IESA WINWire Sep 19 - Sep 25, 2015
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10th Anniversary

Make India’s defence ecosystem more robust and independent, suggests IESA-Roland Berger recommendations
Source: ELE Times; September 19, 2015

DEFTRONICS 2015, an initiative from India Electronics and Semiconductor Association (IESA), marks the beginning of India’s defence independence led by the ESDM industry in the nation. In this context, IESA, along with Roland Berger, a leading global strategy consulting firm with immense expertise in defence, released a whitepaper on the upcoming Defence Electronics Policy in the presence of Sh. R S Sharma IAS, Chairman, TRAI; Smt. Shubhra Singh, IAS, Joint Secretary, DIPP, Govt. of India and Dr. KD Nayak, Distinguished Scientist, MED, COS & CS, DRDO, Ministry of Defence, Govt. of India.

The IESA-Roland Berger whitepaper titled ‘Defence Electronics Market- Perspectives and Recommendations’ indicates that the defence spending has been budgeted every year and it has never seen contraction but has always had an upward trend for the past 18 years. However, India’s spend on military R&D is less than 2% of global expenditure on R&D.

Commenting on the occasion, M. N. Vidyashankar, President, India Electronics & Semiconductor Association said, “India is the 7th largest A&D (aerospace and defence) market globally and a lion’s share of the market needs have been historically addressed by imports.

'Proposals worth over Rs 1,00,000 crore received for electronics manufacturing'
Source: The Times of India; September 19, 2015

India has received investment proposals of over Rs 100,000 crore in the last fifteen months for electronics manufacturing in the country, communications and information technology minister Ravi Shankar Prasad said. "I am happy to announce that in the last fifteen months, investment proposals worth Rs 104,000 crore have been received for electronics manufacturing in the country," Prasad said at an International Chamber of Commerce event here supported by industry chamber FICCI. The proposals have come from various companies for electronics manufacturing under the Modified Special Incentive Package Scheme (MSIPS). The scheme, originally approved by the government in 2012, provides capital subsidy of 20% in special economic zones (SEZ) or 25% in non-SEZ units engaged in manufacturing of electronics items. In July, the NDA government extended the MSIPS policy by five years. In the recent period, global majors like Xiaomi and Motorola, along with Lenovo, have commenced assembling smartphones in the country through contract manufacturing by Foxconn and Flextronics respectively. "The Make in India programme evolved out of the initiatives taken for electronics manufacturing. When I assumed charge as minister last year, there were only two electronics clusters in the country. Now there are 20," Prasad said.

Panasonic plans mobile handset, fridge manufacturing facilities
Source: The Hindu Business line ; September 19, 2015

Consumer electronics and appliances firm Panasonic will set up a mobile manufacturing facility in India with a capacity to produce 10 lakh phones a month and a fridge manufacturing facility. “We are going to have a facility in the next six months. But we have not decided yet whether to set up a unit ourselves or to go for contract manufacturing,” Manish Sharma, Managing director (India and South Asia) of Panasonic, told BusinessLine here on Friday. Manish, who is in the city to address the India Gadget Expo, has said that the firm sells about 3.2-3.5 lakh phones a month now. “We are going to have a facility to produce 10 lakh phones a month keeping in view the anticipated demand,” he said. The firm is also contemplating to set up a fridges manufacturing facility in India with an investment of up to ₹300 crore in the next 12-18 months. “This facility would be a hub for supply of fridges for sale in India, the Gulf and African,” he said. The company, however, has not decided on where to locate the facility.

C-DoT says losing significance as very little manufacturing happening in India
Source: The Economic Times; September 19, 2015

State-owned telecom technology major Centre for Development of Telematics (C-DoT) has said that it's losing significance as local telecom gearmakers grapple for new projects, highlighting the irony, especially at a time when the Narendra Modi-led government is pushing big-ticket investments for its Make in India initiative. "There is very little manufacturing happening at this point of time in India. Consequently, we are losing ground in terms of competency, market share and production of cost-effective products to meet rural and urban demands," C-DoT Executive Director Vipin Tyagi told ET. C-DoT, a three-decade-old homegrown organisation, undertakes research and development (R&D) activities for telecom gear manufacturing, and transfers technology to state-driven as well as private players players for large-scale production and trade. "Indian manufacturers are not getting new orders. In some cases, they are withdrawn. For locallydeveloped technology, government should be more supportive. The current system is fragmented," Tyagi said, adding that the country could face a situation where state-run companies might lose such capabilities, if not put to full use.

