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  IESA WINWire June 25 - July 01, 2016 for Subscription click here  
11th Anniversary

Nominations open for IESA-NASSCOM Deftronics Awards 2016 – Nominate Now
Source: IESA; June 18, 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

PM Modi launches smart city projects, calls experiment a success
Source: Hindustan Times; June 25, 2016

Prime Minsiter Narendra Modi on Saturday evening inaugurated various ‘Smart City Projects’ under the Smart Cities Mission at a function in Pune.

Modi launched 84 such projects including 14 for Pune, for various other cities across the country, at an investment of around Rs 2,000 crore.

The 20 selected Smart Cities were linked to the Pune venue through videoconferencing wherein their states’ Chief Ministers and other leaders gave details of their plans for the Smart Cities in their states and interacted with the PM.

Modi visited an expo on Smart Cities, inaugurated a contest on ‘Make Your City Smart’ and a Smart Net Portal on the occasion at the Shiv Chhatrapati Sports Complex in Balewadi, on the outskirts of Pune.

Here are highlights of Modi’s speech at the event:

  • Smart cities are about modern facilities and becoming centres of development
  • Our urban spaces have to focus on solid waste management
  • Size of roads and buildings is the only way to evaluate a city. Every city has a distinct identity
  • Cities have the ability to absorb poor people and that is why people from villages migrate to cities in large numbers

Haier expands manufacturing facility in Pune, plans to invest Rs. 490 crore
Source: Business Standard; June 26, 2016

Appliances for the seventh consecutive year, today announced the initiation of the expansion of their manufacturing facility in Pune by hosting an official ground breaking ceremony conducted in the factory premises in Ranjangaon.

The new development aims to boost the employment opportunities at Haier by 167 percent by the end of 2017. The event was addressed by Eric Braganza, President Haier Appliances India and Song Yujun, Managing Director, Haier Group.

Zheng Xiyuan, the Consul General of the Chinese Consulate General in Mumbai, was the guest of honour at the event.

The event was conducted to initiate the expansion of Haier's manufacturing facility in Pune, Maharashtra, after the company signed an MoU last year with the Maharashtra Government to invest Rs. 490 crore in line with the Central Government's "Make in India" initiative.

The investment is aimed to scale up the production capacity of existing categories in the factory like refrigerators, while also introducing manufacturing operations for new product lines like, washing machines, air conditioners, LED panels, and water heaters.

Lockheed Martin and Data Security Council of India launch cybersecurity program
Source: ET Telecom; June 26, 2016

Lockheed Martin and the Data Security Council of India (DSCI) announced the launch of a new cybersecurity education program for small and mid-size businesses to help them minimise risk from online threats. DSCI promotes data protection among the Indian industry and is partnering with Lockheed Martin to heighten the cybersecurity awareness of businesses and their workforce.

"Digital technologies will play a key role in enhancing competitiveness and their growth agenda. As small and medium businesses and their workforce embark on their digital journeys, they need to protect themselves against cyberattacks,"

said chief executive officer for DSCI Rama Vedashree.

The initiative includes development of an interactive Cyber Security Awareness Web Portal with resources for businesses to safely and securely manage their digital presence.

"With nearly 50 million units with over 110 million employments, and contributing over one-third of the manufacturing output in the country, this sector has wide reach in large number of verticals. A program for this sector can have huge impact on a significant part of business community in the country and a step towards realizing the vision of Digital India,"

additional secretary, Department of Electronics & Information Technology (DeitY) Ajay Kumar said.

Gurrampalem electronic manufacturing cluster gets APPCB nod
Source: The Times of India; June 26, 2016

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) is planning to take up development of the electronic manufacturing cluster (EMC) at Gurrampalem near Pendurthi soon as it has received the consent for the same from the AP Pollution Control Board.

According to APIIC sources, the centre had granted in-principal approval to the EMC about three months ago.

"The approval of the APPCB was received three days ago. Now, we will approached the Visakhapatnam Urban Development Authority (Vuda) for approval of layouts to be developed in the cluster," sources said.

An APIIC official said apart from the development of layouts, VUDA should give clearance for providing roads, power and water to the EMC.

"The plots will be developed into areas of 1, 2 and 5 acres and interested companies may utilise the facilities at the cluster," he said.

