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  IESA WINWire July 09 - July 15, 2016 for Subscription click here  
11th Anniversary

IESA-NASSCOM Deftronics Awards 2016 – Send your Nominations Now
Source: IESA; July 9, 2016

DEFTRONICS is in its 3rd edition and DEFTRONICS 2016 is scheduled on August 4th & 5th 2016, at The Ritz Carlton, Bengaluru. As a part of the mega event, IESA-NASSCOM have instituted Awards for individuals / Companies in 6 categories.

The Award Categories are:

  • Dr. APJ Abdul Kalam Lifetime Achievement Award
  • Best Embedded Product Design and/or Services Company In A & D - Category Indian
  • Best Embedded Product Design and/or Services Company In A & D - Category MNC
  • Best Electronics Manufacturing Company In A & D - Category Indian
  • Best Electronics Manufacturing Company In A & D - Category MNC
  • Promising A & D Start-Up Of The Year

Count on strategic divestments this year, says Arvind Panagariya
Source: Moneycontrol; July 9, 2016

From the sidelines of the CNBC-TV18 India Risk Management Awards, Shereen Bhan caught up with the Vice Chairman of NITI Aayog, Arvind Panagariya and discussed the governments plan for strategic divestments this year and the reforms that are needed in various sectors. In the interview Panagariya said that the process in underway for closing down ailing companies and there should be strategic divestments in the next six months. He further assured that there will be strategic divestments this year and ruled out speculations of a divestment in Air India saying that there are a lot lower hanging fruits than the airline company.

On the topic of reforms he said that a lot is still to be done in the education sector, “both at the primary education level but especially at the higher education level, where we have seen no reforms.”

He further said that labour intensive sectors like textile, electronics, footwear need a big push.

“In the end, the greatest weakness of the Indian economy in the last several decades been that it has not generated good jobs, well-paid jobs,” he said.

Panagariya feels that these are pre-dominantly jobs in the labour intensive manufacturing industry, and hence, there is a need to create good jobs.

Govt aims to make India design hub, new national policy likely
Source: Mint; July 9, 2016

To encourage companies to focus on innovation in product and process design, and with an eye on making India a global design hub, the industry department is planning to come up with a new national design policy. The new policy will replace the current one approved in February 2007 and focus on promoting specific sectors such as defence, medical devices and electronics, a government official said, speaking on condition of anonymity.

“The government will financially incentivise approved designs to turn them into mass market products,” the official said.

The National Design Council (NDC), under the Department of Industrial Policy and Promotion (DIPP), launched India Design Mark or I Mark in 2010 in partnership with the Good Design Award in Japan (G Mark). It is granted to manufacturers of well-designed products manufactured in a responsible manner, involving a rigorous process against established criteria. All types of mass-produced products are eligible for the India Design Mark. They can include consumer electronics, computer and communication products, machine tools, construction machinery, lighting systems, white goods, household appliances, capital goods, medical equipment, toys, vehicles, and agricultural machinery among others.

Defence offsets to touch $15bn in a decade: Parrikar
Source: The Hindu; July 9, 2016

Defence procurements have started flowing in along with their offsets. The offset benefits for the country look set to reach $12-15 billion over the next 10 years, Defence Minister Manohar Parrikar said here on Thursday. With purchases coming through, their offsets or plough-backs to domestic industry have normalised. In the last two years, 100 per cent offset obligations were achieved compared to around 60 per cent during the earlier five years.

“The quantum of offsets will increase in the coming years because deals are in the offing.”

The purchase of 36 Rafale medium multi-role fighter aircraft that is currently going through cost negotiations will result in offsets that will be 50 per cent of the value of the deal.

“There are still many things that can be done with offsets if you apply them well,”

Mr. Parrrikar said, while addressing the seventh annual Strategic Electronics Summit organised by Electronics Industries Association of India (ELCINA).

Starting with the Defence Procurement Policy 2016, many changes are taking place in Defence policies where industry role was important. The government was carefully and practically viewing the policy of banning and penalising certain vendors. The logic was to ensure that projects do not get stalled for many years, he said

Cisco will nurture start-ups to support Make in India.
Source: The Hans India; July 9, 2016

US-based global technology company Cisco, that arrived in India in 1995 and has created thousands of jobs since then, says it is committed to the Make-in-India programme and will continue to be generous in nurturing start-ups. Reiterating Cisco's commitment to align with Prime Minister Narendra Modi's ambitious Digital India and Smart Cities initiatives in a free-wheeling interview to IANS, Amit Phadnis, President, Engineering and India Site Leader, said the time is ripe to begin a manufacturing unit in the country.

