IESA WINWire Aug 01 - Aug 07, 2015
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Ezetap, Winner of IESA Technovation Awards 2014, raises Rs 150 Cr from Social+Capital, Helion and others
Source: Economic Times; August 6, 2015

Mobile point-of-sale payments startup Ezetap has raised Rs 150 crore from existing investors The Social+Capital Partnership, Helion Advisors, Berggruen Holdings and new investors Horizons Ventures, the private investment arm for Hong Kong billionaire Li Ka-Shing and Capricorn Investment Group.

Post this investment, Social+Capital founder Chamath Palihapitiya has become the chairman of Ezetap's board.

Ezetap had previously raised $8 million from Helion, The Social+Capital Partnership and Berggruen Holdings in February last year and had followed it up with a strategic investment from American Express a month later. Initially incubated by early stage investment fund AngelPrime, the company has raised around $35 million total investment until now.

Founded in 2011, Ezetap is one of the Square-like mobile point of sale solution providers in India, which enables merchants to convert their mobile phones into point of sale terminals.

Telangana government to set up India’s first data analytics park
Source: Firstpost; August 3, 2015

Minister for IT, Government of Telangana, K.T. Rama Rao has announced a proposal to build a data analytics park in Hyderabad. Speaking at the inauguration of Techwave Consulting’s office there, he also stressed on the importance of SMEs. The government is also planning to set up SME Tower to house SMEs at Kondapur. He believes it would attract investment for them. Speaking further he added that Government of Telangana has proposed to set a data analytics park in Gachibowli in the city. “This kind of park does not exist in India yet. We have made a proposal to Engineering Staff College of India (ESCI), an autonomous organ of India’s largest body of professional engineers. Its Board of Directors will meet in September and decide on the same,” informed K.T. Rama Rao. Rama Rao described how, over the last twenty years, Hyderabad has transformed in ‘Cyberabad’ and that now the city is considered one of the best options for low cost, high value human resources. Hyderabad is the second largest IT exporting company and contributes 12% of country’s IT exports.

CeBIT ties up with CLIK to boost ESDM sector in Karnataka
Source: The Economic Times; August 3, 2015

CeBIT India 2015, organised by Hannover Milano Fairs India Pvt Ltd, has partnered with the Consortium of Electronic Industries of Karnataka (CLIK), to boost the Electronic System Design & Manufacturing (ESDM) sector in the state. CeBIT, to be held from October 29 to 31, at the Bangalore International Exhibition Centre (BIEC), will provide a global platform for MSMEs to showcase their innovations at the CLIK pavilion, a release said. Stating that government aims to fuel growth in the electronics manufacturing sector through Make in India initiative, it said CeBIT India aims to catalyse this growth by showcasing innovations in the Indian ESDM sector on its globally-renowned platform. According to recent reports, the ESDM market is expected to reach $400 billion worldwide by 2020, and Karnataka aims to tap 10 per cent of the total market. The collaboration would further promote growth in the ESDM sector and provide newer forays for collaboration between member MSMEs, government and service providers, as well as encouraging global investment in the state.

Rs. 50,000 Crores Earmarked for 100 Smart Cities: Naidu
Source: NDTV Gadgets; August 3, 2015

Union minister M. Venkaiah Naidu on Saturday said Rs. 50,000 crores have been earmarked to develop 100 smart cities in the country, with each selected city to get annual central assistance of Rs. 100 crores for five years. Naidu, the union urban development minister, was speaking at an international seminar on sustainable and inclusive urban development organised by the National Institute for Transforming India (NITI) Aayog, the Institute for Human Development (IHD) and Department of Urban and Regional Planning of the University of Florida in New Delhi. "Special emphasis will be given to citizen participation while developing these smart cities. To recast the urban landscape of the country and make lives of urban people comfortable is the need of the hour," he said. Stating that "sustainable and inclusive urban development is the main focus of the government and there is a need to go for reforms in a big way", he said, "rapid urbanisation poses grave challenges for sustainability of the human race". "To ensure that urban development is sustainable, the government is going to promote rainwater harvesting, replace green buildings with conventional buildings, replace conventional power with solar power, replace conventional lights with LED lights for conserving energy and create community toilets to ensure access to toilets for all," the minister said.

