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  IESA WINWire August 20 - August 26, 2016 for Subscription click here  
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Russia keen to tap India as Global Aeronautics manufacturing base
Source: The North Lines; August 20, 2016

Russia is ready to tap India as a global aeronautics manufacturing base and is willing to partner local firms in developing their technological and production capabilities in the aviation sector, an official representing a delegation from the country said during bilateral talks held here

India, on its part, expressed eagerness to jointly develop iron ore and coal mines in Russian territory and sought technical inputs on producing high-grade cold-rolled, grain-oriented steel, typically used in power transmission equipment.

Ramesh Abhishek, secretary, department of industrial policy and promotion in the ministry of commerce and industry, led the bilateral talks held under the aegis of an India-Russia working group on modernization and industrial co-operation. The Russian delegation was headed by the deputy minister of industry and trade Alexander Potapov.

While both sides acknowledged their mutual interest in expanding bilateral cooperation between Russian and Indian companies in different sectors, more focused discussions were held on modernization, mining, fertilizers and civil aviation.

Civil aviation

“In the civil aviation sector, Russian side declared its readiness to participate in the Make in India program in order to develop technological and production capabilities of the Indian side in this field and potential supplies of the jointly produced equipment to third countries,”

according to a statement issued by the commerce and industry ministry.

Electronics manufacturing policy may soon get nod
Source: The Hindu; August 21, 2016

NITI Aayog wants 10-year tax holiday for investments of $1 billion or more

NITI Aayog may seek Cabinet’s approval in a fortnight for a long-term policy to boost manufacturing of electronic products by providing a host of incentives to attract investment.

“NITI Aayog has almost finalised a policy for encouraging manufacturing of electronics in the country, which is likely to be placed before the Union Cabinet for its approval,” a source said.

In view of great potential of electronics manufacturing sector, NITI Aayog has prepared a draft strategy paper titled ’Make in India—Strategy for Electronic Products.’

Draft for comments

NITI put the draft in public domain for comments in May this year. The stakeholders and the general public were asked to submit the views and comments by June 30, 2016.

Aayog had suggested a 10-year tax holiday for companies investing over $1 billion in electronics manufacturing activities.

“We would also want to provide for the 10-year tax holiday on investments of $1 billion or more that can also create 20,000 jobs. This would help bring some large foreign firms to India,” Aayog had said in the paper.

China’s high-speed train firm begins India operations to make, repair engines
Source: The Hindu Business Line; August 21, 2016

China’s largest high speed train maker has announced that its first $63.4 million joint venture plant in India to repair and manufacture railway locomotive engines has started operations.

The state-run China Railway Rolling Stock Corporation (CRRC) is the first foreign company to set up assembly line of rail transportation equipment in India after Prime Minister Narendra Modi unveiled his ambitious ‘Make in India’ campaign in 2014, the company said in statement.

The joint venture named CRRC Pioneer (India) Electric Co. Ltd., is housed in Haryana.

The plant was set up with an investment $63.4 million and the Chinese side holds 51 per cent of the share, state-run Xinhua news agency reported.

The India plant will repair and manufacture railway locomotive engines.

It will also provide technology support to India’s rail system and supply electric transmission systems to oil drilling, wind power generation and mining equipment making in India, the report said.

This is China’s first major investment in Indian Railways after the two worked out a multi-pronged collaboration for Chinese participation in the modernisation of Indian railway systems.

While Indian Railway engineers are getting trained in China in heavy hauling, China is also cooperating with India to set up a railway university similar to the one it developed.

India world’s third biggest tech startup hub: Study
Source: The Indian Express; August 21, 2016

India is home to the third largest number of technology driven startups in the world, with the US and the UK occupying the top two positions, according to a report. The study, done by Assocham in association with Thought Arbitrage Research Institute, also revealed that Bengaluru is host to the largest share of technology startups in the country, followed by Delhi NCR and Mumbai, while Hyderabad and Chennai are also quite popular among budding tech entrepreneurs.

“In the technology driven startups, India has moved up to third position with the US occupying the top position with more than 47,000 and the UK with over 4,500. “India’s tech startups numbered around 4,200 up to 2015,” the report pointed out.

In terms of total number of startups, comprising both tech and non-tech areas, India again figured among the five largest hosts in the world, along with China (10,000 each).

The US occupies the top slot with 83,000 startups. IT hub Bengaluru is host to 26 per cent of domestic tech startups, followed by Delhi NCR (23 per cent) and Mumbai (17 per cent). In the ‘catching up’ category were Hyderabad (8 per cent), Chennai and Pune (6 per cent each).

