IESA WINWire Oct 10 - 0ct 16, 2015
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Videocon gets first mobile manufacturing contract, in talks with other vendors
Source: ETTelecom; October 10, 2015

Videocon Industries has bagged its first contract manufacturing deal from Coolpad India - a subsidiary of Shenzhen-based handset maker Coolpad Group - and aims to produce five lakh devices in the first quarter of fiscal 2016-2017 from its Aurangabad facility.

Both Videocon and Coolpad refused to divulge deal financials, but the commercial engagement between the two companies is on revenue sharing basis, a company executive said, asking not to be named.

Videocon is also in discussions with other smartphone vendors and is currently developing production facilities in various locations such as Kolkata, Uttarakhand and Tamil Nadu.

"We see huge business potential in manufacturing in India and we are in talks with several device vendors including Chinese and Japan-based companies," Abhijit Kotnis, COO Manufacturing Operations, Global Sourcing at Videocon Industries, told ET.

Gionee planning to setup manufacturing unit in India by March 2016
Source: Tecake; October 10, 2015

Gionee India has revealed on Thursday that the firm is planning to launch a manufacturing unit in India by March, 2016. In addition, the company has announced that the Indian assembled devices will be exclusively sold out in the country.

Contributing to the announcement,Gionee India Country CEO and MD Arvind R Vohra said in a statement, “By March, 2016 we expect to assemble all phones that will be sold in India at two outsourced locations in the country. So, we will be selling all ‘Made in India’ phones in India. We will have first such phone before Diwali.”

For the company’s ‘Make in India’ initiative, it has partnered Dixon Technologies and Foxconn for the smartphone manufacturing in the country, with an investment of over Rs 300 crore for next three years.

Dixon is a leading Electronics Manufacturing Services (EMS) provider, headquartered in Noida, which is focused on delivering consumer electronics and home appliances for the Domestic (India) and International markets.

While, Foxconn is a Taiwanese multinational electronics contract manufacturing company, which is in talks to manufacture Apple’s iPhone in India.

Tech companies' handset plans face multiple challenges
Source: Nikkei Asian Review; October 10, 2015

Micromax, India's top local brand, has been assembling handsets domestically since early 2014. It has announced plans to invest 40-50 billion rupees to expand capacity. Moving large volumes of parts and finished goods around the country is also costly and difficult, given India's largely undeveloped transport and logistics systems. Factoring in all these costs makes assembling in India about 10% cheaper than importing finished handsets, industry experts say. But that is not the full equation. According to M.N. Vidyashankar, president of the India Electronics & Semiconductor Association, an industry organization, further costs are imposed by infrastructure shortcomings such as interruptions in power supplies and regulatory problems such as the cost and difficulty of acquiring and transferring real estate. A recent report by EY, conducted in conjunction with the Federation of Indian Chambers of Commerce and Industry, also identified inconsistent value-added tax regimes between different states as one of the challenges that confront handset manufacturing. The Modi government is trying to help, planning to improve infrastructure, tidy up the tax system and cut regulatory red tape, all of which may minimize these problems over time.

‘Electronic manufacturing projects to take shape in a year’
Source: The Hindu; October 11, 2015

The Electronics Sector Skills Council of India CEO N.K. Mohapatra anticipates the electronics manufacturing cluster projects to take shape in a year, thus fuelling a significant demand for trained manpower. Most of them remain on government files or the accessible road may be an issue for “something done somewhere,” but all of that will change. Within a year the investments would be on ground in real facilities, he said. That is when “you need real people to operate them as well. There is a huge requirement coming our way in terms of electronic manufacturing.” The electronic space is looking very good now, be it LED, security surveillance, automation or semi-conductor design, Mr. Mohapatra told The Hindu . He was in Hyderabad recently for the opening of the centre of excellence for skill development in solar electronics that ESSCI has established in partnership with the Engineering Staff College of India. Describing ESSCI as a finishing school, he said the emphasis is on readying people for the jobs. The Council works in association with partner agencies and training the trainers in many areasis its focus.

Flipkart opens warehouse for consumer electronics, durables near Gurgaon
Source: Daily News & Analysis; October 11, 2015

E-commerce giant Flipkart on Sunday announced the opening of a fulfilment centre in Luhari, close to Gurgaon, to meet the growing needs for consumer electronics and durables in the northern region.

