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  IESA WINWire Nov 12 - Nov 18, 2016 for Subscription click here  
11th Anniversary

Last Date for receiving Nomination for IESA Technovation Awards Extended till November 25, 2016
Source: IESA, November 2016

Over the years IESA has been recognizing and awarding break-through innovation in the ESDM space during Technovation Awards, covering Industry and Academic circles. Due to lot of requests and in view of the large number of holidays this month, the last date for receiving nominations for Technovation Awards 2016 has been extended till November 25, 2016. Kindly send in your nominations before the final deadline of November 25, 2016. Nomination Form available on IESA Technovation Website. Click on the link for details

IESA-TiE Bangalore sign MoU with Telecom Sector Skill Council (TSSC) at IoTNext 2016
Source: Right Info Media; November 12, 2016

India Electronics and Semiconductor Association (IESA), the premier trade body representing the Indian Electronics System Design and Manufacturing (ESDM) industry, with The Indus Entrepreneurs (TiE), Bangalore and TSSC announced a MoU for opening a Center of Excellence (CoE) in Bangalore represented by Lt Gen (Dr) SP Kochhar, AVSM,SM,VSM (Retd) CEO, TSSC, Naganand Doraswamy, President, TiE Bangalore and K Krishna Moorthy, Corporate Vice President & Managing Director, India Design Center Rambus Chip Technologies India Pvt. Ltd. The second edition of the flagship event, IoTNext 2016, saw a huge turnout from industry thought leaders, startups and stakeholders in the IoT sector. With this collaboration between TSSC, IESA and TiE, the CoE will help in providing a platform to skill, develop and train blue collared workers in the field of IoT. It will empower the group to focus on gaining competency using some of the best practices and help in creating job opportunities for them as the industry shifts towards automation. IoTNext has mentored around 16 startups since its inception and amongst which Cardiac Design Labs won Google LaunchPad Award with proven success of the mentored startups to work with them to turn their dreams to reality.

With the growth of IoT in every industry, there is an urgent need to train technicians to deploy, manage and maintain the IoT edge Nodes & Gateways. The main objective of the COE is to prepare the current workforce to be industry-ready in the coming years.

Making India: The next manufacturing destination
Source: The Hans India; November 12, 2016

Making India, the initiative aims to raise the contribution of the manufacturing sector to 25% of the Gross Domestic Product (GDP) by the year 2025 from its current 16%.

Make in India has introduced multiple new initiatives, promoting foreign direct investment, implementing intellectual property rights and developing the manufacturing sector.

India is on the threshold of major reforms and is poised to become the third-largest economy of the world by 2030. In the words of our Hon’ble Prime Minister, India offers the 3 'Ds' for business to thrive— democracy, demography and demand.

Add to that a tech-savvy and educated population, skilled labour, robust legal and IPR regime, and a strong commitment to calibrated liberalization — India is a destination that German investors cannot overlook.

India's manufacturing sector has evolved through several phases - from the initial industrialisation and the license raj to liberalisation and the current phase of global competitiveness.

Siemens to buy Mentor Graphics in $4.5 billion deal
Source: CNBC; November 14, 2016

Siemens agreed to buy U.S.-based Mentor Graphics in a $4.5 billion all-cash deal that will further build the German engineering group's software capabilities.

Siemens said on Monday it would pay $37.25 per share for Mentor - which makes software for designing semiconductors - a 21 percent premium to Friday's closing share price.

Siemens has increasingly had to compete with software companies who can develop technology faster because they have a sole focus and has identified software as a growth area in its part of its "Vision 2020" strategy.

Siemens expects the acquisition of Mentor to add to its earnings within three years and result in savings that will lift earnings before interest and tax (EBIT) by more than 100 million euros ($108 million) within four years.

People familiar with the matter had flagged the planned deal to Reuters, saying Siemens would pay $4.5 billion to $4.6 billion for Mentor.

Deutsche Bank and JP Morgan advised Siemens on the transaction.

T-Hub is building the world’s largest startup incubator facility in Hyderabad
Source: Business Insider; November 15, 2016

Exactly a year after inauguration, T-Hub, India’s largest startup incubator which has waged a startup revolution in Hyderabad is now gearing up to roll out the second phase of its facility. Spread across 3,50,000 square feet, the new wing will be made available to entrepreneurs by mid-2018.

The size of the new facility will make it not only India’s but infact the world’s largest incubator, making it at par with Anne Higaldo’s ambitious ‘Halle Freyssinet’ in Paris, also spread over 3,50,000 square feet.

