IESA WINWire Sep 12 - Sep 18, 2015
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Defense electronics is a sunrise area: DeitY secretary
Source: ET Telecom; September 12, 2015

The defence electronics market is going to be the sunrise area for Indian manufacturers, JS Deepak, Secretary, Department of Electronics and Information Technology (DeitY) said, adding that Intellectual Property Right and research and development (R&D) activities are the priority areas to make Digital India a success. "Research and development for IPR development is going to be the life of this sector. I urge industry to take this message that unless we develop IPR in the long run we are not going to be able to penetrate high value of electronics," Deepak said at the DEFTRONICS 2015, organized by India Electronics and Semiconductor Association. Of India's total budgetary allocation, the armed forces' share in 2015-16 is 13.88%, or Rs 2.46 lakh crore. Nearly Rs 1 lakh crore of this is earmarked for equipment component, including about Rs 70,000 crore for electronics procurement, which is largely dependent on imports. As a part of Make in India campaign, the government is looking at indigenous manufacturing of defense electronics. Recently, Israeli defence companies such as IAI, Elbit and Rafael have said they are keen to manufacture defence equipment through joint ventures with Indian players. "

India's Electronics Sector to Get $400-Bn Boost
Source: CXO Today; September 12, 2015

India’s electronics manufacturing sector is poised for a leap in the coming years, with investment worth over $400 billion, which is likely to come into the sector in the coming years. While this is a big amount, TRAI Chairman, R.S. Sharma said while inaugurating IESA’s Deftronics 2015, that investment in the electronics manufacturing sector has not achieved its potential yet, though the current demand in the sector is valued at $100 billion. The event is focused on Building Global Partnerships for ‘Make in India’ in the Aerospace, Defene and Internal Security sector, organized by the India Electronics and Semiconductor Association and this is the second edition of Deftronics, the first held in Bangalore last year. Honorable guests and officials who spoke at the event highlighted the slew of positive changes that have taken place in terms of policy and the steps taken by the present Indian government to provide a level playing field to the private players along with the public sector majors. “Defence is an industry where the government is the primary spender and it sets the rules. Of the entire demand, only about 30 percent is manufactured in India and that too by the Public sector,” DIPP Joint Secretary Shubhra Singh said in her address. “Defence sectors are dependent on DPSUs.

Tata Power to invest Rs 450 cr in defence manufacturing facility in Karnataka
Source: Business Standard; September 12, 2015

The Tata Power Company Limited’s Strategic Engineering Division (Tata Power SED), which supplies defence systems, will spend Rs 450 crore on the greenfield defence production facility at Vemagal, Kolar (Karnataka), the construction work for which began on September 8, 2015. Over the next one year, the division, which already has a defence manufacturing facility at Electronics City in Bengaluru and a dedicated R&D set up at Mumbai, will make the investment at the 50-acre Vemagal facility to create an integrated digital design-to-manufacturing facility for large systems engineering and integration.

“This is the largest ongoing investment to create a ‘Make in India - Defence’ manufacturing asset in the country. The facility is the largest strategic electronics manufacturing unit approved under the MSIPS program of DeitY, Government of India. Also, the Government of Karnataka (GoK) has been approached for additional land adjacent to the present site at Vemagal under the GoK’s New Industrial policy,” said Tata Power in a press release. The Vemagal facility will be the largest strategic electronics manufacturing unit incorporating fully automated PCB assembly lines, sub-system/system testing facilities with full qualification for military and aerospace standards.

Gionee to start manufacturing devices in India with Foxconn and Dixon
Source: BGR; September 12, 2015

Chinese handset-maker Gionee on Friday said that it is investing $50 million to contract manufacture handsets in association with Taiwan-based electronics assembly manufacturer Foxconn and Noida-based electronics manufacturing services (EMS) provider Dixon. “Gionee will be investing 50 million US$ in the next three years on manufacturing in India. While Foxconn will make Gionee handsets out of Andhra Pradesh, Dixon will use its Delhi-based facility to manufacture Gionee phones,” the company said. Foxconn will start this association by manufacturing F Series and P Series of Gionee phones while Dixon will be making feature phones and other smartphones for Gionee in India. “India market is second home market to Gionee after China and the investment in India manufacturing is just another step in a line up of much more to come for the Indian market and customers,” William Lu, president of Gionee global, said. Both the EMS partners will start the production in the month of October and they have a capacity of more than 1.2 million handset per month between them. Gionee will also increase the investment in the research and development team in India which will work on the software to give better consumer experience.