"We are very committed to make the manufacturing happen here. The commitment is very firm. Our teams are working towards realising this goal. We have also identified the place but there is still some time to go public on this,"

a cheerful Phadnis told IANS at Cisco's sprawling campus located at Cessna Business Park here.

With 11,000 people working in India, the $143 billion company is reported to set up a manufacturing base in Pune -- a city where it recently opened its second Global Delivery Center, the other being operational in Bengaluru.

However, the specific details are yet to emerge. Phadnis, who last week initiated 'LaunchPad', an open innovation initiative to help startups, authorised channel partners and developers scale their solutions, address new markets and build digital businesses in India, is confident that the initiative will first digitally empower the few millions in our country before digitising the next three billion globally.

India will soon become self-reliant in electronic sector, says official
Source: Business Standard; July 9, 2016

India is expected to soon become self-reliant in the electronics field as Electronic Sector Skills Council of India (ESSCI) plans to train more industry oriented professionals, a top official said today. India is importing nearly 65% of electronic goods, which is next to oil and this trend will be reversed once more product development oriented jobs are created, which would make the country a net exporter after 2020, ESSCI CEO N K Mohapatra said. Speaking after signing a memorandum of understanding with city-based Sri Krishna College of Technology, Mohapatra said the main purpose of the agreement was to enhance new technical skill-based manpower training, train existing employees and faculty. Focus will be on semi-conductor technology and for this purpose a Centre of Excellence in Electronics has been opened in the college, where student will be trained in chosen skills of the electronics, he said. He added that the electronic fields almost occupied all kinds of occupation and needed more qualified personnel to meet the market requirements.

Working on next generation of routers: Manohar Parrikar
Source: Economic Times; July 9, 2016

Defence Minister Manohar Parrikar today said the country is working on manufacturing next generation of routers.

"Information is important tool and we cannot have routers which are functioning from abroad where there might be bugs to sabotage or cause leakage of vital information and data. We should have routers for at least important networking from our own creations,"

Parrikar told the gathering during golden jubilee celebration of Goa Engineering College here.

"We (India) are also working on (manufacturing) next generation router. It is very important in telecommunication. If you don't want your telecommunication to be leaked, then the router should be controlled by you as there is a high possibility that the routers might have trap doors," the Minister added.

"We have done that (manufacturing of routers in India). We have signed agreement with ANURAG (Advanced Numerical Research and Analysis Group) to develop second-stage router. Why can't the institute like Goa Engineering college do it?," he said.

Parrikar, a former Goa Chief Minister, also said "It is unfortunate that none of the Goa-based technical institute never thought of taking advantage that (a) Goan is a Defence Minister by proposing tie up with the organisations like DRDO."

"We have pool of scientists whose expertise can be used to improve the quality of the institutes. Defence Ministry is already signing contracts left and right with various institutes for knowledge exchange," he added.

India 14th in production, 10th in consumption of machine tools, say experts
Source: ET Auto; July 9, 2016

Eleventh edition of the machine tools exhibition of international standards AMTEX 2016 kick started from July 08 at Pragati Maidan, New Delhi showcasing a wide array of Machine Tools, Machineries and Allied Products. Experts from length and breadth of the Machine Tool and Manufacturing industry in India and global participants from China, Germany, Japan, Korea, Singapore, Taiwan and Turkey. Industry experts estimate India to stand 14th in the production and 10th in the consumption of machine tools in the world. The Exhibition was inaugurated by Rishi Kapoor, Meiban Engineering, Hiroaki Kiriyama, Muratec Engineering, Cyril Pereira, Managing director and Mohammed Shakeeb, Director, Reed Triune Exhibitions Pvt. ltd. Michael Mandl, CEO, Reed Exhibitions India amongst others. On the sidelines of the event, Frost and Sullivan unveiled its exclusive white paper themed Smart and Sustainable Manufacturing - Changing Era of Indian Manufacturing in partnership with AMTEX followed by a series of conference sessions led by the creme de la creme of the industry. There are currently almost 700 machine tool manufacturers in India of which the top 25 players contribute a 70 percent share. The demand is growing at CAGR 15 percent annually of which about 60 percent of the demand is addressed by imports currently annually with tremendous boost from the Make in India initiative.

9 Indian companies to manufacture STBs; iCAS cost less than $0.5: Govt
Source: Indian Television; July 11, 2016

A total of nine private companies have been identified by India’s Department of Electronics and Information Technology (DeitY) for manufacturing indigenous set top boxes equipped with Indian Conditional Access System (iCAS).

