IESA WINWire Aug 15 - Aug 21, 2015
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Make in India: Government gets proposals worth Rs 1.10 lakh crore under MSIPS
Source: The Economic Times; August 15, 2015

The government has received investment proposals worth about Rs 1.10 lakh crore in the last 12 months under the electronics manufacturing scheme MSIPS. "Investment proposals worth Rs 1,10,000 crore have been received in the electronics sector in the last one year," Additional Secretary, Ministry of Communications and Information Technology, Ajay Kumar said. He was speaking during a conference on 'Make in India: Bright Prospects of LED Manufacturing' organised by PHD Chamber of Commerce and Industry here. Kumar added India has also been able to receive electronics manufacturing proposals from 20-25 overseas companies, and domestic companies that had no exposure to the sector, have also begun to diversify into it in view of its potential. He said the electronics development fund (EDF) will also become operational from next month to support venture capitalists to fund electronic manufacturing in general and LED in particular. "The cabinet approval for the EDF has been obtained recently by the Ministry of Communications and Information Technology and a leading financial institution is being identified through which the EDF disbursements would be made," Kumar added.

Single-window clearance for IT investors in UP
Source: Hindustan Times - News; August 15, 2015

The Uttar Pradesh government said it has set up a single-window clearance system for entrepreneurs, corporate houses and other investors in order to attract investment in the IT sector.

A single-window system means that entrepreneurs will get all kinds of clearances such as building layout approval, environment permission and building completion certificate at one platform.

The state government said it has set up this system to ensure that an IT player or entrepreneur can start manufacturing or other businesses at their units without wasting time getting permissions from various government departments.

UP chief secretary Alok Ranjan said that foreign entrepreneurs will be provided the best of facilities and assistance. After Prime Minister Narendra Modi’s launched the ‘Make in India’ campaign, many foreign entrepreneurs are heading to Greater Noida, officials said, adding that these investors want to set up electronics manufacturing units.

Foxconn boost for 'Make in India': Why Taiwan Inc's growing interests in India deserve attention
Source: The Economic Times - Indiatimes; August 16, 2015

It is a comeback with a grand spin. In 2006, the $130-billion Foxconn Technology — the world's largest contract manufacturer of smartphones — made a low-key entry into India to make handsets for Finnish handset maker Nokia. A year ago, the Taiwanese giant pressed the exit button after Microsoft acquired Nokia and its Tamil Nadu plant faced issues.

Last weekend, the Taiwanese giant returned with a bang. In a big boost to the government's Make in India campaign, Foxconn — also called Hon Hai Precision Industry Co Ltd back home — signed a memorandum of understanding (MoU) with the Maharashtra government to invest $5 billion in an electronics factory and an R&D centre spread across 1,500 acres that will create 50,000 new jobs.

The electronics industry itself has the potential to create 28 million direct jobs, according to the government report. Not surprisingly, government is considering a range of measures including fiscal incentives to encourage domestic manufacturing in products like LED bulbs and mobile phones. Indian Electronic and Semiconductor Association (IESA) is targeting to bring down electronics imports (finished goods and components) from 65 per cent today to 50 per cent by 2016-17.

India attractive for investment, thanks to support that Indian government has promised: David Hsu
Source: Economic Times; August 16, 2015

David Hsu, deputy director-general, bureau of foreign trade, ministry of economic affairs, Republic of China, first met prime minister Narendra Modi when he was the chief minister of Gujarat. Since last year, when Modi took charge, Hsu has already met him twice. And he says India appears most attractive for investm

I have met him [prime minister Narendra Modi] twice — in November [2014] and January this year. His message is: invest in India.

The instruction from the top is very direct — "any problem, just tell us. We will solve all your problems." With that kind of backing, Taiwanese investors have a lot of confidence in India today.
Has there been any progress on the ground? We have signed several MoUs since January with industry associations like shipbuilding and electronics. We have had more than eight-nine industrial delegations so far. Besides Foxconn, there are other seven-eight companies that have decided to invest.

Maharashtra to seek Japanese investment in infra, auto, IT, manufacturing, smart cities
Source: Business Standard; August 17, 2015

Buoyed by Foxconn’s decision to invest $5 billion, Maharashtra Chief Minister Devendra Fadnavis and state Industries Minister Subhash Desai will visit Japan in the first half of September to attract investments in the field of manufacturing, electronics, information technology (IT), automobiles and infrastructure. Besides, the state government plans to seek the involvement of Japan in the development of 10 smart cities in Maharashtra.

“Maharashtra is the undisputed leader and a favoured investment destination. In the last 10 months, the state has attracted an investment of Rs 58,000 crore from the US, China, Israel, Germany and other nations. Japan has evinced interest in investing in the state, and the proposed visit will help give the much-needed push,” Desai told Business Standard.

Desai said the chief minister-led delegation will hold meetings with leading Japanese companies and with representatives from Japan International Cooperation Agency (JICA) and Japan External Trade Organization (JETRO).

