IESA WINWire Jan 24 - Jan 30, 2015
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9th Anniversary

‘MAKE IN INDIA’ Not Optional If You Want To Succeed
Source: Business World; January 24, 2015

http://www.businessworld.in/news/economy/‘make-in-india’-not-optional-if-you-want-to-succeed/1712144/page-1.html

In February 2014, the then Finance Minister P. Chidambaram referred to manufacturing as the Achilles heel of the Indian economy. The reason for this is that India’s manufacturing sector has been fairly stagnant for over three decades. Policy paralysis, crumbling infrastructure, uncertain power & water supply and rising inflation have contributed in large measure to the slow growth that the sector has seen in the recent past. The first steps towards liberalisation in the nineties envisaged the making of a global manufacturing superpower on the lines of what many Asian countries have become today but unfortunately for India it did not really pan out. Global real estate firm Cushman & Wakefield in its Manufacturing Index 2014 has ranked India at number 24 while Malaysia has been ranked number 1. The other countries featuring in the top 5 are Taiwan, Korea, Thailand and China. For India to become a significant player globally, concrete steps need to be taken to provide a fillip to its manufacturing sector.

IT Park Construction To Begin From March
Source: The Times of India; January 25, 2015

http://timesofindia.indiatimes.com/city/lucknow/IT-Park-construction-to-begin-from-March/articleshow/46006884.cms

Nearly six months after the inaugural ground breaking ceremony of the Lucknow IT Park at Chak Ganjariya farms, construction on the project will begin in first week of March. According to the detailed project report of the project cleared by UP's department of IT and electronics, developers HCL have been advised to begin construction by March 3. Principal secretary, department of IT and electronics, Jivesh Nandan, said, "The IT Park DPR has been approved. In the next step, the building plan has to be approved by the Lucknow Development Authority. This is likely to be completed by January 31, at the LDA Board meeting. Once HCL is granted co-promoter status along with UP government and UP Electronics Corporation, the developers will be able to start construction."

IT Sector Investment Package for State Soon
Source: Dailypioneer; January 26, 2015

http://www.dailypioneer.com/state-editions/bhubaneswar/it-sector-investment-package-for-state-soon.html

With a major investment coming from California-based Plugg Corporation, presently called m2i international, in the electronic system design and manufacturing (ESDM) sector in Odisha, the State Government is giving final touches to the package of fiscal incentives to be offered to major investors. Chief Secretary GC Pati held discussions in this regard with senior State officials at a high-level meeting here recently. Information Technology (DoIT) Principal Secretary G Srinivas presented the details on the proposed investment proposals offered by m2i international, which is interested to invest 300 million dollars (Rs1,841 crore).Considering the enormity of investment and huge employment opportunity it is likely to generate, the Chief Secretary asked officials to take up the matter on priority. This investment is likely to generate 1,20,000 jobs out of which 20,000 would be direct and 1,00,000 indirect ones,said DoIT sources.

Samsung, Spice, IESA to set up plants in Uttar Pradesh
Source: Hindu Business Line; January 27, 2015

http://www.thehindubusinessline.com/news/states/samsung-spice-iesa-to-set-upplants-in-uttar-pradesh/article6827180.ece

Uttar Pradesh appears to be gaining traction as the next big investment destination for technology companies.

On Tuesday, three entities announced growth plans in the State — Samsung, Spice Group and the India Electronics & Semiconductor Association (IESA).

Samsung India announced plans to expand their manufacturing plant in Noida with investments of ₹517 crore under the UP Mega Policy.

The company said the new Samsung Z1, which runs on the Tizen OS, will be manufactured at this plant. Samsung added that most of the phone’s software will be developed at the Noida Research Centre.

