IESA WINWire Apr 16 - Apr 22, 2016
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In A Boost to Make In India, Navy Chief Wants To Build All Submarines and Ships in The Country
Source: India Times; April 18, 2016

Indian Navy Chief Admiral RK Dhowan wants to build all the submarines and surface ships for the Navy in India. He was speaking at the FICCI Make In India seminar in New Delhi.

In fact, if there's a shining example of Make In India, it's the Indian Navy. While the Air Force plans to import the Rafale fighter jets from France, of which not even a bolt will be made in India, the Navy has a plan in place to make everything from missile corvettes to destroyers to the next generation aircraft carrier to nuclear submarines in Indian shipyards.

The new INS Vikrant aircraft carrier for example, is the largest surface ship being built in India. With a displacement of 44,500 tonnes, it will be able to carry 30 fixed wing aircraft like the Mig-29K and Tejas Mk2 in addition to 10 helicopters. Guess where it's being built. In Cochin Shipyard. The aircraft carrier is expected to be commissioned in 2018. In fact the follow on aircraft carrier, which will be even bigger at 65,000 tonnes and likely be nuclear powered is already being designed at the Naval Design Bureau.

India's home made SSBN, the INS Arihant which recently conducted the test of the secretive K-4 missile with a range of 3,500 km, was built at the Shipbuilding Centre in Visakhapatnam.

Cybersecurity to create 1 million jobs: Nasscom
Source: The Times of India; April 18, 2016

Increasing incidents of cyber attacks and data protection efforts globally are expected to create $35 billion revenue opportunity and employment opportunities for about a million professionals by 2025 for India, IT industry body Nasscom said on Monday.

"We estimate that cybersecurity is about $2.5-3 billion or about 2 per cent of the close to USD 150 billion Indian IT sector. With the sector on track to reach $350 billion by 2025, we estimate 10 per cent of this to be cybersecurity," Nasscom Chair Cyber Security Task Force Rajendra Pawar said here.

He added that this will create an employment opportunity for about a million people as well.

"Another important aspect will be start ups. We expect to see about 1,000 start ups coming up in this area. This is because these smaller companies are light footed and yet have the best of technologies. Also, there has been a lot of investor interest in this area as enterprises look to stay secured against rising incidents of cyber attacks," he said.

Last year, Nasscom had set up the task force, aimed at positioning India as a global hub for providing cyber security solutions, developing cyber security R&D plan and developing a skilled workforce of cyber security experts.

Project Digital India Will Attain Its Desired Objectives, Says Dr. Ajay Kumar
Source: Business Standard; April 18, 2016

Additional Secretary, Department of Electronics & Information Technology, Dr. Ajay Kumar emphasized that digital India project of the Prime Minister would integrate India in a multifaceted manner so that the accruals of information technology percolate down to each stakeholders in an equitable manner.

Delivering his address at the Seminar on Unleashing Growth Potential of E-Commerce in India under aegis of PHD Chamber of Commerce and Industry, Dr. Kumar added that the pace of the project would accelerate and it would attain all its desired objectives as intended by the government under the leadership of Prime Minister Modi.

Speaking on the occasion, Joint Secretary, Department of Industrial Policy & Promotion (DIPP), Mr. Atul Chaturvedi said that the government of the day would bring in many more reforms and further liberalized the FDIs and IPR regime as lot more needs to be done to make India bring on par with economies of scale in terms of its FDIs and IPR policies.

Mr. Chaturvedi said, the government has done a great deal of work in the last 12 to 16 months to liberalize and reform on its FDIs front and opened them up broadly expanding the chasm of restrictive policies of the close economies. Yet lot more needs to be done which will be facilitated with a faster pace.

Rafale deal: French team likely to visit India next month
Source: The Indian Express; April 18, 2016

A high-level team from France is expected to arrive in New Delhi next month to firm up the order for the purchase of 36 Rafale fighter aircraft by India as both countries have managed to narrow down their differences over pricing.

The development comes nearly four months after Prime Minister Narendra Modi and French President Francois Hollande signed a memorandum of agreement to purchase 36 Rafale combat jets.

The Indian side has been negotiating hard to bring down the price with Defence Minister Manohar Parrikar refusing to buckle under pressure even as questions were being raised about the delay in signing the contract.

