IESA WINWire Nov 28 - Dec 04, 2015
for Subscription click here  
10th Anniversary

Internet of Things will drive India's ESDM sector in 2016: IESA
Source: Firstpost; November 27, 2015

The domestic consumer electronics and durables sector has been growing substantially since a few years already. With the government boost to “Make in India”, 2016 should see increased manufacturing of the consumer durables serving local and export markets, said Vinay Shenoy, chairman, India Electronics & Semiconductor Association (IESA). He shares outlook on technology trends for 2016.

ESDM sector in 2016
-- On innovation, Internet of Things (IoT) will generate significant attention and action. Startups will thrive, primarily on IoT.
-- Defence electronics will generate increasing interest amongst Indian companies and some of whom will enter into joint venture for technology licensing. Indian companies will look for international joint ventures for technology access.
-- Electronics manufacturing will increase initially larger multinationals and later mid-sized enterprises from Japan, Taiwan, Korea, Europe and US, will setup up local manufacturing.
-- Companies will announce large investments in R&D and manufacturing for Defence to participate in the large opportunity.

Verticals to see maximum traction

India cracks set-top box encryption tech, local manufacturing to get a boost
Source: Business Standard; November 28, 2015

DietY has mandated ByDesign to license the technology to Indian manufacturers for a royalty of Rs 33 for a period of 3 years.

India's first home-grown conditional access system for set top boxes that allows television broadcasters offer programmes on subscription has been jointly built by ByDesign, a Bengaluru software firm and Centre for Development of Advanced Computing (C-DAC).

The indigenous CAS platform used in cable set-top boxes will bring down the cost of such boxes for manufacturers by as much as Rs 100 for each device. Globally, there are around four to five providers for CAS, who charge royalty of $2 (Rs 130) per device from manufacturers.

"The normal cost for CAS is about 2-3 dollars per license. They will make available at half a dollar to domestic manufacturer, so there'll be a saving of one and a half to two dollars in the CAS for Indian manufacturers," said Ajay Kumar, additional secretary at the Department of Electronics and Information Technology (DietY).

In boost for 'Make in India', Dassault may manufacture Rafale fighter aircraft in India
Source: The Economic Times; November 28, 2015

India's largest-ever military deal is likely to bring in big business for the private sector with the French side looking to set up a production centre for the Rafale fighter aircraft as well as a low-cost executive jet in India, besides sharing vital aircraft technology for the indigenous Tejas project. Officials familiar with the project have told ET that major partners for this 'Make in India' project are currently being identified by the French side and are likely to include Anil Ambani's Reliance Defence Systems, Noida-based Samtel and Bharat Electronics. These officials, both Indian and French, spoke on the condition they not be identified. Spokespersons of the Anil Ambani-led Reliance Group told ET "there is no development". Officials on the French side told ET, on condition of anonymity, that the agreement between Rafale and an Indian partner will be on the lines of the 2012 agreement between the French company and the Mukesh Ambani-led Reliance Industries. The NDA government had reformatted the UPA government deal and ordered 36 aircraft, instead of 126. The Rafale fighter deal, which will bring in at least $4.5 billion into 'Make in India' projects as per the contract being negotiated, is set to involve a third production line for the aircraft in India, French officials have told ET.

Government extends deadline for two electronic chip manufacturing units
Source: Mint; November 29, 2015

The government has granted extension till 30 April, 2016 to two consortia led by Jaiprakash Associates and HSMC Technologies for submitting documents regarding setting up of electronic chip manufacturing plants with a cumulative investment of Rs.63,412 crore.

The cabinet in February last year had approved setting up of two semiconductor wafer fabrication manufacturing plants. The earlier deadline to submit documents was September 2015.

“Both consortia sought further extension of time for submission of documents required for demonstration of commitment. It was decided to grant extension to the two consortia till 30 April, 2016 in the empowered meeting held on 23 November”, an official in communications and it ministry told PTI.

One of the plants would be set up by Jaiprakash Associates Ltd, with IBM and Tower Semiconductor of Israel as partners entailing an investment of Rs.34,399 crore. It would be located along the Yamuna Expressway in Uttar Pradesh and would have a capacity of 40,000 wafer starts per month (WSPM).

Make in India: Centre gets Rs 1.20 lakh crore worth investment proposals in electronics sector
Source: The Economic Times; November 30, 2015

The electronics manufacturing sector has attracted investment proposals worth Rs 1.2 lakh crore after the government launched its 'Make in India' programme last year, according to a top official. The Narendra Modi-led NDA government is keen to make it easier to do business in the country and attract foreign capital in manufacturing as part of its 'Make in India' initiative. "We have received investment offers for setting up electronics manufacturing facilities in the country amounting to Rs 120,000 crore till now," Ajay Kumar, additional secretary in the ministry of communications and IT, told ET, adding that the figure is expected to jump in 2016. he Centre aims to cut net imports of electronics to zero by 2020. To meet this goal, it is offering sops like reimbursement of countervailing duty (CVD) and modified special incentive package scheme (M-SIPS) up to 25% for setting up manufacturing facilities in the country. These policy initiatives have seen several multinational companies and domestic firms make investments in local production capabilities.

