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  IESA WINWire Dec 24 - Dec 30, 2016 for Subscription click here  
11th Anniversary

Technology empowers SMEs realise the 'Make in India' dream
Source: Deccan Herald; December 26, 2016

Small and medium enterprises may be gunning for the global markets. However, the reality in getting their systems in place before making this quantum leap, is posing its own set of challenges. Wonder Polymers is a medium-sized company that manufactures and markets a wide range of self-adhesive tapes in India. This Delhi- and Haryana-based company boasts of a design unit, quality and test laboratories, and employs over 80 skilled workers. For Wonder Polymers, managing its sales process and leads was proving to be a painstaking task. Wonder Polymers’ internal reporting was done manually by a sales person, who would record the leads, opportunities and client contact information on an MS?Excel sheet. Information was being processed and available to one person at a time. Invariably, to the one recording it. In the modern manufacturing era, with real-time tracking and inventory processing, this system was proving to be inadequate. It was also holding them back on streamlining sales processes to improve employee productivity.

Wonder Polymers is not alone. Millions of small and medium enterprises (SMEs) in India face the same conundrum.

Traditionally small businesses are defined as an industrial undertaking with investments in fixed assets of Rs 1 crore and with less than 50 employees, while a medium-sized enterprise is one with fewer than 250 employees.

IAF to procure another Boeing C-17 transport aircraft
Source: Business Standard; December 26, 2016

The Defence Acquisition Council (DAC) chaired by Defence Minister Manohar Parrikar on Friday approved the purchase of one more Boeing C-17 Globemaster heavy-lift transport aircraft, and also reviewed the ongoing projects of the services and the DRDO, sources said. The Indian Air Force currently operates 10 C-17s, which it began inducting in 2013. The other proposals cleared by the DAC included the procurement of 1,500 modernised nuclear biological chemical protection systems for mounting on infantry combat vehicles, at a cost of Rs. 1,265 crore. These will be bought under the Indigenous Design Development and Manufacturing (IDDM) category. This will be an automated system. The systems on infantry combat vehicles are currently manual. The DAC also cleared the acquisition of six multi-mission maritime aircraft for the Indian Coast Guard at a cost of Rs 5,500 crore. They will be equipped with state-of--art mission suites designed and developed by the DRDO. A proposal for procurement of 55 low-level light-weight 3D radars was also cleared for the Indian Army and Indian Air Force at a cost of Rs. 419 crore.

These radars designed by DRDO are likely to be built by Bharat Electronics Limited, said sources.

Army sources, meanwhile, said a majority of these radars are for the force and will be deployed by the air defence regiments.

10 key technologies that will disrupt the market in 2017
Source: Dataquest; December 26, 2016

It is that time of the year when we look back, to look ahead. In retrospect, 2016 can be called the year of disruption. Many technologies, considered as ‘hype only’ slowly gained mainstream attention. While cloud consolidated on hybrid, technologies like IoT saw significant traction on the industrial side of things and started impacting verticals like manufacturing, healthcare, retail, et al. Before diving into the tech outlook for the year ahead let’s try and decode the market for the adoption of emerging technology. If we divide the market across consumers and enterprises, both are related. For instance, the impact will be felt across the consumer segments cutting across the devices we use. On the part of the enterprise, this will make it happen to consumer as well consuming whole lot of emerging tech to up business and operational efficiencies. We are listing IoT here on the premise that 2016 was the year of aggressive conversations and early adopters in terms of IoT. The year ahead is expected to create ample IoT proof points that will act as a catalyst for larger adoptions. With the prospect of a hyper-connected world getting real by the day, the array of interconnected devices will pose a big security challenge as well. It is in this context we believe IoT security will pan out to be a bigger trend as we move forward.

Indian Mobile Manufacturing Industry in 2016: A Snapshot
Source: TeleAnalysis; December 26, 2016

Having India’s own mobile manufacturing industry has constituted a major part of Prime Minister’s Make In India initiative. And the industry has responded well to this initiative since so far. Here we are bringing you a snapshot of Indian mobile manufacturing industry in 2016. In the last one year 38 new mobile manufacturing units have been set up in the country that aims at producing more than 20 million mobile phones per month. This new units also created employment for more than 40,000 people in manufacturing. In 2015 Indian mobile industry contributed 6.5% to India’s GDP and provided employment to over 40 lakh people. The same is expected to contribute 8.2% by 2020. The Indian smartphone market grew from 150 million in 2014 to 275 million in 2016 and is now world’s second largest smartphone market, just below China. India manufactured 110 million mobile phones in 2015-16 as compared to 60 million in 2014-15 showing a growth of over 90%. In value terms India’s mobile manufacturing industry produced mobile phones worth Rs 54,000 crore in FY15-16 compared to Rs 18,900 crore in FY14-15. The same is expected to reach Rs 94,000 crore by end of this fiscal.

