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  IESA WINWire August 13 - August 19, 2016 for Subscription click here  
11th Anniversary

JGI Group, UL set up fire testing lab in Bengaluru
Source: The Hindu Business line; August 13, 2016

JGI Group, which runs Jain University, amongst other educational institutions, has set up a new fire testing laboratory. The group has partnered with UL, a global company that certifies safety standards from mobile phones to fire extinguishers. The lab will be set up at the JGI Global campus in Bengaluru and will test different kinds of fire suppression products, executives said. As per this partnership, JGI Group will operate the facility and provide manpower, while UL will be provide technical capabilities, and facilitate all-year training and certification programmes, Chenraj Roychand, founder-Chairman of JGI, told BusinessLine. Both parties have invested ?15 crore. Additionally, the lab will also offer fire safety educational programs and support research and development activities. Already, a one-year diploma in fire safety management has been introduced, Roychand said. UL will further facilitate year-round training and certification programs, both web-based and offline, along with workshops for industry, academia and government agencies, said Suresh Sugavanam, Vice-President and Managing Director of UL South Asia. These imports add to increase in compliance cost for establishments, which in turn are resorting to cut corners in a big way. The ecosystem building efforts are starting to gain momentum. Last year, Liverpool-based LDRA partnered with India Electronics & Semiconductor Association (IESA) and Society of Indian Aerospace Technologies & Industries (SIATI), to introduce a Certification Ecosystem Development Program (CEDP) in India that aims to support and encourage Indian companies to be on a level-playing field with their international counterparts.

Xiaomi ,Foxconn to set up two more manufacturing facilities in India
Source: The Times of India; August 13, 2016

Chinese smartphone maker Xiaomi today said it is looking to set up two more manufacturing facilities in India through its Taiwanese contract manufacturer Foxconn Technology Group. Manu Jain, Xiaomi 's India chief, said they are in talks with various state governments for finalising the land and other issues for the plants. In August last year, Xiaomi, together with Foxconn, started assembling phones locally in Chittoor district of Andhra Pradesh. "We have not finalised the locations for the facility yet. We are talking to multiple governments to see where we should be setting up (the plants). The factories are owned and operated by Foxconn, but dedicatedly (make production) for us. It is not a joint venture. We have some sort of financial arrangement between us," Jain said. Jain said the company may also launch air purifiers in India before the beginning of winter season. "We think that it is a category which is about to take off. We are trying to bring that this year. The perfect time to launch is before winter, because that is when fog combines with smoke and becomes smog," he said.

Xiaomi, which presently registers 90% of its sales from online channel in India, is planning to double offline presence over the next few months.

‘Diversity is also a great driver of innovation’ – 30 quotes from Indian startup journeys
Source: Yourstory; August 13, 2016

From design to diversity, witness the memorable journey of Indian entrepreneurship in these excerpts and stories! StoryBites is a weekly feature from YourStory, featuring notable quotable quotes in our articles of this past week (see the previous post here). Share these 30 gems and insights from the week of July 31 – August 6 with your colleagues and networks, and check back to the original articles for more insights!

Today, an average person transacts at least two times on his phone, and he gets at least ten marketing SMSes a day. It can be a nightmare. - Prabhu S N M, Street Smart Mobile

Software can grow up to a certain level. It can grow only if electronics grows. - M N Vidyashankar, IESA

By 2018, the Hyderabad startup ecosystem will be bigger than the Bengaluru startup ecosystem. – Sanjay Enishetty, 50K Ventures.

In India alone, 5 million people suffer heart attacks every year and 3 million of those don’t survive. - Charit Bhograj, Tricog

Mobile Council set up to address consumer electronics makers’ issues
Source: The Hindu Business line; August 14, 2016

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has set up a Mobile Council to address issues pertaining to the industry. The council’s members include most of the mobile manufacturing fraternity. The industry is of the view that there is uncertainty in government policies and there is no ecosystem for complete/end-to-end manufacturing in the country. At the first meeting of the council, held on August 9, manufacturers voiced their concerns related to promotion of local component ecosystem, anomalies in the taxation structure, frequent change in laws, government regulations and their implications on the industry. “Mobile phones today cover 25 per cent of the total market share in the electronics market. With such a huge market penetration, it creates a perfect platform to usher in Internet of Things (IoT) to further enable durable products and smartphones to co-exist in a connected ecosystem,” said Manish Sharma, President, CEAMA. Others present in the meeting were Ravinder Zutshi, Chairman, Mobile & Communication Council of CEAMA; Uday Narayan Pandey- Head, Service & Manufacturing, Gionee; Sachin Devsare - Executive Director, Karbonn; Narendar Bansal- MD, Intex; Sanjiv Maini – Senior Director – LeEco; and Hari Om Rai, Chairman & MD, Lava.

