Opportunities in the Indian Microelectronics and Precision

Components IndustryJune 2020

Miniaturization

Machine Tools

Surface MountTechnology

Growing machine tools industry and increased use of CNC machines is driving growth for precision components

Machine Tools

Miniaturization continues to be the key trend that is driving the precision components industry in reduction of cost and providing aesthetics.

Miniaturization

The rise of SMT in construction of electronic circuits because of its advantage of automation, high speed assembly, miniaturization, and better mechanical and electrical performance is driving the precision components industry

Surface Mount Technology

Source:: Ministry of Electronics & Information Technology, Transparency Market Research, Data Bridge Market Research, T&A Analysis,

PRECISON COMPONENTS INDUSTRY: DEMAND DRIVERS

Automobile Chassis component companies use precision turned parts ranging between 0.3 mm to 20 mm diameter size

Chassis Components

Companies in this segment have consistent demand for precision turned parts falling between range of 0.3 mm to 20 mm

Drug Delivery Systems

Limited number of companies in India but consistent importer of precision turned parts in order to maintain quality

Hearing Aids

Companies in this segment have a considerably higher dermand for precision turned parts for cable terminals, plugs and sockets.

Micro Plugs and Switches

Source:: Ministry of Electronics & Information Technology,

Transparency Market Research, Data Bridge Market Research, T&A Analysis,

PRECISON COMPONENTS INDUSTRY: MARKET OPPORTUNITY

Gujarat is the leading hub for precision turned parts followed by Maharashtra and Karnataka (Mangalore and Bengaluru).

Gujarat- Major Hub

Precision components industry is an import driven industry with majority imports from Japan, U.S. and Europe

Import Driven

Demand for high quality precision components is driven by automotive, electronics, industrial and construction equipment

Automotive & Electronics driven

Precision industry is facing pricing pressure and companies are looking to replace imports with locally manufactured products

Price Sensitive

Source:: Ministry of Electronics & Information Technology, Transparency Market Research, Data Bridge Market Research, T&A Analysis,

PRECISON COMPONENTS INDUSTRY: MARKET TRENDS

PRECISON COMPONENTS INDUSTRY : MANUFACTURING CLUSTERS

Mohali- Sunnex International

Jaipur- Usha Precision Pvt. Ltd- RS India

Gujarat- Ace Brass Industries- Changla Industries- P. I. Metal Products- Prime Industrial

Components- RMS Precision Products- Siddhnath Enterprises- Supreme Metals- Vijay Industries- Zenith Industries

Maharashtra- Birla Precision Technology- Engineering Technologies- G3S India- Hindustan Unity Engineering- Lakshmi Industries- Linit Exports Pvt. Ltd- Patco Precision Component Pvt. Ltd- Precision Metal Works- Prageet Engineers- Sizer India- Shikomin Services- Spaco Technologies India Pvt. Ltd- Suyash Impex Pvt. Ltd.- Vinay Engineering Co

Mangalore, Bangalore & Chennai- Accurate Products Corporation Pvt. Ltd- Chiramith Precision India- Essae Digitronics Pvt. Ltd- G.I. Auto Pvt. Ltd- Innovative Manufacturers- Paloma Turning Co. Pvt. Ltd- Rambal Limited- Sriram Industries- Sudhir Enterprises

Dewas- Tata Precision Ltd

NCR- Abhirashi Impex India- Atop Products Pvt. Ltd- Chera Industries- Lakshmi Precision Screws Ltd- Motherson Group

Maxon Precision Motor India Pvt. Ltd.

100% Subsidiary of Maxon Motor AG Switzerland.

Company Profile

It is the leading provider of high-precision drive systems up to 500 W

India Operations

SRM Technologies

Headquartered in Chennai and has offices in Bengaluru and Mumbai

Company Profile

SRM Technologies (Switzerland) has done JV with RUJ Group(Jaipur);.

India Operations

Maxon India was established in the year 2010 in Bengaluru

Product Portfolio includes Brushless and brushed DC motors with

ironless winding up to 500 W

Global technology solution provider and a value-add strategic partner engineering turnkey solutions

RS India is the JV of an Indian Company ‘Rajendra and Ursula Joshi Skill Development Private Limited’ and a Swiss Company ‘SRM Technologies AG’.

PRECISON COMPONENTS INDUSTRY : CASE STUDIES

PRECISON COMPONENTS INDUSTRY : SWISS PRESENCE

Microprocessor

Very Large-Scale Integration Technology

Digital Signal Processor

Increasing adoption of embedded DSP in themanufacturing process of high performing smartphones.

Digital Signal Processors (DSP)

Rising demand for technologically advanced DSPs forpower efficient smart gadgets, television and airconditioners.

VLSI Technology

Increasing demand for microprocessors forprocessing large information in order to satisfydemand for cellular standards and IoT components.

Microprocessor

Source:: Ministry of Electronics & Information Technology, Transparency Market Research, Data Bridge Market Research, T&A Analysis,

MICROELECTRONICS INDUSTRY: DEMAND DRIVERS

Demand for IoT and wireless devices in consumer and industrial applications is

driving the microelectronics industry

Recent TrendsProduct

development and M&A is the market expansion strategy

for companies

Expansion StrategyConsumer

electronics accounts for the largest share of microelectronics

industry.

Market Share

Japan holds 35% of international patent

filings for microelectronics

Market LeaderMicroelectronics industry

is a highly fragmented industry dominated by

foreign MNCs .

Industry Concentration

Source:: Ministry of Electronics & Information Technology, Transparency Market Research, Data Bridge Market Research, T&A Analysis,

MICROELECTRONICS INDUSTRY: MARKET TRENDS

Wireless sensors for food stocking/ crop improvement and embedded

processors for integrated pest management and surveillance system

will drive application of microelectronics in agriculture.

Agriculture

Smart grid and smart meters for transmission infrastructure will drive

the demand for microelectronics industry in India.

Industrial Sector

Processing more MIIPS (million instructions per second) while

consuming less power for smart phones is driving the demand of

microelectronics in consumer electronics.

Consumer Electronics

ASICs for strategic/ defense applications, SiC radiation detectors for cameras and power applications

will accelerate the growth of microelectronics in defense sector.

Defense

Source:: Ministry of Electronics & Information Technology, Transparency Market Research, Data Bridge Market Research, T&A Analysis,

MICROELECTRONICS INDUSTRY: MARKET OPPORTUNITY

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