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Future & Growth of Electronics Industry In
India
Presented By : Rajendra Singh
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Objective of this session
Overview of the Opportunities available in the Electronics sector, and a understanding of the various aspects of start up or grow
existing Business in EMS
Disclaimer: The session is not prescriptive and no ownership for the data taken- it is an extract of
published
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Introduction
• Until 1984, the electronics sector was primarily government owned.
• The late 1984s witnessed a rapid growth of the electronics industry
• In 1991, private investments - both foreign and domestic - were encouraged.
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AGENDA• What are the policy provisions?• What is market to be in?• What kind of services do we offer?• What kind of Processes are required?• What skill sets are required?• What kind of Competition is present?
Global/domestic• UNDERSTANDING THE CATEGORY
• Opportunities in India.• What can the stakeholders do?
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National Electronics Policy
• 300 Bn US$ gap by 2020• 2 million Jobs• M-sips offered( modified incentive packages)• Clusters are being created • Attract 100Bn US$ investment• Emphasis on ESDM• Export targets-$80 bn by 2020(present 5.5 Bn)• Talent pool required –Govt encourages Pvt Universities-
specially in Chip design, 2500 PhDs required in the next 8 years
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Facts about India….
• India has the world’s largest single location forging facility
• 25% of the world’s new workers in the next 3 years will be Indians • Indian Railways is the largest rail network in the world • 9th largest economy in the world, 3rd largest by 2030 • Sustained GDP growth of over 8% • 220 out of Fortune 500 companies outsource to India • India has the 2nd largest pool of engineers and scientists • India adds 1 “Netherland” mobile users/month, world’s 2nd largest
mobile market • India is the 7th nuclear power in the world India’s GDP/capita will
multiply 4 times till 2020
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BUT……… • India accounts for only
3.5% of the global electronics market
• Worldwide market size = $1.8 trillion
• Size of Indian market = $65 billion
• (approx.)
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Many Emerging Sectors
• Defense And Avionics• Automotive Electronics(Navigation, Entertainment, safety, lighting
….)• Industry Automation and control• Railways and transportation• T&M• Power and Energy, LED• Alternate energy (Solar, Wind, co-gen, Bio, ……)• Advertising and display systems• Consumer electronics• Safety and security• RECYCLING
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Service offerings
• Parts manufacturing, supplies/Kitting• PCB assembly• Consignment• Design and Engineering services• Box build• Testing and testing services• Logistics• Connectivity solutions (Cables, harness)• Packaging
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Total solutions-Value add
• Supply of products + services• Customized services(Value add to existing biz
(Don’t force him to buy what you have)• Build a relation not just sell• What value addition can be done• Pass on the benefits of TQM, Six sigma, Lean to
customers( If customer has no value addition, or get transformed to customer benefit-no point in doing it)
• Bring out creative models of value add to customers
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Processes, systems, standards
• Design Processes, People, customer relation, Partners processes, Review and Improvement
• Manufacturing processes(SMD, THD, Testing)• Delivery( Logistics, turnkey engineering)• Certifications/Approvals-ISOs, UL/CE, NADCAP,
CEMILAC, IPC certified personnel• Standards- IPC, ASTM, JIS, DIN…• Leverage on IT
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Skill sets
• Training policies• Technology• Testing• Process review and improvements• Problem solving• Projects and program management• Leadership development-Global Managers• Technology transfers
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Indian electronics landscapeIndian electronics manufacturing has seen a CAGR growth of 16 percent since 2003Domestic demand is expected to reach USD100 billion in FY14 and USD400 billion in FY20
Electronics Hardware Production in India
Domestic Demand of Electronics in India
45100
400
CAGR 22%
200920142020
20
42
102
Projected at Current CAGR of 16%
200920142020
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Demand estimates for key segments
(USD billion) Target 2014 Target 2020
Semiconductor design 20 58.2
High-tech manufacturing 4.0 22.6
Electronic components 2.6 3.4
Electronic Manufacturing Services
1.4 2.3
Electronic systems
IT systems and hardware 16.7 54.4
Telecom products and equipments
29.5 153.5
Consumer electronics 8.1 17.8
Others (Industrial, Automotive and others)
2.7 7.8
Exports 15.0 80.0
Total of all segments 100 400
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Key drivers for growth
Growth in per capita income
Increased corporate spends
Government focus on infrastructure
Increased investments in automotives
Innovative products at low cost
Retaining intellectual property in India
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Critical Success factors for the industry
Semiconductors•Capital to invest in fixed assets and R&D
•Availability of skilled personnel•Support from government
EMS/ODM•Labor, components and resource cost
•Transportation & logistics•Proximity to suppliers
OEM•Large & developed local market
•Developed transportation and logistics•Government incentives (tax breaks and lower
import duties)
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Opportunities in India
Access
(Wireless)
Digitization
(Electronic Society)
Security
(Integrated Surveillance Systems)
Education (Digital Classrooms)
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Energy(Smart Meters, LEDs, Green
Energy Wireless)
Healthcare(Affordable medicine/
Telemedicine)
Automotive(Low cost/zero
emission)
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WHAT CAN THE STAKEHOLDERS DO?
• Stakeholders in Electronics value chain
Industry Organizatio
ns
Indian Governmen
t
Private Sector
Educational & Research
centers
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Industry organizations
Combine electronics hardware sector expertise and resources
•Improve public knowledge
•Understand the role of industry in India’s potential
•Appreciate the rewards of participating on a global level
Educational & Research centers Provide expertise in industry-building initiatives
•Form partnerships emphasizing the needs of JVs
•Vocational training/educating of relevant personnel
•Define industry skill sets for future researchers, engineers and management leaders
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Private Sector
Alliances with MNCs, business leaders and industry experts
Active part in advisory boards designed to guide EMS ventures
Research/manufacturing initiatives that address regional & international concerns
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Indian Government
Increase core
spending on sector related R&D
Encourage partnerships and foreign technology-based venture capital
investments
Provide financial backing for initiatives,
including human resource development
Develop tech-parks and high-
tech industry clusters
Share risks in launching and
running industry initiatives
Strict implementation of IP rights to
promote innovation Corporate
rewards for the private sector
Coordinate efforts by ministries, private sector,
research labs and academic circles.
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How can India do it???
Industry Organizatio
ns
Indian Government
Educational & Research centers
Collaboration Clear
Private Sector
Educational & Research
centersCollaboratio
n Clear
How can
India do it???
Liaison with
Semiconductor manufacturers
Clear road
map & policie
sFocus
ed
Focused
approach
Collaboratio
n
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