The National Policy on Electronics (NPE) aims to end dependency on imports and expects the sector to attract $100 billion (Rs 6.5-lakh crore) worth of investment and generate employment for nearly 28 million individuals by 2020.

We will make world-class handsets at affordable prices: Ravinder Zutshi, Optiemus Infracom
Source: Financial Express; November 30, 2015

Prime Minister Narendra Modi’s ambitious ‘Make in India’ campaign, intended to lower barriers to doing business and promote foreign investment in the country, has started to yield results. After the entry of Foxconn, Taiwan’s Wistron has stepped into India’s manufacturing sector. It has joined hands with homegrown Optiemus Infracom to invest $200 million in a joint venture including the establishment of an assembly plant in India in the next five years. The two companies plan to set up a manufacturing plant in Noida and it will initially manufacture smart devices, such as smartphones and tablets, says Ravinder Zutshi, managing director, Optiemus Infracom. “The handsets market is expected to continue to grow in double-digits over the next few years. There is a lot to happen in the next four to five years from now,” he tells Sudhir Chowdhary in an interaction. Today, the handsets market is growing by 35% and it is clearly the fastest growing business in telecom. It’s a growing business and in the times to come handsets are definitely going to be much better in terms of design and features. We see internet users in India growing up significantly from 300-400 million. With more people accessing the Internet through their mobile phones, Internet penetration in India has also increased which has paved its way to major migration from feature phone users to smartphone users. By 2017, India is expected to overtake USA to be the second largest smartphone market globally, as per research firm IDC. The market is expected to continue to grow in double-digits over the next few years as more and more people switch to smartphones and gradually upgrade to 4G-enabled phones. So, it clearly indicates there is a lot to happen in the next four to five years from now.

Airbus targets $2 billion sourcing from India in five years
Source: Business Standard; November 30, 2015

Airbus Group has a target of over $2 billion cumulative sourcing volume from India over next five years in both civil and defence businesses, a top company official said on Monday. Already making a significant contribution to make in India with sourcing volume of $400 million, the global aerospace and defence player said it is looking at increased presence and fast expansion of activities encompassing sourcing, engineering, innovation, maintenance, services and training. Talking to reporters on the sidelines of second Defence & Aerosupply India conference which began here on Monday, Venkat Katkuri, head, Airbus Defence and Space, India, said Airbus was building a solid local identity and would like to look at every possibility to collaborate in both defence and space. On replacement for the Indian Air Force's Avros, he said Airbus-Tata Advanced Systems Limited (TASL) had not yet been awarded the contract. "Our proposal is going through the process of evaluation by the end customer. Nothing has been finalised," he said. "We are offering the C295, wherein with Tata, we will support the Indian private sector in making a significant leap to creating a modern and efficient aircraft assembly line, fed from an ecosystem of domestic suppliers and in initiating the production of a market-leading military transport aircraft," he added. Airbus and TASL have submitted a joint bid to replace the IAF's fleet of 56 Avroswith the Airbus C295.

In boost for 'Make in India', railways inks pacts with Alstom and GE Transport
Source: The Economic Times; December 1, 2015

The first big 'Make in India' projects, worth Rs 40,000 crore, were kicked off on Monday evening when Ministry of Railways signed formal agreements with global giants Alstom and GE Transport to set up locomotive manufacturing factories in Madhepura and Marhaura in Bihar. The glitzy function, attended by seven Cabinet ministers, including Finance Minister Arun Jaitley and Railway Minister Suresh Prabhu, brought out the significance of the agreements. It took almost a decade for the final contracts to be awarded from the day Lalu Yadav announced the two projects as railway minister. The tenders for the factories were floated and cancelled a dozen times during the period. Ambassadors of US and France, Richard Verma and Francois Richier, were present as representatives of GE and Alstom signed the agreement with railway officials. JDU leader Sharad Yadav also attended the event, representing the government of Bihar. Jaitley said it was a momentous occasion and a milestone for 'Make in India' as international majors made an entry into infrastructure creation in the country. "It is a winwin situation for all stakeholders. It will help in railways modernisation, boost economy of Bihar and create a favourable ecosystem for growth in the country," he said. Prabhu said with GM and Alstom coming into railways, it will create an atmosphere for manufacture of other items and ancillaries in the country.