However, the government department could not give a time-frame as to when indigenously-manufactured STBs would be ready to address the growing demands for boxes as digital rollout inches towards the finishing line.

Sources in DeitY said STBs with iCAS is a techno-commercial decision of the operators, but indicated it could coincide with the Phase IV deadline of Digital Addressable System in December this year.

In the third and fourth phase of ongoing digitisation of TV services in India, industry experts estimate need for approximately 70-80 million boxes.

DeitY, till recently part of the Communications Ministry but since then sliced away under the charge of minister Ravi Shankar Prasad, had been set up to promote e-Governance for empowering citizens, promoting inclusive and sustainable growth of the electronics, IT & ITeS industries, enhancing India’s role in Internet governance, promoting R&D and innovation and ensuring a secure cyber space.

Startup Village to launch digital incubator
Source: The New Indian Express; July 11, 2016

Startup Village, the country’s first PPP-model business incubator, will to launch a digital incubator for students in Thiruvananthapuram on July 13. SV.CO., the digital avatar of Startup Village, will be launched by Chief Minister Pinarayi Vijayan, Infosys co-founder and Startup Village chief mentor Kris Gopalakrishnan and National Science and Technology Entrepreneurship Development Board head H K Mittal.

“The incubator will focus on creating entrepreneurial culture amongst the country’s five million engineering students by providing them a fully digital incubation framework, with applications for admission, teaching, mentoring and graduation,”

said a press statement here on Thursday.

The digital incubator, which was built over the last 12 months, has already received more than 1,000 applications from students in its beta stage, from across Kerala and cities like Vadodara and Vishakhapatnam.

“Students can form teams and apply on for admission to the digital incubator. Once selected, they will be guided right from selecting the idea to building the prototype and launching it to early customers within six months. Based on whether customers like the product, or not, teams can then graduate to incubators/accelerators and raise ‘angel funding.’ They could also get acqui-hired as teams, hired by other startups or go for higher studies,”

said Startup Village chairman Sanjay Vijayakumar.

In exclusive deal, India to get ‘most advanced’ F-16 fighter jets by 2019-20
Source: The Hindu Business line; July 11, 2016

US defence major Lockheed Martin has firmed up its plans to produce the latest version of its iconic F-16 fighter jets only in India under the ‘Make in India’ programme.

The multi-billion dollar deal was “finalised” during the recent visit of Lockheed Martin’s Chairman, President and CEO Marillyn Hewson here last week, a top official, involved in the talks, told BusinessLine.

Under the deal, the company will be manufacturing the latest version of the jets – F-16 Block 70/72 – that will be produced “exclusively” in India. This will be the “most advanced” version and will not be built anywhere else in the world. Lockheed Martin also plans to export them from the India plant at a later stage, the official said.

The F-16 project is a government-to-government deal that will be conducted through the Foreign Military Sales (FMS) route. However, it seems Lockheed Martin has no plans to take the 100 per cent foreign direct investment route for the programme. It is likely to co-produce the F-16s in collaboration with the Tata Advanced Systems Ltd., which has been its partner for other defence and aerospace programmes such as the C-130 cargo plane. The Maryland-based firm is currently scouting for land to set up its manufacturing unit. According to sources, it is looking to set up the plant in a State that will have a runway near a port.

Robot led transformation and make in India nice angles
Source: The Financial Express; July 12, 2016

In a recent article (Make in India 2.0, FE, June 28), we made a case for incorporating new strategies in the landmark Make-in-India initiative as implementation of digital technologies, collectively called Industry 4.0, are transforming the manufacturing paradigm of last two decades of 20th century, which saw China become the ‘factory to the world’ on the back of foreign investment and low-cost manufacturing driven export-led strategy. We are already starting to see a shift to the 21st century paradigm—as evidenced by the recent announcement by Adidas for shifting production from China to Germany as advances in robotics made it cost-effective to do so. This trend will only pick up as the price of industrial robots is projected to drop by 20% over the next decade, while their performance will improve by 5% annually. The biggest beneficiary of this foreign investment cum low labour cost manufacturing paradigm, namely China, is rushing to transform its manufacturing sector for the new century and has become the biggest buyer of robots.

In this new manufacturing paradigm, the future of manufacturing growth and creation of new jobs in India has to go beyond the industrial parks with large-scale labour-intensive plants of the 20th century.

The new paradigm will be driven by three key shifts,

(i) robotics enabled small-scale, localised manufacturing,

(ii) growth of global digital services servicing manufactured products,

(iii) and greater share of platform enabled exchange of products transforming supply chains.

