IESA WINWire July 25 - July 31, 2015
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Pune a step closer to getting electronics cluster
Source: The Times of India; July 25, 2015

The department of electronics and information technology (DeitY) has approved a dedicated electronics manufacturing cluster for Pune. Spread over 27,000sqft in the Pimpri industrial belt, the cluster will help the local electronics industry in indigenous manufacturing and to move up the product chain. The department has also approved a similar cluster for Aurangabad. The Pune cluster was proposed by the India Electronics and Semiconductor Association (IESA) in association with the Mahratta Chamber Of Commerce Industries and Agriculture (MCCIA). "The proposal cluster was submitted to the state government, which in turn presented it to DeitY. The department has given in-principle approval," said IESA chairman Ashok Chandak.

The cluster, which will provide common facilities for production, research and development support services to local electronics firms, is estimated to require investment of Rs 70.89 crore.

48% rise in FDI since 'Make in India' launched, says Commerce Minister
Source: KNN India; July 25, 2015'make-in-india'-launched,-says-commerce-minister/2-10166.go

Since the launch of ‘Make in India' initiative in September 2014, there is 48 percent increase in Foreign Direct Investment (FDI) inflows during October 2014 to April 2015 over the corresponding period last year. This was informed by Minister of State (Independent Charge), Nirmala Sitharaman through a written reply in Lok Sabha on Friday. The ‘Make in India' was launched by Prime Minister Modi the programme aims at promoting India as an important investment destination and a global hub for manufacturing, design and innovation. As much as 25 sectors have been identified under the ‘Make in India' initiative namely auto components, automobiles, aviation, biotechnology, chemicals, construction, defence manufacturing, electrical machinery, electronic system design and manufacturing, food processing, IT and BPM, leather, media and entertainment, mining, oil and gas, pharmaceuticals, ports, railways, roads and highways, renewable energy, space, textiles, thermal power, tourism and hospitality and wellness.

Electronica India, Productronica India in Delhi on Sep 9-11
Source: EE Herald; July 26, 2015

The popular electronics manufacturing related event in India, Electronica India and productronica India 2015 is scheduled to be held on September 9 and 11, 2015, at Pragati Maidan, New Delhi.

At the same venue, the defence electronics related event DEFTRONICS 2015 hosted by IESA is also scheduled.

If you're in electronics manufacturing, Electronica India is a not to miss event. With the focus now shifting to make in India and also Digital India, electronics manufacturing is lot more important, and this event also gains further importance.

Electronics Manufacturing Gets a Boost: CII
Source: Odisha diary; July 26, 2015

Confederation of Indian Industry welcomes extension of Modified Special Incentive Package Scheme (MSIPS) by five years. The scope of the scheme has also been enhanced to cover more products and availing of the benefits has been made easier, observed CII in a press release issued here today. The scheme which was announced on 27th July 2012 had validity period of three years and was due to expire on the 26th July 2015. Under the scheme incentives were extended to new electronics system design and manufacturing (ESDM) units and expansion/modernization and diversification of the existing ESDM units. “We see this as an essential enabler for both 'Make in India' and 'Digital India' and we especially welcome the inclusion of new verticals such as electronic appliances, multifunctional electronic devices and inputs such as liquid crystal modules", stated Mr Vinod Sharma, Chairman, CII National Committee on ICTE Manufacturing.

India-Japan defence ties set to grow stronger
Source: The Economic Times; July 26, 2015

Defence ties between India and Japan are set to grow stronger with both coming together for Malabar naval exercises in October and exploring possibility of having joint air exercises.

Japanese defence sources expressed satisfaction at the growth trajectory in the defence ties saying, "the direction is right. We need to work on it more".

"Japan is happy to be invited for the Indo-US naval exercise 'Malabar' slated for October in the Bay of Bengal," the sources told PTI, adding that the next step hopefully will be joint air exercise.

It is not just the cooperation at the level of forces that both countries are looking at. "There is a huge opportunity present in the defence manufacturing too especially in the context of Make in India," Indian defence sources said.

Make in India: Lava to invest Rs 2,615 crore in 2 manufacturing units
Source: Times of India; July 27, 2015

Domestic handset maker Lava will invest Rs 2,615 crore over the next seven years to set up two manufacturing units in the country, in line with the government's Make in India initiative. Once operational, the units will have a combined capacity of 18 million handsets per month. "We have put in place a plan to invest Rs 2,615 crore to set up two more manufacturing units in India – one in the north and the other in South India," Lava International, chairman and MD, Hari Om Rai said. He added that the expansion will be funded through internal accruals. "Some portion of the earmarked amount will also go into research and development," he said. On the expansion plans, Lava International chief manufacturing officer Sanjeev Agarwal said, "The funds will be deployed over a period of seven years. We are in discussions with various state governments and we should be able to close in on a decision in the next three weeks."

He added that the company's second unit will become operational by the beginning of 2017.