India has a target of producing 500 million mobile phones from local manufacturing units by 2019. The country is also actively working towards setting up a components manufacturing industry in India and the department of electronics and information technology has set up a fast track task force (FTTF) in this regard.

Cisco India Unveils Three Cyber Security Initiatives
Source:; December 26, 2016

At a time when cyber security has become paramount for digital enterprises, Cisco India on Thursday announced three new initiatives to help the country build a transparent and secure digital infrastructure environment.

Cisco will open a new Security Operations Centre (SOC) in Pune which will provide services ranging from monitoring and management to comprehensive threat solutions and hosted security that can be customised.

The $49.24 billion company also launched a Cisco Cyber Range Lab at its Gurugram facility which will provide specialised technical training workshops to help security staff build the skills and experience necessary to combat new-age cyber threats.

Recognising that cybersecurity is critical to India's drive to digitise its economy, Cisco's global Security & Trust Organization (S&TO) and Cisco India announced the formation of Cisco S&TO-India that will help the government shape the national cybersecurity strategy and initiatives.

To achieve this, Cisco and Ministry of Electronics and Information Technology's (MeitY) Indian Computer Emergency Response Team (CERT-In) signed a Memorandum of Understanding (MoU) in the presence of Electronics and IT Minister Ravi Shankar Prasad.

"In light of rapidly evolving cyber tactics and shared risks in cyberspace, the need to work side-by-side with industry partners on pressing cyber-challenges becomes increasingly important. We are happy to have Cisco collaborate with us to enhance the security of India's digital infrastructure," Prasad noted.

Integrate Augmented Reality with Internet of Things for unmatched business value
Source: Forbes; December 27, 2016

Imagine you are a visitor to a historical city like Delhi or any of the popular tourist destinations in the world. You want to do the tour of the city at your own pace and flexibility and, let us say, in a car. Now imagine that during the journey, your smartphone or tablet with a camera, connected to car’s GPS, gives you live descriptions of the vicinity. Depending on your choice, you either get the audio visual of the locality you are in or you can zoom on to more inner specifics about the monument you are passing by. The detailing is only limited by what your interests are. You can choose a monument or building or a statue or for that matter even a shop or a restaurant. Augmented reality can make your tourist experience a lot more complete and help you make more real-time and personal choices as you go through the city. You can for instance zoom into a mall you are passing by and see what type of shops and restaurants are there. The quality of audio visual can be tailored to specific price and convenience points. Not only does this provide travellers with useful and valuable information, it makes the journey much more interesting, thereby making it more enjoyable.

Welcome to the world of Augmented Reality (AR). This kind of experience is within the realms of possibilities today, thanks to the AR technology, when integrated with a smart device or a device connected to the internet.

Year End Review 2016: Report card of MSME Ministry
Source: SME Times; December 27, 2016

During the year 2016, Ministry of Micro, Small and Medium Enterprises (MSME) launched various initiatives to improve the ease of doing business and to make MSMEs more globally competitive. These initiatives include...

Cabinet approves creation of ‘Indian Enterprise Development Service (IEDS)’ in the Office of Development Commissioner (MSME) under the Ministry of Micro, Small and Medium Enterprises

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to the Cadre review and formation of a new service in the name of 'Indian Enterprise Development Service (IEDS)' in the Office of Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises (MSME). The creation of the new cadre and change in structure will not only strengthen the organization but will also help to achieve the vision of “Startup India”, “Stand-up India” and “Make in India”. The measure will enhance the capacity and efficiency of the organization and also help in achieving growth in MSME sector through a focussed and dedicated cadre of technical officers.

Foundation Stone Laying Ceremony of MSME Technology Centre at Greater Noida, Uttar Pradesh under Technology Centre Systems Programme (TCSP) & National Vendor Development Programme

This Technology Centre is one of the 15 new Technology Centres that are being established in the country by Ministry of MSME. This Centre will provide support to Electronics Systems Design & Manufacturing (ESDM) and automotive electronics sector particularly Micro, Small & Medium Enterprises towards their technological and skilled manpower requirements.