“The second phase of T-Hub's catalyst building, when opened in 2018, will be the largest such facility in the world. There are many international entrepreneurs, including a few from Israel, who are interested in joining the startup ecosystem in Hyderabad,” revealed Jay Krishnan, CEO of T-Hub.

T-Hub, which operates in a public-private partnership with the government of Telangana and three academic institutions (IIIT-H, ISB and NALSAR) recived an investment of Rs 180 crores for the new facility. Telangana Chief Minister K Chandrashekhar Rao is reportedly going to lay the foundation of the building.

Additionally, Krishnan also stated that T-Hub is in the process of creating a technology-driven ‘Sandbox’ which will act as a support system and include a high-end supercomputer for startups which do not have proper access to resources and infrastructure.

“This is the first time a supercomputer is being made exclusively for entrepreneurs,” he added.

I always have an India-first strategy: Gopal Srinivasan
Source: Hindu Business Line; November 14, 2016

Domestic investors are people on the ground with a deep understanding of the country, says TVS Capital Funds CMD

“I always have an India-first approach to everything. Whether it is fund raising or investing…India first has an innate appeal to me,” says Gopal Srinivasan, Chairman and Managing Director, TVS Capital Funds Ltd, a growth equity company with nearly ?1,200 crore under management. The firm’s first two funds were raised from domestic investors and its bet was on the India consumption story, in different sectors. As TVS Capital Funds prepares to raise its third fund – of about ?1,000 crore – you quiz Gopal on why he prefers domestic investors over overseas investors. “Domestic investors give you a lot of space and freedom to operate the way you trust the business, the way you trust your judgement. Foreign investors come with a lot of prescriptive approaches,” he replies.

Foreign investors allocate assets across countries and their approach is conditioned by that. Domestic investors, on the other hand, are people on the ground with a deep understanding of the country.

“I must, as an investor, do what I understand. I understand the India-first approach. If I took an alternative approach, which I don’t understand, how will I make money for my investors?” says Gopal. The fund’s goal is to make money for its investors, do it ethically and legally, and leave behind some good businesses when it exits.

Samsung Electronics agrees to buy Harman for $8 bn in cash
Source: Business Standard; November 15, 2016

Samsung Electronics is spending $8 billion to buy its way into a burgeoning market for automotive technology alongside Apple and Google as the smartphone business wanes.

The company is making its largest-ever overseas acquisition with an offer for Harman International Industries, angling to become the go-to supplier of everything from in-car entertainment to connected-auto services. It comes days after Samsung Group heir-apparent Jay Y Lee formally ascended to the board of the electronics firm, a move expected to shore up his influence over the family-run conglomerate’s prized asset.

The Harman acquisition will lift Samsung into the top ranks of auto technology suppliers and give it existing relationships with BMW, Volkswagen and General Motors. While Harman became a legendary name in high-end audio equipment, it’s pushed deeper into automotive supplies and now gets 65 per cent of sales from the sector. Samsung’s $112-a-share offer stood 28 per cent above Harman’s closing price of $87.65 in New York on Friday.

“This is the first deal cut after Jay Y joined the board and shows his management style is different from his father. He is an aggressive deal maker,” said Park Kang-ho, an analyst with Daishin Securities. “In the longer term, Samsung is thinking that life after smartphones is electric vehicles.” The Korean company joins a growing list of global technology companies moving into automobiles. The companies see cars as an industry that hasn’t yet been remade by software and online technologies.

Chinese seed accelerator HAX banking on Indian IoT, says Partner Benjamin Joffe
Source: Yourstory; November 15, 2016

It was in July this year that Benjamin Joffe, Partner at the Chinese hardware accelerator HAX, met Arvind Tiwary, Chair of TiE IoT Forum. Benjamin realised the need for building a connection to locally help and prepare startups in India, and finalised an MOU with IoT Forum.

As a part of this partnership, HAX and TiE will collaborate in market assessment and technology assimilation, covering a range of IoT segments. IoT Forum will coach and help HAX select Indian startups for their programmes.

Started in 2011, HAX is an accelerator and $250 million global fund for hardware startups. It has, till date, invested in over 200 startups across the five categories of robotics, health, lifestyle, infrastructure and fabrication technologies. The success stories of HAX include robotics companies Dispatch, Simbe and Makeblock, and CHIP, the world’s first $9 computer.

HAX startups have succeeded in raising funding from top-tier investors like Sequoia Capital, Khosla Ventures and Andresen Horowitz. Moreover, HAX has made its mark as the most active investor by carrying out 70 successful crowdfunding campaigns, with an average funding of over $400,000, eight of which are among the world’s top 100.

