manufacturing base to India: Amitabh Kant tells Japan
Source: The Economic Times;
February 14, 2016
Japanese companies should relocate their manufacturing base to India
as this is the "only way" to strengthen bilateral partnership between
the two countries, DIPP Secretary Amitabh Kant said today. "You
(Japanese companies) have to relocate your manufacturing base into
India... This is the only way you can strengthen Japan's and Indian
partnership for the future," the Department of Industrial Policy and
Promotion Secretary said at the Make in India Week. At a special
session in the presence of Prime Minister Shinzo Abe's advisor, Kant
said Japan is an advanced nation and it is too expensive to do
manufacturing there. "You've to capture India and you've to capture
the world and the only way you can do it is if you manufacture here,"
Kant, the CEO-designate of government thinktank NITI Aayog said,
assuring full support of the Indian government for it. NITI Aayog
Vice-Chairman Arvind Panagariya said easy availability of capital in
Japan and the cheap labour in India are complementary to each other.
Panagariya said Japanese companies present in China may also like to
come in India because of the difficulties being faced by the country's
northern neighbour. It can be noted that Japan has given multiple
stimuli to the economy and is the only major country in the world
where the central bank has negative benchmarking lending rate .
Invest in India or you
may 'miss the bus': Cisco
Source: The Economic Times;
February 14, 2016
Betting big on India as an investment spot, Cisco executive chairman
John Chambers today suggested businesses not to 'miss the bus' as the
country is in sync with the speed of innovation in the current digital
age. "Eighteen months ago, I said if you want to bet on one country,
it is India as the country is in sync with the speed of innovation in
the current digital age," Chambers said at the CNN Asia Business Forum
2016 organised as part of ongoing Make in India (MII) Week here.
Noting that every company in this world would become technology-based,
Chambers said 40 per cent of non-tech companies running today will
disappear in the next 10 years. "Anticipating the market and adapting
to change in market dynamics, India is moving at a fast pace in the
digital era," he said as per CII statement. Chambers noted that
regardless of political divides, Indians have to come together for
growth. "If you still haven't invested in India you may miss the bus,"
Chambers said. Yesterday, he had said, "When you think about India the
opportunity is very simple to become the manufacturing hub for Asia".
"The ability to do that in auto-motives in which you are making huge
progress, to expand that to electronics, to expand that to hi-tech and
pharmaceuticals is within our grasp".
Double duty: devices
that do twice more than designed for
Source: Deccan Chronicle;
February 15, 2016
Some ideas are so elegantly simple we ask ourselves 'why didn't anyone
think of that before?' I was struck by this thought when I saw the
Router UPS which won Bangalore-based Resonate, the Best Startup award
last week, at the Vision Summit of the India Electronics and
Semiconductor Association (IESA). Many of us have a home Wi-Fi router
which lets us wirelessly use the same wired broadband Internet
connection, across multiple PCs, laptops and mobile phones. We are
also plagued by frequent power cuts because the router which takes its
power from a mains power adapter goes off every time. In my own case,
a sort of perverse Murphy's Law seems to operate -- such interruptions
to my Net connection, invariably occur when I am in the last stage of
an e-commerce transaction, entering my credit card number. Why not
create a special UPS for routers -- a scaled-down version on the lines
of the power bank one uses to charge phones? The Router UPS is just
that, a palm -sized battery backup for all standard routers that
offers up to 2000mAh and 4 hours of backup -- enough for most urban
power cuts. The UPS comes with three different bridge cables, which
between them should match any router in the market. You remove the
power adapter that comes with the router, and insert the UPS between
the router and the adapter, then plug the adapter to the mains. That's
it! As Resonate founder Sudhir Sathiyamurthy says, ' When power goes,
the Wi-Fi doesn't!'
warm up to Make in India
Source: Mint; February 15,
“You need to give it two to three years to see the kind of traction
that you are looking at. If you look at the likes of Micromax, Karbonn
and Lava, if these big players are coming in a big way, the entire
ecosystem will get a major fillip. Make in India covers both venture
capital-funded start-ups and small and medium enterprises. It also
covers large enterprises. Start-ups can join hands with a partner and
such a move will help in branding as well,” said M.N. Vidyashankar,
president, India Electronics and Semiconductor Association. A major
fillip came in August last year when Foxconn Technology Co. Ltd, the
world’s largest contract electronics maker, announced a $5 billion
investment to set up manufacturing units in Maharashtra over the next
five years. A re-entry into India by the Taiwanese company has spurred
other electronics makers to set up shop here and start the process of
building a comprehensive, ground-up electronics supply chain that is
essential for the Make in India push. Over the last year, several
international businesses and home-grown phone makers, who otherwise
sourced from China, have set up shop in India. China’s Lenovo Group
Ltd started assembling smartphones in its 40,000 sq. ft facility in
Chennai run by Singapore-based contract manufacturer Flextronics
International Ltd. The same month, China’s Meizu Technology Co. Ltd,
in which e-commerce giant Alibaba Group Holding Ltd is a minority
stakeholder, entered the Indian market and said it plans to make
handsets in the country.
