Detecting a demand in growth

BioTector has seen exponential sales growth in recent years. With its patented technology advancing and a recent agreement with an international company, the Cork-based firm has high hopes for the year ahead, writes Trish Dromey

Sales for the Cork-based liquid analyser manufacturing company BioTector have increased by 144% over the last two years and the expectation is that they will go up by another 40% this year.

Sales and operations director David Horan says this significant increase in business has come about as a result of advances in the company’s patented technology, as well as the signing of a distribution agreement with an international company in 2010.

“We are now selling in 30 countries on four continents and have a new distribution agreement in place for China, Japan and Taiwan,” Mr Horan says.

Also significant for BioTector’s growth is the fact that the company’s organic carbon analysers are used for environmental monitoring and qualify as green technology, since green technology is one of the markets which continues to have a high growth rate globally.

A finalist for this year’s Small Firms Association business awards in the manufacturing and innovator of the year categories, BioTector is aiming to establish itself as a global leader in the manufacturing of online liquid analysers.

Having passed the €5m turnover mark last year, Mr Horan says the company has ambitious growth plans.

Back in 1995, the company started out supplying organic carbon analysers — mainly to the petrochemical industry — but has now expanded the application of its products to include the food and beverage, and municipal waste treatment sectors, as well as the pharmaceutical industry.

“The analyser is used not only for environmental monitoring but also for process control and waste minimisation,” Mr Horan says, explaining that the technology detects and prevents leakage of product into the waste stream, so that efficiency is improved and energy costs are reduced.

“One of the strong selling points for our technology is that it is more robust than traditional analysers. It can survive in industrial process applications and can work in places where other analysers can’t” he adds.

In 1995, BioTector was set up by Mr Horan’s parents, Martin and Nancy. Martin, BioTector’s managing director, previously ran a business supplying the pharmaceutical industry and had identified a gap in the market for a reliable analyser.

Establishing the company, with support from Enterprise Ireland, he and colleague Seamus O’Mahony set about developing a new product range.

Starting as a small company, BioTector began by selling analysers, mainly to the petrochemical industry in Texas, and grew slowly, continually investing in research and development.

“We patented the technology in 2000 and this was a milestone. Dow Chemical began using our analyser extensively throughout the world, which was a significant endorsement,” says David Horan.

The company negotiated several distribution deals and began selling globally. As its technology gained recognition, it began to attract the interest of better-known distributors.

In 2010, the company signed a distribution agreement with Hach, a US-owned global manufacturer of monitoring equipment, which had previously been a competitor.

The first agreement with Hach involved the US, Mexico, Brazil and all of Europe (except Ireland); while a second one, signed this year, involves China, Japan and Taiwan.

Mr Horan says Hach has aggressive growth targets and aims to double its sales of BioTector analysers within two years.

BioTector’s largest market is the US, which accounts for more than 25% of sales. The Irish market has become quite significant in the last two years — growing from a small percentage to 14% in 2011. Mr Horan says sales in Ireland have been helped by customers looking to cut costs in the recession. He says BioTector has been particularly successful in selling to the food, beverage and pharmaceutical industries here.

Key customers in Ireland include Carbery Milk Products, Glanbia, Pfizer, Diageo, Coca-Cola, Pepsi and Bulmers. Internationally, they include Exxon Mobil, Shell, Heineken, BASF and ConocoPhilips.

Operating from a 12,000sq ft premises in Ringaskiddy, BioTector employs a staff of 29. This has increased from 17 in 2009 and is expected to reach 34 by the end of this year.

Future plans for BioTector involve ongoing investment in research and development. The company spends in excess of 10% of annual turnover on this.

Enterprise Ireland has recently provided grant aid to assist with the development of two new analysers, which are expected to be market-ready within three years.

Fact file

* Company: BioTector Analytical Systems.n Location: Ringaskiddy, Co Cork.

* Managing director: Martin Horan.

* Staff: 29.

* Business: Manufactures Total Organic carbon, Total Nitrogen and Total Phosphorous analysers

* Exports: 86%.

* Main markets: US and Europe.

* Website: www.biotector.com