EDF 0f Rs.10,000 crore or More Becoming Operational From Sept. To Support Electronics Manufacturing
Source: Capital Market; August 17, 2015

The government on Friday informed that the Electronics Development Fund (EDF) will become operational from next month onwards to support venture capitalists to fund electronic manufacturing in general and LED in particular and added that in the last 12 months, Rs.1,10,000 crores of domestic and overseas investment have been committed through the MSIPS scheme of Department of Telecommunications and Department of Electronics and IT in the electronics sector under the government's Make in India initiative.

“The cabinet approval for the EDF has been obtained very recently by the Ministry of Communications and Information Technology and a leading financial institution is being identified through which the EDF disbursements would be made”, said its Additional Secretary, Dr. Ajay Kumar without disclosing its identity.

Inaugurating a Conference on “Make in India: Bright Prospects of LED Manufacturing” organized by PHD Chamber of Commerce and Industry, Dr. Kumar disclosed that the basic objective of putting the EDF in place was to promote electronics making in India – a zero import product.

The startup revolution: Smart solutions for social good
Source: Governance Now; August 17, 2015

Startups are making Internet of Things devices to address challenges in agriculture and healthcare. According to World Health Organization, every year there are three million cases of pesticide poison and up to 2,20,000 deaths, primarily in developing countries. Children, and indeed any young and developing organisms, are particularly vulnerable. The solution can be of utmost significance for spraying in hilly terrains, says Jawahar, one of the students involved in developing Smart Pesticide. Here’s how it works. Ultrasonic sensors are placed in the farmland. These sensors record the sound produced by pests and transmit it to the connected computer system (coordinator), which in turn sends data to the cloud. The sound produced by different pests are analysed and accordingly the cloud will guide the quadcopter (drone) to spray pesticide. Precision farming can help in increasing food production as the world population grows to 9.6 billion by 2050. “Smart and precision farming will allow farmers to improve productivity and reduce waste,” said a spokesperson of Indian Electronics and Semiconductor Association (IESA). There are also companies offering GPRS-enabled devices for remote controlling water pumps.

Walden International to step up investments for technology startups in India
Source: The Economic Times; August 17, 2015

Silicon Valley-based VC firm Walden International plans to step up investments in India and is waiting for clearances to start a local fund to back hardware and technology startups. Earlier, Subramaniam's company Cosmic Circuits was acquired by US electronic design automation firm Cadence Design Systems, where Lip Bu Tan is the CEO. Tan, who was appointed to the board of HP Enterprise board of directors last week, met with a handful of startups in Bengaluru on Saturday. "I am very bullish about India, especially in the semiconductor and hardware space. With Foxconn coming in and Flextronics already present here we can really begin to scale," Tan told ET. Earlier this month, Foxconn, the world's largest electronics manufacturer, agreed to invest $5 billion over next five years to setup a manufacturing facility in Maharashtra. In 2013, Walden International had announced that it will setup a $100-million fund for India but seeing the potential in the market, it has started investing from its overseas fund until the India fund is ready. It was one of the earliest venture capital firms to catch the outsourcing boom and invest in Indian companies like Mindtree that went public in 2007. maker, DJI drones and Ambarella, a video compression and imaging technology company.

US firm signs deal with Haryana government to create 2,000 jobs
Source: The Economic Times; August 18, 2015

The Haryana government has signed a deal with a leading US firm to manufacture air conditioners at an eight-acre facility in Gurgaon that will generate about 2,000 jobs. The Memorandum of Understanding (MoU) was signed between the Connecticut-based firm United Technologies and Haryana Chief Minister Manohar Lal Khattar yesterday. Under the MoU which was signed at the company's headquarters, the firm will expand its facilities in the city and set up an eight-acre unit to manufacture air conditioners, creating 2,000 jobs in the process. The unit will be in addition to the existing facilities United Technologies already has in Gurgaon which is 35 km from New Delhi. United Technologies provides a broad range of high-technology products and support services to customers in the aerospace and building industries worldwide.

Khattar and his delegation held meetings with Connecticut Governor Dannel Malloy and business leaders and CEOs. He extended an invitation to the Governor to visit India and Haryana that was accepted by Malloy.

Manufacturing ecosystem will set in with Lenovo plant: IESA
Source: Voicendata; August 19, 2015

Welcoming Lenovo’s decision to establish a smartphone manufacturing plant in India, India Electronics & Semiconductor Association has said that the step would create the right ecosystem for manufacturing by small and large manufacturers in India. The component and module eco-system will soon follow to support large-scale manufacturing for a single category- smartphones. Smaller manufacturers then will benefit from this ecosystem. The association has said that along with smartphones, consumer electronics and set-top boxes also offer a large local market and are likely to be locally manufactured. The competitiveness is best demonstrated when companies eventually establish India as their export hub. “The ‘Make in India’ initiative of the Government is taking wings. We anticipate more such announcements from both Indian and Multinational companies in the months to come,” said Vinay Shenoy, Chairman, India Electronics & Semiconductor Association. The revised MSIPS (Modified Special Incentive Package Scheme) policy notified earlier this month has extended incentives for local manufacturing of significantly larger number of products and intermediates (components/modules), especially those that are consumed locally in large volumes.