Orient to invest Rs 50 crore to increase fans, LEDs production
Source: The Economic Times; September 20, 2015

CK Birla Group firm Orient Electric plans to invest around Rs 50 crore over the next two years to raise its fans and lighting manufacturing capacity, a senior company official has said. "With the government announcing the list of smart cities, we expect (more) demand for energy saving electric products like fans and LED lightings," company's Chief Executive Rakesh Khanna told PTI here. "We will be investing around Rs 50 crore over the next two years to increase the capacity of such power saving products," he added. Around Rs 40 crore will be invested to set up a facility for fans in north India, Khanna said. At present, Orient produces over 130 lakh fans per year at its two factories in Faridabad and Kolkata. It plans to add 50 lakh units capacity through the new facility. "After introducing PSPO fans, last year, we launched the less energy consuming fan Ecotech, which is built on brushless direct current motor platform.

"With cities becoming smart, and consumers becoming sensitive towards energy saving, we feel the demand for our products will go up. To meet this demand, we will have to increase our capacity," he said.

Prices of consumer electronics, appliances likely to go up
Source: The Hindu Business line; September 21, 2015

This Diwali could drill a bigger hole in your pocket if you are planning to buy TV, fridge or microwave oven. Faced with low consumer demand, electronics and appliances players in the country have warned that prices could go up from October 1 if the rupee falls further. The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has said that prices of appliances could go up by 3-5 per cent from October 1 if the rupee depreciated further against the dollar. Manish Sharma, President of CEAMA, said the cost of components has gone up significantly and that it would be difficult for the industry to hold the price line. “We will monitor the situation closely for the next two weeks. The rupee has fallen by 8-9 per cent in the last two months. But we are not passing the burden onto consumers. If the situation doesn’t improve, we will go for the hike,” Sharma, who is also Managing Director (India and South Asia) of Panasonic, has said. In the city to take part in the second edition of India Gadget Expo (IGE-2015) on Friday, he said the demand for consumer electronics goods and appliances has been tepid. “Barring fridges, the demand for products has been lower than the supply,” he said.

Government appoints CVCFL as implementing agency for Electronics Development Fund
Source: The Economic Times; September 21, 2015

The government has appointed CANBANK Venture Capital Fund Ltd (CVCFL) as the agency to implement the Electronics Development Fund (EDF).

The EDF is set up as a 'Fund of Funds' to participate in 'Daughter Funds' which in turn will provide risk capital to companies developing new technologies in the area of electronics, nano-electronics and Information Technology (IT), an official statement said.

The EDF would take minority participation in seed funds, angel funds and venture funds dedicated in this area, it added.

The statement said the EDF shall invite requests from professionally managed private/public funds for its participation.

EDF participation in a fund may vary depending on the nature of the fund and risk involved. EDF will support both Indian and foreign funds which are registered in India and comply with SEBI and other regulations in this regard.

With appointment of CVCFL as the agency to implement EDF, the EDF is now operational and start receiving requests for participation from seed funds, angel funds and daughter funds.

US benefits hugely from Indian IT firms: Nasscom
Source: Business Standard; September 22, 2015

India’s export-focused information technology (IT) sector contributed $22.5 billion in taxes to the US government and generated 411,000 US jobs, including 300,000 by American citizens between 2011 and 2013, the National Association of Software and Services Companies (Nasscom) said on Monday. It asked for more open markets for Indian IT workers in the US. Indian companies have invested $2 bn in the US in building infrastructure and generating jobs in these three years, it said. Job generation in the US by Indian IT service companies grew by 10 per cent annually in the four years to 2014, six times the average job generation of 1.7 per cent by the US economy in the same period, Nasscom declared, in a study it issued, titled 'Contributions of India's tech industry to the US economy'. “Indian IT organisations benefit from access to the US market, just as American IT organisations benefit from their investments and operations in India,” said commerce and industry minister Nirmala Sitharaman, on issuing these findings in Washington DC. "This momentum is surely going to increase manifold with new partnership opportunities emerging in the areas of Digital India and Smart Cities for American technology firms.”