Manufacturing Cluster to Have IT SEZ in Vicinity
Source: Daily Pioneer;
February 15, 2016
The Chhattisgarh Government will be setting up an IT SEZ in the
vicinity of the Electronic Manufacturing Cluster (EMC) to be
established at Sector 22 in the new Capital. The EMC would be at
located about 7 km from the Swami Vivekananda . The site enjoys
abundant water supply from the Mahanadi river and also have also
sufficient power connection to cater the needs of operation in EMC.
The Greenfield EMC in Chhattisgarh was accorded ‘in-principle’
approval as on September 21, 2015. The location of the EMC is at Tuta
village in Sector-22 of Naya Raipur. The chief promoter of the project
is Chhattisgarh State Industrial Development Corporation (CSIDC) and
the project is to be established in an area measuring 70 acres.
Notably, on December 20 last year, the Chhattisgarh government had
informed in an official statement that the Central government has
consented to provide its final approval to the EMC. An assurance in
this regard was given by Union Telecom Minister Ravi Shankar Prasad to
Chhattisgarh Chief Minister Raman Singh during a meeting in New Delhi
on December 20 last year. Providing details on the ‘Electronic
Manufacturing Cluster’ during the meeting, Chief Minister Raman Singh
had told the Union Minister, as per the official statement, that as
many as 11 companies have signed Memorandum of Understanding (MoU) to
the tune of around `968 crore for setting up projects in the cluster.
The Chhattisgarh government has completed requisite preparation for
development of the ‘Electronic Manufacturing Cluster’ and work in this
regard is going to start immediately after receiving final approval
from the Centre, it had mentioned.
Make in India week:
Odisha receives investment proposals worth over Rs 70,000-crore
Source: DNA; February 15, 2016
Odisha government on Monday said it has received investment proposals
to the tune of Rs 70,959 crore in various sectors including
manufacturing and renewable energy. "We have received commitment of
over Rs 70,000 crore from sectors like manufacturing to food
processing and renewable energy. Odisha has become a choice for
investors due to availability of skilled labour, political stability
and resources," Odisha Industries Minister Debi Prasad Mishra told
reporters here. Engineering major Larsen & Toubro is planning to
invest Rs 12,000 crore for an aluminium refinery, while ITC is
planning an investment of Rs 800 crore in food processing and
hospitality. NALCO is looking to invest Rs 20,500, while Tata Steel
SEZ plans to invest about Rs 2,000-2,500 crore in the state. Besides,
GMR is looking to expand its power plant, US-based global electronics
manufacturing services provider Sanmina is planning to set-up a
facility and mining conglomerate Vedanta is planning to commission a
downstream industrial park in the state. The minister said three
companies have evinced interest in the renewable energy sector for
solar and tidal projects.
Foxconn to Inaugurate
Maharashtra Manufacturing Plant In May
Source: Tele Analysis; February 15, 2016
Foxconn,world’s largest electronics contract manufacturer, will
inaugurate its manufacturing plant in Maharashtra in May this year and
would soon become operational. “It’s at the final stage of
commissioning and an inauguration is being planned in May,” Minister
of industries of Maharashtra government Subhash Desai told
TeleAnalysis. He was speaking at the sidelines of ‘Make In India’
event in Mumbai. This plant will be Foxconn’s first electronics
manufacturing facility in the western state. The Taiwanese company
scouted many sites in the state but finalised Talegaon and Khopoli for
setting up its plant. “The state government has provided 1,500 acres
of land for Foxconn manufacturing facility,” added Desai. According to
MIDC, Talegaon Industrial Area is within the limits of villages
Navlak-Umbre, Akurdi and Ambi as Talegaon Industrial Area and the land
rates for industrial plots per square meter is Rs 2,395. Khopoli is an
industrial town in the Khalapur taluka of Raigad district and is at
the base of the Sahyadri mountains. In August last year Foxconn
finalized Maharashtra as its first facility for electronics
manufacturing and is planning to invest Rs 35,000 crore and employ
around 50,000 people in the next 5 years.