“The disruptive innovation in technology and process is creating newer Indian startups and foreign investors, including some of the well-known venture capital funds, are showing immense interest in these startups,”

Assocham President Sunil Kanoria said.

Empowering Entrepreneurship- Building India!
Source: BW Disrupt; August 22, 2016

Start up India program is one of the steps towards promoting entrepreneurship and self-reliance amongst the selective Indian population in cities.

Is it really driving innovative solutions and creating employment? If not, what is missing?

What can boost employment under the aegis of the flagship programs of Indian Government?

Today Need of the hour is to create environment for more job creators rather than job seekers.

India has the third largest number of start-ups globally. IESA (Indian Electronics and Semiconductor Association) applauds the government on being a facilitator to build the startup nation.

An innovation partnership is essential for identifying scale able and innovative solutions. Provision of mentoring, seed capital, network to market and funding is absolutely essential to replicate success stories. Mentoring of start up entrepreneurs by experienced professionals/experts replenishes the missing elements in a budding entrepreneur.

A good mentor helps you think through a business idea, suggests ways to generate that startup capital and provides the experience that you’re missing out on. You’ll get praise when you deserve it and a heads-up when trouble comes -- probably long before you would have noticed it yourself.

Renesas seen buying U.S. chipmaker Intersil for up to $3 billion: Nikkei
Source: Reuters; August 22, 2016

Japan's Renesas Electronics Corp (6723.T) is in the final stages of negotiations to acquire U.S. chipmaker Intersil Corp (ISIL.O) for as much as 300 billion yen ($2.99 billion), an industry source familiar with the deal said on Monday.

An agreement on the deal, which would be the latest in a trend of consolidation among global chipmakers, was likely to come "soon", said the person, who was not authorized to discuss the matter and thus asked not to be named.

Renesas said in a statement it was considering various options to grow, including a deal with a U.S. chipmaker, but that nothing had been decided. Intersil could not be reached for comment outside business hours in the United States.

Renesas shares rose as much as 4.2 percent in early morning trade before closing down 3.1 percent.

Some investors have doubts about how much the deal could boost Renesas's profits, said Gavin Parry, managing director of Parry International Trading Ltd in Hong Kong.

Renesas Chief Financial Officer Hidetoshi Shibata told Reuters in an interview late last year that the company had earmarked billions of dollars for acquisitions to defend an industry lead under threat from merging peers. He noted that Renesas had over 300 billion yen in cash to fund potential acquisitions.

electronica India and productronica India 2016 return to become the biggest ever trade fairs in the Indian ESDM industry
Source: Electronics Maker; August 22, 2016

electronica India 2016 and productronica India 2016, the leading trade fairs for electronic components and manufacturing technologies take place from September 21-23, 2016 at Bangalore International Exhibition Centre (BIEC) in Bangalore. This edition is set to be the biggest edition of the trade fairs marked by over 400 exhibitors representing 650 companies from 16 countries including Japan, France, Korea, Malaysia, Switzerland to name a few. The trade fairs will also see country pavilions from six countries, Germany, UK, China, Taiwan, Singapore and Hong Kong.

The participation of leading exhibitors from across the industry reaffirmed the need and focus of electronica India 2016 and productronica India 2016 as an industry event. These include Murata, Rohm, STMicroelectronics, Texas Instruments, Bosch, NXP, Master Instruments Corporation, Juki India, NMTronics, Panasonic India, Samsung, Maxim SMT, Kaynes Technologies, Sahasra, Transtec, Mycronic, Komax, Atotech, Leaptech, SGS Tekniks, and many more.

Concurrent to the trade fairs, there will be various conferences, a buyer-seller forum, a B2G (business to government) forum, and exclusive pavilions from IPC India and CLIK (Consortium of Electronic Industries of Karnataka).

Philips to expand manufacturing in India, plans 75% localization
Source: ET Retail; August 23, 2016

Dutch appliances, healthcare and electrical products maker Philips plans to increase localisation of its products in India from 50% of what it sells now to 75% over the next three years, aided by the government's `Make in India' initiative and roll-out of goods and services tax.

The company may also evaluate foreign direct investment in retail at an appropriate time, Philips India managing director V Raja said. With GST becoming a reality , it will make more sense to expand manufacturing in India and to adjust to supply chain needs, he said.

"At present, even the products which are imported in India are made in special lines since these are customised. But the emphasis will be on local production," Raja said.

Philips plans to beef up its e-commerce presence for now and evaluate the retail FDI option when its India business reaches a critical mass, he said.

