IESA WINWire Jan 03 - Jan 09, 2015
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‘USB flash drive prices may double on move to impose duty’
Source: The Hindu Business Line; January 4, 2015

http://www.thehindubusinessline.com/features/smartbuy/tech-news/usb-flash-drive-prices-may-double-on-move-to-impose-duty/article6753629.ece

A proposal to slap anti-dumping duty on Chinese pen drives could lead to more than doubling of data storage device prices and encourage grey market trade, according to a section of domestic industry players.

The recommended anti-dumping duty are up to USD 3.12 per piece. Anti—dumping duty is recommended by the commerce ministry, while the finance ministry imposes it.

Opposing the move, India Electronics and Semiconductor Association (IESA) chairman said: “It is startling to see that a flat rate USD 3.12 & USD 3.06 for imports from China and Taiwan respectively has been proposed. This is an average almost 160 per cent duty over the basic import price of the USBs in 2GB to 8GB capacities. This will put a huge burden on the consumers.

Cyient to acquire majority stake in Rangsons Electronics
Source: Adgully; January 5, 2015

http://www.adgully.com/cyient-to-acquire-majority-stake-in-rangsons-electronics-60077.html

Cyient Limited(Cyient) has signed a definitive agreement to acquire 74% equity stake in Rangsons Electronics Private Limited (Rangsons Electronics), a leading electronics system design and manufacturing (ESDM) services company, headquartered in Mysore, India, in an all-cash transaction. The acquisition positions Cyient strongly to expand into high-technology and high-value, design-led systems and solutions in line with the company’s S3 (services, systems and solutions) strategy.

Domestic Drive: Government push needed for indigenous equipment manufacturing
Source: Tele.net.in; January 6, 2015

http://www.tele.net.in/trends-a-developments/item/16296-domestic-drive-government-push-needed-for-indigenous-equipment-manufacturing&tag=Wireless

The Indian communication sector has been registering phenomenal growth but the same cannot be said of the domestic manufacturing base for telecom equipment. The success witnessed by home-bred players like Bharti Airtel, Idea Cellular and Reliance Communications (RCOM) in the services sector has eluded their counterparts in the manufacturing industry.

Indian manufacturers face a significant cost disadvantage as compared to foreign companies that import equipment. As per a study conducted earlier in the year by the India Electronics and Semiconductor Association and Ernst & Young, the domestic telecom industry faces a fiscal disability of up to 26 per cent as compared to foreign companies. Finished telecom equipment can be imported at zero duty, but components have duty ranging from 10 per cent to 15 per cent. Indian telecom equipment-makers pay 16-18 per cent interest on loans, and infrastructure costs like those of power are higher here as well. Unlike foreign players, Indian firms do not get any research and development (R&D) incentives or soft loans for product development.

CEAMA appoints Panasonic India chief as its new President
Source: Economic Times; January 6, 2015

http://articles.economictimes.indiatimes.com/2015-01-06/news/57748078_1_ceama-new-president-panasonic-india

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) today appointed Panasonic India MD Manish Sharma as its new President.

Sharma will succeed Anirudh Dhoot of Videocon who served as the President of CEAMA previously, CEAMA said in a statement.

As President, Manish Sharma will play an important role in catalyzing the growth of consumer electronics and home appliances industry, by serving as an interface with the government and the industry for meaningful interactions and dialogs, the statement said.

Govt to relocate IT habitat to Kadamba plateau at Goa
Source: Goa Blog; January 6, 2015

http://www.goablog.org/posts/govt-to-relocate-it-habitat-to-kadamba-plateau-at-goa/

Goa’s IT habitat project, which didn’t have takers while it was earmarked in tony Dona Paula, will be relocated to 4.5 lakh sq m of government land near the electricity department’s sub-station on Kadamba plateau, within the precincts of Chimbel village.

