electronic indst india presentation 1

8/6/2019 Electronic Indst India Presentation 1

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ELECTRONICS INDUSTRY IN

INDIA


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BRIEF HISTORY

The Electronics Industry in India took off around

1965 with an orientation towards space and

defence technologies

This was followed by developments in consumerelectronics mainly with transistor radios, Black &

White TV, Calculators and other audio products.

In 1997 the ITA agreement was signed at the

WTO where India committed itself to total

elimination of all customs duties on IT hardware

by 2005.


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CURRENT SCENARIO

In recent years the electronic industry is

growing at a brisk pace. It is currently worth

around US$ 1.8 trillion according to industry

estimates. The electronic industry in India constitutes

just 2.5 percent of the global electronic

industry. Hence it is miniscule by internationalcomparison.


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India is also an exporter of a vast range ofelectronic components and products for the

following segments: Display technologies

Entertainment electronics

Optical Storage devices

Passive components

Electromechanical components

Telecom equipment

Transmission & Signaling equipment

Semiconductor designing

Electronic Manufacturing Services (EMS)


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Bharat Electronics Ltd

The Government of India (GoI) establishedBharat Electronics Ltd (BEL) in Bengaluru,

India, under the Ministry of Defence in 1954

to meet the specialised electronic needs of

the Indian defence services. BEL focusses oncontract manufacturing, design and

manufacturing services, semiconductor device

packaging and software development andquality assurance facilities. The companys

turnover has increased from US$ 0.68 billion

(INR 32.71 billion) in 200405 to US$ 1.06

billion (INR 50.93 billion) in 20092010.


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Videocon International Ltd In 1985, through a technical collaboration

with Japans Toshiba Corporation, Videocon

International Ltd launched India's first world

class colour TV. Today, Videocon International

Ltd, Videocon Groups flagship company, isIndia's leading manufacturer of consumer

electronic products.

Videocon also has a presence globally, withoperations in the Middle East, Europe,

Indonesia and South Africa.


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LG Electronics India Limited Established in 1997, LG Electronics India

Limited is a wholly owned subsidiary of LGElectronics, South Korea. In India, LG is the

market leader in consumer durables and is

recognised as a leading technology innovatorin the IT and mobile communications

business.

LG Electronics has two manufacturing units in

India with the latest technologies at par with

international standards. These facilities are

among the most eco-friendly units within all

LG manufacturing plants in the world.


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HCL Infosystems Ltd

HCL Infosystems Ltd manufactures and

markets PCs, PC servers, storage solutions and

display products, among other electronic

products. HCLs computer hardware

manufacturing plants include four facilitiesspread across the country.

HCLs revenue has grown from US$ 0.41 billion

(INR 19.7 billion) in 200405 to US$ 2.52billion (INR 121.14 billion) in 20092010.


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Samsung India Electronics Ltd

Samsung India Electronics Ltd, a subsidiary of

US$ 56 billion Samsung Electronics Co Ltd, has

been operating in India since 1995. It is a

leading provider of high-tech consumer

electronics, home appliances, IT and telecomproducts in the country. Samsung India has set

up manufacturing facilities for color TVs,

microwave ovens, washing machines, airconditioners, color monitors and, more

recently, refrigerators. The company has a

plant in Noida, Uttar Pradesh.


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Moser Baer India Ltd Moser Baer India Ltd (MBIL) is the world's second-

largest company in the optical storage mediasegment. MBIL supplies to a number of branded

players such as Sony, Verbatim, TDK, Maxell, Imation

and Samsung and has collaborative R&D programs as

well as reciprocal training programmes with thesecompanies. Further, Moser Baer also has a presence

in the photovoltaic and home entertainment

segments.

Its revenue has grown from US$ 0.29 billion (INR

14.21 billion) in 200405 to US$ 0.43 billion (INR

20.52 billion) in 20092010.


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Jabil

Jabil has a 176,000 sq ft facility in Ranjangaon

near Pune, Maharashtra. The company offers

printed circuit boards, enclosure integration,

distribution and repair services with in-regiondesign services support. The Pimpri plant

manufactures TV analog monitor cards and

certain audio products for Philips. Jabilservices the instrumentation, networking,

peripherals and telecommunications

industries.


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Flextronics

Flextronics ventured into India in 2001.

The company offers high-value, high-margin

design services for mobile phones andtelecom/networking software. The products

manufactured are TV tuners,set top box,

energy meters.

Flextronics has a 692,457 sq ft manufacturing

facility in Chennai.


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Elcoteq

Inaugurated in 2005, ElcoteqB

engalurus mainbusinesses in India include wireless

communication terminal products, network

equipment and aftersales services.

The companys plant (100,000 sq ft) in

Bengaluru is equipped with the latest

manufacturing technologies, including surface

mount technology (SMT), testing andelectrostatic discharge (ESD) control to

support its modernised manufacturing

process.


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Strengths

The Indian electronics market has attracted global

attention for the immense opportunities it holds.

A burgeoning domestic market and its increasing

export opportunities place Indian electronicsindustry as an enviable one on the global map.


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While domestic consumption will continue to be the

primary driver, export opportunities are expected towitness an exponential growth, driven by a favorable

policy climate.

Chief segments contributing to this growth of theIndian electronics industry are expected to be

wireless, consumer electronics, aerospace and

defense, medical devices and identification and

security solutions.


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Weakness

The electronics distribution industry is inherently avolatile one because it is based on technologies thatare constantly evolving and improving as time

passes. We have failed in manufacturing and core design

The most essential factor for manufacturing is theavailability of materials

There is only a thin skeleton of such suppliers in India


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This need to be strengthened by helping strugglingpassive and discrete-semi electronic component

manufacturers with technology-support in makingthe latest components but at competitive prices.

It is more easy to say this than really achieving due tothe stiff competition from China and Taiwan.

The 2nd important factor is the speed of physicalgoods movements, so that supplier can deliver theproduct in-time faster exactly to the place customerwants.

The sea ports, quick custom clearance, reliable road

and reliable transportation matters here. We areimproving here but at slow pace.


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Finally the power, water, land required for industry;

frequent power outages, shortage of water supply,

bad roads have impaired Indian electronics industry

to scale up to compete with the leading regions.


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Opportunities

According to a Frost & Sullivan report2010-2020:Indian Electronics Industry's Golden Decade, theIndian electronics industry will surpass $350 billion

by 2020. While domestic consumption will continue to be the

primary driver, export opportunities are expected towitness an exponential growth, driven by a favorablepolicy climate.


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Thus, for the electronics industry to grow in India,

there is an immediate pertinent need for the

government to come up with a National Electronics

Development Plan (NEDP). The NEDP needs to encompass strategies to develop

the ecosystem, provide export subsidies, create

centers of excellence, identify target markets and

develop the skill-sets needed for the electronicsindustry,


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The NEDP, if made up of the right constituents,

can result in

Direct and Indirect employment of over 20 million

people

Growth in Indias IP strength

Opportunities worth many billions for EDA and

design companies

Development of Indias physical infrastructure to

world-class levels


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Threats

The real threat comes from lack of fundamental

research:

Why not Indian premier engineering institute can't

think out of the box technology solutions?

Why we should always follow the tail of what

researchers at US and Europe does?

Indian labs should develop disruptive technologieswith economical and business strategy.

electronic indst india presentation 1

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