HCL Techologies plans to deepen its focus on IoT in 2017
Source: ET Tech; December 27, 2016

HCL Technologies, which created a business unit for Internet of Things (IoT) in October 2015, hopes to make higher revenue and accelerate the pace of client wins from the division in the coming year. The country's fifth-largest software services firm has seen high initial success in the area, where it now plans to sharpen the focus, a top executive said. "From an average of winning around one new customer per month till August 2016, the pace has accelerated to 1.5-1.7 customers a month," Sukamal Banerjee, global head of IoT Works at HCL Technologies, told ET in an interview. Currently, the average order size is small as the deals are still in the "define and build" phase. As they move to the run phase, the deals are going to gain size, which is expected to happen by the end of 2017, he said. In a recent report, Juniper Networks, citing studies, said more than 25 billion connected devices will be live globally by 2020, with opportunities in abundance for data mining and data analytics. The total revenue from IoT industry is expected to be $300 billion by then, with India having a share of around 5-6%. "We see IoT getting an early roll out in surveillance projects, vehicle tracking, connected cars and home automation. We see consumer domain having the maximum uptake.

Google CEO Sundar Pichai arrives in India, will unveil Google's plan for SMBs
Source: India Today; December 27, 2016

Google CEO Sundar Pichai is in India. Pichai is currently on a private trip and is spending time in Jaipur. However, come new year and the India-born CEO of Google will be doing some business here. Google is holding a press conference on January 4 where Pichai is expected to detail the company's new initiatives aimed at helping the digital operations of small and medium business enterprises.

The media event will also Google India head Rajan Anandan and India's minister of electronics & IT Ravi Shankar Prasad talking about how the digital tools are helping Indian businesses and entrepreneurs. The invite for the event hints that it will also be attended by entrepreneurs and businessmen. "We invite you to join senior leaders from Google, the industry and business owners like yourselves, as we shine the spotlight on the Indian SMB ecosystem and delve into how digital can be a game changer for your business," notes the invite.

In his earlier visit in December last year, Pichai had detailed how Google was working to bring more Indians online. He had talked about the company's partnership with RailTel, which is now powering free Wi-Fi for 100 Indian railway stations. He also talked about the bicycle project that was giving Indians in villages and towns first taste of internet. This time around, however, the focus is going to be how Google is partnering with small and medium business enterprises to help them in their digital operations.

India may re-emerge as a key defence market
Source: Mint; December 28, 2016

India will re-emerge as a key growth market for defence suppliers and may overtake the UK by 2018 in terms of defence spend, according to IHS Markit

Companies dependent on the defence sector may be complaining about paucity of orders. But defence spends are scaling new heights.

In 2016, India overtook Saudi Arabia and Russia to become one of the top five defence spenders for the first time, says Jane’s Defense Budget report by IHS Markit. In 2015, India was the sixth largest spender on defence.

Despite the rise in defence budget, procurement spending was constrained as personnel costs rose in recent years. But the trend is expected to change in coming years as the country focuses on modernization.

According to IHS Markit, over the next three years, India will re-emerge as a key growth market for defence suppliers and may even overtake the UK by 2018 in terms of defence spend.

“If a weaker pound persists, India will spend more on defence than the UK by 2018—pushing the UK out of the top three,” IHS Markit adds.

Signs that corporate balance sheets were hurtling towards great distress were visible as early as 2010-11 and could have been anticipated by lenders, according to a staff study of the Reserve Bank of India.

Over 200 startups closed down in 2016
Source: The Times of India; December 28, 2016

While 2015 was a year of big-ticket funding rounds, 2016 is a year of harsh reality for the country's startup ecosystem: 212 startups have not survived to see 2017. And the number is 50% higher than last year, when about 140 startups were shut down, according to data analytics firm Tracxn.

The biggest casualty in 2016 was grocery delivery startup PepperTap, which was dubbed the biggest competition to BigBasket last year. It topped the list of startups that were closed down after having raised the highest funding from investors. The company, which started operations in 2014, had raised more than $51 million from a league of big investors, including Sequoia Capital, Saif Partners and e-commerce major Snapdeal. In April, its founder Navneet Mishra announced the decision to close the grocery business.

Seven out of top 10 startups that were shut down after raising sizeable funds were founded in or after 2014. These included online courier booking platform Parcelled, which wound up business in June 2016, and DoorMint, which shut its on-demand laundry service in September due to lack of funds.

