IESA WINWire Oct 31 - Nov 06, 2015
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Manufacturing Startups Shine at Cebit, Seek Funds
Source: International Business Times; October 31, 2015

Indian manufacturing startups operating in the space of vision inspection system, data monitoring and control and advanced Point of Sale (POS) solutions are vying for attention and funding at the software industry-dominated CeBIT. Vision inspection system and self-learning system machines manufacturing startup Maxerience aims to automate quality control in dynamic manufacturing with its machines, said founder Pradeep V.S.R. Pydah. "Maxerience takes the photograph of a perfect product (Golden reference) and compares the quality of subsequent products for quality and pinpoints defects," he said, adding one of their clients manufactures 12,000 remote control key pads every day and employs four people to physically check for defects - a task which they have automated. Some of the technologies deployed by Maxerience are machine learning, motion control electronics, computer vision and mechanical design among others. Self-funded Maxerience has four customers including a Fortune 50 company. It is also selling vision inspection systems for electronics manufacturing and 3D printing companies in South Korea. Self-funded three-year-old Data Monitoring and Control startup EMNICS makes systems for industrial data monitoring and failure detection, said its founder Jegajith P.T., saying their technology can be used by a a power plant company with operations in remote areas to monitor its machines remotely and avert failures.

OPPO Electronics Starts Manufacturing Its Smartphones in India
Source: Tecake; November 2, 2015

Following other major players like, Xiaomi, Motorola, and Gionee, Oppo and One Plus has also started manufacturing their products in India. As the first ‘Make in India’ initiative Oppo has manufactured and unveiled its Oppo Neo 7 smartphone in the Indian market, while OnePlus has announced its OnePlus X smartphone. Oppo Electronics has revealed that some of hundreds of the handsets will be manufactured by the firm in association with Foxconn India. After ensuring that these handsets passed the stringent quality test, Oppo’s top management would think about putting up a manufacturing plant. Oppo has officially launched its Neo 7 smartphone in India. As The TeCake earlier stated, “the smartphone will debut in India with a price under Rs. 10,000.” It comes with a price tag of Rs. 9,990. Previously, the smartphone was listed on the company’s official website. Kai Feng, Oppo Vice General Manager said, “In India, we will produce 4G models alone. We are planning to put up a manufacturing plant by the end of 2016. No land has been acquired and we have not decided about the production capacity or the location.” Feng further announced that Oppo has occupied a second slot on in 4G handset sales in China after Apple. In addition to already sold out four lakh handsets, Oppo is expecting to sell 15 lakh smartphones by March 2016.

Andhra Pradesh Fast Turning Into the Mobile Making Capital of India
Source: The Indian Express; November 3, 2015

Andhra Pradesh is fast turning into a mobile manufacturing hub with Lava being the latest entrant with an investment of Rs 500 crore. Besides Lava, the Sri Venkateswara Mobile and Electronics Manufacturing Hub at the industrial park at Renigunta near Tirupati — recently inaugurated by Prime Minister Narendra Modi — will boast of leading manufacturers like Micromax, Celkon and Karbonn. The three firms are expected to invest Rs 200 crore each to set up their factories. Meanwhile, Foxconn has already started operations at Sri City and has partenred Xiaomi and Gionee to manufacture their handsets. Asus is also expected to come in next. “We plan to establish Sri City and Tirupati into a global electronics and hardware manufacturing hub. Sri City is seen as an ideal location due to its proximity to ports at Krishnapatnam as well as Chennai and airports at Tirupati and Chennai,” information minister of the state P Raghunatha Reddy said.

IQOR to Invest $200 Million in India; Will Create 20,000 Jobs
Source: The Indian Express; November 3, 2015

US-based aftermarket services provider iQor on Tuesday announced plans to invest $200 million in building end-to-end aftermarket services across India. The company will open two new repair depot hubs in Chennai and Hyderabad along with new service centers. The company caters to the after-sales service needs of manufacturers of smartphones, tablets, desktop computers, notebooks, digital players and consumer products. “The new investment will create a total of 20,000 new jobs across the country within a span of three to five years,” said iQor CEO Hartmut Liebel. By the end of 2015, iQor will be increasing its footprint to 115 locations in 109 cities and 22 states. “India is projected to be the second largest smartphone market by 2016. With infrastructure and staff already in place throughout the country, iQor is perfectly positioned to meet India’s increasing demands for skilled, immediate product support,” said Liebel. “All our global and domestic clients are expanding massively in India,” “They are all looking for one or two partners to deliver quality services across the country. With our end-to-end capabilities, we intend to become their partner of choice,” said Sanjay Vidyarthi, iQor Managing Director-India.