With this new facility, Flipkart now has a total of 17 warehouses covering 1.5 million square feet of storage capacity across the country, the company said.

It said this warehouse has been primarily set up to stock consumer electronics and durables like TVs, washing machines, refrigerators, ACs and microwave ovens.

Stating that the new facility has a total storage capacity of close to five lakh cubic feet spread over one lakh square feet, Flipkart said the service would facilitate quicker deliveries of consumer electronics and durables to the northern parts of the country, mainly Delhi, Haryana, Rajasthan, Punjab and Madhya Pradesh.

With this warehouse, Flipkart strengthens the large appliances supply chain in northern states of the country massively, it added.

PM Narendra Modi lays foundation stone of JNPT's Rs 7,900 cr 4th terminal
Source: Business Today; October 12, 2015

Prime Minister Narendra Modi kicked off the ambitious Rs 7,900-crore project to more than double the capacity of the country's largest container port Jawaharal Nehru Port Trust (JNPT) over the next two years in Mumbai on Sunday.

PM laid the foundation stone for the fourth terminal project of JNPT, which will be carried out in two phases and involves the single-largest foreign direct investment in the port sector in recent years. JNPT aims to be among the top 15 ports of the world with implementation of several infrastructure projects, including the fourth terminal. At present, it is ranked 31st.

The terminal will help the exports and imports by reducing the turnaround for ships, and the expansion is being taken up at a time when the country is aspiring to be a manufacturing powerhouse with the launch of the 'Make in India' initiative. The fourth terminal project is being executed by Bharat Mumbai Container Terminal, a subsidiary of Port of Singapore Authority, on a design, built, fund, operate and transfer basis under which JNPT will get a 35.9-per cent share in the total revenue earned.

Coolpad to invest in manufacturing and R&D in India
Source: medianama; October 12, 2015

Coolpad, a China-based smartphone manufacturer, is planning to enter the Indian market with its own brand of phones and plans to set up and R&D facility in the country. According to an ET report, the company will invest up to $300 million for this. This will include plans to set up an R&D facility post which the company plans to manufacture phones in the country as well. Coolpad mentions that it will focus on selling 4G phones that cost less than Rs 10,000 on online marketplaces. Interestingly, according to a Firstpost report, the company will invest only Rs 30 crore in R&D and design in the country and will partner with Videocon to manufacture its smartphones from its facility in Maharashtra. The same report mentions that as of now Coolpad has revenues of nearly $3 billion. Given this, it seems unlikely that the company will spend 10% of it on manufacturing in India alone. We presume some of the $300 million will go toward R&D (perhaps around Rs 30 crore?), with the rest invested in partnerships (like the one with Videocon) and marketing activities etc. We have written to Coolpad to resolve this ambiguity, and will update when we receive a response.

Hyosung T&D to set up green-field manufacturing unit near Pune
Source: The Economic Times; October 12, 2015

Hyosung T&D India, a subsidiary of the South Korean major Hyosung Corporation has decided to set up its India green-field manufacturing unit in Khed city near Pune in line with the Indian Government's Make in India program. Hyosung will produce high voltage gas insulated switchgears and related accessories using state of art technology for domestic markets, with a view to contribute to the enhancement of electrical transmission efficiency and reliability. Hyosung has leased about 14 acres of land to set up its project and plan to go in production by June, 2016. Khed City has been promoted by Khed Economic Infrastructure Limited (KEIPL), a joint venture between Maharashtra Industrial Development Corporation (MIDC) and companies of the Pune based Kalyani Group. MIDC holds 26 per cent of the equity capital in KEIPL while 74 per cent is held by Kalyani Group companies. The project is being developed on 1705 ha of land which is in KEIPL's possession.

Dell to Buy EMC in Deal Worth About $67 Billion
Source: Bloomberg; October 12, 2015

Dell Inc. agreed to buy EMC Corp. for about $67 billion in the largest technology acquisition ever as Michael Dell looks to leverage EMC’s dominance in storage devices amid intensifying competition.

The computer maker plans to pay $24.05 a share in cash plus tracking stock in EMC’s prize holding, software maker VMware Inc., valued at about $9 for each EMC share. EMC’s stock climbed 1.8 percent Monday to $28.35. Dell will add almost $50 billion to its debt load to complete the purchase, people familiar with the matter said, on top of the $11 billion it already is carrying.