In all, the EMC will have around 35-40 plots. Around 60 acres of the cluster will be developed into plots and the remaining 40% will be open space and utilised for common utilities.

CM Naidu announces launch of first Smart City project in Visakhapatnam
Source: The New Indian Express; June 26, 2016

Chief Minister N Chandrababu Naidu on Saturday announced the launch of the first ‘Smart City’ project of the state in Visakhapatnam as the Prime Minister Narendra Modi officially kick-starting the ‘Smart City Mission’ at Pune through video-conferencing.

Projects with a total investment of `2,900 crore were launched in 20 cities in Uttar Pradesh, Madhya Pradesh, Jharkhand and Odisha chosen for the project in the first phase of the mission undertaken as part of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

Chief ministers of several states Vasundhara Raje (Rajasthan), Naveen Patnaik (Odisha) and Chandrababu Naidu (Andhra Pradesh) made their presentation to the Prime Minister through video-conference.

The Greater Visakhapatnam Muncipal Corporation (GVMC) has set up chief a facility for the video-conferencing on its premises.

Naidu who landed at the Vizag airport on Saturday afternoon behind the schedule drove straight to the GVMC office to take part in the programme.

During the presentation, Naidu said that Vizag would be developed with an investment of `1,600 crore under the smart city programme in the next four year, but in a phased manner.

China tech powerhouse Tsinghua bets $7.5 bln on R&D, urges faster reforms
Source: The Financial Express; June 27, 2016

Lately, State-backed Chinese technology group Tsinghua Holdings plans to spend $7.5 billion on research and development over the next five years, accelerating China’s drive to build a high-value semiconductor industry to challenge global chipmaking rivals. As the firm that controls acquisitive chip supplier Tsinghua Unigroup outlined the target, its chairman, Xu Jinghong, also said China has been too slow to reform its economy, and must move faster to promote high-margin tech operations rather than cheap manufacturing. In the chip development drive – a strategic priority for Beijing – Tsinghua Unigroup aims to become the world’s No. 3 chipmaker after Intel Corp and Samsung Electronics Co . The firm has proposed buying stakes worth nearly $1 billion in two Taiwanese chip firms – deals now under review by a new Taipei government that is less friendly toward China. Speaking to Reuters on the sidelines of a World Economic Forum gathering in Tianjin on Sunday, Xu said the pace of progress in China in broad economic terms was too slow. The old investment-led growth model produces diminishing returns and ever-larger amounts of debt, Xu said.

Digital India to Create 5-Crore Jobs by 2020: Study
Source: CXO Today; June 27, 2016

PM Narendra Modi’s ambitious Digital India mission is expected to create over five crore jobs in various sectors. The project will also facilitate Training to around 1 crore students for IT sector by 2020 - opening new windows of opportunities for professionals with a host of careers and jobs. This is according to a new release by, which further states that the new FDI norms will drive jobs in the country, especially in the IT sector.

India has already seen an increased FDI inflows at USD 55.46 billion in financial year 2015-16, as against USD 36.04 billion in 2013-14. This is the highest ever FDI inflow for a particular financial year, and according to the report.

“The radical liberalization of the FDI regime announced by the government recently has further encouraged local entrepreneurship, global investment firms to invest in startups as well as global IT companies, such as Google, Apple Inc., Amazon, etc. to expand their businesses & networks in the country leading to income and employment growth,” it said.

“India, with its recent radical reforms in the Foreign Direct Investment (FDI) regime, will become the most open economy on the global platform for FDI. The decision of liberalizing FDI policy by putting most sectors on the automatic route for foreign direct investment is going to be highly constructive in enhancing investment, income, employment and career opportunities in the country.”

said Nilanjan Roy, Head of Strategy, Times Business Solutions.

India top destination for R&D investments; beats US, China
Source: The Hindu Business line; June 27, 2016

India’s transformation into a global R&D hub is epitomised by the strides the country is making in attracting R&D investments in the electronics and IT segment, beating the likes of US and Germany. As per the latest report from US-based HfS Research, India leads with 30 per cent of the global ER&D centre announcements.

“From April to December 2015, we found details of 190 ER&D centre announcements. India leads the pack with 57 of those ER&D centre announcements. Other prominent ER&D destinations are the US, China, Singapore, France, Israel, the UK, South Korea and Ireland,”

Pareekh Jain, research director at HfS research, told BusinessLine.

