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  IESA WINWire Mar 04, 2017 - Mar 10, 2017 for Subscription click here  
11th Anniversary

State unveils Defence Manufacturing Policy
Source: The Hindu; March 4, 2017

The Maharashtra government on Saturday unveiled a policy for the defence and aerospace manufacturing industry with an aim to attract an investment of $2 billion in the next five years and generate up to one lakh jobs. The policy also proposes to include the industry in the essential services under the Maharashtra Essential Services and Maintenance Act.

Chief Minister Devendra Fadnavis also announced a supportive fund of ?1,000 crore to help industry members invest in the defence industry, as it requires long-term financing. The fund will largely constitute of contributions from the State government, SBI Cap and other financial institutions.

Defence Minister Manohar Parrikar, who was present at the event, said the fund would be a game-changer in terms of attracting more investors to the State. “Maharashtra is the first State to come up with a special policy in this regard, and we will extend our complete support to the State. We are also hoping that other States come up with similar policies,” Mr. Parrikar said.

Mr. Fadnavis said, “Maharashtra has been the preferred investment destination for both domestic and foreign companies because of the availability of skilled manpower, enabling infrastructure and socio-economic development.”

Startup hubs can help overcome production and manufacturing issues: Saryu
Source: Avenue Mail; March 5, 2017

A nip in the air and visible excitement on the faces marked the first day of the first ever “Start Up Conclave East’17”, a landmark affair, at Beldih Club on Saturday.

The two-day conclave is being coordinated by students of the Entrepreneurship Cell, XLRI Jamshedpur, in association with Tata Steel, Confederation of Indian Industries (CII), Government of Jharkhand, in partnership with Entrepreneur Café, Big FM, Ivy Next, Start?up Angel, Jamshedpur Tainment, Headstart, EIGHT (East India Growth Harbinger Trust), Rachna Communication and Entrepreneurship Cell?IIT Kharagpur.

The event kick?started with an enthusiastic crowd of budding entrepreneurs assembling at the Club in the afternoon. A B Lall, chairman CII Jharkhand State Council and Plant Head Tata Motors first addressed the gathering. He stressed on his belief in inclusive growth oriented business models.

He further mentioned that the Start up Conclave East will go a long way to provide the much needed impetus to the Startup ecosystem in the state.

This was followed by CA Saket Chourasia, Director, Global Startup Ecosystem, Entrepreneur Café & Founder Ivy Next, addressing about the initiatives taken by Entrepreneur café in promoting entrepreneurial environment in India.

Make In India Should Focus On Electronics, Machinery, Steel: ASSOCHAM
Source: News World; March 5, 2017

“There are other major import items like crude oil, gold and precious stones which cannot be produced indigenously or are used for re-exports,” the Associated Chambers of Commerce and Industry of India said in a statement here.

“But a growing economy like India which is witnessing a huge expansion in usage of telecom and other items using electronics, should go about in a focused manner to drastically cut imports of the items which can be substituted by domestic production and add to the country’s manufacturing strength,” it said.

“This is eminently doable, provided the policy initiatives are put in place and implemented with great clarity and speed both by the Centre and the states.” According to Assocham there were imports of close to $4 billion of electronics, $2.36 billion of electrical and non-electrical machinery, $1.47 billion of transport equipment and about $1 billion of iron and steel.

“Thanks to expanding demand for user industries particularly telecom, automobile, smart consumer devices, the annualized imports of electronics goods grew at a whopping 24.56 per cent in January, 2017,” the chamber said.

“Import of products which can be manufactured within the country runs contrary to the basic grain of the Make In India. The tax structure should be such that it should make the domestic manufacture far more competitive than imports,” Secretary General D.S. Rawat said.

Electric push to electronics
Source: The Financial Express; March 6, 2017

The electronic manufacturing services (EMS) segment has been one of the major beneficiaries of government’s focused effort towards developing ESDM sector.

The increasing pervasiveness of the Internet bringing along with the growing number of connected devices has boosted the power of electronics. The combination of hardware and software elements is driving the entire Indian electronic system design and manufacturing (ESDM) industry which is expected to double in the next three years.

The India Electronics and Semiconductor Association (IESA) along with EY in a recent report said that the ESDM industry is poised to grow at a CAGR of 16-23% to reach $171-228 billion by 2020 from the current level of around $100 billion plus. In 2015, India’s ESDM industry was at $82 billion growing at a CAGR of 8% from 2013.

IESA chairman K Krishna Moorthy said, “We see the year ahead as a year where the ESDM industry will scale up in value addition and value proposition. With the ongoing digital revolution in the country and the thrust from the government to use technology to improve governance delivery to the people, the requirement for developing new and better innovative products and solutions are growing by the day. This has opened up a number of opportunities to promote both product and solutions development and manufacturing them in our country.”