The deal, which founder Dell is funding with partners such as Silver Lake, will help the personal-computer maker broaden its product lineup to respond to enduring threats from perennial rival Hewlett-Packard Co. and upstarts such as Nutanix Inc. For EMC, the combination may mollify activist investors clamoring to see more growth.

“From EMC’s perspective, this is a great deal. They couldn’t have worked it out better,” said Rajesh Ghai, an analyst at Macquarie Group Ltd. “Eventually, big customers are going to want to buy from fewer suppliers, and if you have everything under the same roof, you have a better chance.”

TMEiC invests Rs 250 cr in new plant
Source: Deccan Herald; October 13, 2015

Toshiba Mitsubishi Electric Industrial Systems Corporation (TMEiC) India, a subsidiary of TMEiC of Tokyo, has invested Rs 250 crore in its new industrial motor manufacturing facility at Vasanth Narasapur phase-2, a top executive said on Monday. Talking to Deccan Herald, TMEiC India Managing Director Hemant Joshi said, “The company has invested Rs 250 crore in the new greenfield industrial motor factory that is being constructed across 21 acres at KIADB Industrial Area in Vasanth Narasapur phase-2, Tumakuru district. It is in advanced stages of completion and will start commercial operations by March 2016.” The company aims to hire around 150 people, with a mixed background of technicians (with ITI education) and engineers from the electrical and mechanical streams. The industrial motor facility will manufacture large rated industrial motors for varied industrial applications in oil and gas, power generation, metals, cement, water and wastewater, chemicals and fertilisers, etc. The company has the capacity to produce 150 motor units per month. TMEiC India is looking to cater to the demands of domestic and export markets. “We are looking at South-east Asia and Middle-East as of now,” Joshi said. Meanwhile, TMEiC has announced the completion of the integration of the power electronics factory acquired from AEG last year. TMEiC also inaugurated its corporate office in Bengaluru on Monday.

OnePlus to start manufacturing phones in India
Source: Medianama; October 13, 2015

OnePlus has announced that it will start manufacturing phones in India, reports NexBigWhat. According to the report, the company will start manufacturing at Foxconn’s Rising Stars factory within the Sri City Integrated Business City in Andhra Pradesh by 2015. According to the company, it will be able to manufacture up to 500,000 units per month at the 30,000 sq ft facility. It expects to employ over 1000 full time workers at the facility. Electronics manufacturing in India: The Indian government has been encouraging domestic companies to start manufacturing electronics goods within the country instead of importing them and had approved a National Policy on Electronics. The National Manufacturing Competitiveness Council (NMCC) had also proposed the creation of a $1 billion fund to encourage telecom equipment manufacturing in India. The Cabinet had approved the setting up of two semiconductor wafer fabrication units at a cost of Rs 63,412 crore in India, in February last year. Since then, various smartphone manufacturers have said they will start manufacturing in India or have already started doing so. Yesterday, Coolpad, a China-based smartphone manufacturer, said it was planning to enter the Indian market with its own brand of phones and plans to set up an R&D facility in the country. The company said it would invest up to $300 million for this.

India ranks third in global startup ecosystem: Nasscom
Source: The Economic Times; October 14, 2015

India ranks third among global startup ecosystems with more than 4,200 new-age companies, IT industry body Nasscom said today. Nasscom along with Zinnov today launched the second edition of the start-up report titled "Start-up India - Momentous Rise of the Indian Start-up Ecosystem" on the sidelines of Nasscom Product Conclave 2015 here. "It has been a good year and in a sense a landmark year for the startup ecosystem. Last time when we met we were the fourth largest in the world, right now we are the third largest," Nasscom President R Chandrashekhar told reporters here. Releasing the report, he said "three to four startups being born every day, and nearly five billion dollars of funding coming in 2015. The emergence of the Unicorns that is the over billion dollar valuation privately held companies...have created a lot of confidence". "Conditions in India- connected India- the large number of people coming on to the internet and the consumer base is driving all this growth. We are seeing the multiplier effects of the startup programme," he added. Noting that India is just after the US and the UK, Chandrashekar said, "Israel is the country that we have just overtaken and if all goes well next year we will be second."