IESA, UP Govt. Sign MoU to Promote ESDM Start-Ups in the State
Source: Ciol; January 27, 2015

http://www.ciol.com/iesa-govt-sign-mou-promote-esdm-start-ups-state/

IESA (India Electronics & Semiconductor Association) signed a Memorandum of Understanding (MoU) with the Government of Uttar Pradesh for promoting ESDM industry ecosystem in the state.
IESA will assist the Uttar Pradesh Government in:

  • Fostering the Start-up Ecosystem and Indigenous Product Development: Setting up ESDM Incubation Centres in the state at mutually identified locations.
  • Development of Strategic Roadmap: Development of Strategic Roadmap for ESDM Industry in the state.
  • Cluster Development: Preparation of Detailed Project Reports for the Brownfield/Greenfield EMC at identified locations.
  • Investment Promotion: Setting up International Desks for the state in mutually identified foreign locations.
  • Talent / Skill Development

The State Government will provide the requisite support to IESA and obtain necessary permission, registrations, approvals, and clearances etc. as per the existing facilities, rules and regulations of the state. The State Government will also help to avail incentives under various schemes announced by State and Central Government, wherever applicable.

TIECON Hubli: Event a Platform for Success Stories Of Eminent Biz Leaders
Source: The Hindu Business line; January 27, 2015

http://www.thehindubusinessline.com/news/states/tiecon-hubli-event-a-platform-for-success-stories-of-eminent-biz-leaders/article6827210.ece

TiECON Hubli organised by TiE (The Indus Entrepreneur) Hubli Chapter on February 6 will see industry greats - G M Rao of GMR Group, N R Narayana Murthy (Infosys) and Gururaj Deshpande (serial entrepreneur and founder of DCSE) share their experiences and view on leadership skills and styles in entrepreneurial ventures. “The event is an excellent platform for tier III city like Hubballi to showcase its strengths. TiEHubli Chapter intends showcase its efforts in continuing to foster entrepreneurial spirits among youth of this region and provide an opportunity for new crop of entrepreneurs to listen to eminent personalities who have made waves in the field of entrepreneurship development and corporate leadership,” Dr Prasad B Roodagi, Charter Member TiE Hubli told Business Line.

Retail story
TiECON-2015 said the other session part of the conference are - it’s not the how or the what, but the who: Tanvi Bhatt, authority on Personal Branding in India will interact with audience, She is known for being a thought leader in the foray of Personal Branding in India. Re-Imagining manufacturing in India: Eshwar Vikas, Co-founder, Mukunda Foods will present their views entrepreneur explains how automation can make a difference in way we consume food. Internet of Things: Transforming Business and Life –Venkatesh was a country manager, Windriver MNC and he is presently holds post of Vice President Indian electronic and semiconductor Association (IESA) will deliver the talk and interact.

Spotlight on ‘Make in India’ At the 10th IESA Vision Summit 2015
Source: The Hindu Business line; January 28, 2015

http://www.thehindubusinessline.com/news/spotlight-on-make-in-india-at-the-10th-iesa-vision-summit-2015/article6831089.ece

The 10th edition of IESA Vision Summit 2015, to be held in Bengaluru on February 2 and 3, will see the presence of Chief Ministers of Andhra Pradesh, Karnataka and Chhattisgarh.

This year’s theme, ‘Make in India – Vision to Reality,’ focuses on steering India towards global leadership in electronics manufacturing and the theme address will be delivered by K Radhakrishnan, former chairman of ISRO, on the opening day.

“The country’s contribution to global electronics manufacturing is just around 1.3 per cent at present.

“The thrust of this year’s summit will be on implementation and ironing out all the issues that start-ups and manufacturers in ESDM face and five sessions have been dedicated to this,” M N Vidyashankar, President IESA, told BusinessLine.