Samsung stays No. 1 in Indian phone market
Source: Mint; July 27, 2015

South Korea’s Samsung Electronics Corp. has maintained its lead in the Indian smartphone market with a 24.5% share in the second quarter of 2015, according to a report by Counterpoint Technology Market Research on Monday. The company retained its position as the No.1 phone maker with 18.7% market share in the overall mobile phone market in the country. Local phone maker Micromax Informatics Ltd narrowed the gap with Samsung. The Indian company was the second largest manufacturer in the smartphone as well as overall handset market in the June quarter with 16.7% and 14.4% market share, respectively. “Samsung remained aggressive in terms of promotion during the quarter with its Flagship models S6 and S6 Edge launch. As a result, Samsung’s S6 series shipments sell-in remained healthy and out-shipped iPhone 6 series by 2:1,” said Tarun Pathak, senior analyst with Counterpoint. “Surprisingly, Samsung’s Tizen based Z1 was Samsung’s best-selling smartphone in India during the quarter, thanks to its cheaper price point, higher sales incentives and wider distribution.”

Tata Motors forays into defence segment to step up its revenue
Source: Business Insider; July 27, 2015

Known for its heavy duty trucks, buses and passenger vehicles, Tata Motors is foraying into the arena of defence where it has smelt the opportunity of earning whopping revenues. At a time when its shares are surging, it is transitioning from just providing logistic support to supplying combat vehicles including front line combat vehicles, as per a news report by The Economic Times. Simultaneously, the company is planning to open up new overseas markets through the hub-and-spoke model in Eastern Europe, Africa, Asean and Latin America. The company is building tie ups with the brands well recognized in the defence segment, including SUPACAT, a UK-based high mobility vehicle specialist. This will supposedly provide technical assistance for its Light Armoured Multi-role Vehicle (LAMV) project, a combat vehicle based on a defence ministry programme. The company also has collaborated with Malaysian-based DRB-HICOM for import, distribution and assembly of Tata Motors' commercial vehicles and defence range in Malaysia, a step towards expanding into the international market, confirms the ET report.

Qualcomm appoints BlackBerry's Sunil Lalvani as India head
Source: The Economic Times; July 27, 2015

Qualcomm Incorporated has appointed former BlackBerry India head Sunil Lalvani as vice president and president of Qualcomm India, as Avneesh Agrawal, senior vice president and president of Qualcomm India and South Asia exits the company. Lalvani's appointment will be effective July 27 and he will report directly to Cristiano Amon, executive vice president and co-president, Qualcomm Technologies, Inc. Lalvani has more than 20 years of experience in sales, business development, strategic planning and business operations across the IT and telecom sectors. At BlackBerry, Lalvani was responsible for overseeing and driving BlackBerry's overall business strategy and growth in India and was focused on driving differentiated solutions for consumers and enterprise customers. Lalvani was also instrumental in leading a strong engagement with Carrier partners and ISV's in India, to drive uptake of BlackBerry's services portfolio in the India region.

Pranab to industry: Join Make in India
Source: The Times of India; July 28, 2015

Join the 'Make in India' initiative of the Narendra Modi government. This was the message from President Pranab Mukherjee to industry and investors. He said Make in India, Digital India, Smart Cities, Skill India are the building blocks of a brighter future for the country, and invited investors and entrepreneurs to explore possibilities of investment.

The President spoke after inaugurating the centenary year celebrations of the Federation of Karnataka Chambers of Commerce & Industry (FKCCI) on Monday evening. FKCCI was set up in 1915 by Sir M Visvesvaraiah to industrialize the then Mysore state.

He said the first challenge is to lead the economy back to the high GDP growth rate of 9 per cent per annum.

France’s Altran buys Indian semiconductor design firm SiConTech
Source:; July 28, 2015

Altran Technologies SA has agreed to buy SiConTech, a Bengaluru-based company that designs semiconductor chips and counts chip maker Qualcomm Technologies Inc. and electronics giant Samsung Electronics Co. Ltd as its clients, for an undisclosed sum.

The deal would give Altran, a technology consulting firm, access to SiConTech’s clients, and the semiconductor chip design domain, which it doesn’t operate in, said a statement on Tuesday.

It is the first deal in the semiconductor space in which a foreign multinational corporation has acquired an Indian start-up, said Sanjay Kumar, chief executive officer (CEO) and managing director, Altran India.

The move comes at a time when the engineering services sector is witnessing some consolidation. Hyderabad-based Cyient Ltd acquired two start-ups this year, and Singapore-based QuEST Global Services Pte Ltd acquired Germany-based EDF GmbH in February.

Ram Sewak Sharma appointed as new TRAI chairman
Source: Economic Times; July 28, 2015

The government has named Ram Sewak Sharma, currently the IT secretary, as the next telecom regulator, bringing in the popular 'software coding expert' when the sector watchdog needs to take a call on controversial issues such as net neutrality and penalising telcos for call drops.

The appointments committee of the Cabinet approved Sharma's selection as chairman of the Telecom Regulatory Authority of India for three years or until further orders, whichever is earlier, the government said in a notification Monday. The post had been lying vacant since Rahul Khullar retired in mid-May. It wasn't immediately clear when Sharma, a 1978 batch Indian Administrative Service officer of Jharkhand cadre, would take charge of Trai. Khullar had resigned as commerce secretary to take the top job at the regulator.