The deal comes with the clause of 50 per cent offsets, which will be a bonanza for the domestic industry as it will lead to business worth at least 3 billion Euros and creating new jobs in India.

The tough part of the negotiations that began in July 2015 was to get the French side to agree to 50 per cent offsets in the deal.

Initially, Dassault Aviation, makers of Rafale, was willing to agree to reinvest only 30 per cent of the value of its contract in Indian entities to meet the offset obligations.

Panasonic and AES to build India’s first large-scale battery-based energy storage project
Source: Firstpost; April 18, 2016

Panasonic, with its electronics expertise, and AES, a global power company, are coming together to construct India’s first large-scale battery-based storage plant in Panasonic’s Technopark manufacturing facility in Jajjhar, Haryana. The project will combine Panasonic’s lithium-ion batteries with the Advancion Grid Storage platform from AES to construct a 10 MW energy storage array. The storage is meant to provide daily backup and reliable power supply to Panasonic’s manufacturing plant.

Mr. Manish Sharma, President & CEO of Panasonic India Pvt. Ltd. said, “Panasonic India’s partnership with AES signifies the convergence of synergies to deliver reliable, cost-competitive solutions to meet growing energy demand. This association further establishes our commitment and capabilities to providing smart energy storage solutions. Set to transform the energy storage landscape, Panasonic India looks forward to this association, which will help offer grid stability and improved ancillary services.”

“We are excited to bring Advancion, the most proven energy storage system available globally, to India,” said Marty Crotty, President of AES’ Strategic Business Unit in Asia. “Panasonic delivers high quality, cost-effective batteries and is a great partner to be working with as we demonstrate the value of large-scale energy storage to commercial and industrial customers, renewable developers, utilities, and the grid operator.”

Govt offers concessions of 3k cr to mega projects
Source: Times of India; April 18, 2016

In order to attract more investment to UP, the state government on Monday announced a series of relief measures and concessions for mega projects promising investment and employment. The state cabinet endorsed theses measures at its meeting chaired by chief minister Akhilesh Yadav on Monday.

The concessions were extended to six mega projects bringing Rs 3,166 crore investment to the state and provide employment to over 11,600 people. The total volume of concessions over the next 10 years would be to the tune of Rs 3,184 crore.

The projects include huge investment in the field of agriculture and food processing and electronics as the global giant LG Electronics is all set to get a foothold in UP with a pledge of Rs 1,328 crore.

For inviting big investors to the state, the government has announced that those investing more than Rs 1,000 crore or more, the companies would get several benefits including concessions in the land purchase, stamp duty and VAT.

Projects coming under this scheme have been declared 'Super Mega Projects'. The cabinet had approved eight similar projects earlier and today it granted support to half a dozen others.

Apart from the huge concessions to the super mega projects, the cabinet also announced a new policy for building theme parks and relaxed norms for the same.

Odisha to have 1,900 seats under BPO scheme
Source: Business Standard; April 19, 2016

Odisha will have as many as 1,900 BPO (business processing outsourcing) seats under a Government of India scheme aimed to promote BPO activities in the country.

"The state has been allotted 1,900 seats to be created under the India BPO promotion scheme. The Government of India will reimburse up to 50 per cent of one-time expenditure on admissible items with a cap of Rs one lakh per seat", said an official.

The scheme is aimed at generation of employment in all small cities in the country. However, cities like Hyderabad, Delhi, Chennai, Mumbai, Bengaluru and NCR region are excluded from the scheme.

One entrepreneur can bid for a minimum of 100 seats when the request for proposal (RFP) is floated, added the official.

Under the Digital India programme, the Union government has approved the scheme for employment generation and balanced growth of information technology (IT) and ITes (IT enabled services) in each state. It aims at incentivizing establishment of 48300 seats in respect of BPO operations across the country. The department of electronics and information technology (Deity) is likely to implement this scheme through the Software Technology Parks of India (STPI).

Indian companies focus more on digital investments globally: Survey
Source: The Economic Times; April 19, 2016

Indian companies are focussing more on digital investments in marketing and IT compared to their global counterparts, but less on operations and customer experience, a global survey has said.

"Thirty six per cent of Indian companies are focussing digital investments on marketing versus 27 per cent globally while 37 per cent Indian companies are focusing on IT as against 32 per cent globally," according to PwC's digital IQ survey.