IESA president MN Vidyashankar said, “With the allocation and incentives of schemes like M-SIPS and EDF to R745 crore in this year’s budget, we believe that India will be the next manufacturing powerhouse of the globe.”

Bihar witnessed 365% growth in investment proposals in 2016
Source: Hindustan Times; March 6, 2017

Breaking all negative perceptions, Bihar has been able to attract new investment proposals worth Rs 5,794 crore during 2016.

Statistics released by the department of industrial policy and promotion of the Union commerce ministry, suggest a massive 365% rise in investment proposals over Rs 1,247 crore in 2015.

In fact, 2016 was a bounce-back year for Bihar in terms of new investment proposals after witnessing a decline from Rs 1,449 crore in 2014 to Rs 1,247 crore in 2015.

The figures show that Bihar left its neighbour Jharkhand far behind in attracting new investment proposals in 2016. Jharkhand, during the year under review, attracted new investment proposals worth just Rs 1,329 crore despite the strategic advantage of having huge mineral reserves.

In fact, Jharkhand witnessed a decline in new investment proposals from Rs 1,540 crore recorded in 2015 to Rs 1,329 in 2016.

Bihar’s investment proposals worth Rs 5,794 crore, came from just 19 proposed new units. This accounts for 1.41% of the total proposals received nationally during 2016.

However, market observers doubt if the 2016 figures will be maintained this year, as many liquor giants have been forced to shelve their production and expansion plans in the state following the imposition of total prohibition on April 5, 2016.

The only silver lining for the state is the commitment on part of the Confederation of Indian Industry (CII) to partner with the Bihar government in promoting technology-friendly farming in the state.

India, Portugal to collaborate in electronic manufacturing, cyber security
Source: The Financial Express; March 6, 2017

India and Portugal on Monday agreed to set up an institutional mechanism to collaborate in areas of electronic manufacturing, ITeS, start-ups, cyber security and e-governance, an official said.

“We had a very good discussion and have agreed to collaborate in the areas of electronic manufacturing, ITeS, cyber security, e-governance and capacity building. We will support the Portugal team in scaling up their initiatives — Simplex and Portuguese Citizen Shops, which are like our MyGov and Common Service Centre initiatives,” IT Minister Ravi Shankar Prasad said.

Prasad on Monday held a bilateral meeting with Maria Manuel Leitao Marques, Portuguese Minister of Presidency and Administrative Modernisation, ahead of the ICEGOV 2017, the 10th International Conference on Theory and Practice of Electronic Governance, an official statement here said.

“We also have discussed several collaborative initiatives in the domain of capacity building and cyber security to ensure safe and secure cyber space,” Prasad said.

“We have also informed the Portuguese Minister that India is going to host the Global Conference on Cyber Space (GCCS) in November 2017, which will see participation of over 100 countries with 2,000 delegates,” added Prasad.

In FY19-FY20 we will see a lot of growth in aerospace and defence: Amit Kalyani, Bharat Forge
Source: The Economic Times; March 6, 2017

The first half of the year would see a consolidation and then from the second half of the year, we will start to see a gradual recovery and this is exactly what we are seeing. The US class 8 market bottomed out and now have started to stabilise to start growing and we believe that 2018 will be a strong year for the US Class 8. So the remaining portion of 2017 will strengthen because they have to build the pipeline in order to service the increased demand for next year. Fundamentally, when the commodity cycle collapsed, there was a lot of overcapacity in the system which has now been consumed and also there are new growth drivers in the economy including the renewal of the oil and gas. Now there is an increased defence spending. Obviously, the whole plan to increase infrastructure spending in the US is a big positive, aided by the emission cycles coming up in 2019 which will lead to a pre-buy in 2018. These are a variety of factors that are creating increased demand.

IESAVS 2017: Smart Phone Design And Manufacturing In India Growing Fast
Source: EE Herald; March 7, 2017

At this year's electronics industry event Vision Summit 2017 , organised by industry body IESA, there was strong message about the growth of mobile phone manufacturing plants in India.

Rajiv Bansal, Joint Secretary, MeitY, Govt. of India shared to the audience at the event, how the mobile phone manufacturing is picking up in the country and the way government is supporting. With the news of Apple deciding to make its smart phones in Bengaluru, India's attempt to bring in high-end electronics manufacturing is showing results. With the announcement of Apple's intention to do manufacturing in India, most of the top smartphone brands in the world now have manufacturing facilities in India. It is estimated more than 100 million mobile phones are produced locally in India in 2016. Rajiv Bansal was confident of the good growth continuing for some more years.

There is also some progress in the local design of smart phone, where Mediatek has trained electronics design engineers from Indian smart phone OEMs such as MicroMax, karbonn, and Lava on the various practical aspects of smart phone design including, embedded software and sourcing information of various mechanical electronic components required for smart phone design.