Defence Manufacturing – Strategic Partnership with Private Sector
Source: NitiCentral; September 12, 2015

In a move that will change India’s defence acquisition process, government plans to enter into “strategic partnership” with domestic private firms in six critical areas, replacing the system of awarding contracts to lowest bidder. The Defence Ministry has set up a high powered committee under the chairmanship of former DRDO chief V K Aatre to recommend guidelines for selecting Indian private firms for strategic partnership under ‘Make In India’ initiative in the six areas which include submarines, aircraft and missiles, Defence Minister Manohar Parrikar said today.” Instead of asking for tendering and all those things, a process of selecting a right partner is chosen. If you select through L1 (lowest bidder), you may end up with someone who is not capable. My aspect of success is capability of that partner,” Parrikar told reporters here on the sidelines of a FICCI organised seminar. He made it clear that there won’t be any repetition of the entity.”

Odisha Govt. Targets Rs 1,73,000 Crore Investment
Source: EFY Times; September 13, 2015

Taking cue from the central government’s initiative to boost manufacturing in this country, the Odisha government has unveiled a new industrial policy which is aimed to target investments worth Rs 1,73,000 crore in the next four years. Among other focus areas, auto components ancillary and electronics system design & manufacturing (ESDM) will be two sectors which the state wants investments to come in. As the electronics manufacturing industry in India is witnessing a new wave, the Odisha government doesn’t want to lag behind and are offering various schemes to attract FDI in their state. Some of the incentives which the Odisha government will offer will include special incentives for private sector investments, power subsidies, exemption in stamp duty, land to be available at low costs etc. One of the major roadblocks that foreign investors face in India is red tape and to counter this, the Odisha government has laid out some features in this Industrial Policy Resolution (IPR2015). Any project that falls under the green category industry will have to be cleared within 15 days whereas any other project needs to be cleared by 30 days. This will remove a major roadblock as now manufacturers can not only plan their investment roadmap but also realize its potential within the stipulated time.

Time for Electronics and IT museum in India
Source: Dataquest; September 13, 2015

India is known for its legacy in several fields of art, culture, literature, medicine, and many other subjects. In the recent history, if she has acclaimed fame in any other contemporary sectors, it is Information Technology. Though, primarily, she became a sweet destination for IT services because of cost arbitrage and low rate of wages, but the skill sets offered by her engineers and other professionals led to acclaiming a stature around the globe that other than bringing in forex, business and jobs, brought a lot of accolades for the country.

It is perhaps through IT only that Indian companies started the trend of acquiring outside. Prior to this, we had mostly seen Indian companies getting acquired. It’s now over 30 years of serious IT business that India is into and still there is a long way to go. The only realignment that I see is that it will now be centric around smaller cities and towns for improved infrastructure availability and escalating prices in the metros and Tier 1 cities.

The best part of IT industry is that we have archives available for most of them from the very first day, but predominantly in the digital format. This needs to be now extended beyond. In fact, IT has become a part of our culture now.

DVCon India 2015 grows bigger in its second year
Source: EE Herald; September 14, 2015

Design and verification conference (DVCon) India 2015 held on 10th and 11th of Sept 2015 in Bengaluru is the second DVCon event in India. Though it's only the second year for this event in India, there was good amount of crowd presence at the event listening to latest solutions in VLSI chip design. VLSI design industry focused standard body Accelera Systems Initiative is the promoter of this event. Accelera Systems Initiative involved in creating standards for VLSI design and verification. The two factors which can be seen attributing to the success of this event are: all the three top EDA vendors Cadence, Mentor Graphics and Synopsys have sponsored the event, and the organising committee members involves staff from these companies…. So if you are silicon IP developer, you may have to get in line with the latest standards to ensure your design meets such standards. The keynote-talks at the event highlighted the evolution of software tools to address the growing complexity of chip design. The IOT panel with subject titled "IOT verification: Cubbon Park to Jurassic Park" discussed the bigger challenges in IOT. There was also a keynote on India's electronics ecosystems by Vinay Shenoy, Chairman of India Electronics and Semiconductor Association (IESA) on how the electronics industry has evolved from 1960s to now.