Workshop on Electronic System Design Held
Source: The Hindu; November 4, 2015

A workshop on Electronic System Design and Manufacturing, sponsored by the Department of Information Technology and Biotechnology of the State government, was held at the NMAM Institute of Technology (NMAMIT) at Nitte in Udupi district on October 31 and November 1. According to a press release issued by the institute here, the workshop was organised jointly by Consortium of Electronic Industries Karnataka (CLIK), and Bengaluru Chapter of Computer Society of India (CSI) and NMAMIT. Around 125 participants from various industries and technical institutions in and around Mangaluru, Udupi and Shivamogga participated in the workshop. Sateesh Kannegala, Chief Consultant at SecPod Technologies and Consulting, Bengaluru, who inaugurated the event, said that it was essential to bridge the gap between Internet of Things (IoT) and Electronic System Design and Manufacturing. It was necessary to conduct more research in these areas, he said. Bhimsen G.V., Executive Member of CLIK, Bhanumathi K.S., Chairperson of Bengaluru chapter of CSI, Niranjan N. Chiplunkar, Principal of NMAM Institute of Technology, spoke on the occasion. Udaya Kumar Shenoy, workshop co-coordinator, welcomed the gathering. Sharada U. Shenoy delivered a vote of thanks.

Odisha Plans Mega Hub for Electronics, IT Investments
Source: Business Standard; November 3, 2015

In its bid to draw more investments in information technology (IT) and electronics sectors, the Odisha government is working on an ambitious plan to develop a dedicated hub at Naraj near Cuttack. The proposed IT and electronics hub is likely to come up on over 700 acres of land at the site originally chosen for Tata Power's 2,000 Mw coal-fired plant. Since the power plant was in the vicinity of the Chandaka-Dampada wildlife sanctuary, the proponent had sought an alternative location for its power project. The government recently approved Begunia in Khurda district as an alternative site for Tata Power's project. With the land patch to lie vacant after Tata Power shifts its project to the new location, the state industries department feels this could be an ideal site for IT & electronics investments. "We intend to develop a hub for IT and electronics sectors at Naraj. The government will seek SEZ (Special Economic Zone) notification either for the entire land or partially," said industries minister Debi Prasad Mishra. Odisha is keen to pull more investors in IT and electronics space. To lure investors, the state government has unveiled exclusive incentives for ESDM (electronics system design and manufacturing) investors. Those investors with investment exceeding Rs 200 crore and offering employment potential of over 500 would be entitled to 25% investment subsidy on capital investment subject to a ceiling of Rs 50 crore. Further, if their project is financed by public sector banks, the state government would offer an interest subvention of 5%.

Interview: Maharashtra to emerge as electronic giant by 2030, says Fadnavis
Source: The Indian Express; November 3, 2015

Chief Minister Devendra Fadnavis believes ‘Make in India’ cannot be a reality without Make in Maharashtra. While acknowledging he has succeeded in a confidence building exercise, pushing reforms at hi-speed is the next task he says. In just one year, we have crossed Rs 1 lakh crore investment and there is not a single MoU signed which had to be kept on back-burner. My visit to America, China, Japan, Israel, Davos, Germany was to promote Make in Maharashtra and it has helped to restore the confidence of foreign investors in the most leading state of the country. Whether it is Foxconn, General Motors, Microsoft et al are here for serious business with India. We have tapped investments through collaborations in automobiles sector, infrastructure including roads, coastal and aviation and electronics. Questions have often been raised about realistic investments from Foxconn pronouncing $5 billion? I have dealt with them and believe they are going to be the game changer. I visited their manufacturing unit in China which has employed 5 lakh people. They reckon Maharashtra is the best destination for business because of skills and human resources, low cost and labour. Moreover, my government is not dealing with soft gloves. We know our business and state and country’s welfare.

Indian Auto Electronics Industry Gearing Up To Accelerate
Source: ET Auto; November 4, 2015

India is expected to become the 3rd largest manufacturer of automobiles in the world after US and China by 2020. The Auto components sector in India currently estimated at USD 38.5 billion (ACMA) is closely mirroring the automotive industry’s growth. Majority of global and local OEMs in India are following a localization strategy across a wide range of auto components for becoming cost competitive. However, 65-70% of Auto electronics requirement of OEMs in India is still met through import from countries like China and Taiwan. Auto Electronics industry in India is currently at a nascent stage and is lagging behind its foreign counterparts in terms of capacity and R&D capability. Product conceptualization and designing of electronic components is typically undertaken by OEMs while the child parts are mostly imported into India. Most Indian vendors are currently focusing only on assembling the imported parts. Even large Indian players like Motherson Sumi are exporting low technology products like wiring harnesses. However, there exists tremendous potential in the Indian Auto Electronics space on account of: Increasing electronic content per car: Cost of Auto Electronics content as % of total automobile cost in India is expected to double from 23% to 45% over the period 2010-2030 as per the latest McKinsey ACMA Report 2015.