State to introduce electronic policy soon
Source: The Times of India; August 4, 2015

In a bid to boost manufacturing of electronic equipment as well information and technology (IT) hardware material, the state government is likely to introduce a new electronic policy soon. The industrial department of the state government has already started drafting a policy in this regard. An official of the industrial department of told TOI on the condition if anonymity, "We are importing electronic equipment and computer hardware among material at large. We are doing well in software and the demand for electronic as well IT hardware is increasing. We have very less presence in terms of manufacturing electronic equipment, especially IT hardware. Hardware material is being manufactured but in very low quantity. Our import of electronic goods and IT hardware is up to 85%. Hence, the government has decided to introduce a new electronic policy." "We have already invited suggestions from various departments of the state government, experts and professionals from the IT and electronic sectors. The government is already in the process of drafting a new electronic policy, which is expected to be ready in the next few months.

Adani to announce JV worth $5 billion with iPhone maker Foxconn: Sources
Source: The Economic Times; August 4, 2015

Giving a push to PM Modi's "Make in India" campaign, Gautam Adani's Flagship firm, Adani Enterprises BSE 11.32 %, plans a joint venture with Taiwanese major Foxconn. The details of the JV are likely to be announced soon, sources said. The development could make Foxconn the biggest foreign investor in the 'Make in India' programme so far. The Taiwanese electronics giant's chairman Terry Gou made a two-and-a-half hour presentation on Tuesday to government officials explaining the company's India plans. Foxconn could be making some 400 million mobile phones in India. "Half of these will be manufactured for the Indian market and the rest half for exports to Middle East, Africa and Russia," sources told ET. Foxconn manufactures phones for a number of global brands, including Apple, BlackBerry, Motorola, Sony and Huawei. According to sources, the company is keen to manufacture in India for Indian as well as global brands. Foxconn is a multinational electronics contract manufacturing company headquartered in Tapei, Taiwan.

Consumer electronics brand Thomson re-enters India market with Rs 300 crore investment
Source: The Economic Times; August 4, 2015

After being away for almost 11 years, consumer electronics brand Thomson has re-entered the Indian market with an investment of Rs 300 crore in electronics manufacturing services company Resolute Electronics India. Under the partnership, Hyderabad based Resolute Electronics will be the brand-licensee of Thomson and manufacture LED TVs as well as large and small kitchen appliances for the Indian market. Technicolor-owned brand Thomson will roll out its line of LED TVs by end of this month, followed by home appliances such as washing machine in March and air conditioners by August. "For an early go-to market, we have tied up with online marketplace Flipkart to launch the TVs in August," said A Gopal Krishna, CEO of Resolute Electronics who will take on the charge of managing director of Thomson, India. "This falls in line with the government's vision of Make in India and will provide direct employment to 500 people and indirect employment to more," said K Taraka Rama Rao, minister of Panchayat Raj and IT, Telangana. The facilities at Resolute currently have a production capacity of 2000 LED units per day and will utilise the Rs 300 crores over three years to build capacity for manufacture of white goods at the existing facility. An additional Rs 50 crore will be spent for marketing India. "In Phase 1 over the first year, we will set up 500 stores across India.

Intel to set up electronics hobbyists/maker lab in Bangalore
Source: EE Herald; August 5, 2015

Electronics hobbyists/makers are becoming important customers all over world for semiconductor companies. World's number one semiconductor manufacturer Intel is also seeing mutual benefits in supporting electronics engineering Makers community. Bangalore being one of the active region for Makers, to get an exclusive Makers lab from Intel India.

To be operational soon, the Intel India Maker Lab in its Bengaluru campus aims to speed of the electronics hardware development by boosting product innovation and enhance maker capability for innovators and startups in India.

The Intel India Maker Lab will have the necessary infrastructure, development kits, reference design boards, hardware and software tools. The lab will also provide mentoring and business connection for local Indian entrepreneurs and innovators to develop and test their ideas leading to products and solutions using this unique Lab.

Sterlite wants land to set up LCD panel factory
Source: Business Stanadard; August 5, 2015

Anil Agarwal’s Sterlite Technologies is looking for land, possibly in Madhya Pradesh, for a factory to make LCD panels, say sources. The panels would go for television sets, mobile phones and other consumer electronic devices, top industry sources said. Sterlite executives were not available for comment. Agarwal had indicated a month before that they were keen to invest Rs 40,000 crore in the LCD plant. Sterlite currently makes optical fibres for telecom and internet services. The LCD unit will see it foray into supplying components for consumer electronic companies. The latter market is expected to grow with the government’s Make in India and Digital India programmes. The lack of domestic manufacturing in consumer electronics and appliances has been blamed for the lack of scale, incentives and component supplier base. Consumer electronics and durables are the second largest item on the country's import bill after oil. A recent E&Y report says India's consumer electronics and appliances market will touch $20.6 billion (or Rs 1.23 lakh crore) by 2020, growing at a compounded annual rate of 9.7 per cent. The current market size is estimated at $10 bn (or Rs 60,000 crore).