The global average spend on customer experience is higher at 12 per cent as against 7 per cent in India, the report noted.

The survey was conducted among 1,988 companies from across the world, including 100 firms from India.

"Enterprises will have to develop a comprehensive digital strategy and reimagine their traditional business models which are getting disrupted in order to become a true digital business," Arnab Basu Partner(Technology Consulting and Digital) PwC India said in statement.

"It is equally important for enterprises to integrate digital into the fabric of their corporate culture," he added.

The India cut of PwC's 7th Digital IQ Survey also revealed that companies with high Digital IQ scores are twice as likely to achieve rapid revenue and profit growth compared with the laggards.

ISRO's Rocket Scientists Build Pump for Heart Transplants
Source: NDTV; April 19, 2016

Scientists at the Indian Space Research Organisation or ISRO have used material and technology used to build rockets to create a small device that pumps blood and is seen as a step towards making an artificial heart.

The Made-in-India left ventricle assist device weighs 100 gm and will help people who need heart transplants, replicating the function of a part of the heart that pumps blood.

It is being tested right now by a team of surgeons on animals and is expected to be ready for use on humans only after a few years of extensive testing. The device was recently tested on five pigs at a hospital in Thiruvananthapuram for a six-hour experiment which doctors said was successful.

The device is made of biocompatible titanium alloy and can pump blood at the rate of 3 to 5 litres per minute. Similar imported heart pumps cost crores of rupees, but the ISRO version is expected to cost only Rs. 1.25 lakh.

"Material used in a rocket, the mechanism used in a rocket, electronics used in a rocket are combined to form the device... which is useful as a first step towards heart transplantation. This device was tested in a pig, and it was found that the pig was alive after fitting it. The other organs of the animal were intact. This shows that it is a very good alternative for an artificial heart," Dr K Sivan, Director of the Vikram Sarabhai Space Centre in Thiruvananthapuram told NDTV.

Naidu to lay stone for Electronics Park in Hindupur
Source: The Hindu Business Line; April 20, 2016

Andhra Pradesh Chief Minister N Chandrababu Naidu on Thursday will lay the foundation stone for India’s largest electronics manufacturing cluster ELCINA Raaga Mayuri Electronics Park at Chilamathur village in Hindupur assembly constituency of Anantapur district.

Taken up in collaboration with Electronic Industries Association of India (ELCINA), the 50-acre industrial park is being developed by Raaga Myuri Builders and KJR Group.

The KJR Group has entered into MoUs for establishment of eight electronic component units for defence and aerospace sectors among others.

These include Digital Circuits, Memory Electronics, Stanish Semiconductors, Cyrma Technology, East India Group, Vinyas Innovative Technologies, Stacy Health Care Products, and DCS Cable Assembly.

Though located on 50 acres, the park will have high rise buildings of 30 to 35 floors each and, therefore, can provide job opportunities to thousands of people in the State.

Next week, the Chief Minister is slated to lay the foundation stone for the Hero MotoCorp new motorcycle project proposed in the neighbouring Chittoor and commission completed projects of Modelez India Foods and Isuzu Motors in Sri City.

Humble coal to pave the way for future electronics
Source: CanIndia News; April 20, 2016

Using the low-tech material coal, engineers from the Massachusetts Institute of Technology (MIT) have built a simple electrical heating device that can be used for defrosting car windows or airplane wings or as part of a biomedical implant.

They have also for the first time characterised in detail the chemical, electrical and optical properties of thin films of four different kinds of coal – anthracite, lignite, and two bituminous types.

“When you look at coal as a material and not just as something to burn, the chemistry is extremely rich,” said lead researcher Jeffrey Grossman from the Department of Materials Science and Engineering (DMSE) at MIT.

The question he wanted to ask is: “Could we leverage the wealth of chemistry in things like coal to make devices that have useful functionality?”
The answer, he says, is a resounding yes.

Part of the challenge was to figure out how to process coal.

The researchers developed a series of steps to crush the material to a powder put it in solution then deposit it in thin uniform films on a substrate — a necessary step in fabricating many electronic devices – from transistors to photovoltaics.

