrition (International Food Information Council 2004). The Food and

Nutrition Board of the National Academy of Sciences described a functional food as,

any modified food or food ingredient that may provide a health benefit beyond that of

the traditional nutrients it contains (Food and Nutrition Board 1994). The original

concept of functional foods originated in Japan from its development of a special seal to

denote Foods for Specified Health Use (FOSHU). More than 270 foods have FOSHU

status in Japan.

Foods qualify as functional foods because they contain non-essential substances with

potential health benefits. Examples of the diverse foods and their bioactive substances

that are considered functional foods are: psyllium seeds (soluble fiber), soy foods

(isoflavones), cranberry juice (proanthocyanidins), purple grape juice (resveratrol),

tomatoes (lycopene), and green tea (catechins). The broad classification of functional

foods carries some irony, as John Milner, Chief of the Nutrition Science Research Group

at the National Cancer Institute noted, It is unlikely that a non-functional food exists.

Bioactive components of functional foods may be increased or added to traditional


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Foods through genetic engineering techniques. An example would be the high lycopene

tomato, a genetically modified tomato with delayed ripening characteristics that is high in

lycopene, which has potent antioxidant capabilities. This report focuses on biotechnology

applications in functional and improved foods, using the National Academy of Sciences

definition as a guideline.

B. Applications of Biotechnology in Food Crops

In 1990, the U.S. Food and Drug Administration (FDA) approved the first genetically

engineered food ingredient for human consumption, the enzyme chymosin, used in

cheese making. It is estimated that today 70% or more of cheese made in the U.S. uses

genetically engineered chymosin. The first genetically engineered food, the Flavrsavr

tomato, was approved for human consumption in the U.S. in 1994.


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COMPANY PROFILE

S.L.V. PLANT TECHNOLOGIES PRIVATED LTD

The plant tissue culture project of SLV group is one of the reputed companies in

Bangalore, India with diversified business in many fields.

Mr.K.VENUGOPALA is the chairman and managing director of the company. He has

more than 10 years of experience in various fields of activities he also process thereadymade garments, constructions business, land development, real estate business.

And most important thing. K. VENUGOPALA is given more employment to rural and

poor people.

Mr. MAHESH KUMAR. and SHEKAR BABU.A. is the director of S.L.V plant

technologies.

Company has on ultra modern state of art tissue lab facility with a production

capacity of 3 million plants per annum for export and domestic and also more than to

varieties ornaments in culture stage for production.


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The entire lab facility is equipped with sterile air conditioning systems to maintain high

standards of sterility to produce uniform and disease free planting material for

agriculture, horticulture and floriculture. The laboratory is exclusively designed to fulfill

the requirements of international standards for producing export quality tissue cultured

plants.

The project headed by well experienced technologies and we have a well trained team of

technical supervised by tissue culture expert with more than 8 year of experience in plant

tissue culture industry.

The company has climate controlled green house with fogging and irrigation systems and

marble benches for hardening the tissue culture plants. Additionally the company has 10

acres of nurseries with poly house for the production of soil free pot plants for domestic

and export.

Growth of the company

In the coming year S.L.V. Plant Technologies Private Ltd. is likely to grow production

will increase to meet the growing customer demand and there will be gradual market

move up into new product lines. The growth and expansion will not however alter the

quality of the product, which has bought the success to the group.

The companys sales have increased over the year as the export of the Cord line,

Chlorophytum, Syngonium, and yucca plants is taking more importance.

We have an ultra modern state- of-art tissue culture lab facility with a production

capacity of 3 million plants per annum for export and domestic market. We have more

than 60 varieties of ornamentals under production.


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The project is headed by well experienced technocrats and we have a well trained team of

technicians supervised by tissue culture experts with more than 20 years of

experience in plant tissue culture industry.

We have climate-controlled greenhouses with movable benches for hardening coupled

with fogging & Irrigation system, additionally; we have 3 acres of polyhouse for on

growing tissue culture plants in soil-free medium for domestic and export market.