The plateau is being developed for several years now as a residential-cum-commercial area, although it faces severe water problems. TOI had reported in August 2014 that the government is keen to shift the IT habitat project from Dona Paula, due to poor response from entrepreneurs, to a “suitable place”.

Industry opposes anti-dumping duty levied on pen drives
Source: The Hindu Business Line; January 7, 2015

http://www.thehindubusinessline.com/features/smartbuy/other-gadgets/industry-opposes-antidumping-duty-levied-on-pen-drives/article6764543.ece.html

The government’s proposal to impose anti-dumping duties on Chinese and Taiwanese pen drives is being opposed by the industry, fearing a rise in prices that would result in grey market spread.

The sector is also confused over the provenance of the devices, while domestic companies’ lacking of the ability to manufacture these would impact the demand-supply equation.

“This will put a huge burden on the consumers. Also there is no rationale of imposing duty on high capacities such as 32 GB, 64 GB and 128 GB or USB 3.0 technology products where domestic players have no demonstrated presence or capability,” said Ashok Chandak, Chairman of India Electronics and Semiconductor Association.

Infosys' second campus in Bhubaneswar to employ 5,000 people
Source: Business Standard; January 7, 2015

http://www.business-standard.com/article/companies/infosys-second-campus-in-bhubaneswar-to-employ-5-000-people-115010701228_1.html

Infosys, India's second largest IT services company, plans to complete work on its second campus in Bhubaneswar at Infovalley complex in next three months. The new campus will house about 5,000 employees.

"Infosys will complete work at its campus in Infovalley which will house 5,000 people in next two-three months. The space for 1,000 people will be ready within a month," said G Srinivas, state IT secretary. The expansion plans of the company was revealed in an interaction meeting of the state IT secretary with Vishal Sikka, chief executive officer and managing director, Infosys during the latter's visit to the state.

Sikka is likely to come again to Odisha for meeting with chief minister, Naveen Patnaik and chief secretary Gokul Chandra Pati.

Google Ready to Help India Implement PM Modi’s Digital India Initiative
Source: Communications Today; January 7, 2015

http://www.communicationstoday.co.in/index.php?option=com_content&
task=view&id=13606&Itemid=147

Google is ready to help India implement Prime Minister Narendra Modi's "Digital India" initiative, and the government has a well laid out plan to realize it, said Google's Chief Internet Evangelist Vinton G. Cerf.

Cerf was speaking at a seminar organized by Federation of Indian Chambers of Commerce and Industry ( FICCI) here on Tuesday. "It is very clear that the private sector is going to have to play a major role, but it won't work unless basic infrastructure that government proposes to bring in is put into place," he said, adding that Google was in "early stage of discussion" to discuss ways to increase Internet penetration in the country.

‘Make in India’ pitch fine, inverted duty structure key manufacturing concern: PC makers
Source: The Economic Times; January 8, 2015

http://economictimes.indiatimes.com/tech/hardware/make-in-india-pitch-fine-inverted-duty-structure-key-manufacturing-concern-pc-makers/articleshow/45801880.cms

Even as Prime Minister Narendra Modi is raising the pitch for "Make-in-India" campaign, the world's third largest PC maker, Dell, is struggling to use its manufacturing capacity in India to the hilt. Reason: unfavourable conditions.

"Indian manufacturers are faced with various other challenges such as high cost of finance -- it is 15% interest in India against 2-4% globally -- high power costs due to irregular power supply. These create a disability of about 20% for Indian manufacturers," said Ashok Chandak, chairman at India Electronics and Semiconductor Association (IESA).

Govt plans Rs. 1,400 crore electric vehicles push
Source: Livemint.com; January 8, 2015

http://www.livemint.com/Politics/vy2INzVDRAVyuUyjroiwQK/Govt-plans-Rs1400-crore-electric-vehicles-push.html

India may spend Rs.1,400 crore over the next two years on incentives and subsidies for makers and buyers of electric vehicles as part of an effort to have at least six million electric vehicles on the country’s roads by 2020. Mint has reviewed the details of the scheme that involve spending a total of Rs.24,000 crore till 2020 towards achieving this objective. Of this, Rs.14,000 crore will come from the government. The auto industry is expected to spend the rest in research and development of electric vehicles.