Make in India & job creation may hold the key to FTA negotiations
Source: The Economic Times; April 21, 2016

Prime Minister Narendra Modi's Make in India plan and employment generation could become key in deciding India's stand at free trade agreement (FTA) negotiations, as suggested by experts and people involved in such talks.

Going beyond the conventional aim of trade expansion, the government may also look at linkages between trade and investment while negotiating FTAs. In a brainstorming session last week among think tanks, former and current trade negotiators and the commerce department led by Minister Nirmala Sitharaman, it was agreed that one cannot have rigid positions in trade negotiations and that the negotiators must have something in hand to negotiate.

"There must be clear articulation of red lines before negotiations and a larger political mandate is necessary for taking decisions on key matters," said an official who was present in the meeting organized by foreign ministry-run think tank Research and Information Systems for Developing Countries. It, the official said, was a freewheeling chat on trade issues faced by the government.

China’s smartphone market heads for an epic shakeout
Source: Livemint; April 21, 2016

The startup Dakele looked pretty smart when it released a phone in China four years ago. The market was doubling annually, and the company put brand-name components inside a device that cost a fraction of the iPhone.

That $160 gadget went on sale just four months after Dakele opened its doors, and soon the company, which translates as “Big Cola,” made inroads against Huawei Technologies Co. and Xiaomi Corp. Buzz was building for the Dakele 3 model last year, with online reviews calling it the best Apple Inc. clone.

Then the sizzle started to fizzle. Huawei spent $300 million on marketing, Xiaomi cut prices and clones of the clone appeared. Troubles with a supplier and raising money prompted Dakele to shut down last month—and it likely won’t be alone. China’s herd of 300 phone makers may be halved in 12 months by competition, a sales plateau and economic growth that’s the slowest in a quarter-century, according to executives and analysts.

“The mobile-phone industry changed more quickly and brutally than expected,” Dakele chief executive officer Ding Xiuhong said on his Weibo messaging account. “As a startup, we couldn’t find more strategies and methods to break through.”

Smartphone sales in China exploded earlier this decade as incomes rose, prices for chips and displays plummeted, and carriers offered arrays of discounts. Shelves were flooded with hundreds of brands—from national heavyweights Huawei, Lenovo and Xiaomi to the smaller Dakele, Tecno Mobile and Gionee.

We are investing in design differentiation, says Amit Gujral, head of marketing, LG Electronics India Pvt Ltd
Source: DNA; April 22, 2016

LG seems to be getting its act together in the cell phone market by coming out with its first two India-made mobile devices – K7 and K10 – at attractive price points. Amit Gujral, head of marketing, LG Electronics India Pvt Ltd, tells Praveena Sharma that cost saving from having a production facility in India is 8.5-9%, and the company would pass it on to the consumers. He dismisses that the South Korean phone maker is lagging in budget segment as mere "perception".

LG has been facing stiff competition at both ends – budget and premium – of the cell phone market, what is your strategy for countering it?

Competition in this market has always been there. We have enjoyed number one market in this country, way back in the CDMA days. In any journey, there are lots of deeds, learnings and misdeeds. Today, we are using the Make in India initiative and investing money in lifestyle research (LSR). LSR is where you go back to the consumers and try to understand what they are looking for in what they use. How do they perceive things? This is step one. Ultimately, whichever the brand, its acceptance or rejection lies with the consumers. We are betting big on differentiated design.

Dixon Technologies to assemble batteries, chargers locally
Source: Economic Times; April 22, 2016

Dixon Technologies, an electronics manufacturer based in Noida, will begin assembling batteries and chargers of mobile phones locally following a government move to make cheaper the imports of parts required for these peripheral products.

Sunil Vachani, chairman and managing director of Dixon Technologies, said the company will begin assembling these products for mobile phones at its existing factory in Noida by July.

"The government has taken a step in the right direction and the move falls right in our alley," Vachani said. He added that the company will look at a capacity of 1 million a month, which typically requires an investment of Rs 6-7 crore. Including chargers, the investment will rise to Rs 20 crore.

The company, which has three plants in Noida and one in Uttarakhand, will use its Noida facility to begin assembling batteries and chargers.

The government has reduced duties on imports of components and parts required for making batteries, chargers and wired headsets for mobile phones, bringing them down to nearly zero, in an attempt to push local manufactu ring of these products.

Compiled by IESA Research

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