Interestingly, one-third of Indian ER&D centre announcements were driven by ‘Make in India’, as per the report.

“Of the 57 ER&D centre announcements in India, 19 are driven by the ‘Make in India’ initiative. Many enterprises that plan to start or increase manufacturing in India are also opening or expanding their ER&D centres to design products specifically for the Indian market,” it said.

Some of the enterprises that invested in setting up their R&D centres in India as an extension of their manufacturing plans include auto majors such as Rolls-Royce and Michelin to electronics manufacturers such as Foxconn, Ericsson and LeEco.

China, Germany and Taiwan lead in ‘Make in India’ driven Indian ER&D centre announcements. Together these three countries account for more than two-thirds of the ER&D centre announcements. Other investing countries are Denmark, France, Japan, Spain, Sweden, and the UK.

Chinese, Korean smartphone companies look at sourcing from India
Source: The Economic Times; June 28, 2016

Chinese and Korean smartphone makers are increasingly looking at sourcing from India, thanks to around 12% duty slapped last year on import. The move has prompted global contract manufacturers such as Taiwan's Foxconn and Wistron to make India a base, as smartphone sales are growing at a rapid pace. The $20-billion Wistron seems to have made quick gains through its joint venture with Delhi-based Optiemus Infracom. The JV -Optiemus Electronics (OEL) -has emerged as the single-largest contract manufacturer for smartphones in the country and has bagged deals from Korea's LG, China's OnePlus, Taiwan's HTC and Chinese major Oppo. OEL was formed last year and Indian promoter Ashok Gupta holds 80% equity. The company has been expanding at a rapid pace as more and more global device companies are looking at sourcing from India.OEL's manufacturing facility on 78,000 sq meters at Noida in Uttar Pradesh has an annual capacity of 8 million units. It will employ around 4,000 people.

"We have begun produc tion for LG, Oppo, HTC and OnePlus and 20 manufacturing lines have been installed,"

Ravinder Zutshi, a former senior official at Samsung India and who is now the MD of Optiemus Infracom, told TOI.

Foxconn, Government Move Ahead For a Deal on Nokia's Chennai Factory
Source: The Economic Times; June 28, 2016

The bid to revive the Nokia factory off Chennai moves to its next challenge of resolving a large tax dispute after a high-profile meeting with Foxconn chief Terry Gou in Taipei brightened prospects of a Taiwanese occupant to the Finnish phone factory. Secretary at Department of Electronics and IT Aruna Sharma told ET from Finland that there was progress at a meeting called by the Deity of various departments including officials from the revenue department to reach consensus over how to extricate the 212acre asset from the 3-year tax wrangle.

"Regarding the June 15 meeting all are on track now," Sharma told ET, in an e-mailed response regarding the tax dispute, adding that Foxconn is in the process of "making a formal letter" over intent to revive the factory and that "Nokia was on board."

The Department of Electronics had set up a task force last year to jump-start electronics manufacturing in the country. Chiefly, it wants to fix a broken ecosystem that fell like a house of cards after an estimated. 21,000-crore tax demand shut tered the Nokia factory . Companies like BYD, Lite-On Mobile and notably Foxconn as vendors for the Nokia plant followed suit, snuffing out jobs in tens of thousands and making it a poll-time talking point to symbolise industri al decline.

Government may guide Electronics, Leather biggies to set shop in coastal SEZs
Source: The Economic Times; June 28, 2016

The government is considering to handhold some big players in the labour-intensive sectors like garments, leather and electronics to set up shops in coastal special economic zones (SEZs). The idea is to help them set up units at two-three ports, which are yet to be identified, so that these big players build an ecosystem where they create jobs and manufacture products that would cater to both domestic and export markets. A senior government official, privy to the recent high-level meeting with Prime Minister Narendra Modi on employment generation, told ET that Niti Aayog has mooted this proposal as part of government's strategy to speed up job creation. India is adding nearly 12 million people to the job market every year and more than 65% of its population is below the age of 35, a big demographic advantage for the nation that is aspiring to become human resource capital of the world. According to the official, government's premier think-tank Niti Aayog through a long presentation explained the scenarios existing in countries such as Japan, Korea, China, Taiwan and outlined the initiatives in these nations that have translated in job creation following which it had recommended for a dedicated employment generation strategy.

