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Manufacturing push in aerospace, defence will boost electronics industry
Source: Electronics B2B; September 2, 2017

The Indian Electronics and Semiconductor Association (IESA) on Thursday said the domestic manufacturing push for the aerospace and defence sectors will provide a major boost for the growth of the country’s electronics industry.

The electronics segment in the aerospace and defence sectors, which is estimated to be about $20 billion, is projected to go up to $80 billion by 2025, Anilkumar Muniswamy, Vice-Chairman of IESA, informed media.

Speaking at Deftronics, a two-day event hosted by IESA, Muniswamy said the sector is growing at a robust 15-20 per cent per annum and big investments are likely to come if some of the proposals under consideration are factored in. G Satheesh Reddy, Scientific Advisor to the Defence Minister, commented that from a situation where the country’s electronics industry, particularly in the aerospace and defence, was fully dependent on imports, it has made rapid strides towards indigenisation, with a number of defence establishments playing a role.

Referring to missile systems, radars, torpedoes and sensors used in the defence segment, Reddy said, “We are not only making them all in India, but have encouraged a number of private sector players to be part of the development process.”

Baba Kalyani, Chairman of Kalyani group, said there is huge talent in the country which has capability to develop products and electronic platforms.

T'gana mulls to set up incubator for startups in defence: KTR
Source: The Times of India; September 2, 2017

The Telangana Government is mulling to set up an exclusive incubator for startups working in defence sector, said state IT and Industries Minister K T Rama Rao here today.

"We have series of discussions with the Scientific Advisor to Raksha Mantri (Defence Minister) and with the support of Centre we will be launching a Defence Electronics and Defence focused incubator in Hyderabad," Rama Rao said in his inaugural address of "Deftronics-2017", a two-day conclave of defence and aerospace electronics industry.

"I think it would be an important initiative and a step forward in ensuring the completely leverage our indigenous capabilities of our youngsters who wanted to come out with more and more success stories out of India," the Minister added.

He also said under the state's "Innovation Policy", the government is planning to develop a million square feet work space to accommodate startups across different sectors.

"Possibly we are going to launch the worlds' largest incubator by next year. This would be a 3.5 lakh sft area facility accommodating 1,000 startups all at one roof," he added.

He said the capital Hyderabad is shaping up as a hub for aerospace and defence manufacturing and there are number of MSMEs working in these sectors."We are as a state eyeing almost 7.5 million of electronic products (manufacturing) by 2020. This is an ambitious target in the next three years. I do believe that we are well poised. We also hope attract almost USD 3 billion investments in the electronic system design and manufacturing (ESDM) space by 2020," added KTR.

Hero Electronix sets eyes on IoT, defence electronics
Source: The Times of India; September 3, 2017

Hero Electronix, part of the Hero Group, is gearing up to venture into new areas like Internet of Things (IoT), defence electronics and automotive sector, according to a senior company official.

The company has identified IoT-enabled home solutions as a priority area as part of its strategy to scale up overall business.

"More and more technologies are entering Indian households today and there lies a huge opportunity for a company like us in IoT," Hero Electronix CEO Nikhil Rajpal told .

Right from security surveillance to home electronics, trackers and lighting systems, there are lot of opportunities, he added.

When asked how soon the company would venture into it, Rajpal said: "We have prototypes ready and in another six to nine months we should be ready with our first launch in the segment."

While he did not disclose the type of product, Rajpal said the idea behind the company's product development has been to tailor it to suit Indian requirements.

"What is currently available in the market are high priced products which have been made for the developed markets. Our products are developed keeping in mind the localised needs, how things are used in an Indian household," he added.

Moreover, Rajpal said, "Our focus has been on the pricing front where our efforts have been to make them affordable." On defence electronics, he said the company's aim is to tap into India's huge spending on defence and play a part in the drive for local manufacturing.