S L V PLANT Technologies Pvt. Ltd is one of the largest Biotech laboratories with

having a capacity of nearly 10 million plants. S L V PLANT Technologies Pvt. Ltd has

got states of the art & sophisticated laboratories situated one at S.L.V. Plant

Technologies Pvt. Ltd.,# 6, Makali,20th Km.,Tumkur Road, BANGALORE 562 123,

KARNATAKA.,INDIA. Tel: 91 80 23719432 Fax: 91 80 23719431, Bangalore

(KARNATAKA),

Technology absorption, adaptation and innovation

To cope up the latest technology company has developed sophisticated methods of

material handling system through an exclusive set up of R&D wings, headed by a

senior most person who has handled a large public sector undertakings.

The company has engaged in adding new development in the area, which has

contributed to adding new features to the product, due to this the sales, has increased

To enables rapid multiplication and introduction of new varieties within a short time.

To facilitates large-scale production of disease free planting materials.

To enables the propagation to be in all year-round basis.

To improve uniformity of the plants stand and yield in the field. To facilitates multiplication of difficult to propagate plants.

To facilitates international exchange of germplasm.

To enables large-scale development of new value added varieties.


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Main objectives of the company

To produce elite, high yielding, disease free, uniform plant materials to our farmers

to uplift their standard of living

Development of cost effective production technology.

Production and supply of good quality planting material of high yielding varieties.

Educate farmers of the efficiency of improved techniques for increasing

productivity.

To carry on the business of manufacturing, producing, buying, selling, importing,

exporting, and marketing and to act as dealers and agents of plant tissue cultures.

To carry on the business of purchasing, leasing, selling, exchanging or otherwise

acquiring and dealing in all kinds of agriculture and horticulture industry.

To carry on the business of selling agents purchasing agents, general agents,

commission agents, sub agents, distribution agents, stockiest, dealers and

manufacturers, representatives, marketing agents or consultants, indenting agents

and kinds of goods, commodities and services.

Location

The plant tissue culture lab is situated at makali, 20 km from Bangalore city on Bangalore

pune highway, which is easily accessible to Bangalore international airport.

Facilities

Research and development laboratory.

Commercial production laboratory.

Green house and poly house.

Nurseries.


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Soil free pot plant production.

Services

Contract production.

Customized product development.

Phytosanitory certifications.

Customized packing.

Project consultancy for commercial project.

MISSION AND VISION STATEMENT

The Mission Statement

Our experience lies in our ability to communicate honestly and effectively with our

growers and end user customers.

The company has a quality policy of

Good quality of plant tissue.

Supply as per delivery schedule.

Maintain and improve customer satisfaction.

Contribute to environmental safety by minimizing chemical wastages.

Through team work and quality management policy.

VISION

Strategies are devised and actions are being taken to provide a significant identity to our

farmers in this new-age agriculture.

To serve as the framework for our roadmap and guides every aspect of our Business by

describing in order to continue achieving sustainable, quality growth with peoples.

Objectives of the Study


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The objective of undergoing this is to get the practical exposure of the functional

departments of the organization such as: - Marketing, HRD, Finance, Information

Systems and Production department. During the Organization Study, we study how the

theoretical knowledge is practically applied in different departments in the organization

To understand the overall functioning and profile of the organization.

A study of the organization design.

Details regarding the mission, vision, objectives and ambitions of the Company.

To study the key business level functions like: Marketing, HR, Operations Finance

etc.

PRODUCTS PROFILE

Alocasia

Alpinia

Aloe vera

Banana

Cordyline

Chlorophytum

Calathea

Ficus benjamina

Ficus elastica

Gerbera

Syngonium

Philodendron

Yucca

Zamioculus zamnifolia


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30/69

30

Green House Technology

Green house technology is the most practical way of achieving the goal of protected

cultivation. A Green house is a format or an inflated structure covered with transparent or

translucent material in which crops could be grown under practically controlled

environment Glass house, poly house, shade house etc, are different names in use.