Sharma is due to retire in September this year and observers say he may follow suit. Sharma, who confirmed the appointment, declined to comment further. Having assumed charge as the secretary, Department of Electronics & Information Technology last April, Sharma also held additional charge as secretary in the Department of Telecommunications for three months before Rakesh Garg was appointed to the post.

InFocus sets its eyes on India. Smartphones, Tablets and LED TVs to be launched soon
Source: Business Insider; July 29, 2015

American technology pioneer InFocus is all set to make a head-spinning start in the Indian smartphone market with the launch of smartphones, tablets and LED TVs. New technology and customer trust are the key focus points. Naked eye 3D technology, anodized aluminum unibody smartphones and brilliant Ultra High Definition LED displays are snippets of the innovative technology and premium designs launched in India. "Our mission for InFocus in India is as bold as it is simple: InFocus is determined to enrich the lives of all Indians by pushing the boundaries of technology and design innovation and providing quality consumers can trust. With the help of strategic partners such as Foxconn and SuperD, we will revolutionise the mobile communication, electronics and visual display markets in India with our fantastic portfolio, and undoubtedly reach $1 billion by the end of 2016," said Sachin Thapar, country head, InFocus India.

Karbonn sets up manufacturing plant in Noida
Source: Mint; July 29, 2015

Karbonn Mobile India Pvt. Ltd on Wednesday said it has set up a plant in Noida in partnership with Water World Technology Co., a mobile phone designer, manufacturer and supplier firm.

The plant, Million Club Manufacturing (MCM), aims to boost local manufacturing in line with the government’s Make in India initiative.
The facility with an intial investment of Rs.50 crore is spread across 150,000 square feet area. The company plans to invest Rs.100 crore in the next stage of development.

The plant employs 2,000 technicians and is set to produce 1.5 million phones a month.

“India is one of the fastest growing mobile phone markets, and device makers are keen on setting up manufacturing units here to cater to the flourishing demand. The manufacturing unit will be a great opportunity to mobile companies to start local production. As part of the plan, the manufacturing unit will have a capacity to produce 1.5 million phones per month. We are looking to scale up to 3 million phones per month in one year”, said Sudhir Hasija, drector, MCM.

Remove entry barriers for Indian firms into Defence procurement: ASSOCHAM to Govt.
Source: Business Standard; July 29, 2015

In the spirit of 'Make in India' programme, the government should set an indigenization target within a time frame to encourage domestic companies to take part in manufacturing of the Defence equipment and facilities, the ASSOCHAM has said. It is only then the home-grown companies will be able to participate in the multi-billion dollar Defence procurement, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM). In a detailed representation submitted to the Defence Ministry, the chamber has said, stringent conditions which block the entry of domestic firms into the defence procurement of the government should be diluted. This should be done in order to make it easier and more attractive for Indian vendors who are investing in high risk areas.

It said the existing arrangement of contracts to be awarded to Defence Public Sector Undertaking (DPSU) on a nomination basis proves to be disincentives for the private players, thereby leading to lack of level playing field for the private players.

Government clears GST amendments, states to be compensated for 5 years
Source: The Economic Times; July 29, 2015

The Union Cabinet has approved amendments to the Constitution (122nd Amendment) Bill to launch the goods and service tax (GST), incorporating some of the suggestions of the select panel of Rajya Sabha that should clear the way for the passage of this much awaited reform should Parliament function. The Cabinet also approved National Investment & Infrastructure Fund (NIIF), a new consumer protection law, and allowed foreigners to invest in Alternate Investment Funds registered with market regulator Sebi.

The key changes approved by the cabinet in the GST law is full five-year compensation to the states for possible loss of revenues, which is crucial to the government gaining support of states such as West Bengal and Odisha in the Rajya Sabha where the government lacks majority.

The details of the 1 per cent tax to be levied over and above the GST rates to compensate the manufacturing states for a possible loss of revenue will be finalised while framing the rules, people familiar with the deliberations said.

Defence electronics policy in final stages of drafting, likely to announced in September
Source: The Economic Times; July 31, 2015

The government could announce India's first Defence Electronics Policy, which will seek to streamline procurement and boost local manufacturing, as early as this September with the drafting of the document in its final stages.

The Indian Electronics and Semiconductor Association (IESA) and the National Association of Software and Services Companies ( Nasscom) - both are involved in the drafting — have recommended strengthening of aerospace and defence ecosystem to boost domestic manufacturing in tandem with Prime Minister Narendra Modi's Make in India initiative.

The policy draft will put forth categorical recommendations for immediate, short-term, intermediate and long-term arrangements to boost indigenous production and localised integrators and suppliers.

"The final draft version is almost ready and we will be presenting it to officials in the Ministry of Defense in the second week of August," IESA President and former Karnataka Principal Secretary MN Vidyashankar said. The framework will be unveiled on September 9, during the defence symposium, DEFTRONICS 2015, he said.

Compiled by IESA Research

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