228 electronic firms get notice for not toeing E-waste norms in Telangana
Source: The New Indian Express; September 3, 2017

The Central Pollution Control Board (CPCB) has issued notice to 228 electrical and electronic equipment (EEE) manufacturers across India, including four in Telangana and three in Andhra Pradesh, for not adhering to the E-waste (Management) Rules of 2016. The notices were sent to small companies as well as well-known corporations, including Datawind, Nokia, Cisco, Videocon, Karbonn, Usha Shriram, Benq, Panasonic AVC Networks, Fujitsu, Oppo, InFocus, Ajanta, AMD India, Maxx ,Celkon, Intel and Blackberry.

In Telangana five companies received the CPCB notice, including Electronics Corporation of India Limited (ECIL), a Government of India enterprise, cellphone company Celkon Implex Pvt Ltd and three others, Smartron, Analogics and Bhagyashree Industries. The 228 EEE companies were sent notices for not applying to the CPCB through Form-I, for authorisation of Extended Producer Responsibility (EPR) as per E-waste Rules, 2016. In the notice CPCB gave all the rule violators a month’s time to get the required authorisation. Violation of E-waste Rules by well-known corporations is surprising as the rules are clear that any EEE company that operates without EPR authorisation from CPCB will be considered as causing damage to the environment. Further, the E-waste Rules state that a producer will be responsible for damage caused to environment due to improper management of e-waste. The E-waste Rules, which came into effect on October 1, 2016, mandates EPR on electrical and electronic equipment manufacturing companies.

Government mandates all ministries to spend 10% of IT budgets on cyber security: Report
Source: BGR India; September 4, 2017

The importance of cyber security is gradually being recognized by India, with the Ministry of Electronics and Information Technology (MEITY) now mandating all other ministries to earmark 10 percent of their IT budgets for security spending. The government wants to beef up its IT infrastructure in the the wake of recent security attacks such as Wannacry, Ransomware, and so on. The Ministry also plans to set up ten more Standardization Testing and Quality Certification (STQC) labs that provide quality assurance services in IT and electronics, ET reported.

“The ten new labs will be coming up in smaller cities like Vishakhapatnam or Amaravati, while two of the existing labs will be upgraded,” Ajay Kumar, additional secretary, MEITY, reportedly said. At present, there are 15 STQC labs across India, in centers including Delhi, Jaipur, Kolkata, Bengaluru, Chennai, Hyderabad, Mumbai, Pune, etc. provides quality assurance services in the area of Electronics and IT through countrywide network of laboratories and centres. Their services include Testing, Calibration, IT & e-Governance, Training and Certification to public and private organizations. ALSO READ: Indian companies become aware of security risks, spending to reach $1.5 billion in 2017

The government’s mandate comes at a time when instances of cyber attacks have shot up world over. Billions of dollars in business have been lost owing to these attacks. India, however, has no cyber breach disclosure laws. Hence, there is under-reporting of losses, according to research firm Gartner.

Dixon Technologies looks to raise Rs600 crore from IPO starting 6 September
Source: Mint; September 4, 2017

Electronic manufacturing firm Dixon Technologies (India) expects to raise Rs600 crore from its initial public offer (IPO) due on 6 September and plans to spend the proceeds on capacity expansion and debt repayment.

“In the primary raise, the money will be spent on setting up LED TV capacity in Tirupati, expansion of our backward integration of lighting business, debt repayment, IT infrastructure and the rest will be used for general corporate purposes,” Dixon Technologies managing director Atul B. Lall told reporters.

The company expects to raise Rs60 crore from the primary round of equity sale and Rs540 crore from offer for sale. “Post listing, 52% of Dixon will be held by promoters and friends, 8% by employees, 5% by Motilal Oswal and 35% will be with the public,” Lall said.

The IPO will open on 6 September and close on 8 September with a price band of Rs1,760-1,766 per share with a face value of Rs 10 each.