Principles of Green House
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The productivity of a crop is influenced not only its heredity but also the microclimate

around it. The components are light, temperature, humidity, and growing medium. Under

open field conditions it is not possible to effect specific control over the microclimate

hence restricting growing of varies crop species.

A green house is covered with a transparent or translucent material such as glass or

plastic depending up on its transparency; the green house cover admits a major fraction of

the sunlight. The crop, floor and other objectives in the green house, absorbs the sunlight

transmitted to the green house. These objects in the green house in turn, emit long wave

thermal radiation for which the cover material has lower transparency. As a result the

solar energy is trapped in the green house razing temperature.

The phenomenon is generally known as Green house effect it is this natural rise in the

green house air conditions, which is utilized under cold climate to grow crops

successfully.

The same natural phenomenon however requires additional cooling under summer

months to Maintain optimum condition. The closed boundaries of a green house permit

design of system for raising or lowering of green house air humidity, temperature, light

intensity, control of nutrients in the root zone, effective plant protection etc.

Benefits of Green house

The prospect of microclimate control permits the raising of plants anywhere at any time

of the year. Further the productivity is raised to the maximum per unit area. The

microclimate control also implies superior quality of produce, free from pathogens,

insects and chemical residues.

Specific Advantages

Crops could be grown under controlled climate conditions, when if would not be

possible to grow crop under open field conditions.


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Crops could be grown year round to meet the maker demands.

CHAPTER 2

ORGANIZATIONAL STRUCTURE


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ORGANIZATION STRUCTURE

To organize means to identify and demarcate the functions of an establishment, to list the

activities to be contained in each function, to group the activities into positions within a

function to determine the responsibilities and authority of each position, and to chart the

organization showing the relationship between the positions in a function and between

the functions in the whole structure.

Allen defines organizations as the process of identifying and grouping work to be

performed, defining and delegating responsibility and authority, and establishing

relationships for the purpose of enabling people to work most effectively together in

accomplishing objective


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The organization structure of S.L.V.Plant Technologies Pvt, Ltd. is shown as figure

Managing Director

Director

General Manager

Production Administrator

Supervisor Accounts officer


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Man Power Requirement Chart

* Office Assistant * Operators * Lab Assistants

* Accountant * Lab Assistants * Assistants

*

* Electrician

* Workers

* GH

MANAGER

R&D

&

PRODUCTION

MAINTANANCE

STERILE AREA MEDIA AREAOFFICE

BOTTLE WASH

PLANT WASH

HOUSE

KEEPING

GREEN HOUSE


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In-charge

* Assistants

CHAPTER 3

FUNCTIONAL DIVISIONS


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FINANCE DEPARTMENT

The account department is involved in monitoring the functions of other department thus

ensuring that the unit is functioning as per plan though with minor deviation.

Important functions constitute the following

Planning and budgeting C.V.A [cash value Added] calculations

Bill passing for the supplier as well as the contractors.

Cash as well as bank transactions

MIS related activities such as generation of MIS and review meetings from corrective

actions.

Planning and budgeting activities are done once a year and budgets so formed are

reviewed quarterly. Quarterly revisions or estimates are essential to transform the yearly

data contained in the budget to operational data pertaining to the immediate quarter

incorporating there in any factors that might have escaped notice during the budget

preparation due to the any reason. Deviations from the budgets are reported in the MIS


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(CVA is calculated annually for assessing the performance of the unit in cash terms.

Delta C.V.A gives the idea of the cash value additions done during a year.

Separate cash affiliated to the accounts department does bill passing activity. The

payment of the bill is done in the accounts department. MIS generated from accounts

department contains details of the functioning of all the departments in the line of the

consumption patterns of all the products as well as the byproducts etc.

If there are any deviations from the budget or the quarterly estimates that are serious in

natural then there deviations are discussed in the monthly review meetings.

FINANCE DEPARTMENT STRUCTURE

Finance department is considered as a nervous system of the organization as

performance of every activity needs money one way or the other. There is also

necessity of maintaining proper books of records relating to the transactions for which

existence of accounts department is essential.