Granite River Labs Approved as First USB Certification Test Center in India
Source: Press Release; August 15, 2016

Granite River Labs (GRL), a global leader in engineering services and test solutions for high speed connectivity, is pleased to announce that its Bangalore lab has been authorized by the USB-IF to provide official certification testing services, becoming the first and only lab in India positioned to help adopters obtain the USB logo.

Since opening its Bangalore test lab and R&D center in 2013, GRL has supported a wide range of electronics companies in India – from multinationals to local firms – with testing and troubleshooting of USB and other high speed interfaces such as DisplayPort, PCI Express, and DDR. GRL operates the GRL-Philips HDMI Authorized Test Center, also the only such facility in India.

“India is a not only a key region for USB developers, it is also one of the fastest growing markets for products with USB,” said Johnson Tan, GRL co-Founder and CEO. “GRL is proud to support the rapid growth and adoption of USB in India, enabling the ‘Make in India’ initiative and lighting the way for new technologies such as USB Type-C and USB Power Delivery.”

“IESA is in the forefront of supporting all initiatives of the electronics system design & manufacturing (ESDM) industry to grow the electronics and semiconductor products and IP’s developed and made in India. Having a certification lab is a key component of the ecosystem. GRL’s approval as India’s first Authorized Test Center will support ESDM industry growth in India. IESA welcomes GRL’s initiatives and contribution to strengthen India’s ESDM ecosystem and foster innovation in the test and measurement space.”

– K. Krishna Moorthy, Corporate Vice President & Managing Director, India Design Center, Rambus and Chairman, India Electronics and Semiconductor Association (IESA)

India can become a manufacturing hub
Source: The Hindu Business line; August 15, 2016

We are talking about increasing manufacturing’s share in GDP from current 17.4% to 25% by 2025. What is the scale of output required and how can this be achieved? Consider the following details: Even at 6% annual GDP growth rate, India by 2025 would need to expand its manufacturing value add (MVA) to US$ 837.7 billion and manufacturing gross output (MGO) to US$ 3.8 trillion to meet this target. Such large values will bring us in league of top manufacturing nations: China, United States, Germany, Japan and Korea. However, reaching there would require us to invest in the capabilities and products that go into the making of a true manufacturing nation. Most countries specialize in a select range of products. East Asian countries trade mostly in textile and electronic products while African and Latin American countries deal mainly in mining and agriculture related goods. China exports most products except very complex ones. However, it is Germany, Japan and the US that are on top of manufacturing and innovation pyramid and continue to develop most high end products. What makes Germany, Japan or the US the new product development hub? These countries have meticulously invested in and hence accumulated large productive capabilities or advance manufacturing techniques which allows firms located in these countries to regularly churn out new products of ever increasing complexity. A driverless car can take shape in only in a country with deep institutional knowledge of precision fabrication, electronics, robotics, design, IT and many more streams.

“We offer Silicon Design Services with leading-edge engineering capabilities to the who’s who of the Semiconductor Industry”: BlackPepper Technologies
Source:; August 16, 2016

“You can design and create, and build the most wonderful place in the world. But it takes people to make the dream a reality” -Walt Disney

Understanding the need of creating significantly differentiated design services and making a difference in the semicon design industry, BlackPepper Technologies Pvt Ltd came into being. BlackPepper commenced its journey in 2011 as a small startup providing Physical Design services to a single Tier-1 semiconductor company. The brainchild of Hari Krishnan Puravankara, BlackPepper has grown to a strength of 110 engineers in 5 years expanding its breadth of service offerings both upstream and downstream of Physical Design.

Today, BlackPepper is uniquely positioned in the semiconductor design services space with class leading engineering capabilities spanning the entire product realization value chain. The current market scenario is characterized by consolidation and integration of small semiconductor services companies into the folds of much larger IT behemoths. The resultant loss of focus is a huge opportunity for primarily hardware focused consultancy companies like BlackPepper.

Located at Bangalore, Singapore, Taiwan and USA, BlackPepper’s primary geographies of operation are India, North America and the APAC region.

50 Best Companies to Work For
Source:; August 16, 2016

Mindtree - Krishnakumar Natarajan, Executive Chairman - Mindtree delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition.

TO THE NEW - Deepak Mittal, CEO -A well positioned company in the Digital space, TO THE NEW has been credited for building disruptive web products and transforms businesses leveraging experience design, cutting-edge engineering, cloud, and analytics led marketing.