Why Make in India may
be the answer to India's unemployment puzzle
Source: The Economic Times;
February 16, 2016
Job placement firms expect the government's renewed push to
manufacturing through its Make in India programme to start generating
new employment opportunities in the next few months. The government
hopes to create a 100 million new jobs by 2022. The firms estimate
that 7.2 lakh temporary jobs are likely to be created in the next one
year. It would add 8-13 per cent to the current jobs pool as
investment into manufacturing, engineering and related sectors rise.
They say the Make in India initiative has led to an increase in hiring
in these segments as well as e-commerce and Internet-related sectors.
"Skill development has gained enormous traction with Make in India.
The plan to create 100 smart cities is also expected to fuel job
growth," says Rituparna Chakraborty, co-founder of TeamLease Services.
Estimates also suggest that refocusing on India's traditional
occupations would potentially create 10 million jobs a year. For
instance, the Indian Leather Development Programme trained 51,216
youth in the past 100 days and it plans to train 1,44,000 young
person’s annually. Four new branches of Footwear Design & Development
Institute — at Hyderabad, Patna, Banur (Punjab) and Ankleshwar
(Gujarat) — are being set up to improve training infrastructure.
Make In India: With
investments pouring in, India logs into hi-tech manufacturing
Source: The Economic Times;
February 16, 2016
Neither Thailand nor Vietnam were on the radar of hightech
manufacturers even a decade ago. Today Thailand is the world's largest
producer of hard disks and Vietnam boasts of Asia's most modern fabs
or chip-making factories. For much longer than that India has been
trying to attract high-tech manufacturers, without success. What
passed of as sophisticated plants at best produced low- to midrange
mobile phones, computers or plastic casings, they were essentially
assembly line operations with parts procured from factories in China,
Taiwan and put together in India — like flat screen TVs, laptops,
desktop computers and so on. "India was always a software story,
high-tech manufacturing was never a priority," says Amar Babu, chief
operating officer, Lenovo Asia-Pacific and chairman Lenovo India. MN
Vidyashankar, president, India Electronics and Semiconductor
Association met a delegation from China's Guizhou district scouting
for local manufacturing partners in Bangalore. "This was during
China's New Year when everything is shut there. This shows the
importance India is gaining in manufacturing. We see more than just
green shoots in high-tech manufacturing now," He says.
February 16, 2016
Mr. M.N Vidyashankar, President, IESA
We need to have Re-Exports zones in the country, similar to the SEZs
we are promoting. The re-exports zones should have the facility of
importing capital equipment, products, devices which will undergo
value addition in the Re-Exports zones. Thereafter, it would be
exported from the re-export zone with a duty free/tax-free
dispensation. It has to be a bonded customs warehouse, identical to
the dispensation in SEZ. Re-export zones have a huge potential of
creating jobs, rapid prototyping facilities, testing, tooling, etc.
Measures should be taken to solve the MoEF hurdles that prevent import
of used electronic equipment. This is severely crippling the R&D
activities, and is hurting everyone. This issue has been unresolved
for the past 3 years.It’s time something is done about it at the
earliest. Lots of investments are getting re-routed to other
countries, which we can ill-afford.
Another area is, Transfer Pricing arbitrariness by assessing officers.
Many battles have been fought and court and tribunal orders have gone
in favor of the enterprises but the assessing officer’s whims and
outsourcing from India to $500 million in a year
Source: Economic Times;
February 16, 2016
Boeing has doubled its outsourcing from India to $500 million in the
last one year, its country head said Tuesday.
"We continue to increase our sourcing from India. If you look at the
all the OEMs (original equipment manufacturers), we source from than
any of them," Pratyush Kumar told ET, adding the chunk will only grow.
Speaking on the sidelines of the Make In India summit, Kumar said
Boeing's top three initiatives with India have been the wire harnesses
that TAL Manufacturing Solutions, a Tata Group company; wire harnesses
for the fighter jets F15 and F18 with Hindustan Aeronautics and a
Bangalore-based SME and a framework of agreements framework agreement
with Tata Advanced Systems Limited.
Boeing works to manufacture critical parts for the Chinook heavy-lift
helicopters. Apart from floorbeams, TAL also makes makes ground
support equipment for the C-17 aircraft.
Recently, Boeing signed a framework agreement with Tata Advanced
Systems Limited (TASL) to collaborate in aerospace and defense
manufacturing and potential integrated systems development
opportunities, including unmanned aerial vehicles.