IITB gives boost to India’s internal security
Source: The Hindu; September 22, 2015

It is a joint venture of IIT Bombay and Department of Electronics and Information Technology (DeitY) which aims to develop indigenous technology and self-sufficiency in the broad areas of Electronic System Design Manufacturing in the strategic sector of internal security. It mainly will address the technology innovation gaps and the requirements of the security agencies. It has been set up under Central government's flagship Digital India initiative with an initial budget allocation of Rs. 83 crore for the first five years. The centre will also try to identify industry partners for the possible commercialization of the developed technology. The centre aims to develop prototypes and provide solutions to the problems of security and paramilitary forces. To achieve this goal, the focus areas which are identified as follows, wireless communication system, social networking and internet, video surveillance and analysis, Ground Penetrative Radar (GPR) for landmine detection, unmanned vehicles, cyber and data security, biometric applications, sensors and detectors for explosives, landmines, chemical and biological warfare, thermal imaging, product design, product interaction design and prototyping.

PM Modi to meet MNC chiefs in NY to hear their concerns
Source: The Financial Express; September 22, 2015

Close on the heels of his recent interaction with India Inc’s leaders here, Prime Minister Narendra Modi will convene similar meetings with multinational corporate leaders in New York to understand their concerns over investing in India and also seek their ideas to better ‘Make in India’ (MII), ‘Digital India’ and ‘Smart City’ initiatives. Modi will meet the chiefs of around 45 MNCs, together worth around $4 trillion, in New York on September 24, sources from the Department of Industrial Policy and Promotion (DIPP) told FE. Incidentally, the informal meeting at Waldorf Astoria hotel (where Modi will be staying) over dinner coincides with the first anniversary of the MII campaign. The DIPP has been for the last one month preparing for the meet by sending out invites and getting confirmation of participation from the heads of these companies. The MNCs are expected to raise concerns over the slow progress of negotiations on the proposed Bilateral Investment Treaty, the need for a “stronger” Intellectual Property Rights regime in India to promote and protect innovation in addition to the ‘uncertainties’ in India’s tax policies. Corporates belonging to a variety of sectors like defence manufacturing (Lockheed Martin), automobiles (Ford), food processing (Cargill & Pepsico), pharmaceuticals (Abbott Laboratories and Merck), chemicals (DuPont) and aerospace (Boeing International and Textron) will be present.

Considering a Future in Aerospace? Here's what you should know
Source: DNA; September 22, 2015

Arijit Ghosh, President, Honeywell Aerospace, India, tells us there is tremendous scope for careers in the aerospace industry in India. "The growth of the domestic and international economy naturally boosts the aerospace sector. Optimism about the sector's growth also stems from the growth of air passenger traffic by 20% this year, after being limited to single-digit growth for several years. "The size of our country demands a robust civil aviation system. Secondly, the need for effective defence systems will require in-country production of aviation defence systems. No country can be perpetually dependent on imports. As potential in these sectors is yet to be realized, tremendous opportunity exists. It will be crucial for the government and the Ministry of Human Resource Development to focus on developing an entire learning ecosystem around aeronautics to ensure the 'Make in India' campaign is successful long term. Companies too need to take more initiative in offering training programs that will boost the capabilities of domestic employees and suppliers".