Smart Vehicles & Power Electronics boosting market Opportunities for Intelligent Power Module Industry
Source: Tech Announcer; March 7, 2017

The Global Intelligent Power Module Market is valued at USD 1.40 billion in 2016 and is expected to reach a value of USD 2.62 billion by the end of 2022, growing at a projected CAGR of 9.28% during the forecast period of 2017 – 2022. IPMs are hybrid power devices which combine low-loss and high-speed insulated-gate bipolar transistor (IGBT) or MOSFETs with protection circuitry and optimized gate drive. IPMs are high-functional power modules containing a dedicated built-in drive circuit for protection from under-voltage, overheating, overcurrent. Key features of IPMs include on-chip current sensor, over temperature protection and gate drive UV lockout. IPMs are being used in PV inverters, motor drives, air conditioning compressors, washing machines, vacuum cleaner, power factor correction, UPS, servo drives, drives for textile machines and etc.

The demand for IPMs among consumer electronics market, high-level integration of control and power components increasing reliability, and efficiency; with optimized systems reducing operating costs and PCB sizes are driving the global market. The shift towards renewable power resources like solar and wind energy, which extensively use IPMs in their power generation units are also fueling the market. However, technical issues due to power modules with SiC-bases may hinder growth, as they have higher frequencies which can’t be synced through the existing control algorithms in the current industry.

Access to Capital Is Biggest Obstacle for Indian Startups
Source: Business World; March 7, 2017

The Indian startup ecosystem has been proving to be adept at bringing new innovative ideas, but seems to be lacking capital to see these ideas to fruition.

"The biggest obstacle for a startup company is not the idea that they can sell, but getting access to the capital," said Frank F Islam, Founder, FI Investment speaking at the US India Startup Forum.

Frank also pointed out that India has a lot of startup energy, enthusiasm, innovations and creativity and that it needs to unleash the potential of a young country. "There is a lot of energy and enthusiasm among the young generation in India for entrepreneurship, innovations and creativity. I think India needs to unleash the potential of this young generation so that they can excel as entrepreneurs," said Frank.

Frank spelled out the qualities of an entrepreneur saying that they are not born, but made. He also noted that an entrepreneur is fair but firm, and he provides an environment to excel, possesses integrity in spite of difficulties that inspires others to excel.

The US India Startup Forum is an industry event that provides the platform for business ideas to receive crucial capital. The Forum is aimed at meeting agendas that comprise of the Startup India initiative that was launched by the Government of India and to create an ecosystem that drive the growth of startups, foster entrepreneurship and promote innovation.

MeitY secy looking to make new tech opportunities available to more women
Source: The Economic Times; March 8, 2017

Even as another International Women's Day brings a deluge of tokenism, Aruna Sundararajan, secretary in the ministry of electronics and information technology, is working on ushering in real change in the role of women in the technology sector in India. Women should have a much greater role in shaping India's rapid technology advancement, Sundararajan told ET. "Digital India has largely been about empowering women, especially those in common service centres. We want women to come into technology startups; we want more women to be skilled in electronics manufacturing; we're talking about more technology helping women's livelihood. It's a sharper and deeper focus," she said.

A 1982 Kerala-cadre IAS officer, Sundararajan has a rich history of not just supporting but also furthering women's rights. One such example is the Akshaya mass eliteracy project, which she conceived and implemented.

"Women do need slightly differentiated strategies to reach them; they need much more promotion," she said. "In startups, they've not been able to access the same level of funding. They've not had the same opportunities; they don't have the same market access; they don't have the same mentoring; they don't have the same cutting-edge exposure to new technologies."

Makeathon at IESA Vision Summit 2017 sparks unique digital creation
Source: IT Voice | Rediff News | Electronics Maker | DQ Channels | ELE Times | Mobility India ; March 8, 2017

IESA Vision Summit 2017 Makeathon (contest) celebrated ideas that are transforming manufacturing, mobility and technology. Twenty two teams participated in the 36 hours Makeathon, at the 12th edition of Vision Summit. IESA encouraged technologists, students and start-ups to come and create cutting edge technology around the theme of Driving Innovation in Augmented Reality/ Virtual Reality (AR/VR) and Industrial IoT (IIoT).

The Makeathon winning team, was awarded a cheque of ? 1,00,000 by Sh. Priyank Kharge, Hon’ble Minister of IT & BT and Tourism, Govt. of Karnataka and Ujjwal Munjal, Founder of Hero Electronix at the concluding ceremony of the two day Summit.