ELDAAS Technologies - Cliff Young, Founder & CEO -Having an impressive range of worldwide recognized product portfolio, ELDAAS Technologies Pvt Ltd is a 6+ years old technology oriented company.

Black Pepper Technologies - Hari Krishnan Puravankara, CEO -BlackPepper commenced its journey in 2011 as a small startup providing Physical Design services to a single Tier-1 semiconductor company.

India is world's top exporter of information, communication technology: UN
Source: Times of India; August 17, 2016

India has been ranked the world's top exporter of information and communication technology in a UN agency report that recommended that the country leverage this lead to innovate in emerging areas where biology and materials sciences intersect with computing.

Overall, India leapt 14 places from the 85th rank last year to the 61st in the latest Global Innovation Index (GII) released in Geneva by the World Intellectual Property Organisation (WIPO) in partnership with the Confederation of Indian Industry (CII) on Monday.

India ranked 8th in the world for producing graduates in science and engineering and showed the most significant improvements in human capital and research moving up 40 places to 63.

WIPO, a specialised agency of the UN, worked also with Cornell University and INSEAD, the international business school, to prepare the ninth edition of the index.

In a nod to India's "jugaad" tradition of innovation, the report said that its culture of "frugality and sustainability" can help it capture global markets.

For this to happen, however, India's industries need to have the hunger to be at the top of the value chain, its customers have to be more demanding, its policies have to be more transparent, and its talent pool has to get more hands-on experience while simultaneously growing to leverage the global talent pool," the report said.

WIPO quoted CII director general Chandrajit Banerjee as saying: "The commitment of India to innovation and improved innovation metrics is strong and growing, helping to improve the innovation environment.”

By 2020, rural India will be home to most of country's Internet users
Source:; August 17, 2016

By 2020, rural India, and not the cities and towns, will be home to most of the country's Internet users...and majority will be mobile-first... > There will be 730 million Internet users in India by 2020 (up from 330 million fixed and mobile subscriptions in December 2015). > 1.7x is the expected growth of financial technology market between 2015 and 2020. > 75-80% of Internet user growth will come from rural India. > 60% of adult population will use one or more forms of financial services in their daily life for purchases or to access subsidies and services. > 175 million online shoppers by 2020 (up 3.5 times from 2015). > 50% of all transactions will happen online by 2020. > 75% of new Internet users will consume data in local languages. Most new users will consume content through videos. > 70% of ecommerce transactions will happen through mobile phones by 2020. > Fashion & lifestyle will become largest e-tailing category with a 35% contribution to ecommerce GMV by 2020, overtaking the consumer electronics segment.

Mouser Electronics plans cash-on-delivery in India
Source: Deccan Herald; August 18, 2016

Mouser Electronics, the global authorised distributor with semiconductors and electronic components and a subsidiary of Warren Buffett-owned TTI, has revealed plans to begin cash-on-delivery programmes in India. Interacting with DH, at the opening ceremony of its new customer service centre and back-office support location in Bengaluru, Mouser’s APAC and EMEA Business Senior Vice President Mark Burr-Lonnon said that the company has been practising the US sales strategy in India.

“Our offline sales contribution in India was 43%, last year. We have recently introduced rupee payment by credit card option to expand market reach. We know that cash-on-delivery is gaining momentum with the growing popularity of ecommerce in India. So we have to review the same to come up with innovative sales strategies,” he said.

Burr-Lonnon said that the company will help the student community and young engineers buy products from Mouser Electronics. “It gives them easy access to over four million authorised components and they can place orders using rupees on Also, our focus on new product introduction (NPI) launches will help the growing number of design engineers in India to access what they want,” he said.

On the growth front, he said the company will register a y-o-y growth of 20-30% for the coming years in India. “The new full-service office underscores Mouser’s steadfast dedication to serving the world’s top design engineers and buyers with the highest degree of customer service and technical support,” Burr-Lonnon said.

No Custom Duties on Consumer Electronics Worth up to Rs 50,000 in India
Source:; August 18, 2016

There are some reports that the circular is about non-requirement of IEC (Import Export Code) for personal imports up to Rs 50,000, but then IEC was never required for any personal imports, not just consumer goods. We have reached out to Ministry of Commerce, and will get back with clarification.

Update 2: We did some digging around and it seems that the notification only addresses the earlier standing order which had a flat rate of 41.492% for any item costing over Rs 2,000. That limit has now been increased to Rs 50,000. So any item whose CIF value is less than Rs 50,000 will be assessed as appropriate duty rates (usually between 2 to 28%), and not at a flat rate of 41.492% as earlier. In short, there is no duty waiver as we reported earlier, but still, it’d result in lower duties thanks to the increased limit. There might still be some edge cases, for that we would need help from a customs lawyer!