"This is a natural progression," "When you look at the ecosystem, not more than 20% of the startups succeed. Two to three years after a startup's inception is a time when you see high mortality. There is too much competition, and only a few survive," says Mohan Kumar, ED, Norwest Venture Partners India.

Inter-ministerial group to discuss Apple’s demand to manufacture in India
Source: Hindustan Times; December 29, 2016

A group of senior officials from ministries, including commerce and finance, will early next month deliberate on the incentives sought by US-based iPhone maker Apple to set up a manufacturing unit in the country.

Officials from departments of commerce, industrial policy and promotion (DIPP), revenue, environment and forest, electronics and information technology (DeITY) will attend the meeting.

The group is likely to meet in the first week of January to discuss the issue, sources said.

In a communication to the government, the Cupertino-based technology major has asked for several tax and other incentives to enter India in the manufacturing sector.

However, government sources said the technology-major should set up the manufacturing unit in India without seeking additional support.

“Several companies in India are manufacturing mobile phones in India. Nobody is asking for additional incentives. Currently, the government provides sufficient support to boost electronic manufacturing,” an official source said. The government provides benefits under Modified Special Incentive Package Scheme (MSIPS) to boost electronic manufacturing in the country.

The scheme provides financial incentives to offset disability and attract investments in the electronics hardware segment. It also gives subsidy for investments in Special Economic Zones, among other benefits.

Currently, Apple’s products are manufactured in six countries, including Korea, Japan and the US.

Consumer Durable Companies Expect Growth Clip to Return In 2017
Source: NDTV; December 29, 2016

With a 'fairly profitable' year 2016, the consumer durable industry is looking forward to maintaining the momentum by cashing in on Goods and Services Tax or GST, likely to be rolled out in 2017, and overcome the short-term issues thrown up by demonetisation.

The makers have plans to introduce new technologies along with premiumisation of their existing offerings, increase in localised production and retail visibility focusing on enriching consumer experience next year.

Terming the setback from demonetisation as "a short-term phenomenon", the consumer durable makers are eyeing a bigger benefit from GST as it is likely to reduce tax burden, logistical and transactional costs.

"Samsung plans to outpace market growth by making continuous investments in making products that address the distinct needs of Indian consumers. Second, we wish to increase retail visibility and focusing on enriching consumer experience," Samsung India vice president-CE business Rajeev Bhutani told PTI.

LeEco India COO-smart electronics business Atul Jain said, "In 2017, we will focus on growth and consolidation of the gains we have made in 2016. We aim to realise this through the launch of our next generation Superphones and SuperTVs. As part of LeEco's online to offline strategy, we will be launching our own branded stores."

According to the Consumer Electronics and Appliances Manufacturers Association, in 2016-17 (which still has 3 months to go), the industry is expecting sales "of airconditioners, refrigerators, televisions and washing machines to touch 4.10 million units, 11.13 million units, 16.5 million units and 5.27 million units, respectively".

PM Modi's digital call to business tycoons attracts Rs 3.30 lakh crore
Source:; December 30, 2016

Prime Minister Narendra Modi-led NDA government has received more than Rs 3.30 lakh crore, or 70%, of the proposed investments in less than two years of the commitments, led by country’s top business houses including Mukesh Ambani’s Reliance Industries and Kumar Mangalam Birla-driven Aditya Birla Group.

“Rs 3.30 lakh crore has already come in with a large part in the telecom sector from the companies like Aditya Birla group and Reliance Industries. Companies have also made investments in the manufacturing segment,” Aruna Sundararajan, secretary at the Ministry of Electronics and Information Technology (MeitY), told ET.

She however didn’t provide any break ups.

In July 2015, during the Digital India week, India’s top industrialists including Reliance Industries’ Mukesh Ambani, Aditya Birla group’s Kumar Mangalam Birla, Wipro’s Azim Premji, Bharti Airtel's Sunil Mittal and Reliance group’s Anil Ambani had collectively pledged investments worth Rs 4.5 lakh crores over the next few years.

Sundararajan said that investments so far are mainly to expand telecom networks and accelerate local electronics production.

She added that the current investment pace could also open up as many as 1.5 crore potential job opportunities over the next five years.

Reliance Industries had committed the highest spend of Rs 2.50 lakh crore, followed by Bharti Group’s Sunil Mittal, at Rs 1 lakh crore, and Kumar Mangalam Birla, with nearly Rs 45,000 crore ($7 billion).

Compiled by IESA Research

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