23 Startups, $142 Mn Investment In 2014-2016: Extraordinary Journey Of Jaipur From Pink City To Startup City
Source: Inc42; November 15, 2016

Jaipur, capital of the regal state of Rajasthan, is one of the most well-planned cities of its time. Here the past comes alive in magnificent forts and palaces, where once lived the Maharajas. The bustling bazaars of Jaipur, famous for Rajasthani jewellery, fabric, and shoes, possess a timeless quality and are surely a treasure-trove for shoppers.

And, in keeping with its historical evolution, today it has become a budding startup hub, flocked by entrepreneurs and investors alike., CultureAlley, Houssup, Voylla have been paving the way for startups that come out of the Capital City of Rajasthan. The Ratan Tata-powered auto portal listing company, CarDekho (initiated by Girnar Soft in 2007) raised $65 Million in 2015. With this funding, they have been expanding to new ventures – BikeDekho, PriceDekho, TrucksDekho and others and acquiring companies to strengthen their existing product.

Besides establishing its name in ecommerce, Jaipur is bringing learning to people instead of people to learning with CultureAlley. The startup has built a language learning app that has revolutionised the space with its audio-visual lessons and interactive practices. It raised $6.5M from Tiger Global, 500 Startups, and KAE Capital in 2015 for expanding its business.

Large number of Indian MSMEs hit by cheap Chinese imports: Government
Source: The Indian Express; November 16, 2016

A “significant proportion” of Indian MSMEs seem to be adversely affected by selected Chinese imports, which grew at a higher rate compared to shipments from the rest of the world, Parliament was informed on Wednesday. According to information compiled from data provided by Director General of Commercial Intelligence and Statistics, imports from China in 11 major product groups, largely manufactured by MSMEs in India, have grown at a higher rate than their respective imports from all countries combined during 2012-13 to 2015-16. “As these 11 product groups accounted for 74 per cent of India’s total imports from China in 2015-16, a significant proportion of Indian MSMEs seem to be adversely affected from Chinese imports as compared to the rest of the world,” Minister of State for MSME Giriraj Singh in a written reply in the Rajya Sabha.

The 11 product groups pertain to electrical and electronics, mechanical and metallurgical products, as well as chemical, glass and ceramics based items. Union MSME Minister Kalraj Mishra, during a recent visit to China, had invited the country’s businesses to partner with Indian companies, including micro, small and medium enterprises (MSMEs) for technological collaboration and manufacturing in India. FDI policy places some restrictions on foreign investment in certain sectors. Subject to such restrictions, foreign investors can set up enterprises in India without a lower level ceiling on investment.

IT Spending in India will Reach $72.4 Bn in 2017: Gartner
Source: Dataquest; November 16, 2016

Driven by growth in software and IT services revenue, IT spending in India is forecast to reach $72.4 bn in 2017, up 6.9% from 2016 estimated spending of $67.7 bn, according to the latest forecast by Gartner.

Gartner analysts are discussing the key IT and business issues that are driving the evolution of digital business this week during Gartner Symposium/ITxpo here through Friday. Analysts said the key vertical segments driving IT spending growth include the communications, media and services, banking and securities, manufacturing and utilities markets.

“’Make in India’ is set to boost the manufacturing sector, as well as make it easier to attract investment, and ‘Digital India’ is focused on creating digital infrastructure, digital delivery of services and increased digital literacy,” said Partha Iyengar, Gartner Fellow and head of research at Gartner India. “Software and IT services spending is projected to have the highest growth rates as companies work towards creating digital applications on which enterprise organizations’ digital business models are being built. Some leading edge organizations are already starting to extend that journey to the beginnings of algorithmic business.”

Software spending is projected to grow 7.3 percent in 2016, and it will grow another 12.8% in 2017 to total $5 bn (see Table 1). IT services spending is on pace to grow 8.5% in 2016 to reach $11 bn, and increase 13.5% in 2017 to reach $12.5 bn.

Smartphone maker Lava to get $100 mn investment from three chip makers
Source: Mint; November 17, 2016

Lava International Ltd plans to forge a partnership with at least three chip design and manufacturing companies, which will together invest $100 million in the Noida-based smartphone maker, a top company executive said in an interview.

The move is a change in strategy for the company, which was earlier looking to raise a similar amount by directly selling stake to private equity or venture capital firms.

“Put together, we are looking at $100 million from three different companies. It is strategic and not financial,” Lava International chairman Hari Om Rai said.