Earlier: Importing consumer electronics from other countries is no less than an ordeal in India. Be it the customs levied on the item or the actual cost assessment done by the customs. However, the latest circular by the Ministry of Commerce and Industry has made it more affordable for Indians to import the electronic goods. Previously, the total value of the slab was set at Rs 2,000 beyond which the customs would be levied at a flat 41.492%. But in a rather surprising move, the limit has been enhanced to Rs 50,000.

Keltron bags Rs 2-cr order from Indian Navy
Source: Business Standard; August 18, 2016

State-owned Kerala State Electronics Development Corporation Limited (KELTRON) has bagged a Rs 2.11 crore order from the Indian Navy for manufacturing and supply of Advanced Indigenous Distress Sonar System.

The device is used in submarines to generate alert signals in case of an emergency, Keltron said in a statement.

The Sonar system was developed by Keltron with the support of Naval Physical and Oceanographic Laboratory, Kochi, it said.

US chip supplier Mouser Electronics sets up back office in Bengaluru
Source: Firstpost; August 18, 2016

S-based global supplier of semiconductor chips and electronic components Mouser Electronics opened its customer service centre and back office in the tech hub on Wednesday. “The new full-service centre underscores our dedication to serving the world’s top design engineers and buyers with customer service and technical support,” said Mark Burr-Lonnon, Vice-President of Mouser’s business in the Asia-Pacific region.

A subsidiary of TTI Inc., Mouser is part of Warren Buffet’s Berkshire Hathaway family of companies, focused on distributing new products and technologies to electronic design engineers and buyers the world over. With 20 per cent sales growth and new customers, Burr-Lonnon said the company had emerged as a major player in the Indian market. “Our sales success in India means that we need to increase the local support to our customers with more team members. With the number of engineers growing, the centre will be a new hub of design,” noted Burr-Lonnon.

As a leading distributor of about 600 manufacturers, Mouser has 22 service centres worldwide to meet the semiconductor and electronic component needs of 500,000 customers globally. To strengthen its ties with the local industry, Mouser has joined the India Electronics and Semiconductor Association, the city-based apex body for electronic system design and manufacturing in the country.

Emerging markets, led by India, drive smartphone sales growth
Source: Livemint; August 19, 2016

Global smartphones sales weathered a slowdown in mature markets to grow by 4.3% to reach 344 million units in the second quarter of 2016, with emerging markets including India, Indonesia and Vietnam providing a strong push, according to a report by research firm Gartner released on Thursday. “India is contributing significantly to the worldwide growth in smartphone sales” Anshul Gupta, research director at Gartner, said.

All emerging markets, except Latin America, witnessed expansion, clocking 9.9% growth year-on-year, according to the report.

However, all mature markets, except Japan, witnessed slowing demand for smartphones, leading to a 4.9% decline year-on-year in sales in the second quarter. While China is included in the emerging markets category, it is fast becoming a mature market, Gupta added.

Smartphone shipments in India rose by 15% in the second quarter of 2016, according to a separate report by market research firm Counterpoint Research, released on 29 July.

India is the world’s second largest smartphone market, having overtaken the US in December 2015, and currently has more than 230 million users, according to a Nasscom report released on 17 August. This number is expected to grow to 702 million in 2020. The government has been pushing to bring rural areas into the Internet fold through its Digital India programme, under which it has started offering government services online.

Towards indigenous defence ecosystem
Source: Deccan Herald; August 10, 2016

India has the third largest army, the fourth largest air force and the seventh largest navy in the world. It is among the top 10 countries in terms of military expenditure and world’s largest arms importer.

It allocates about 2% of its GDP towards defence spending, of which 40% is allocated to capital acquisitions and only about 30% of equipment is manufactured domestically, mainly by the public sector undertakings.

Even when defence products are manufactured domestically, there is a large import component which is an attractive pro-position for its defence partners.

India has established long term partnerships with many countries to provide arms, vessels, fighter jets etc, that help counter the threats present in the country. Import of defence technologies and products costs billions of dollars every year. Hence, it’s extremely important for India to create its own ecosystem rather than depending on the international partners for its defence needs.

With ‘Make in India’ in the defence segment creating enough buzz, this is a call that the country can least afford to ignore. But we need to have the right vision, long term approach and enough patience to transform the country into a defence powerhouse. We are among the top spenders when it comes to defence, majority of which is dominated by recruitment and procurement.

Compiled by IESA Research

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