India to lend Kenya $45 million to boost manufacturing sector
Source: Moneycontrol; July 12, 2016

India will lend Kenya USD 45 million to help develop a textile factory and other smaller industries, the leaders of both nations said on Monday. Prime Minister Narendra Modi is on a four-nation tour of Africa that is part of a policy push to make his country a more global player, economically and diplomatically.

"India is Kenya's largest trading partner and the second largest investor here. Even with that, there is a potential to achieve much more,"

Modi told a news conference with Kenyan President Uhuru Kenyatta.

Monday's deal highlights Kenya's desire to link up with countries that can help improve its struggling manufacturing sector. Kenyatta said USD 30 million of the funds would be used to revive Rift Valley Textiles Factory, which went out of business in 2000 as mismanagement of the cotton sector led to Kenyan production to collapse. The factory is owned by a local university. Kenya exports raw or semi-processed commodities such as tea and coffee to India, while India exports finished products including pharmaceuticals, steel, cement, paper and paperboard, electronics, machinery, vehicles and motorcycles to Kenya.

More investments expected in electronics manufacturing, says Ravi Shankar Prasad
Source: The Hindu Business line; July 13, 2016

The Centre has ‘renewed’ the push to electronics manufacturing in India and more investments are expected, Information Technology Minister Ravi Shankar Prasad said. Prasad said that he will also continue to push projects like making nearly two-lakh common service centres (CSCs) a big skilling hub so that youth are well trained to get jobs.

“The skills include mobile/ television repair and agriculture appliances. CSCs are already working as a payment gateway for paying utility bills, etc,” Prasad told BusinessLine.

Prasad said he has prioritised some projects in the IT sector that includes – Digital literacy because it is going to compliment the entire ‘Digital India’ initiative, e-Governance — and a renewed push to electronics manufacturing. He also said the Centre is happy with the mobile manufacturers in India.

“We will push for more investments and I intend to visit some of the new mobile phones manufacturers of the country. I am happy that 11 crore mobile phones have been manufactured in the country, 50,000 jobs created and 17 new companies have come in the last one-and-a-half years,” Prasad said.

“I am happy that good investments have come. When I had become the minister, only ?11,000 crore had come for electronics manufacturing, but now it has reached ?1.20 lakh crore and many more will come,” he said.

Foxconn to set up a 2-lakh sq feet mobile assembling facility at Navi Mumbai
Source: Firstpost; July 13, 2016

iPhone maker Foxconn is likely to begin manufacturing mobile phones from its second India factory near Mumbai from August. Taiwan-based Foxconn, which makes iPhone, iPad and other Apple products, will initially make mobile phones at a 2 lakh square feet facility in Navi Mumbai and later laptops and computers, said Apurva Chandra, Principal Secretary – Industries, Maharashtra government.

“Foxconn has taken a rented premise in Navi Mumbai. They have taken 2 lakh square feet. They have (set up) their mobile manufacturing facility (there). And probably, as we are told, first week of August they are going to launch mobiles from this facility,” he said.

The rented premise is a temporary facility and the company is looking at 1,200 acres of land in Maharashtra for a new multi-billion dollar factory. Foxconn had recently announced plans to make India a key global manufacturing hub for servicing markets across Africa and West Asia.

Chandra said Foxconn has indicated plans to start with manufacturing mobile phones and later laptops and computers.

“Mobile manufacturing will begin in August then they are going to manufacture laptops and computers,” he said adding a mobile assembly can be set up in 6-8 months.

Mobile handset vendors urge government to reinstate old rule for importing parts
Source: The Economic Times; July 14, 2016

Mobile handset vendors have urged the government to urgently reinstate the old rule of submitting an undertaking with bond or bank guarantee for importing parts for mobile manufacturing, instead of submitting a surety, which has led to higher costs. The change in the customs rule has led to an increase in transaction and compliance costs, at a time the industry is already burdened with huge compliance costs, the Indian Cellular Association (ICA) said in similar letters to Department of Electronics & Information Technology (DeitY) Secretary Aruna Sharma and revenue secretary Hasmukh Adhia.

"These issues are suffocating the potential of the manufacturers to optimize on their manufacturing capacity,"

Pankaj Mohindroo, National President of the ICA said.

"We feel that given limited number of producers, each with substantial capital assets, additional check of surety serves little purpose."

The surety condition for parts import covers around 27% of the input value, which means around Rs 10,000 crores of working capital gets locked up with an interest cost of Rs 1000 crore per month, besides administrative costs of compliance.

Compiled by IESA Research

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