Manufacturing sector ups 'CXO' hiring to leverage 'Make in India'
Source: ET Auto; December 1, 2015

Airbus, ABB, Siemens and several Indian companies in the manufacturing sector are looking to hire top-level experienced executives to leverage the opportunity that the government's 'Make in India' initiative offers, pushing up hiring activity in the sector by about a third, executive search firms said. Anil Ambani owned Reliance has hired 20 chief experience officers (CXOs) to build its defence business, which includes making fighter jets and submarines. Power equipment supplier ABB India, while hiring for its local operations, will focus on hiring more from India for its global operation centres and global shared services. The company's Global Engineering and Operations Center for Power Systems in Chennai has about 600 engineers working on ABB's global projects. The plan is to double this by 2017. "The underlying focus is 'Make in India', which is complemented by niche areas like (high-end) design and R&D in India,'' said Raja Radhakrishnan, country head of HR for ABB India Ltd. "ABB's expansion of the Chennai center demonstrates its commitment to the 'Make in India' policy." Aquestionnaire sent by ET to Siemens remained unanswered till the time of going to press.

Qualcomm-NASSCOM announce Design in India to boost Make in India
Source: India Today; December 1, 2015

Renowned chipset maker Qualcomm on Tuesday announced the launch of its Design in India initiative in association with the National Association of Software and Services Companies (NASSCOM). Qualcomm's Design in India aims to encourage the creation of a product and hardware design ecosystem in India in the domains of smartphones, tablets and Internet of Everything (IoT) products category.

To begin with, Qualcomm's Design in India challenge will give all India-based individual companies or start-ups with a minimum of one year of operation an opportunity to demonstrate their hardware designs for smartphones, tablets, wearables and products for smart cities, automotive & telematics, robotics and devices for the IoT ecosystem. Qualcomm will shortlist 10 companies (based on demonstration) which will be eligible for the prototyping phase and provide them a funding of $10,000 each. These companies will work on their prototypes at Qualcomm Innovation Lab in Bangalore for a period of six months. Three companies with the most promising products will then be selected by an eminent judging panel. Winners will each receive up to $100,000 as recognition and encouragement for future efforts.

Make in India in defence: New acquisition rules this month
Source: The Indian Express; December 1, 2015

The Defence Procurement Procedure (DPP), which will be the roadmap for the government’s flagship Make in India programme that is being pushed as the future of defence acquisitions, is likely to be rolled out by the middle of December. The Indian Express has learnt that the Ministry of Defence has conveyed to a delegation from US companies — they held a meeting with ministry officials Monday morning — that the DPP rollout date has been scheduled for December 15. Last Saturday, Defence Minister Manohar Parrikar promised a “perfect” document “soon”. “A meeting was held on Monday morning with representatives of US defence companies. The ministry has promised that the new DPP, as well as the defence offset policy, shall be rolled out in December,” a ministry official said.

An industry representative, who was at the meeting, confirmed the ministry’s commitment. The representative said December 15 has been promised as the DPP announcement date. The DPP-2013, which presently serves as the guiding document for India’s defence acquisitions, has been under revision.

Japanese electronics companies eyeing India for investment: IESA
Source: The Economic Times; December 2, 2015

Japanese electronics companies, both existing and new, are firming up investment plans for India in electronics manufacturing, the India Electronics and Semiconductors Association (IESA) said today. "There are over a dozen Japanese leading electronics companies that have shown interest in investing in Indian electronics manufacturing space," IESA president M N Vidyashankar told PTI. Last month, an IESA team visited Japan and signed a memorandum of understanding (MoU) with the Asia Semiconductor Trading Support Association for collaboration in the electronic system design and manufacturing segment. "Japanese firms that do not have presence in India have shown interest in starting business through joint ventures. Even companies like Panasonic, Toyota that have presence have shown willingness to expand business here," Vidyashankar said. Among new companies, SAMCO, PMT Corporation and 3D Labs are seen to be keen on investing in India. "These all companies will visit India and explore partnership opportunity at IESA vision summit in February," Vidyashankar said.

‘Make in India’ push means large rise in energy need: Report
Source: Indian Express; December 2, 2015

STATING that the ‘Make in India’ campaign needs energy to work and efficiency to prosper, a report on the ‘India Energy Outlook’ by the International Energy Agency says that putting manufacturing at the heart of India’s growth model means a large rise in the energy needed to fuel development. The report, released at IIT-Bombay on Tuesday, projects that the country requires a cumulative $2.8 trillion in investment in energy supply, three quarters of which will go to the power sector and a further $0.8 trillion to improve energy efficiency. “Industry-led growth requires at least 10 times more energy per unit of value added compared with growth led by the services sector. In an Indian vision case, we examine the implications of accelerated realisation of key policy targets, including the ‘Make in India’ campaign to promote manufacturing and the ‘24×7 power for all’ drive for universal, round-the-clock electricity supply. Fully reliable provision of power and new employment opportunities in the manufacturing sector gives extra impetus to India’s economic and social development and its transition to an urban society. The additional demands on the energy system come primarily from industry, not only from energy-intensive sectors but also from other industries that are targeted by the ‘Make in India’ campaign, such as textiles, food processing, machinery and industrial equipment,” it says.