Dixon has six manufacturing facilities at present. Three plants are located in Noida and Dehradun each. Dixon plans to repay debt of Rs22 crore, invest Rs7.57 crore in setting up its seventh manufacturing unit for LED television in Tirupati.The company will use Rs8.85 crore for producing parts of LED lights at its Dehradun plant. The company is electronic contract manufacturer for Panasonic India, Philips Lighting India, Intex technologies, Gionee and Surya Roshini, among others.

PM Narendra Modi asserts government’s economic reforms to attract BRICS nations
Source: The Economic Times; September 5, 2017

Prime Minister Narendra Modi on Monday took the opportunity of the presence four other BRICS leaders and industry leaders from these countries to highlight economic reforms undertaken by his government -- by describing GST biggest economic measure ever and referring to all time hike of FDI inflow by 40 per cent – with an eye on attracting further investment. “India is changing fast into one of the most open economies in the world today. Foreign Direct Investment inflows are at an all-time high, rising by 40 per cent. India has moved up in the World Bank Index of Ease of Doing Business. Similarly, we have moved up 32 spots in last two years in the Global Competitiveness Index,”’ Modi highlighted while addressing BRICS Business Council here.

The Goods and Services Tax that was introduced in July is India’s biggest economic reform measure ever, the PM said, adding, “In one stroke, a unified market of 1.3 billion people has been created. Programmes like Digital India, Start Up India and Make in India are changing the economic landscape of the country. They are assisting India turn into a knowledge based, skill supported and technology driven society.”

Understandably the PM’s target was to attract more investments in India for his flagship projects to boost growth. Referring to the developments made by BRICS in area of business partnership, Modi said, “I am happy to note that the BRICS Business Council also has matching priorities of trade & investment facilitation, promoting skills development, infrastructure development, SME Development, e-commerce and digital economy.

Make in India for defence gets Rs 6,100 crore boost! HAL to make 41 Advanced Light Helicopters for Army, Navy
Source: Financial Express; September 5, 2017

Make in India for defence just got a Rs 6100 crore booster shot! Defence PSU Hindustan Aeronautics Limited (HAL) has signed a contract for the supply of Advanced Light Helicopters (ALH) to the Indian Army and Indian Navy. While Indian Army will get 40 helicopters, the Indian Navy will get one. The contract for supply of 41 ALHs amounting to around Rs 6,100 crore will be executed over a period of 60 months, says HAL. We take a look at some interesting features of the ALH and why they will be an important addition for the security forces. Out of the 40 helicopters for the Indian Army, as many as 18 will be in the weaponised configuration, sources tell FE Online. In 2013, HAL had handed over the first weaponised ALH - the Rudra - to the Indian Army. The Rudra comes equipped with turret gun, rockets, air-to-air missiles, Electro-optical pod, Helmet pointing system and Radar/Laser/Missile Warning Systems.

HAL's ALH is a multi-role, next-generation helicopter in the 5.5 tonne weight class. It has been both designed and developed indigenously. According to HAL, its ALH is "suited for high speed cruise for rapid deployment and to maximize the area of operations". The ALH is also suitable for increased payload at higher altitudes. he helicopter has been certified for military operations by Centre for Military Airworthiness & Certification. It is also certified for civil operations by Directorate General of Civil Aviation (DGCA).

Startups get 80% rebate on patent fee
Source: The Economic Times; September 5, 2017

More domestic and foreign startups will now be able to access the fast-track mechanism for filing patents, which will drastically cut down the time taken to obtain these rights. The government has introduced a more liberal definition for startups to ensure that many more of them can become eligible for benefits, including lower fees, under the latest patent framework.

Under the new definition, any entity in India recognised as a startup by the competent authority under the Startup India initiative will be eligible. In order to encourage patent filing, the government has amended the Patent Rules 2003. The rules notified on September 2, will allow startups to avail of a rebate in patent fees.

“A foreign entity, fulfilling the criteria for turnover and period of incorporation or registration as per Startup India Initiative” would be extended the patent filing benefits meant for startups, according to the notification.