The company , which is transitioning into a health technology firm with presence in segments such as kitchen and domestic appliances, personal grooming, recently demerged the lighting business into a separate entity in India as well. Lighting accounted for about 55% of revenue of the erstwhile combined entity. Raja said Philips India will get back to the same size as it was with lighting in three years.

Government plans two MROs to make India a hub for aircraft maintenance
Source: VC Circle; August 23, 2016

In an effort to make India a hub for aircraft maintenance and repair, the government plans to set up two new facilities in the country to scale up the sector currently valued at around Rs.5,000 crore.

This follows the successful maintenance, repair and overhaul (MRO) unit at Nagpur in Maharashtra. The idea is part of the National Democratic Alliance government’s ‘Make in India’ initiative and also aims to attract those Indian carriers who often fly to Sri Lanka, Singapore and other overseas destinations for aircraft servicing. The MROs are expected to be developed over the next five years.

A senior official from the ministry of civil aviation, who did not want to be named, said the government will hold separate talks with potential state governments regarding these projects.

The strategic move to turn India into a hub for MRO facilities has been defined in the New Civil Aviation Policy (NCAP), 2016. The Airports Authority of India (AAI) has already waived airport royalty and additional charges, which are not levied on MRO service providers for a period of five years according to NCAP. In addition, the aviation ministry is persuading state governments to forego tax and provide adequate land for MRO units.

The civil aviation ministry and AAI will hold separate talks with prominent entities in the MRO market to put India firmly on the map, the official added.

Apple acquires Gliimpse, a med tech startup set up by Indian entrepreneurs
Source: The Indian Express; August 23, 2016

Apple has reportedly acquired Gliimpse, a technology startup that translates medical records in actionable data. A report by Fast Company said the deal went through earlier this year, but both the companies involved have not spoken about it yet.

Gliimpse was founded in 2013 by one-time Apple employee and serial entrepreneur Anil Sethi and IIT Chennai graduate Karthik Hariharan.

On his LinkedIn page, Sethi describes Gliimpse thus:

“We enable patients to collect their lifelong history, so they can share it with their care network – physicians, friends and family.”

In fact, Sethi, who has always been working in the healthcare sector, says he’s helping his “little sister manage her Stage IV Breast Cancer diagnosis, through data”.

“As a consumer of healthcare, I leave behind a bread-crumb-trail of medical info wherever I’ve been seen. But, I’m unable to easily access or share my own data. Obamacare is one of several forcing functions federally mandating physicians and hospitals give us our data: meds, labs, allergies,”

he writes, adding how there is still no single Electronic Health Record that all physicians use, sigh.

“Worse, there isn’t even a common file format across a 1000+ systems,” Sethi writes in his bio, giving a glimpse into why Gliimpse was set up.

Electronics industry body to open Taipei, Tokyo centers
Source: The Hindu Business Line; August 23, 2016

With a view to facilitating investments in the electronics manufacturing industry, the India Electronics and Semiconductor Association (IESA) is gearing up to open offices in Japan and Taiwan this year. The centres will help investors in those countries by providing information they might need while investing in India.

“We will open those centres this financial year. While the Taipei centre will come up next month, the Tokyo one will be started by March next. These international desks will help Taiwanese and Japanese companies set up engineering and manufacturing facility in India,”

MN Vidyashankar, President of IESA, told BusinessLine.

He was here on Tuesday to take part in the Dr AS Rao Memorial seminar on ‘Make in India — ESDM 2016’ organised by the Instrument Society of India (ISOI) and Institute of Electrical and Electronic Engineers (IEEE).The Bengaluru-headquartered association, a Nasscom-like organisation for electronics, hardware and semiconductor firms, is also opening Chapters in Chennai and Pune very shortly. About 300 companies in the ESDM (Electronics System Design and Manufacturing) industry are members in the organisation.

He said that although the country had emerged as a major semiconductor design hub in the world, it would take some time before it built strengths in the electronics manufacturing space.

“In China, it will take just about 15 days from the ideation stage to making a prototype. But in India, it will take at least 1-2 years,” he said.

Global tech firms increase R&D presence in India
Source: Feedback Consulting; August ,23 2016

India has become the choice location for global technology firms such Google, Microsoft and Uber to open development centres, as the country provides a unique blend of massive market opportunity along with a low-cost and highly scalable workforce.

There are a little over 900 foreign companies in hi-tech sectors such as software, automotive and industrial automation in India, according to management consulting firm Zinnov. The types of work these firms undertake include semi-conductor design, low-cost and reliable health care equipment, mapping products for low-bandwidth networks and automotive equipment that go into driverless cars.