Havells working on wireless lighting for smart city projects
Source: The Economic Times; September 14, 2015

Eyeing a big pie in the government's ambitious programme to develop 100 smart cities, leading electrical goods maker HavellsBSE 0.34 % is working on wireless lighting solutions. "We are already developing technologies where the street lights could communicate. There would be chip or wireless communication in those. We already have those models," Havells India CMD Anil Rai Gupta told PTI. He further added: "What we are doing for the smart cities, we are developing our lighting to be wirelessly wired and communicate with each other and also in home automation, they (government) are bringing in a big way." Havells, a USD 1.4 billion company, had in April this year acquired a majority stake in Bangalore-based LED and solar light manufacturer Promptec Renewable Energy Solutions. On being asked whether the company would go solo or form any joint venture to bid for the projects, Gupta said it would depend on the nature of tenders. "That needs to be seen, how the requirements are coming up. Whether it will be sourced directly by the government or it would be the individual owners, who would be pioneer. It all depends on how it come up," Gupta said.

PM Modi to woo Silicon Valley with Digital India initiative
Source: The Times of India; September 15, 2015

After wowing Indian Americans on the East Coast and wooing US big business to 'Make in India' last year, Prime Minister Narendra Modi is now out to win over the Silicon Valley for his Digital India initiative. The first Indian leader to visit California in more than 30 years later this month, Modi will go to Facebook for a town hall style question answer session and visit other top tech companies like Google and Adobe systems as also electric carmaker Tesla. As the Facebook founder Mark Zuckerberg announced Sunday the September 27 town hall at the company's Menlo Park, California, headquarters will "discuss how communities can work together to address social and economic challenges." Modi, who has more Facebook fans than any politician except for Barack Obama, is the first Indian prime minister to visit the Bay Area since Morarji Desai picked up an award at University of California, Berkeley in 1978 and Indira Gandhi visited Los Angeles in 1982. Besides meetings with Sundar Pichai and Shantanu Narayen, India born chief executives of Google and Adobe respectively, he is also expected to attend events with Indian American entrepreneurs and social investors.

IPR and R&D key to Digital India success: DeitY Secretary
Source: Electronics maker; September 15, 2015

Speaking at two day DEFTRONICS 2015 being organized by India Electronics and Semiconductors Association (IESA), Shri. JS Deepak, IAS, Secretary Department of Electronics and Information Technology stressed upon making the Intellectual Property Right and research and development as the priority of the country to make the dream of Digital India a success. Shri. Deepak said, “Special point we have to focus on is the importance of Intellectual Property Right (IPR). It is very important to access higher ends of defence electronics business.” “Research and development for IPR development is going to be the life of this sector. I request IESA and the industry to take this message that unless we develop IPR in the long run we are not going to be able to penetrate high value of electronics.” said JS Deepak. He was speaking at two day DEFTRONICS 2015 being organized by India Electronics and Semiconductor Association. The event is focused on Building Global Partnerships for ‘Make in India’ in the Aerospace, Defence and Internal Security sector, organized by the India Electronics and Semiconductor Association and this is the second edition of DEFTRONICS 2015, with the first held in Bengaluru last year. Shri Deepak pointed that the Defence equipment market is going to be the sunrise area.