Over the past year, the definition of startups, as notified by the Department of Industrial Policy and Promotion, has been refined to include changes such as the inclusion of job opportunities as an important criterion. Startups were earlier defined as companies that are only five years old with a maximum turnover of Rs 25 crore per year and working towards innovation.

With the rules revised, startups will be eligible for an 80% rebate on patent fees. The DIPP will bear the facilitation cost on behalf of startups and provide rebates in the statutory fee for the filing of applications.

Startups are here to create jobs and provide employment to 1 billion millennials
Source: Yourstory; September 5, 2017

While the need to facilitate an entrepreneurial India has gained momentum with initiatives like StartUp India, Digital India, and access to MUDRA banks among others, the reality is that brand India is yet to take flight.

“We are nurturing our youngsters to be job creators and not job-seekers. Change in demand and technology is changing the nature of jobs.” The words of Prime Minister Narendra Modi echoed with optimism as he addressed the nation on the 71st Independence Day.

As India moves towards a ‘New India’ by 2022 as envisaged by the government, the promises of – pucca houses, double income for the agricultural labourers, access to electricity, healthcare, sanitation, and education – centre around job creation and pumping money into the Indian economy. While the need to facilitate an entrepreneurial India has gained momentum with initiatives like StartUp India, Digital India, and access to MUDRA banks among others, the reality is that brand India is yet to take flight.

The United Nations World Employment and Social Outlook 2017 report acknowledged that India was responsible for maximum job creation in 2016 in the Asia and Pacific region. However, the job creation fails to be at par with the rising population of the country, and India is facing a stagnation in job creation.

NITI Aayog sets up task force on employment, exports
Source: Hindu Business Line; September 6, 2017

In a bid to provide a “major” thrust to job creation by enhancing India’s exports, the NITI Aayog has set up a task force to be headed by its Vice-Chairman Rajiv Kumar. The task force, which includes government and private sector representatives, will submit its report by November.

Among other things, the task force will propose a comprehensive plan of action to generate employment and alleviate under-employment in both goods and services sectors and low wages by boosting India’s exports in key labour-intensive industries, as per its terms of reference.

Its other terms of reference include suggesting ways to enhance the availability of data on trade such that it is “reliable, globally comparable and timely, particularly with respect to trade in services”, an official release said.

Recommending sector-specific policy interventions in key employment sectors, measures to enhance trade in services with high employment potential, identifying key macroeconomic factors constraining exports and suggesting methods to address these constraints, assessing the effectiveness of existing schemes to promote exports and issues related to logistics, export credits and trade facilitation are its other terms of reference.

The other members of the task force are CEO, NITI Aayog, Secretaries of the Department of Commerce, Department of Industrial Policy and Promotion, Department of Economic Affairs and Ministry of Textiles, as also Rajeev Kher, former Secretary, Department of Commerce; Ajit Ranade, Chief Economist, Aditya Birla Group; Praveen Chakravarty, Senior Fellow, IDFC Institute; Jayanta Roy, formerly of The World Bank; Harish Ahuja, MD, Shahi Exports; D Shivakumar, Chairman and CEO, PepsiCo, India; Sunil Vachani, Executive Chairman, Dixon Electronics.

Xiaomi open to moving servers to India
Source:; September 6, 2017

Xiaomi said it was open to moving its servers to India subject to its cloud service provider partner Amazon Web Services (AWS) moving to the country which is critical for the Chinese smartphone maker's global success.

“All our servers are sitting on AWS (Amazon Web Services) in Singapore and US. If AWS moves to India, we would be happy to work with them," Manu Kumar Jain, VP Xiaomi and managing director of India operations, told ET, becoming the first overseas company to openly offer to move its servers to India.

Handset companies typically don't store data on their own servers but instead lease space on third party cloud service providers such as AWS, Microsoft and Google.While AWS and Microsoft have already set up their centres in India, Google has also announced setting up the same in the country to cater to a larger number of customers, especially those in the government or financial services industry since regulations in those sectors don't permit data to be transmitted outside the country .