India most attractive investment destination globally: EY
Source: Firstpost; October 14, 2015

India has been ranked as the most attractive investment destination in the world for the next three years, according to a survey by Global consultancy firm EY released today. Thirty-two percent of the business leaders from global corporations polled for the survey said India is the most attractive investment destination in the world, followed by China, Southeast Asia and Brazil. "The finding reconfirms and reaffirms many other recent findings," DIPP secretary Amitabh Kant said at the launch of the report. He said the study clearly brings out there is an increased focus and emphasis on manufacturing and India's growth in terms of FDI will be driven by manufacturing. "India must continue the reform process on a sustained basis over a long period of time," Kant said, adding that the challenge for India is to grow at rapid rate of 9 to 10 percent per annum year after year for three decades or more. The survey titled Ready, set, grow was conducted during March and April, and includes views of over 500 decision-makers from multinational organisations across sectors like industrials, automotive, consumer products, life sciences, infrastructure and technology, among others. It finds major gains in perception as compared to the findings of the 2014 survey in key areas such as macroeconomic stability (up from 70 percent in 2014 to 76 percent in 2015), political and social stability (up from 59 percent to 74 percent); relaxation in FDI policy (up from 60 percent to 68 percent); and the government's efforts to ease doing business (up from 57 percent in 2014 to 67 percent in 2015).

Stage set for Invest Karnataka
Source: Deccan Herald; October 15, 2015

Karnataka Chief Minister Siddaramaiah on Wednesday unveiled the ‘Invest Karnataka 2016’ logo and launched the official website, sending out a clear invite to new and existing investors to invest in Karnataka. The three day global investors meet (GIM) will be held from February 3-5, 2016, at Palace Grounds in Bengaluru. Highlighting the importance of Karnataka, Siddaramaiah said, “Invest Karnataka 2016 has the potential to impact the lives of more than 65 million people of the state from job aspiring young men, women and the top most industrialists in the country.” “The State is already a $117 billion economy at current prices. Our GDP is growing at a healthy seven per cent; on par with the national average,” he said. The CM claimed that during the last two years, the state has approved more than 450 projects bringing investments of Rs 1.21 lakh crore and generating 2.44 lakh employments. He added, “But more needs to be done. Karnataka needs more industry and business in the state. As per the New Industrial Policy we announced last year, we need an annual growth rate of 12 per cent and to attract investments of Rs 5 lakh crore, providing employment to 15 lakh persons in the next five year period.”On power shortage, he said, “The situation of power shortage that you are seeing today is only temporary.”

Batteries, fuel cells to power next-gen electric cars
Source: EE Times India; October 15, 2015

As regards the question of what the future scenario is for electric vehicles in terms of power technology, Bosch has made a clear and short response. According to the automotive supplier, both fuel cells and better batteries will drive the electric cars of the future. In fact, it has stated its goal in the battery development more precisely, and at the same time revealed an electronic control unit (ECU) for fuel cells.

To power a mid-size electric vehicle, the battery should provide a usable electric energy content of 50kWh. Today's lithium-ion batteries typically feature energy content of some 30kWh at a weight of 230kg. To achieve the goal of 50kWh, the battery would come to a whopping weight of 380kg. Bosch said its goal is to create a 50kWh battery that weighs only 190kg. At the same time, the researchers hope to be able to significantly reduce the charging time; the goal is getting 75 per cent of the energy content into the battery in less than 15 minutes. The company conducts its research activities in a joint venture with GS Yuasa and Mitsubishi.

Vicor Corporation Announces High Density DC-DC Converters in a Rugged Chassis-Mount Package
Source: Press Release; October 15, 2015

Vicor Corporation (NASDAQ: VICR) today announced the introduction of new, rugged, chassis-mountable versions of its DCM™ family of isolated, regulated DC-DC converters. These new converters provide all of the advantages of Vicor’s present DCM technology – the industry’s highest power density and best-in-class thermal and electrical performance – in a rugged new package (VIA packaging technology) that offers enhanced versatility in converter mounting and cooling. These “DCMs in a VIA package” are ideally suited for use in a broad range of industrial, process control, automotive, heavy equipment, communications and defense/aerospace applications.

The DCM family’s industry-leading thermal and electrical performance is made possible by Vicor’s efficient, soft-switching ZVS conversion technology and Vicor’s thermally-adept Converter housed in Package™ (ChiP) packaging technology. Enclosing a ChiP converter in a rugged VIA package creates a mechanically robust product; simplifies mounting to a chassis or other external heat sinking device; and provides for improved thermal performance in a variety of applications.

Compiled by IESA Research

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