“Strategic means companies who are building components, which are the most core components in our industry. So, we already have a large control on the product in terms of design, supply chain and production. We still want to build more capability there. We are in touch with some chip design companies. Those companies will pick up stake in our company,” Rai said.

Handset manufacturing is still at a nascent stage in India largely because of the mammoth size of the industry in Taiwan and South Korea and also due to the lack of chip designing and manufacturing capability in the country.

IT-Electronics Industry Leaders Hopeful of all-round Positive Impact of GST
Source: PCQuest; November 16, 2016

The much awaited and talked about GST regime in India is finally attaining certainty with a four-slab GST tax structure of 6, 12, 18 and 26 per cent being mooted at the GST Council meet after unveiling of the Model GST Law in June 2016 (‘GST Law’).

The government, which proposes to implement the new pan-India indirect tax regime from the start of the next fiscal in April 2017, has been moving ahead with finalising online processes for registration, refunds, returns filing and payments.

Manufacturers’ Association of Information Technology (MAIT) appreciates the concerted efforts of the Government to bring all stakeholders on board to finalise India’s new GST Law, which appears to be comprehensive in its approach. Stakeholders are optimistic that the GST tax structure being discussed will be in favour of the ICT industry.

“We welcome the Government of India’s move to introduce GST, which will give a significant boost to the economy. Along with improving ease of doing business and encouraging industries to expand their operations, GST will also ensure growth in job opportunities. Keeping consumer delight as a fundamental output of our technological evolution, at Canon, we are always keen to support endeavours that support progress and development in the country,“said Mr Kazutada Kobayashi, President and CEO, Canon India.

Make in India for India, Asean, Gulf nations: Ravi Shankar Prasad
Source: Economic Times; November 17, 2016

Making a strong pitch to investors to recognise India's "passion" for electronics and technology, Minister for IT and Electronics Ravi Shankar Prasad, today urged global companies to not only manufacture for domestic market but also for export to neighbouring and Gulf countries.

"India's passion for electronics is enormous and I would request all the investors, don't miss the opportunity of India. Therefore, `Make in India' for Indian market, and also for exports to neighbouring countries.

"The technology needs are rising in Bangladesh, Nepal, Bhutan, Maldives, Sri Lanka and other neighbouring countries, Asean and Gulf," Prasad said at a session on Digital India.

He said that Digital India programme is aimed at making India empowered, awakened and a knowledge-based society and bridging the digital divide between digital 'haves' and 'have-nots' is a priority.

"India missed the industrial revolution, missed entrepreneur revolution between 60s and 90s because of licence and permit quota Raj. We don't want to miss the digital revolution. We want to become digital leaders," he said.

The Minister further said that Digital India is not for the affluent but rather for the underprivileged and poor to make their lives better through use of mobile phone

On mobile phone manufacturing, Prasad said that in the last 1.5 years, India has attracted 40 new mobile manufacturing units.

Industry Welcomes Positive Steps Initiated by Government in Telecom Sector Seminar on Digital India - Investment & Business Opportunities
Source: Business Standard; November 17, 2016

Industry Welcomes Positive Steps Initiated by Government in Telecom Sector

Seminar on Digital India - Investment & Business Opportunities

A Seminar on Digital India: Investment and Business Opportunities" was organized by the Ministry of Electronics and Information Technology (MeitY) to-day at the India International Trade Fair 2016. The event was graced by the Minister of Electronics and Information Technology, Sh. Ravi Shankar Prasad and Minister of State for Electronics and Information Technology, Sh. P.P. Chaudhary. The event was attended by eminent speakers from the Industry, besides senior officials from the Ministry and witnessed a packed house. The Seminar also commemorated one year of successful deployment of Indian Conditional Access System (iCAS). A practical hands-on program for mobile handset design engineers was also launched at the event.

MeitY, through a novel PPP model, had funded a unique project for the development and implementation of Indian Conditional Access System (iCAS) for Set Top Boxes (STBs). M/s. ByDesign India Pvt. Ltd., Bangalore, in association with C-DAC has successfully developed the iCAS. The development of iCAS has enabled India to enter a niche market hitherto dominated by few big global companies. More than 1,50,000 Set Top Boxes with iCAS have already been deployed across the country in the last one year. More than 60 Multi-System Operators have installed iCAS enabled head-ends. The iCAS is beneficial to domestic Set Top Box manufacturers and Operators because it is available to them at a price of USD 0.5/ license for a period of three years, as against market price of USD 4-5/ license for other competing products, thus saving significant foreign exchange.

Compiled by IESA Research

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