Make in India policy doesn’t bring in profits for Dell India
Source: The Economic Times; January 8, 2015

http://economictimes.indiatimes.com/tech/hardware/governments-make-in-india-pitch-fine-but-ground-realitys-different-pc-makers/articleshow/45802927.cms

Even as Prime Minister Narendra Modi is raising the pitch for 'Make In India' campaign, the world's third largest PC maker, Dell, is struggling to use its manufacturing capacity in India to its full capacity — the reason being unfavourable conditions.

"If the country wants to get real benefits from local manufacturing, we need to revise the existing inverted-duty structure," Alok Ohrie, Dell's India MD, told this newspaper. India currently imposes a tax of 16% and a value added tax of anywhere between 4% and 12% depending on the state, on PCs and servers manufactured in the country.

"While the government has approved many proposals, it is yet to start the disbursement, leading to prolonged delays. They need to focus on not just ease of doing business but also on the speed too," Chandak said. In its recommendation for the 2015-16 budget, India Electronics and Semiconductors Association. has requested the Indian government to fill in the inverted-duty gaps, set up an electronics commission for quick policy implementation and provide the deemed export status to electronics mad ..

Electronic product design lab set up
Source: The Hindu; January 8, 2015

http://www.thehindu.com/news/cities/Coimbatore/electronic-product-design-lab-set-up/article6765839.ece

Kathir College of Engineering has set up SMD (surface mount device) soldering and PCB design lab following an agreement signed with the U.S.-based Microchip Incorporation, a semiconductor manufacturing company, and Altera, a chip manufacturing company.

The establishment of the lab will help the students improve their design and development capability.

The companies will provide silicon devices and evaluation boards for training, and facilitate training programme for the faculty. E.S. Kathir, Chairman and Founder of the college, Principal J. Amos Robert Jayanchandran, Ramesh Babu, Country Manager, Microchip Incorporation, and others were present at the inauguration.

Gartner Says Worldwide Semiconductor Revenue Grew 7.9 Per Cent In 2014
Source: EFYTimes.com; January 8, 2015

http://www.efytimes.com/e1/fullnews.asp?edid=156870

Worldwide semiconductor revenue totaled $339.8 billion in 2014, a 7.9 percent increase from 2013 revenue of $315 billion, according to preliminary results by Gartner, Inc. The top 25 semiconductor vendors' combined revenue increased 11.7 percent, which was more than the overall industry's growth. The top 25 vendors accounted for 72.1 percent of total market revenue, up from 69.7 percent in 2013.

"As a group, DRAM vendors outperformed the rest of the semiconductor industry. This follows the trend seen in 2013 due to a booming DRAM market that saw revenue increase 31.7 percent during 2014 as the undersupply and stable pricing continued," said Andrew Norwood, research vice president at Gartner.

Make in India: PC makers 'warn' government
Source: The Times of India; January 8, 2015

http://timesofindia.indiatimes.com/tech/tech-news/Make-in-India-PC-makers-warn-government/articleshow/45807365.cms

Even as Prime Minister Narendra Modi is raising the pitch for 'Make-in-India' campaign, the world's third largest PC maker, Dell, is struggling to use its manufacturing capacity in India to the hilt.

India imported an estimated $38 billion worth of electronics last year, while only about $19 billion worth of goods were manufactured here, with minimal value addition.

"Indian manufacturers are faced with various other challenges such as high cost of finance — it is 15% interest in India against 2-4% globally — high power costs due to irregular power supply. These create a disability of about 20% for Indian manufacturers," said Ashok Chandak, chairman at India Electronics and Semiconductor Association (IESA).

Compiled by IESA Research

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