IESA WINWire Oct 24 - 0ct 30, 2015
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10th Anniversary

PM Modi lays foundation stone for India’s first mobile manufacturing electronics cluster
Source:; October 24, 2015

Prime Minister Narendra Modi has laid the foundation stone of Shri Venkateswara Mobile and Electronics Manufacturing Hub in Tirupati, the country’s first mobile manufacturing electronics cluster. Union Ministers M Venkaiah Naidu, Ashok Gajapathi Raju and Nirmala Sitaraman, Governor ESL Narasimhan and Andhra Pradesh Chief Minister N Chandrababu Naidu were present on this occasion. The Hub is expected to create more than 10,000 jobs within a year and contribute at least 5 per cent of the all-India target of 15 lakh jobs by the year 2019, a press release by Indian Cellular Association had said earlier. Foxconn has already started operations in Andhra Pradesh for manufacturing brands such as Xiomi and Gionee. Other important brands like Micromax, UTL (Karbonn) and Celkon would be starting their manufacturing operations soon, the release further said. “The previous government has done a lot of such things and a lot of time and energy of this government is going into undoing and setting them right. But I assure Centre’s support to both the states and the Government of India will always stand by and support you,” said Modi. The Prime Minister said he alongwith Chief Minister Chandrababu Naidu will fulfil the dreams and aspirations of Andhra Pradesh and take it to greater heights by expediting the development process.

AP Govt Announces 'Mega' Sops to Cellphone Firms
Source: The New Indian Express; October 26, 2015

In order to promote manufacturing sector and attract domestic and global investments into the Electronic System Design and Manufacturing (ESDM) sector in the State, the Andhra Pradesh government has announced special package of incentives for Celkon Impex Pvt Ltd, Karbonn Mobiles(United Telelinks (Bangalore) Limited), Bhagwati Products Limited (Micromax) and LAVA International Limited, to be set up at Sri Venkateswara Mobile and Electronics Manufacturing Hub (SVM & EMH) in Renigunta & Yerpedu mandals of Chittoor district. All four companies combined are likely to invest Rs 1,070 crore and generate employment for 12,525 people. As per the special incentive package, these companies would be given the status of mega status. They would be provided subsidy up to Rs 20 crore for investment of Rs 100 crore to Rs 300 crore, up to Rs 30 crore for investment of more than Rs 300 crore to Rs 500 crore and up to Rs 40 crore for investments more than Rs 500 crore. Besides, they would be provided interest subsidy of 5 per cent up to Rs 1.5 crore per year for a period of seven years. In respect of reimbursement of net VAT, they have been offered 100 per cent for a period of eight years for investment up to Rs 500 crore and employment of minimum 1,000 persons and 100 per cent VAT reimbursement for a period of 10 years for investment of more than Rs 500 crore and employment of minimum 2,000 persons. Apart from this, the AP Industrial Infrastructure Corporation(APIIC) would provide land to these companies at the rate of Rs 20 lakh per acre.

Defence manufacturing unit by UK-based company to kickstart Tata Steel Gopalpur SEZ
Source: Business Standard; October 26, 2015

Tata Steel's proposed SEZ and Industrial Park at Gopalpur in south Odisha is poised to take off on Wednesday with the ground breaking ceremony for a defence equipment unit by Meggit Corporation of the UK at the location. Meggit Corporation is setting up an assembly facility for air defence target system at Gopalpur in association with its Indian partner Sure Safety Solution. The project, estimated to cost Rs 50 crore, is being set up under the 'Make In India' programme of the India government, one of whose objective is to manufacture various defense equipment within the country. The project will come up in an air-conditioned shed on 5 acres of land within the Tata Steel Industrial Park and start production from January, 2016. "We have a big responsibility to provide the company all facilities (including building of the shed) so that the project becomes production worthy in two months' time", said Arun Mishra, MD, Tata Steel Gopalpur SEZ. He hoped establishment of the defence equipment unit at Gopapur by the UK based company would attract other similar investors, particularly from Europe and South East Asia, to the area. "We plan to develop this SEZ and Industrial Park as a defence and electronics hub," he added. It may be noted Gopalpur already has India Army Air Defence College in its vicinity which will come in handy to test the defence equipment.