Is India Ready For Make In India? Here Are The Recommendations And Investment Plans!
Source: EFY Times; January 28, 2015

http://www.efytimes.com/e1/fullnews.asp?edid=158561

To truly enable domestic manufacturing, the government needs to first ensure ease of doing business in India, in both letter and spirit. Disability factors like the slow pace of policy reforms, non-disbursements of incentives, lack of local sourcing, lack of encouragement to entrepreneurs and non-availability of the latest technology need to be addressed domestic manufacturing, Make in India, electronics, Digital Circuits Pvt Ltd, Moser Baer India Ltd, Electronics Development Fund, MSIPS, Electronics industry, National Electronics Policy , Sanjay Nayak, start-up companies, Modified Special Incentive Package Scheme, India Electronics and Semiconductor Association, domestic manufacturing, Electronics manufacturing in India has long been neglected due to multiple reasons including scale impediments, inadequate infrastructure, the absence of large scale manufacturing ecosystems, debilitating tax and duty regimes, etc. However, with the Make in India initiative, the government has woken up to these disabilities and is making efforts to offset them, especially since electronics manufacturing is now seen as a priority sector.

Handset Manufacturers like Spice Take PM Narendra Modi's 'Make in India' Initiative to Heart
Source: The Economic Times; January 28, 2015

http://articles.economictimes.indiatimes.com/2015-01-28/news/58546839_1_digital-india-spice-group-indian-cellular-association

The Narendra Modi government's 'Make In India' initiative has been buoyed by handset manufacturers like Samsung and the Spice Group investments in India, which have also created potential for lakhs of jobs and billion-dollar inflows. Spice is the latest to have announced its domestic manufacturing plants in the form of a Rs 500 crore unit in Uttar Pradesh, with support coming from the Akhilesh Yadav dispensation. Industry leader Samsung had also ramped up its mobile phone in Noida with an investment of Rs 517 crore on Monday.

India's third largest mobile vendor, Lava, too, will start assembling devices at its Noida factory from April and is planning to set up another factory at a cost of Rs 500 crore over three years. The Uttar Pradesh government on Monday inked multiple memoranda of understanding with Spice Group, Samsung and industry bodies Indian Cellular Association and India Electronics & Semiconductor Association.

UP Government Ropes In Rs 5K Cr Investment for Mobile Manufacturing Units
Source: The Economic Times; January 28, 2015

http://economictimes.indiatimes.com/tech/hardware/up-government-ropes-in-rs-5k-cr-investment-for-mobile-manufacturing-units/articleshow/46038831.cms

The Uttar Pradesh government yesterday secured investment deals valued at Rs 5,000 crore with companies like Samsung, Spice Mobiles, Lava and cellular associations for setting up mobile manufacturing units in the state. "We want to make the state a mobile manufacturing hub," said Chief Minister Akhilesh Yadav during the inauguration of Samsung's Rs 517-crore expansion plant in Noida. Mobile handsets maker Samsung is looking to strengthen its presence in the state with its investment. "The Chief Minister's policy has given us the opportunity to expand our manufacturing base here," said Hyun Chil Hong, President and CEO of Samsung India. The company's Noida plant employs 11,000 people and will be the main manufacturing hub for its new Tizen phone Z1, he added.

Besides the three mobile companies, the Indian Cellular Association (ICA), Electronic Industry Association of India (ELCINA) and India Electronics and Semiconductor Association (IESA), have also committed investment of Rs 1,000 crore each in in the Electronic Manufacturing Clusters along Yamuna Expressway and in Greater Noida, said Chief Secretary Alok Ranjan. Together, these clusters are expected to generate employment for nearly 50,000 people.

India Has the Best ‘Policy Environment for the Electronics Sector’ Than Any Other Country
Source: Ele Times; January 28, 2015

http://www.eletimes.com/in-conversation/india-has-the-best-policy-environment-for-the-electronics-sector-than-any-other-country/

ELE Times: Key Highlights of IESA through the Year 2014?
M. N. Vidyashankar: It was a milestone year for India’s ESDM sector with a host of significant developments in the sector. I can proudly say that now India has the best ‘Policy environment for the Electronics sector’ than any other country. 2014 witnessed announcements around setting up of FAB units, Electronic Development Fund and the birth of ‘Make in India’, an initiative which will transform the face of Indian manufacturing landscape. It was a year of turning the hopes and desires into action. The electronics industry has received investment proposals of about INR 75,000 crore within a year of government putting in place the National Policy on Electronics, out of which, INR 60,000 crores were for semiconductor fab proposal.