Odisha to spend Rs 4,000 crore on IT sector in next 5 years
Source: The Economic Times; September 23, 2015

The Odisha government will spend over Rs 4,000 crore on the IT and IT-enabled services sector in next 5 years to create more than one lakh jobs, Chief Minister Naveen Patnaik said today. "The IT sector has been at the top of our agenda. The state government is going to spend around Rs 4,000 crore from its budget in next five years towards IT, ITES and ESDM (Electronic Systems Design and Manufacturing)," Patnaik said while inaugurating MindTree Kalinga facility here. Noting that his government has brought a new industry friendly ICT Policy2014 and Industrial Policy Resolution -2015, the Chief Minister said the effort is to make Odisha the preferred IT destination for IT/ITES/ESDM companies by providing a slew of attractive fiscal incentives and concessions. "In fact, we target to create one lakh jobs in IT sector in the next five years. It is a matter of pride that growth rate of IT exports from the state is more than the national growth rate for last many years. Bhubaneswar has equally made good progress in IT SEZ sector too," he said. As Odisha has been at the forefront of IT revolution, the government has decided that every department would spend two per cent of plan budget or one per cent of total budget for electronic enabled service delivery to citizens as enacted under Right to Public Service Delivery Act, Patnaik said. The state government is also setting up a Green Field Electronics Manufacturing Cluster within Infovalley.

Foxconn comes back bigger and better
Source: EET India; September 24, 2015

Foxconn, a Taiwan-based contract electronics manufacturer, has returned to India, and it seems that the investments this time are more stable and far-reaching. The Taiwanese company appears to be taking several steps to build a bigger R&D and manufacturing base in India, according to reports. A noteworthy one is presumed to be linked to the Indian government's "Make in India" campaign, a national programme aimed at attracting investment and talent, extending its manufacturing infrastructure and encouraging innovation. On that front, Foxconn (known also as Hon Hai Precision Industry Co. Ltd) inked a memorandum of understanding with Indian government officials pledging to invest $5 billion in an electronics factory and an R&D centre that will create 50,000 new jobs. The Indian government will give the company 6.07km2 of land for the facilities, according to reports. The news came on the heels of other similar reports pointing in the same direction. For instance, Foxconn is said to be in talks with India-based conglomerate Adani Group for a $3 billion project to make solar cells and panels in India (which may also involve Japan-based Softbank).

Bharat Dynamics Ltd, ECIL team up to provide systems for defence programmes
Source: The Economic Times; September 21, 2015

Defence PSU Bharat Dynamics Ltd (BDL) today signed an MoU with Electronics Corporation of India (ECIL) to collaborate in providing missile electronics and weapon support systems for the ongoing and upcoming major defence programmes.

BDL Chairman and Managing Director V Udaya Bhaskar and his ECIL counterpart P Sudhakar signed the MoU. ECIL is a wholly-owned Government of India enterprise under Department of Atomic Energy.

Senior officials from both the PSUs were present at the event held at BDL premises here.

"This MOU enables both the organisations to enhance and harmonise their business opportunities in the area of missiles and underwater weapon systems," an ECIL statement said.

Most opportune time for electronics sector: MAIT
Source: The Hindu Business Line; September 24, 2015

With Central and State governments talking about ‘Digital India’ and ‘Make in India’, the Manufacturers’ Association for IT (MAIT) industry feels that it is a watershed moment for the electronics hardware sector.

It, however, feels that it’s time the government come out with standards and reform a procurement system riddled with archaic provisions.

“We are beginning to see opportunities like never before,” Debjani Ghosh, President of MAIT, told BusinessLine here on Thursday.

Huge tech consumption
In Hyderabad for the three-day IT Asia conference, she said what was driving the opportunities was the huge technology consumption, which includes consumption of local technologies and products. “It’s no longer about low-cost devices like phones. We are seeing opportunities in Internet of Things, wearables and transportation.”

2015 ANSYS Electronics Simulation Expo: Innovating Complex Electronics with Confidence
Source: Website; September 25, 2015

Date: October 13, 2015
Venue: Aloft Bengaluru Cessna Business Park
Time: 09:00 am to 06:00 pm IST

We are pleased to announce the 2015 ANSYS Electronics Simulation Expo (AESE). AESE is the India-wide conference focused on improving electronic system design through sharing of design and simulation best practices. The conference aims to bring together all partners in the ESDM eco-system in India and provide a platform to discuss innovations and facilitate networking.

As before, the conference brings together expertise and applications in the electronics segment combining ANSYS electromagnetics, semiconductor (Apache), and reliability products.

Compiled by IESA Research

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