“We last evaluated this about 2-3 years ago when we were moving our servers (from China), at that time there was no significant presence (of AWS) and it was much more difficult to have it here," Jain explained, when asked whether the company would move or add its servers in India, which appears to be the larger aim for the government intending to secure data.

Ashok Leyland Defence Systems inks pact with Russian firms
Source: India Info Line; September ,7 2017

Ashok Leyland Defence Systems has signed a Memorandum of Understanding (MoU) on cooperation with Russia’s Rosoboronexport and ELCOM Group on the sidelines of the International Military Technical Forum Army, held at Kubinka, near Moscow, recently, said Ashok Leyland in a BSE filing on Wednesday.

Ashok Leyland Defence Systems has signed a Memorandum of Understanding (MoU) on cooperation with Russia’s Rosoboronexport and ELCOM Group on the sidelines of the International Military Technical Forum Army, held at Kubinka, near Moscow, recently, said Ashok Leyland in a BSE filing on Wednesday.

Rosoboronexport is the only state organisation in Russia for export of the entire range of military products and technologies. It represents Russian companies who are manufacturers of Infantry Fighting Vehicles and Main Battle Tanks, currently working with the Indian Army.

ELCOM group is an India-based emerging strategic electronics player primarily involved in designing, developing, manufacturing and deploying devices in the areas of Aerospace, Electronics and Communications.

Ashok Leyland is an India automobile manufacturing company headquartered in Chennai, India. It is owned by the Hinduja Group.

How government plans to make India an electric vehicle nation
Source: The Economic Times; September 7, 2017

It’s been touted as the LED moment of transport — the vision of an all-electric passenger car market in India by 2030, greening of the system being the link. The reference is to what the Vienna Energy Forum famously referred to as the “largest energy transformation project in the world” — the task of replacing millions of street and household lights with energy-saving and longlasting LEDs, in the process, taking electricity into many villages for the first time.

Even as a clutch of automakers — and a few non-car companies, too — gear up to create an ecosystem for electric vehicles (EVs), there’s something quietly underway on the government front. Come December, state-owned Energy Efficiency Services (EESL) will float tenders for 25,000 electric rickshaws and a same number of electric autos for phase I of sale to aggregators in public transport. That’s step one of the LED moment.

E-rickshaws are three-wheelers with a covered cabin, have speed limits below 25 km per hour and can seat four passengers (excluding the driver). They’re ideal for last-mile connectivity from, say, metro stations to workplaces. The e-auto can cover longer distances at higher speeds and has more stringent criteria on performance, safety and construction.

The government plans to procure the vehicles though EESL — dissociated from the battery — and lease out to aggregators, who will deploy them in the market. Industry committees have already released specs for the vehicle, powertrain, weight and battery.

AI, healthcare and fintech are torchbearers of emerging Bengaluru startups
Source: Yourstory; September 7, 2017

As the TechSparks countdown begins, we list the top Bengaluru startups that have grabbed the spotlight due to the work they do and the growth they are projecting.

Bengaluru has always been referred to as India’s Silicon Valley. This is not just in terms of the number of startups that have mushroomed in the city, but also keeping in mind the funding pumped into the Bengaluru startup ecosystem.

According to YourStory data, between 2016 and 2017 (YTD), the total amount of funding raised by Bengaluru startups was a whopping $6.6 billion.

As many as 460 startups have made Bengaluru their home in the past two years, be it e-commerce giant Flipkart, cab aggregator Ola or Practo, one of the top funded healthcare startups in India. Apart from this, Bengaluru is also home to several second-generation entrepreneurs like Mukesh Bansal and Ankit Nagori, who recently launched Curefit.

The Flipkart Mafia founded Udaan, a B2B e-commerce company, edtech giant Byju, food delivery startup Swiggy and many others.

While the likes of these are always in the news, we have discovered a set of startups that are now making waves. Though the list is anywhere from exhaustive, these are some startups that have grabbed the spotlight due to the work they do and the growth they are projecting.

Compiled by IESA Research

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