India's electronic imports may exceed overseas purchases of bullion
Source: Digit; October 26, 2015

India’s electronic imports could exceed the overseas purchases of bullion for the first time this year thanks to an increase in the import of smartphones. Estimates based on government data showed that the import of electronics surpassed those of gold and silver in the first six months of the current financial year. "There is bigger concern as real electronic imports are much more than what is captured. Electronic components of cars such as electronic gears are still not counted, else these would take the import figure to a much higher level," said Ajay Sahai, director general of the Federation of Indian Export Organisations India is one of the fastest growing consumers of electronics globally. Domestic production of electronic goods was $31 billion during 2014-15. Electronic imports grew from $2.85 billion in May to $4.38 billion in September. This growth was led by a sharp rise in purchases of integrated chips, personal computers, and more. In April-August, mobile phone imports were pegged at $2.4 billion. The import of such large quantities of electronics questions the success of the government's target of ‘net zero imports’. It also highlights the need to direct the focus of the Make in India initiative on the electronics sector. Director of Ahuja Radios, Suresh Madan said,

Lava to invest Rs 500cr to set up manufacturing facility in AP
Source: Indian Express; October 27, 2015

In line with ‘Make in India’ initiative, domestic handset vendor Lava will invest Rs 500 crore to set up a manufacturing plant in Tirupati. Earlier this week, Prime Minister Narendra Modi had laid the foundation stone for a dedicated mobile handset and electronics manufacturing facility at Tirupati, Andhra Pradesh. According to officials, apart from Lava, the facility will house brands like Micromax, Celkon and Karbonn. “The manufacturing plant, which will be operational in 2017, will target production capacity of five million phones a month once fully functional. Lava will invest Rs 500 crore for this facility that will be set up over 20 acres of land allotted by the government,” company’s International Chief Manufacturing Officer Sanjeev Agarwal told PTI. He added that the facility will aim to generate employment for 12,000 people. “Over the next few years, we plan to develop the entire manufacturing ecosystem in India and promote localisation of components,” Agarwal said. Lava’s existing manufacturing unit in Noida, which has a monthly capacity of one million units, was commenced six months back.

Analog Devices Celebrates 20 Years of Innovation in India
Source: IT Voice; October 27, 2015

This year Analog Devices, is marking its 20th anniversary in India and 50th anniversary of the company’s founding. image001 (29)To celebrate these milestones, President and CEO Vincent Roche and Co-founder and Chairman of the Board Ray Stata met with industry bodies, think tanks and leaders from ISpirit, India Electronic Semiconductor Association (IESA), The Indus Entrepreneurs (TiE) and several system, semiconductor and Internet of Things (IoT) startups. The executives also connected with representatives of “Make In India,” a major new national program designed to transform India into a global manufacturing hub. During their visit to India, Mr. Roche and Mr. Stata spent time with ADI’s India Design Center employees. The India Design Center has experienced rapid growth over the last few years and is now ADI’s second largest design center outside of the United States. “India stands at the forefront of technology innovation and today is home to world-class engineering schools, research centers, multinational technology companies and pioneering startups,” said Mr. Roche while in Bangalore addressing a group of ADI customers, design house partners, startups and members of the academic community. “The country is recognized around the world for its exceptional engineering talent as exemplified by ADI’s team in India that leads some of our most complex and challenging projects. Ray and I are impressed by the growing number of India startups led by young and passionate entrepreneurs. In terms of startup companies, India is truly at an inflection point.” Over the past 20 years, Analog Devices has developed a well-established sales and distribution network across India serving and supporting design teams of multi-national companies (MNCs), original equipment manufacturers (OEMs) and independent design houses.

India’s Potential Emergence as a Leading Innovation Hub in IoT Space
Source: Convergence Catalyst; October 27, 2015

Domestic manufacturing of electronic goods, sensors and appliances is a key enabler for the growth of IoT. Currently over 65% of USD 85 Bn electronics products in India are imported. The Indian government through DeitY and IESA (India Electronics and Semiconductor Association) has initiated multiple projects to drive the domestic Electronics System Design & Manufacturing (ESDM) industry in India. A number of enabling and forward-looking policies and regulatory frameworks have been instituted to foster the growth of Indian electronics ecosystem. These policies are aimed at holistic development of the ESDM industry by offering specific incentives for the development of each element in the value chain. Foxconn’s India Entry: Leading global mobile devices and electronics manufacturer Foxconn’s entry into India and its commitment of investing USD 5Bn (as a part of the government’s “Make In India” initiative) is expected to kickstart the electronics manufacturing and grow the component ecosystem in India. Many global and domestic smartphone companies such as Lenovo, Xiaomi, Micromax, etc are also planning to start smartphone manufacturing plants in India, post Foxconn’s announcement. In the next 2 to 3 years, by the time these manufacturing plants ramp up to capacity and enhance their workforce skillsets, we expect them to evolve beyond smartphones to manufacture other sophisticated electronic devices including robots, automation gadgets and connected devices (for IoT).