“There is nothing new, nothing surprising. This (India) is the place for top-end manpower and has the ecosystem for technology R&D (research and development) for most of the global companies,”

says M N Vidyashankar, president of the India Electronics and Semiconductor Association (IESA).

“Fortunately, the market opportunity is also huge in India for them to set their units here.”

Japan wants to make medals from electronic waste for the 2020 Tokyo Olympics
Source: Firstpost; August 23, 2016

Organisers of the 2020 Tokyo Olympics want to source the metal needed for the medals given out to sportsmen from electronic waste, according to a report in Nikkei Asian Review. The proposal was discussed back in June, and Olympic organisers, the government and private companies estimate that there will be enough metal extracted to hand out the medals in the Summer Olympics and the Paralympics. While Japan has fewer natural resources as compared to other countries, as much as 17 percent of the world’s gold and 22 percent of the world’s silver are within small consumer electronic devices across the nation. This is more metal than any nation abundant in these natural resources.

The electronics needed for obtaining these metals will be donated by the citizens of the country. Normally, organisers in other countries ask for donations from mining corporations to make the medals. The collection of the electronics is one of the perceived challenges. A process is being put into place, where citizens can pack unused electronics in cardboard boxes, and have them picked up from their homes based on online schedules.

These boxes of electronics will be dismantled and sorted, after which a metal extracting company would recycle the metals in the consumer electronics into medals for the athletes.

Mobile handset manufacturing is now a ?54,000 crore industry
Source: The Hindu Business Line; August 23, 2016

The Centre’s efforts at making India a hub for electronics manufacturing seem to be paying off in the mobile handset segment.

According to data compiled by the Indian Cellular Association (ICA), the industry body representing mobile phone brands, handset manufacturing in 2015-16 rose a robust 185 per cent in value terms to ?54,000 crore from ?19,000 crore in 2014-15. ICA estimates that manufacturing activity will touch ?94,000 crore this fiscal year.

As many as 25 entities are setting up phone assemblies employing over 37,000 people. These factories are coming up across 35 locations in 10 States, and are capable of producing 20 million handsets a month, according to ICA data.

Handset makers such as Micromax, Lava and Intex are already sourcing most of their models sold in the market from their respective factories.

“About 70-80 per cent of all our smartphones, and almost all our consumer electronics, are being manufactured locally. Local manufacturing ... will help us enhance the design, and push research and development to suit domestic requirements,”

says Rajesh Agarwal, Co-Founder, Micromax Informatics.

Not just Indian brands, even Chinese players such as Vivo and Xiaomi have a local manufacturing strategy

Of the 220 million mobile phones estimated to have been sold in India in 2015-16, 110 million had some form of manufacturing in Indian locations.

MN Vidyashankar IESA President
Source: HYbiz (Video embedded in link); August 24, 2016

M.N. Vidyashankar President of IESA shares that Make in India concept and mantra is very important for every industry in the country. The statistics reveal that as of April 2016 total import of the country was approximately 550 Billion $USD. He informs that the largest imported item is crude oil and average bill of crude oil is 125 Billion $USD and gold is the second largest imported item in India. He informs that the rate of growth of electronic goods consumption in India is rising at rapid speed. There need to be a control on electronic goods import which is good for Indian economy instead can start manufacturing these devices in the country itself at affordable rates and quantities. This Make in India project has to be put in practice by every prospective industry, government and people at large to create more wealth for India on whole. The kinds of opportunities put in position is very valid which guides to become prospective entrepreneur in any industry. Plethora of policies are in favor of Make in India happen in a big way.

Electropreneur Park by Electronics & IT Min set for launch
Source: Business Standard; August 25, 2016

Government-funded Electropreneur Park, an incubation centre with focus on IP creation and product development to increase domestic manufacturing of electronics items, is scheduled for launch this week.

The Electropreneur Park with funding support from Ministry of Electronics and Information Technology (MeitY) has been set up in South Campus, Delhi University.

It will be inaugurated by the Minister for Electronics and Information Technology, Ravi Shankar Prasad on August 27, sources said.

"The Electropreneur Park, will focus on IP creation and indigenous product development to increase value addition to domestic manufacturing of electronic items, like smartphones, smart meters, micro ATMs and set top boxes," sources said.

The project is being implemented by Software Technology Parks of India, in association with India Electronics & Semiconductor Association and Delhi University.

The Electropreneur Park has been set up in area of over 10,000 sq ft constructed space. The project involves grant-in-aid of Rs 21.17 crore.

Compiled by IESA Research

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