Odisha electronics cluster may bag Rs 200 cr investment
Source: Business Standard; November 4, 2015

The Odisha government is close to clinching investments worth Rs 200 crore for its electronics manufacturing cluster (EMC) planned on 203 acres of land at the Infovalley, a dedicated IT park proposed on the city's outskirts.

Officials said, domestic companies have committed investment of about Rs 200 crore. The companies include Apex Circuits Pvt Ltd and Ortel Communications.

Sources said, Apex Circuits has evinced interest to set up PCB (printed circuit board) with an investment of more than Rs 100 crore and has sought about four acres of land from the government.

"Domestic companies have committed Rs 200 crore investment for the EMC. These proposals are in advanced stage and we are looking to seal the deal shortly", said state IT minister Pranab Prakash Das.

A SPV in the name and style of 'Odisha Electronics and IT Parks Ltd' has been formed for developing the project.

As per India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronic System Design and Manufacturing (ESDM) industry, the aggregate investment in the cluster is projected at Rs 979 crore, which includes investment by individual units in plant, machinery and park infrastructure.

India is a $7 bn digital commerce market, growing at more than 40% every year: Gartner
Source: Firstpost; November 4, 2015

Customer experience, product range, delivery, payment and customer service are the top five things Indian digital commerce players should focus on to grow their business, according to Gartner, Inc.

“Digital commerce is at a nascent stage in India, and it accounts for less than 1 percent of total retail sales in 2015. However, India is one of the fastest-growing digital commerce markets in Asia/Pacific,“ said Gene Alvarez, managing vice president at Gartner. “India represents a $7 billion market, growing at more than 40 percent every year. Currently B2C commerce leads the market in India, while B2B is limited to organizations that drive online sales while trying to cut costs in dealing with their partners and distributors.

Mobile commerce is a primary channel for digital commerce in India. Over 40 percent of digital commerce transactions came from a mobile device in 2014, and it is likely to exceed 50 percent in 2015. Due to the low Internet penetration in India, the country is leapfrogging the PC, and consumers are using mobile as the primary channel for online shopping.

“There is a lot of hype due to the high growth and high expectation of the market, and many companies are fast expanding to grab market share and increase visibility. However, the fierce competition is pushing up costs while the average order value remains low. Players need to execute on the basics to ensure the growth is sustainable,” said Alvarez.

Siddaramaiah woos US aerospace firms to 'Make in Karnataka'
Source: The Times of India; November 4, 2015

Pitching for investments to boost the state's growth story, chief minister Siddaramaiah on Wednesday urged US aerospace firms to make products and components for domestic and global markets in Karnataka.

"I appeal to this august gathering of industry to invest in the aerospace sector and be part of 'Make in Karnataka'," Siddaramiah said at the US-India aviation summit here.

Noting that Bengaluru was India's aerospace hub with 65 percent of the country's investment in the sector, the chief minister said Karnataka was the first state to have an aerospace policy (2013-2023) to attract investments and new technologies.

"The growth potential of aerospace and defence industry has attracted global majors like Boeing, Honeywell, Airbus, EADS, Pratt & Whitney, Rolls Royce and UTC Aerospace to sup their engineering and design services in this tech hub," Siddaramaiah told at least 300 delegates participating in the three-day event.

Assuring the prospective firms of the state government's support to facilitate their investments with incentives, Siddaramaiah said a dedicated Aerospace Park has been formed near the Bengaluru international airport at Devanahalli on 984 acres of land, with a special economic zone (SEZ) and the country's first aerospace SEZ at Belagavi in the state's northern region, about 500 km from Bengaluru.

India's largest start-up incubator T-Hub to be launched on Thursday
Source: Business Today; November 4, 2015

According to Jay Krishnan, CEO of T-Hub, about 150 technology-based startups, have already been shortlisted and will be moving in to the building from 9-15 November. Some of these are involved in e-commerce, cloud, analytics, while there are product and health technology companies also, Krishnan said "Without doing a deep dive into analysing the breakup of the companies, my gut feeling is that most would be in the digital commerce space - mobile and web commerce included," he added. Explaining what T-Hub can offer to a start up, Krishnan said, it will provide three crucial elements that start ups need -- access to infrastructure, access to mentors and finally, access to capital. For the infrastructure, the five floor building has a capacity for 800 seats and these 150 odd start-ups with bring in around 450 people, he said. In addition, there are accelerator programmes that would be run by entities like Microsoft or Nasscom and which again will bring in additional people. Put together, the facility will be seating around 700 people at the moment. While T-Hub is a not-for-profit entity and all funds are ploughed back into growing T-Hub and maintaining it, Krishnan said there are different space-occupying offerings available for a start ups and they will charged for it. The building has co-working spaces and individual cabins that can seat upto 14 people. There are in all 20 such cabins - four per floor across the five floor building. The CatalysT building does not house start ups that have more than 14 people each.