Finance head

Assistant finance

manager 1

Assistant financemanager 2

Assistant financemanager 3


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Objectives

The objectives of the accounts department are to help the firm to achieve its target

for the year in coordination with other departments, keeping up-to-date records and

making it easily accessible.

S.L.V. Plant Technologies Pvt.Ltd makes efforts to provide the customer the

desired goods and to maintain a very high quality and it is ultimately directed

towards achieving profitability which is a must for concerns growth and

sustenance.

FUNCTIONS

They see that a proper inflow and outflow of income and expenditure is maintained.

Accounting of sales and sales realization.

Receipt of cash, cheque and bank drafts etc and issue of official receipts for the same

Maintenance of journal, expense ledger and general ledger.

Costing and accounting is framed and maintained.

Yearly budget is framed so that each department can meet their cash requirements.

Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting,

purchase forecasting etc.

Accounts section

The important functions carried on by this section are:

Passing entries of purchases

Maintenance of vouchers

Making financial entries

Excise regulation as excise is calculated on the basis of cost statements.

CASH SECTION


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It is looking after the payments of all general bills and salary bills apart from cane

payment and it is also looking after receipt of cash and cheque payment. All accounts are

maintained in usual manner.

Various records and books kept are

General ledger

Sub ledger

Subsidiary

Cash book

Bank book

Vouchers

Each branch prepares trading and profits and loss account and Balance Sheet as on 31 st

March every year.

MARKETING DEPARTMENT

Marketing department plays vital role in increasing the sales volume and contributes to

the growth of organization; marketing department receives the consumer feedback about

the product, attributes, features, and quality etc. the success of any organization depends

upon the effectiveness of marketing department.

Marketing department also collect the vital information on the market condition such as

demand, consumer preference, general economic conditions etc, this information is

utilized on production planning and control and decision making in an organization.

Definition

Marketing is defined by Philip Kotler as a social and managerial process by which

individual and groups obtain what they need and want through creating and exchanging

products and value with other.

MARKETING

MANAGER


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Export Market

The major plants exported from India includes Calathea, Yucca, Lily, Gerbera, Hosta,

Philodendron, Alpinia, Cordyline, Onion, Zantedaschia, Syngonium, Spathiphyllum,

Timonium, Phalaenopsis, and Carnivorous plants. Some 18 units are exporting

micrpropagated plant from India. Interestingly the value of exports as reported by the

units, work out to about Rs 15 Crores in the year. The Netherlands and USA accounts for

more than half export from India. Exports to Netherlands are consistent. It is the largest

producer of floriculture products in the world and the requirement for the planting

material is regular. Among new markets exports are picking up in countries like Belgium,

Canada, NewZeland, France, Germany, Malaysia, Korea and Australia.

The main operation of the marketing department is to

Retaining The Market Share.

Improving Sales.

Supporting The Sales Team.

MARKETING AT SLV PLANT TECHNOLOGIES PVT LTD


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It is trying hard to retain the existing customer effectively by providing effective services

and to increase customer base by attracting new consumer, SLV PLANT

TECHNOLOGIES main strong point lies in the quality orientation, which has earned the

confidence.

Functions

Preparation of marketing plan implementation sales forecasting

Market research

planning for advertisement

Building awareness and image of the brand to increase brand loyalty.

Distribution Channels

Distribution channel decisions are among the most complex and challenging decision

taken by the firm, because each channel system creates a different level of sales and cost.

Once the distribution channel has been chosen the firm usually must stick with it for a

long time the chosen channels strongly effects and is affected by the other element in the

marketing mix.

Pricing

Pricing is a dynamic process. Organization designs a pricing structure that covers all their

products. They change the structure over a period of time and adjust it to account for

different customers and situation.

The pricing strategy is largely determined by the companys target and market position

objectives. Common pricing objectives include profit maximization, market share,

leadership and product quality leadership.

The SLV PLANT TECHNOLOGIE

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