No revolution can happen overnight but the foundation set in 2014 will change the face of India’s electronics manufacturing landscape in the days to come.

IBM Likely To Lay Off 5K Employees in India
Source: The Times of India; January 28, 2015

http://epaperbeta.timesofindia.com/Article.aspx?eid=31806&articlexml=IBM-likely-to-lay-off-5k-employees-in-28012015025031

IBM is expected to lay off a few thousand people in India in the coming months as the company moves towards newer technologies such as cloud computing and mobile and as it seeks to deal with dropping revenues and growing margin pressures.

Multiple sources put the likely figure in India at about 5,000 employees, though they also said many of these could be replaced by contract staff. This will help margins, and facilitate just-in-time hiring in the current volatile market.

IBM did not respond to questions about this from TOI till late Tuesday evening.

On Monday, Forbes carried an article by Silicon Valley technology columnist Robert Cringely who said that IBM was planning a transformation project ¬ code named Project Chrome -that would reduce its global workforce by 26% or 1.12 lakh employees. IBM responded in an email to news agency Reuters that the company had “just taken a $600 million charge for workforce rebalancing“and this equated to job cuts of “several thousand employees, a small fraction of what’s been reported (by Forbes).” Most analysts have also dismissed the possibility of a layoff on the scale reported by Cringely.

Chandrababu Naidu Vs Siddu: New Race Begins
Source: The Asian Age; January 29, 2015

http://www.asianage.com/business/chandrababu-naidu-vs-siddu-new-race-begins-797

Three years ago, a study estimated that electronics would become the biggest item on India’s import bill, growing to $400 billion and overtaking oil imports, by 2020.

Now, the Indian Electronics and Semiconductor Association, the industry lobby body that has been championing a ‘Make in India’ campaign for the sector for years, says that milestone, dubious as it were, could be reached by 2017-18 itself, given the rapidly growing demand for electronics and falling oil prices.

“This state of affairs is unsustainable”, says M.N. Vidyashankar, the former IT secretary of Karnataka who is now president of the IESA. The governments, both central and state, have realised this, he says.

That’s why when IESA announced the 10th edition of its annual Vision Summit, slated for February 2-3, several state governments announced high-level delegations to the event.

The Vision Summit this year is themed ‘Make in India’, focusing especially on the emerging IoT paradigm and Smart Cities. “IoT is the biggest game-changer, and we can be global leaders because there are no first movers, nor entry barriers, in this space”, Mr Vidyashankar said.

Electronics Mfg. now under Chhattisgarh IT/ITES Policy
Source: Dailypioneer; January 29, 2015

http://www.dailypioneer.com/state-editions/raipur/electronics-mfg-now-under-chhattisgarh-itites-policy.html

The Chhattisgarh Government has now included Electronics Manufacturing under its IT/ITeS Policy. This has been done as per the vision of the PM on ‘Make in India’ initiative for which the State Government has envisioned ‘Make in Chhattisgarh’ campaign. Currently, the State has a suitable eco system for Electronics/IT/ITeS Industry with key parameters of physical and social infrastructure, air and telecom connectivity, responsive electronic, IT/ITeS policy and CHiPS as single point of contact.

The revised industrial policy has already been approved in the last Cabinet meeting. The Cabinet decision to approve the new Electronics, IT/ITeS Policy would keep the focus on Electronics, IT/ITeS as income and employment generator. The policy focus is on IT Developers, IT Development units, Electronic Manufacturing Unit, Data Centre, etc.

Compiled by IESA Research

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