Equal opportunities for women at workplaces will push Make in India
Source: Hindustan Times; October 27, 2015

Reports that the NDA government is all set to change the law to allow women to work night shifts in factories is a welcome one, but should come with some caveats.

India’s call centres are global leaders with women working night shifts on a large scale but they are white-collar work-places. The proposed law will enable women to work after 7 pm in blue-collar shop floors, knocking down an outdated 1948 provision.

The issue, however, is tricky. Recent developments in Delhi and Bengaluru, where crime has hurt working women, and a parliamentary panel have raised questions on safety. In truth, freedom of participation for women in the workforce is a matter of principle concerning equality and choice. On current indications from the labour ministry, a revised Bill of the Factories Act set to be tabled in the winter session of Parliament plans to make employers legally responsible for providing safety to women workers in night shifts. While precedents in the call centre industry can help formulate best practices, the government should offer tax breaks to factories in offering facilities such as transport, night crèches, rest rooms and meal rooms. We cannot have men-only factories while an ambitious ‘Make in India’ programme gets going. It is vital to remember that electronics manufacturing, in which China and Taiwan have made strides, has an active participation by women.

Gopalpur to Have Odisha's First Defence Manufacturing Unit under Make-In-India Scheme
Source: The New Indian Express; October 27, 2015

The State is going to have its first defence manufacturing industry soon. The unit to come up under the 'Make in India' programme will be established in the Tata Steel’s Special Economic Zone (SEZ) at Gopalpur in Ganjam district. Defence sources said the defence unit is being set up by Sure Safety Solutions (SSS), a Mumbai-based firm in collaboration with Meggitt Defence Systems Limited, a UK-based international aerospace, defence and performance sensors group. SSS develops and integrates products and solutions in the field security, surveillance, defence simulators, aerial and surface targets, UAVs, and other technology driven products required for the modernization of armed forces and combating insurgency. It has an agreement with Meggitt for the engineering of extreme environment components and smart sub-systems for aerospace, defence and energy markets. The firm has been provided land for the state-of-the-art facility for manufacturing of aerial target systems in the Special Economic Zone. An official of SSS said groundbreaking ceremony for the industry will be held at Gopalpur on Wednesday which is expected to be attended by Industries Minister Debi Prasad Mishra. Last year the SSS had supplied Banshee Jet 80 aerial targets for the test-launching of the indigenously developed surface-to-air medium range supersonic missile Akash from the Integrated Test Range (ITR) at Chandipur-on-sea.

Around 89 lakh skilled workers will be required in electronics and hardware sector by 2022: NSDC Report
Source: The Economic Times; October 28, 2015

According to a recent report by National Skill Development Corporation (NSDC), the incremental human resource requirement in the electronic and IT hardware sector will 89 lakh by 2022. Electronics and IT Hardware is one of the emerging sectors for employment growth in India which employs over 4.3 million people in India across manufacturing, sales and marketing (including retail) and repair and maintenance segments. The report highlights that the demand for electronic and IT hardware products expected to touch Rs 24 lakh crore mark by 2020. According to the report India's per capita GDP has nearly tripled since 2000, rising from $455 to $1, 489 in 2012. This is expected to rise to over $2,000 by 2017, and will continue to be the major source of demand in consumer electronics in the country. Key government initiated programmes which includes the UIDAI project, the National Knowledge Network (NKN) and the National Optic Fiber Network (NOFN) will continue to be the primary demand driver for the consumer electronics in the country. Further the report states that demand for electronics stood at Rs 6 lakh crore in FY13 but only Rs 2,16,000 crore goods were produced in India. Central and state governments are among the largest demand drivers for the electronics industry.

UAE is 2nd-largest importer of Indian electronics
Source: Gulf News Journal; October 27, 2015

As India works to advance its electronics manufacturing sector, the United Arab Emirates (UAE) has emerged as the biggest importer of Indian electronics in the Eurasia region.