Tata Advanced Systems tying up with Bell Helicopter to compete for $2-billion naval chopper contract
Source: The Economic Times; June 28, 2016

Looking to consolidate its position as a leader in the Indian defence aviation industry, Tata Advanced Systems is tying up with Bell Helicopter of the US to compete against the Mahindra-Airbus combination for a $2-billion naval chopper manufacturing contract. The mega contract for 100 utility helicopters to be operated from warships will be awarded as a 'Make in India' project. Tata will form a joint venture with Bell to bid for the contract under existing foreign direct investment norms, three people with direct knowledge about the developments told ET. Under the route being followed to get the choppers, Indian companies will lead the procurement bids with a foreign company as a technology partner. TASL will be the lead company in partnership with Bell Helicopter, based in Fort Worth, Texas. Competition for the new choppers is expected to play out between the Bell 429 and the Airbus AS565, one of which will be selected on technical and commercial grounds.

"The TASL tie-up with Bell Helicopter is likely to be announced formally soon. It will make the competition more or less a direct fight between Mahindra and Tata,"

people involved in the developments told ET.

The Indian Navy is looking for a modern chopper to replace its ageing Chetak helicopters.

Handset makers lobby suggests value-linked, 10-year tax holiday
Source: The Economic Times; June 29, 2016

India's handset makers lobby has proposed a 10-year income tax holiday linked to value addition, besides a phased manufacturing program spread over a similar time period for increasing local production of electronics, starting with mobile phones, aimed at making the country a global manufacturing and export hub. Duty differential regime on various components in mobile phone manufacturing for a pre-determined number of years has also been proposed by the Indian Cellular Association, as part of its recommendations to NITI Aayog's Make in India strategy paper for electronic products. It has further suggested that phased manufacturing program (PMP) benefits be delinked from the annual Union Budget, which would give long term clarity for global manufacturing firms to plan future investments in India.

"The 10 years tax holiday may be granted on a block of 15-20 years on all profits and gains under Section 80 IA of IT Act, 1961... subject to fulfillment of value addition norms, for bringing in fresh investments in plant and machinery,"

the association said in its submission, a copy of which was seen by ET.

NITI Aayog intends to make India an export oriented manufacturer of electronic products for the future, reducing dependence on imports. India's domestic consumption of electronics hardware in 2014-15 was $63.6 billion, but imports made up 58% of this. It has sought suggestions from stakeholders till June 30 on finding solutions to this issue.

Rolls-Royce building up capacity, capability in India
Source: The New Indian Express; June 29, 2016

British power systems major Rolls-Royce is looking to move from capacity to capability building in India to meet future demands. From selling and technology transfer, Rolls-Royce is now moving ahead towards being part of the nation’s fabric by building an ecosystem and creating sustainability. It aims to build its engineering team at its aerospace centre in Bengaluru. It will hire 500 engineers by 2017 to strengthen its engineering capabilities.

“We firmly believe in India’s potential to be a centre for innovation and manufacturing, which is why, we have made a long-term commitment to build on our legacy here and support further development of India’s aerospace sector through partnerships and collaborations with Indian companies,

said Kishore Jayaraman, President, Rolls-Royce South Asia.

“Looking at the future, we are keen to play a role in India’s indigenisation. We are already nurturing skills, developing local supplier base and building capabilities, ready to eventually embrace opportunities to co-create and co-develop products and services with the right Indian strategic partners for India and the globe,” Jayaraman added.

It is planning to increase its number of suppliers in India from four to ten by 2020. Opening up of the sector to a greater proportion of FDI in defence sector would encourage more investments in the sector.

OPPO hints at manufacturing base in AP
Source: The Hindu Business line; June 29, 2016

Andhra Pradesh Chief Minister N Chandrababu Naidu, who is leading a delegation in China to woo investments to the State, has secured assurance from Chinese mobile company OPPO for a manufacturing facility.

Though other details have not yet been shared, the Chinese company management has hinted as investment of about Rs. 1000 crore, according to a statement from the Chief Minister’s Office today.

AP is seeking to create a mobile and electronics manufacturing hub near the temple town of Tirupati in Chittoor district of Andhra Pradesh. The State has inked memorandums with Micromax, Celkon, Karbonn and Foxconn for manufacturing units in the State.

Compiled by IESA Research

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