India-made smartphones share jumps to 24.8% in Q2: Study
Source: Livemint; August 20, 2015

Government’s ‘Make in India’ initiative seems to have begun bearing fruits as 24.8% of the smartphones shipped in the country during the June quarter were made locally compared with 19.9% in preceding quarter, a report said on Wednesday.

According to the research firm CyberMedia Research, a total of 56.6 million handsets were shipped during the June quarter, of which smartphones comprised 43% (24.8 million units) of the volume.

Smartphone shipments in the country grew 24.8% to 24.41 million units in the June quarter, with Korean handset maker Samsung continuing to hold the numero uno position in the Indian market.

“The ‘Make in India’ campaign has had a positive impact on mobile handsets manufacturing in the country. Of the total handsets shipped in Q2 CY2015, 24.8 per cent were manufactured and/or assembled in India compared to 19.9% in the previous quarter (Q1 CY 2015),” it said.

TP Link, Netgear, IBall captured 48% share of the Indian router market
Source: Firstpost; August 20, 2015

The Indian Router market witnessed significant technological changes over the last few quarters due to rise in demand for internet connectivity coupled with increasing number of internet subscribers and growth in BYOD market. According to 6Wresearch, the Indian router market shipments registered 0.67 million units during CY 1Q 2015.

TP-Link led the India SOHO Router market whereas, Cisco captured major share in the commercial router segment. Further, during CY 1Q 2015, in the India SOHO Router market Netgear ranked second and registered a substantial triple digit growth over the same quarter previous year.

Some of the key players in the India SOHO and commercial router market are TP Link, Netgear, IBall, Cisco and Hewlett Packard.

As many as 53 vendors shipped devices. TP Link, Netgear and IBall together captured around 48 percent share of the market.

In the SOHO segment, WLAN routers registered more than 94 percent market share.

After Bengaluru, Coimbatore becomes the next hub for startups
Source: Economic Times; August 20, 2015

In 2012, Dhruv Kumar shifted the base of his online medical advice platform, iCliniq, to Coimbatore after operating it out of Bengaluru for two years. The reason: He didn't want to be overwhelmed or distracted by the hoopla around startups in the tech capital.

"I wanted to be out of all the noise and focus on building a quality product," he said during a recent interview. "There are events all the time and the place is flooded with funding stories. Those days, we thought we were a tech startup and did not focus enough on the health and business side."

A much-focussed development and the wait for the product to mature has been rewarding. iCliniq now has more than 1,000 doctors on its platform and they have so far addressed tens of thousands of health issues. It gets a large portion of revenue from the US and Europe.

Consumer durables maker Haier to invest Rs 465 crore to expand Pune facility
Source: ET Retail; August 20, 2015

The company expects to close the calendar year with a turnover of Rs 2,150 crore, a 23% jump over the previous year, Braganza said.

Consumer durables maker Haier will invest Rs 465 crore over the next two years to expand its facility in Ranjangaon in Pune. The company will also set up a new design centre to bolster its plan to create more India-centric products, president at Haier Appliances (India) Eric Braganza said. "As capacities will more than double by April 2017, we will have to set up a design centre to address the needs of the Indian consumer," he told ET.

Haier India is a 100% subsidiary of China-based Haier Group. The company expects to close the calendar year with a turnover of Rs 2,150 crore, a 23% jump over the previous year, Braganza said.

Last month, Haier introduced CODO, the world's first pocket washing machine, in the Indian market through online retail channel Snapdeal. The company that is muted in its communication spending about Rs 100 crore on marketing in 2015 hopes to see a 60% jump in marketing spend by 2017 when it will be ready with its India-specific products, said Shanta Roy Sanjeev, head (marketing) at Haier.

LAVA gets land for mobile unit along Yamuna e-way
Source: The Times of India; August 21, 2015

The Yamuna Expressway Industrial Development Authority on Thursday issued an allotment letter to the country's fourth largest smartphone vendor, LAVA International Limited, to set up an electronics manufacturing cluster (EMC) on 100 acres of land along the expressway. An official said the formalities will be completed by next month and the land will be handed over to Uttar Pradesh Development Systems Corporation Ltd (UPDESCO), which will develop it and transfer it to the company within six months. Expected to make an investment of about Rs 2,000 crore, LAVA has a wide product portfolio that includes tablets, feature phones and smartphones under the LAVA and Xolo brands. The company already has a research & development centre in India and an in-house product testing set-up in China. The total land cost for the project is estimated to be about Rs 160 crore and 5% of this cost, including the booking amount of Rs 11.42 crore, has already been collected by YEIDA. "The EMC will be set up on land measuring about 100 acres. This is located along the Yamuna expressway in Sector 24," said Santosh Yadav, CEO of the Authority. Officials said they were leaving no stone unturned in pushing the region as an ideal destination for foreign investment. "With a friendly UP electronic manufacturing policy, 2014, we hope to transform UP and the three areas of Noida, Greater Noida and YEIDA into being globally competitive and industry-friendly destinations," said Rama Raman, chairperson of the three Gautam Budh Nagar authorities.

Compiled by IESA Research

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