First major 'smart city' in Navi Mumbai
Source: The Times of India; December 2, 2015

The contours of India's first major smart city are taking shape over a 75 sq km area encompassing seven nodes in Navi Mumbai, and one new township abutting the upcoming airport.

The brownfield project (developing on existing facilities) including Panvel, Dronagiri, Kamothe, Kalamboli, Kharghar, Ulwe and Taloja nodes, and the greenfield project Pushpak Nagar (2.5 sq km) near the airport will be developed by Cidco at a cost of about Rs 35,000 crore. Equipped with smart roads, transport, security , tech-driven, citizen-friendly administration, Cidco Navi Mumbai South is expected by 2019. Cidco is not ban king on govern ment funds for the over 75sq km Cid co Navi Mumbai South, but plans to use its own money and is looking at private participation to complete the smart city that could be a model for the rest of the country. Importantly , it owns the land where development is planned and could use it to boost affordable housing. The plan will be unveiled in Vashi on Friday by CM Devendra Fadnavis before representatives of over 100 municipal corporations. Cidco managing director Sanjay Bhatia said given the corporation's past experience in laying infrastructure and planning townships like Navi Mumbai, work on the smart city project started a year ago and several infrastructure projects are well underway .A small greenfield Port city (about 2.5sq km) near JNPT will also be part of Cidco Navi Mumbai.

Lava to invest Rs 200 crore on design, testing phones in India
Source: Economic Times; December 2, 2015

Domestic handset maker Lava will invest about Rs 200 crore over 18 months on strengthening its design and testing operations in the country as it aims to make India a major export hub for its handsets in the next few years.

Currently, the company has a team of about 250 people here working on these areas and a larger team of around 550 in China.

"We are making India a major manufacturing hub and in process, we are expanding design, testing and R&D teams also.

We will invest about Rs 200 crore in the next one-one and half years," Lava International CMD Hari Om Rai told PTI.

He added the company will more than double the head-count in these areas.

"We will bring the entire manufacturing ecosystem to India. Our plan is to expand exporting to other countries next year and hopefully, by 2019, we will export to China itself," he said.

The plan to ramp up capacity is in line with that vision, Rai added.

In July, Lava had said it will invest Rs 2,615 crore over the next seven years to set up two manufacturing units in India. Once operational, the units will have a combined capacity of 18 million handsets per month.

IESA Signs MoU with ASTSA to Strengthen Indo-Japan ESDM Industry Collaborations
Source:; November 3, 2015

India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry, today signed a Memorandum of Understanding (MoU) with Asia Semiconductor Trading Support Association (ASTSA) with an objective to promote ESDM industry co-operation between India and Japan.

The concerned MoU is a part of delegation who visited Japan to explore the possibilities of doing business in JAPAN and promote collaborations for the Indo-Japan ESDM industry. The delegation led by IESA, includes leaders and potential investors who would like to expand their business in Japan as well as seek similar interest to expand mutual business through collaboration between Japan and India.

The MoU would enable IESA and ASTSA to promote ESDM ecosystem in Indian and Japan and strengthen business relationship among the member companies. The engagement would also provide an opportunity to the member companies of the both the associations to jointly work towards a mutually beneficial activity in the ESDM landscape and empower knowledge exchange and sharing among them.

Commenting on the collaboration, Mr. M. N. Vidyashankar, President, IESA said, “Japan has already established itself as a global leader in the ESDM landscape. India is gaining momentum to establish its identity in the space and we believe, the MoU will help both the nations to expand bilateral trade.”

Compiled by IESA Research

The IESA WINWire is available on the IESA website, To receive IESA WINWire or be removed from our distribution list, email  with "Subscribe" or "Unsubscribe” in the subject box.

All information provided in this document is of a general nature and is not provided with any warranty as to its suitability to the circumstances of each individual business. Readers and users are entirely and individually responsible for taking appropriate action with regard to the setting up of such services and for the consequences of such actions. As per Copyrights Act, 1957 (“Act”) : Publishing articles which contain extracts from other works and providing the source of such extracts will not be an act of infringement of copyrights.

Copyright © 2007, India Electronics & Semiconductor Association


India Electronics & Semiconductor Association
Head office: Unit G-02, Ground Floor, Prestige Terminus-II, 901 Civil Aviation Road, (Old HAL Airport Exit Road), Konena Agrahara,
Bangalore 560 017 | India.  Phone: +91 80 4147 3250 Facsimile: +91 80 4122 1866
New Delhi office: DBS Business Centre, First Floor World Trade Tower, Barakhamba Lane Connaught Place, New Delhi - 110 001 India