Since the start of 2014, India has sold more than $440 million worth of electronic products to the UAE, making Emirates India’s second-largest electronics export destination in the world after the United States.

The biggest sellers in the UAE are Indian mobile phones, PCs, loudspeakers, watches and clocks. India is also finding great success selling electronic components in the UAE, including voltage stabilizers, transformers, distribution panels and inverters.
India’s Electronics & Computer Software Export Promotion Council (ESC) is one of the main promoters of the nation’s electronics and IT exports. In recent years, the council has worked to facilitate interaction between small Indian businesses and potential buyers in the global market.

To that end, ESC has been a regular player at Dubai’s GITEX technology forum as part of an effort to take advantage of the booming IT market in Gulf nations.

After electronics and apparel, wearables is the next big frontier for Flipkart
Source: Economic Times; October 29, 2015

After electronics and apparel, wearables is the next frontier for the country's largest etailer Flipkart. Going by the current popularity of wearables or Internet of Things devices such as smart watches, bands, shoes or other tracking accessories, Flipkart is expecting the category, which was launched just three months ago, to become the largest for gifting during the next festive season.

Flipkart is investing heavily in building this category and is expecting many more products to be added to its catalogue over the coming months, said Ankit Nagori, chief business officer of Flipkart. "People are shopping for these products not just for their own use, but as a gift option in huge numbers," he added.

Nagori said that while the most popular among wearables are smart watches and fitness bands, other devices which find usage for threat detection for homes, safety of women, elders and children etc, are also finding great adoption. "We are selling shoes which have built-in technology to track if the person wearing them has walked enough, it starts vibrating if the person has been idle for too long," said Nagori.

India pushes for local language script on feature phones
Source: Business Standard; October 29, 2015

Centre for Development of Advanced Computing (C-DAC), the technology research unit of the Department of Electronics & Information Technology, is working on an initiative to boost local language support across the web and devices in the country, including feature phones.

The Indian government is working on a way to standardize local language support on feature phones, which still make up 85% of all mobile devices in the country. Moreover, half of these devices do not support local language fonts and typing.

Under the initiative, manufacturers will be asked to provide support for a minimum of three local languages and 14 scripts.

"We had a discussion with the industry and we are going to come up with a standard for all feature phones to require conforming to local languages and scripts," said Ajay Kumar, Additional Secretary, DeitY. "It won't change the pricing factors of phones because the additional cost involved is just around $1 per phone."

Videocon to invest Rs 500 cr to setup mobile assembly plant in Punjab
Source:; October 29, 2015

Videocon Industries will invest Rs 500 crore over the next three years to set up a new mobile handset assembly plant in Punjab, which will also manufacture set top boxes. The plant will create employment for 3000 people over a period of time in the state.

"We are happy to announce that Videocon would be setting up a Mobile assembly plant in Punjab. I have visited several States, but the speed of progress, development and treatment given to industrialists in this State is of par excellence," Anirudh Dhoot, director of Videocon Industries, said.

Videocon recently bagged a contract to make five lakh handsets for Coolpad India, a subsidiary of China's largest smartphone maker, in the first quarter of the next fiscal. In addition, the company is also making feature and smartphones for Spice Mobiles out of the Aurangabad manufacturing facility.

Smartphone makers are looking to tap into the multi-billion dollar opportunity in India, which is one of the fastest growing smartphone markets in the world. As per IDC, the Indian handset industry is poised to overtake the US as the second-largest market in the next few years. Shipments in India grew 44 percent to 26.5 million units in April-June, as per research firm IDC.

Mohali to be electronics hub: Sukhbir
Source: Chandigarh Tribune; October 30, 2015

Apparently buoyed by Videocon’s announcement of setting up its manufacturing plant here, Punjab Deputy Chief Minister Sukhbir Singh Badal did not take much time to announce Mohali as the “upcoming electronics manufacturing hub” here today.

During his address at the valedictory function of the Progressive Punjab Investors Summit at the Indian School of Business at Sector 81 here, Sukhbir said Mohali, the IT hub of Punjab, would be made the electronics manufacturing hub of the state.

He said Videocon had signed an MoU with the Punjab Government for setting up a plant worth Rs 500 crore for manufacturing/assembling mobile phone sets and set-top boxes in Mohali.

“We will talk to other industrialists to bring them here and make Mohali the electronics manufacturing hub of the state,” he said.

Compiled by IESA Research

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