Cellphone makers to set up manufacturing hub in Andhra
Source: Mint; September 16, 2015

Three domestic mobile device makers—Micromax Informatics Ltd, Karbonn Mobile India Pvt. Ltd and Celkon Impex Pvt. Ltd—are coming together to set up the country’s first mobile phone manufacturing hub at Tirupati in southern Andhra Pradesh, giving a fillip to the Union government’s Make in India initiative. The coming together of the three handset makers at a single place is expected to trigger the creation of a mobile device ecosystem as component manufacturers set up shop in the country. Most phone makers now assemble phones using components imported from China and Southeast Asian countries. Prime Minister Narendra Modi’s government is encouraging electronic hardware companies to manufacture locally in an attempt to reduce the country’s electronics import bill. In an attempt to create an ecosystem for electronic devices in the state, the Andhra Pradesh government has agreed to give value-added tax (VAT) exemption to component makers for 10 years. This is in addition to the 10-year VAT exemption promised to the three firms. “Manufacturers, if they come one by one, there will be an ecosystem,” chief minister N. Chandrababu Naidu said in Vijayawada prior to signing in-principle agreements with the three firms. “We want to create this ecosystem. If you create the ecosystem, India will move very fast,” he added. Celkon, the fifth biggest phone maker in the country, will initially work on semi-knocked down (SKD) mobile units by importing components from China, but over time expects to work on completely knocked down mobile units using components made domestically.

India all set to witness a wearable tech explosion
Source: Mydigitalfc; September 16, 2015

The wearable devices market, which includes smartwatches and digital fitness trackers, is expected to explode in India following in the footsteps of the west. Vendors have so far been importing such devices to market in India and a significant number have initiated steps to manufacture and sell the devices locally. Globally, the wearable devices market has maintained its upward trajectory since the beginning of 2015 as new vendors, including Apple, prepared to enter the market. IDC estimates that 72.1 million wearable devices will be shipped in 2015, up 173.3 per cent from the 26.4 million units shipped in 2014. Shipment volumes are expected to experience a compound annual growth rate of 42.6 per cent over the five-year forecast period, reaching 155.7 million units shipped in 2019. “The demand for basic wearables, those that do not run third party apps, has been absolutely astounding. Vendors such as Fitbit and Xiaomi have helped propel the market with their sub-$100 bands, and we expect this momentum to continue throughout 2015,” said Jitesh Ubrani, senior research analyst at IDC. Apart from global brands such as Apple and Samsung selling the devices in India, homegrown companies including Intex have started to market them at sub-Rs 15,000 price points. Some brands intend to manufacture the devices in India to create greater access.

Indigenous manufacturing key to cyber security
Source: Business Insider; September 16, 2015

In the 21st century, people have become increasingly dependent on technology for all their needs. With the current Government's vision of 'Digital India' the country seems to be making way for a highly connected world. With the dependency on technology also comes a thought on being protected by cyber-attacks. We need to build and focus on electronics policies that push for indigenous manufacturing of critical hardware systems. While India has proven its mettle in the software industry, the hardware sector needs to at the forefront of all efforts. Countries like China, Japan, Korea and Taiwan have a capable manufacturing sector and we also need to reduce our import dependency by strengthening our domestic manufacturing capabilities and also preventing an attempt on the breach of security for any critical services. Today, all our strategic installations in Stock exchanges, banks, electrical grids, defence, railways and IT companies are dependent on telecom networks and computers. We are dependent on outsourced hardware products thus making ourselves prone to vulnerabilities. Where do these vulnerabilities come from? Trapdoors or Trojan horses can be planted in any hardware.

India Gadget Expo opens tomorrow in Hyderabad
Source: Hindu Business Line; September 17, 2015

The promoters of India Gadget Expo 2015 (IGE) are planning to hold follow-up events in top metros such as Delhi, Mumbai and Bengalaru to keep up the tempo for the annual flagship event held in Hyderabad.

The second edition of the four-day expo would begin on September 18, with about 85 Indian and global players are slated to showcase their gadgets. For the first time, some would go for exclusive product launches in India at the event.
The IGE will give importance to start-ups working in products and services space, catering to various aspects of gadgets. At least half of the 85 exhibitors would be start-ups.

“We will take smaller version of the event to other cities every 2-3 months to gain interest among the gadget ecosystem in the country,” Sagar Pingali, Managing Director of CAT Pro Events and Entertainment Ltd, told BusinessLine. CAT Pro teamed up with two other event management firms to hold the expo. Manish Sharma, President of Consumer Electronics and Appliances Manufacturers Association and Managing Director of Panasonic (India and South Asia), would deliver the keynote address.

Compiled by IESA Research

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