Andhra Pradesh plans to create 9 lakh jobs in IT and electronics sector
Source:; August 5, 2015

The Andhra Pradesh government has initiated plans to generate 5 lakh jobs in IT sector and 4 lakh employment opportunities in electronics segment in the next few years, a Minister said. Palle Raghunadha Reddy, Minister for IT and Minorities Welfare, said the TDP-led Government is focusing on job creation in IT and electronics sectors.

Andhra Pradesh, which lost IT hub Hyderabad to Telangana post-bifurcation last year, has launched several plans to provide 5 lakh jobs in IT and 4 lakh in electronics sector, he said. Talking to reporters in Vijayawada, Reddy said the state is expecting Rs 12,000 crore revenue from IT and Rs 30,000 crore from electronic sector in the next one year.

The infotech industry has taken a big hit in residuary Andhra Pradesh after the division. The revenue from IT sector has come down to just Rs 1,600 crore from Rs 65,000 crore in the unified state, the Minister said.The single window licensing policy of the Government has received good response from industrialists. About 28 new industries have got approvals, creating 37,000 employment opportunities, he said. Industrial corridors around Anatapur, Visakhapatnam and Kakinada are attracting new commercial enterprises, Reddy added.

Sony inks pact with Foxconn to manufacture its Bravia line of TVs in Chennai
Source: Business Today; August 5, 2015

Sony Corp has hopped onto the 'Make in India' bandwagon by inking a pact with Taiwanese firm Foxconn to manufacture its Bravia line of television sets at the latter's unit in Chennai. The Japanese electronics major, which currently has more than 25 per cent market share in the flat television panel business in India, said local production will help the company be more competitive - with lower costs, new model launches and less turnaround time. The Narendra Modi government's 'Make in India' policy influenced the company's decision to manufacture in the country again after a gap of more than a decade, a report byThe Economic Times quoted Sony India Managing Director Kenichiro Hibi as saying. Sony had exit manufacturing in India in 2004 after it shut down its Haryana plant where it produced m India is the fourth-largest market for Sony with its Indian arm registering Rs 10,600 crore sales in 2014-15, which includes 40 per cent revenues, each, from televisions and smartphones. Though the company is currently looking at manufacturing only for the Indian market, it may consider exporting as well at a later stage, Hibi said. Sony will join other multinationals like Samsung Electronics and HTC, which are already manufacturing in the country.

Reliance Group plans $1bn Aerospace Park
Source: The Times of India; August 5, 2015

The Anil Ambani-owned Reliance Group has selected Mihan near Nagpur in Maharashtra for developing India's first smart city for the defence sector. Known as Dhirubhai Ambani Aerospace Park (DAAP), the smart city will be developed at a cost of $1 billion to manufacture helicopters for both commercial and military applications. The project would be the first integrated facility in aerospace structure, engine design and manufacture, fabrication and platform integration in the country. The move is part of the Reliance Group's aggressive play in defence, seeking to capture a slice of the $100 billion worth of opportunities that the sector would soon throw up as part of the NDA government's 'Make in India' programme to focus on indigenous manufacturing of defence equipment. Confirming the move, Reliance Group chairman Anil Ambani said, "The group plans to develop DAAP as a centre of excellence in the aerospace segment on the lines of the global centre of ship building at Pipavav in Gujarat." Earlier this year, the Reliance Group added heft in its defence manufacturing by buying out Nikhil Gandhi-promoted Pipavav Defence and Offshore Engineering (PDOE), which houses India's largest dry dock facility to build warships. It subsequently committed investments of Rs 5,000 crore towards indigenization efforts. Company officials told TOI that Mihan was selected after negotiating with the governments of Maharashtra, UP, Madhya Pradesh and Rajasthan for land for the project.