Anchor Electricals to invest Rs 150 crore in manufacturing unit
Source: Economic Times; November 4, 2015

Anchor Electricals, a wholly-owned subsidiary of Panasonic Corporation today said it is investing Rs 150 crore in a manufacturing facility in Haridwar.

The facility will produce a complete range of wiring devices, it said in a statement.

With the new unit, the company would scale up its capacity as per the planned phase wise expansion in the additional space.

The company intends to double its manufacturing capacity in Haridwar by 2020, at full capacity expansion, with the commissioning of its second Greenfield facility on the said premises.

"India is one of Panasonic's key strategic markets. The new manufacturing unit in Haridwar is an important part of our growth strategy in India and other countries in the region that we intend to serve from here," Takaki Oguri, managing director, Anchor Electricals said.

"With this expansion, we would be able to fulfil the additional demands of existing and emerging consumers for contemporary and technically superior electrical products aimed at customer comfort and energy savings," he added.

Citibank winnows down CMC 2015 field to 20
Source: Deccan Herald; November 4, 2015

Citibank has declared the list of 20 selected startups and organised a Demo Day as part of its Bengaluru leg of the Asia-Pacific Citi Mobile Challenge (CMC) 2015.

Citi India country business manager Kartik Kaushik said CMC 2015 is a virtual accelerator with a robust curriculum and mentorship programme aimed at inspiring developers to re-imagine trends in digital banking.

“The finalists will get an opportunity to showcase their ideas and stimulate digital progress in the industry. We are overwhelmed by the enthusiasm shown by companies involved in CMC,” Kaushik said……

Bengaluru tops the list with seven companies, followed by Mumbai with five. The startups range from those working in wearables, financial inclusion, corporate finance, proximity payment, customer engagement, underwriting, to those in B2B connect, and IoT spaces

Shrishti ESDM, a Bengaluru based startup founded by B N Pal, conceptualised Aapna-Seva which avails AEPS (Aadhaar-enabled payment system), biometric PoS (Micro-ATM), and Automated Cash Dispensers (AEPS-ATM) to bring about a revolution to cover banking needs of 1.25 billion Indians.

Roaring Engine for Growth
Source: The Times of India; November 5, 2015

With its broad roads, glass exterior buildings and heavy investment flow, the twin township of Pimpri-Chinchwad and adjoining industrial zones portrays a rising India. As the economic situation turns around, private investment picks up and more foreign investors arrive, the industrial belt is poised for richer benefits. In the last six months, the big promises have translated into actual investment __electronics giant Foxconn has committed $5 billion (Rs 32,000 crore), a sizeable part of which is expected to go to Talegaon. This cluster of micro, small, medium and large enterprises provides direct employment to about 4 lakh men and women. Indirect employment like work to shop keepers, transporters and other allied activities make up another one lakh people, industry participants estimate. Sardeshmukh also sees the growth of electronics and semiconductor industry in the area. "There is an increased usage of electronics components in automobiles and it is a definite pointer to the growth of that industry as well, supported by the state government," he added. MN Vidyashankar, president of India Electronics and Semiconductor Association (IESA), said the future prospects are positive as the "final approval for the electronics cluster will soon be done by the central government. PCMC area has the maximum scope due to the already established supply chain in the automotive clusters." Hinjewadi's IT cluster, a region that contributes about $7 billion, or 6.5% of the country's total software exports, is close to Pimpri Chinchwad.

Microsoft CEO Satya Nadella unleashes digital India plans
Source: Financial Express; November 5, 2015

Microsoft CEO Satya Nadella on Thursday echoed the sentiments of Maharashtra Chief Minister Devendra Fadnavis by saying that company’s ambition was to empower the people. Speaking at the Microsoft Future Unleashed event, the India-born CEO said there will be more computing in our lives in the coming decade.

“Computing will be everywhere, but what will be key is our mobility of our human experience through all this computing. That is where the cloud is important.”

And there is a reason why the event, the largest by Microsoft in India and one that will be an annual feature from now on, is being held in Maharashtra. The state houses two of Microsoft’s three data centres in India. The company is also working with the state government in setting up the first smart village at Arisal.

In fact, Fadnavis said there was no doubt that creating smart cities is creating efficiencies. “Unless our cities become efficient we will be exploiting nature. But then we can also create smart villages,” he said, adding how behind the scenes he had discussed with Nadella, the possibility of setting up 50 more digital villages in 2016.

Compiled by IESA Research

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