Apple Supplier Delta
Electronics Plans to Quadruple Revenue From India
Source: NDTV; February 17,
Taiwan-based Delta Electronics Inc expects to quadruple annual revenue
from India over the next three years as it makes more power components
in the country, in tune with Prime Minister Narendra Modi's push to
Boosted by the rollout of India's 4G broadband network, the company
aims to generate about $700 million (roughly Rs. 4,795 crores) in
revenue from the country by 2019, Dalip Sharma, Delta's India managing
director, said in an interview on Tuesday.
Delta's revenue from India totalled $169 million (roughly Rs. 1,157
crores) last year.
The company, a supplier of components to Apple Inc, entered the Indian
market in 2003. It recently unveiled a $500 million investment in
manufacturing and research facilities in India.
Since becoming prime minister in 2014, Modi has travelled far and wide
to promote his 'Digital India' and 'Make in India' campaigns, seeking
to connect 250,000 villages to the Internet and courting investment to
expand India's manufacturing base.
Make in India: New opportunity for manufacturing, start-ups
Source: EET India; February 18, 2016
Developing a vibrant Indian Electronics Systems Design and
Manufacturing (ESDM) ecosystem has always been what India Electronics
and Semiconductor Association (IESA) is committed to, and projecting
India as a go-to destination for electronic products is slowly
beginning to be a reality. The progressive policies and the emphasis
on 'Make in India' initiative have played a significant part in the
resurgence of the manufacturing sector. Extension of MSIPS should see
a surge in the manufacture of solar products, PV cells, sub-strata,
etc. The Department of Electronics and Information Technology (DeitY)
is going ahead full steam with setting up electronics manufacturing
clusters (EMCs) in various states. These are designed to provide a
common platform for all the players in the electronics manufacturing
field. They ensure adequate testing facilities at competitive costs to
small businesses like MSMEs and start-ups, which will, in turn, push
electronics component manufacturing.
The policies and push of the government are adequate to bring a
positive momentum in the nation. This is the best opportunity for us
to become the manufacturing and start-up capital of the world.
Implementation of the policies, approval process of the projects, need
to be fast tracked, in order not to miss the present opportunity which
stands in front of us. Make in India has put the nation on the global
landscape and also, created an environment conducive for international
and indigenous companies to setting up manufacturing units in India.
Ford inks Rs 800 crore Chennai office deal for tech hub
Source: The Times of India; February 18, 2016
Automaker Ford Motors has inked a deal to build a new 2 million sqft
office for its global shared services business in Chennai entailing a
little over '800 crore investment, people directly familiar with the
matter said. Ford, which has a plant in the outskirts of Chennai,
acquired 28 acre land parcel at the Electronics Corporation of Tamil
Nadu SEZ. The move is aimed at consolidating its multiple tech offices
into one campus, besides accommodating growth plans. Ford will
initially build a 1.5 million sqft office (to house around 20,000
employees) but has the option to add another half a million more in
the future. The just clinched land acquisition was facilitated by the
Tamil Nadu government.The move by Ford is the first major activity in
the Chennai office space market recovering from the recent devastating
floods. TOI could not reach Ford India for immediate comments. Ford
employs about 14,000 people in India across its two manufacturing
plants in Chennai and Sanand and global business services operations.
In September, the car maker signed a MoU with the state government for
expansion plans without disclosing the details. The shared services
centre will host operations in areas of IT, product engineering,
finance and accounting and data analytics among others. The campus
will also have a global engineering and technology centre. Ford's move
tracks a recent spurt in the city's office leasing activity .
Has India’s electronic manufacturing turned a corner?
Source: Livemint; February 18, 2016
India’s electronic imports, which account for 27% of the country’s
trade deficit, contracted in January for the first time since April
2014, while electronic exports turned positive for the second
consecutive month, which if sustained could change the dynamics of
India’s manufacturing and international trade.
In January, electronic imports contracted 2.2% to $3.2 billion, while
electronic exports rose 7.8% to $0.5 billion. In November, growth in
electronic exports turned positive at 0.66%.
If these data seem one off, consider more proof. Radio, television,
communication equipment and apparatus group—which also includes other
electronic items, including mobile phones, in the index of industrial
production (IIP)—saw positive growth for the third consecutive month
and grew at a whopping 82% in December, while cumulatively it
contracted 1.2% during the April-December period, signalling a
turnaround in October.
M.N. Vidyashankar, president of India Electronics and Semiconductor
Association, said local manufacturing of electronic items have picked
up with increase in value addition. “Production of LED panels, set-top
box and mobile phones has got some traction in recent months. This is
a good sign and government’s Make In India initiative seems to be
showing results,” he added.
by IESA Research
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