The winning team are students from SRM University, Bangalore who created a system that collects vital machine sensor data like temperature, humidity, moisture and sends all this data to the cloud, allowing easy access from anywhere. Artificial intelligence algorithms are used to analyse this data to estimate and predict multiple kinds of failure in the machine. A message is sent to the supervisor in case any incoming failure is predicted. The team also created an augmented reality mobile phone app that augments the data and overlays it when pointed at the machine to provide an immersive experience and allows for quick detection and repair.

Introduction to smart factories, a new big wave in manufacturing
Source: EE Herald; March 8, 2017

Electronics can be embedded inside machines which are used in factories and can be operated by individuals with ease remotely by letting connected machines and computers to monitor the manufacturing in real time. Although manufacturing industry was using proprietary technologies to connect machines and also make them smarter. The new Internet of things (IOT) is really giving a huge push to this trend by making it more like a standardised way of connecting systems, things and machines.

A smart machine has embedded with intelligence electronics and uses machine to machine communication technology. It includes robots, self-driving cars and other cognitive computing systems that are able to make decisions and solve problems without human intervention.

In a world of connected machines products and people processing and distributing information in real time and taking decision by themselves or in a group makes up the smart factory.

Smart factory includes systems such as cyber-physical technologies, where the process is handled by computer which is connected to the internet and its users. Internet of things enables users cyber physical mechanism to connect to each other and human beings in real time. The smart factory provides advanced and automated facilities to make manufacturing process faster, efficient and safer. This help in minimizing the gap between digital world and traditional industrial standard methods.

Why do startups have high attrition levels?
Source: The Times of India; March 8, 2017

Startups in India have been on a phenomenal rise over the recent years. According to an Assocham report, India was the world's third biggest tech startup hub. The Economic Survey 2015-16 by the government of India stated there were more than 19,000 tech-enabled startups.

New-age entrepreneurs are very savvy and know the first few years of starting a business are extremely crucial. Majority of them are highly focused on getting the best investors on board, adopting the right business model, deciding the product service offerings, calculating their RoI and so on. Though, there is very little or almost no talk about building an inclusive work culture among startups.

Inclusion and diversity (based on gender, race, age, experience and so on) are considered the 'not-so-essential' aspects of the starting years of a business. Whereas it is these elements in the culture of any organisation that serve as the bedrock for its growth and success. Take some of the biggest technology organizations of today that started out in the late 1980s or early 90s.

The one thing their employees and customers will vouch for, is the great culture and sense of belonging they have provided to all from the very start. Lately, we've seen many senior professionals from these current large organisations bitten by the startup bug.

Japanese investors look to bet their money on Indian startups
Source: The Economic Times; March 9, 2017

A new wave of small Japanese investors is scouting in India for early-stage startups they can bet their money on, undeterred by a bearish spell that threatens to upset Tokyo-based Soft-Bank’s biggest wagers in the country.

REAPRA Ventures and Asuka Corporation are the latest Japanese early-stage investors preparing for their India debut, joining Incubate Fund, GREE Ventures, Mistletoe Capital and other funds that have recently started investing in the country. This fresh infusion of capital likely signals a return of confidence in India’s startup ecosystem despite a recent battering of some well-known consumer internet companies, although not without a healthy dose of caution.

Unlike SoftBank that invested hundreds of millions of dollars in potential blockbusters such as the now struggling Snapdeal, the new investors from Japan are cherry-picking small startups with niche technology that can be exported to other Asian markets. Some of these investors ET spoke with said they were more likely to spare much smaller sums of $1-5 million for companies they decide to back. “We are not eyeing models like Uber, which are easy to have ideas on, disrupt and scale.

Why India needs to indigenize defence production
Source: Forbes India; March 9, 2017

Even though India has moved into the world’s top five defence spenders club, nearly 50 percent of its expenditure is on imports, with Russia being the biggest supplier. The Stockholm International Peace Research Institute (SIPRI) reports that India was the world’s largest importer of weapons and military equipment between 2012 and 2016, accounting for 13 percent of global arms imports.

In contrast, China’s share of global defence imports have dropped to 4.5 percent in 2012-16, from 5.5 percent in 2007-11.

The Indian government, through its ‘Make in India’ initiative, is trying to indigenise defence manufacturing, which could help build domestic capabilities and potentially bolster the export sector as well. Last year, the Narendra Modi-led government allowed up to 100 percent foreign direct investment in the sector.

At the recent Aero India 2017 air show in Bengaluru, Defence Minister Manohar Parrikar, once again stressed the need for the country to indigenise its defence production. Public sector defence manufacturers like Hindustan Aeronautics Limited (HAL), Parrikar said, have been told to “outsource a large quantity” of their work to domestic private sector companies. “Increasing production on a particular IDDM [Indigenously Designed, Developed and Manufactured] product can generate a lot of business for the private sector.”

Compiled by IESA Research

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