STPI moots electronics incubation centre in Visakhapatnam
Source: The Times of India; August 6, 2015

The Software Technology Parks of India (STPI) is planning to develop an ESDM (Electronic System Design and Manufacturing) incubation centre with the assistance of the central government in the Port City. In addition to the ESDM incubation facility, STPI is also holding discussions with Visakhapatnam Urban Development Authority (Vuda) to construct an IT tower for focus on marine, power and telecom in the city adjacent to the Vuda building at Siripuram. According to STPI officials, the ESDM incubation centre is aimed at promoting entrepreneurs in the electronics sector for which India is mainly dependent on foreign countries such as China and Taiwan among others. "The central government wants to develop electronics manufacturing in the country and we are planning to set up a design incubation centre so that impetus can be given to the electronics segment. We are hoping that around 150 companies will incubate at this ESDM incubation centre in Vizag. This will address job creation as well as import substitution of electronic goods," STPI joint director MP Dubey told TOI.

According to a study by India Electronics and Semiconductor Association, by 2020, the demand-supply gap is estimated to reach USD 300 billion and will lead to a situation where the electronics import bill for the country will exceed oil import costs.

Samsung: All our phones sold in India are made here
Source: Hindu Business Line; August 6, 2015

Samsung has so far launched 16 smartphones this year.

Asim Warsi, Vice-President (Marketing), Samsung Electronics India, said the company will continue to maintain the same pace the rest of the year.

He said 14 out of 16 Samsung smartphones launched in India run on Android. Asim further added that all the Samsung smartphones which were sold in India were manufactured in the country itself.

Warsi was speaking at the launch event of the Galaxy A8 for Andhra Pradesh today. Priced at Rs 32,500, the Galaxy A8 is Samsung’s 16th smartphone in India. The device comes with 3050 mAh battery and a memory card slot for upto 128 GB.

Samsung claimed 40 per cent in the Indian smartphone market during January-June, 2015.

Will ‘Make in India’ take A&D industry to next level?
Source: Electronics maker; August 6, 2015

India is embarking on one of the world’s largest and most sustained procurement cycles. India has introduced Defense Offsets and due to it being one of the top military spenders in the world, the offset obligation is a significant opportunity that will need to be addressed by the expansion of private defense manufacturing.

IESA President M N Vidyashankar comments on Indian A&D industry as, “Indian Aerospace and Defence verticals are one of the most promising sectors with a booming market & an ocean of opportunities for Companies to take the manufacturing plunge.

The allocation for Defence in the last budget was approximately USD 37.3 Billion. The country has the 3rd largest armed forces in the world. India is one of the largest importers of conventional Defence equipment and spends about 40% of its total Defence budget on capital acquisitions. India’s current requirements on Defence are catered largely (around 60%)by imports. There is a huge opportunity to avail Defence offset obligations, to the tune of approximately INR 250 Billion during the next 7-8 years. The country’s extensive modernization plans, increased focus on homeland security and India’s growing attractiveness as a Defence sourcing hub open up vistas of opportunities.”

Budget booster working, foreign cos showing interest in manufacturing: FinMin
Source: Business Standard; August 6, 2015

Enthused by the announcements of global electronics major Foxconn and Sony to set up manufacturing facilities in India, Finance Ministry today said the "budget boosters" are silently working and 'Make in India' is taking shape. "Sony, Foxconn and many more. Budget booster in indirect taxes silently working for domestic manufacturing. Make in India taking shape," Revenue Secretary Shaktikanta Das said in a tweet. Taiwan-based Foxconn, which makes iPhone, iPad and other Apple products, had earlier this week said it was in talks with Adani group and other Indian firms to set up manufacturing factories in India. Foxconn Chairman and CEO Terry Gou, this week made a second visit to India in 45 days, said his company was "very keen to invest" in the country and is in talks to strike partnership with local companies. Gou said Foxconn is in talks with billionaire Gautam Adani's Group for electronics manufacturing facilities and has visited Karnataka, Maharashtra, Andhra Pradesh and Gujarat to scout for possible locations for the facilities. The Taiwanese firm is also working with Micromax and Snapdeal. In June, Japanese electronics major Sony had said it was "seriously" looking at participating in the government's 'Make in India' initiative and may consider setting up a manufacturing plant in the country. Sony India is the fourth highest contributor in the global sales of Sony Corporation. Finance Minister Arun Jaitley in his 2015-16 Budget has announced a host of tax and non-tax initiatives to boost domestic manufacturing as part of the Make In India programme.

Compiled by IESA Research

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