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TRANSCRIPT
Post Show Report
Redefining the Indian Electronics Supply Chain….
Conference on
“Leveraging the Market: Time to Target 50% Domestic Content”
Supported by:
Co-Sponsor:
Associate Sponsors:
Affiliate Industry Sponsor:
Media Partner
Organisers
Electronic Industries Association of India (ELCINA)
(Formerly ELCINA Electronic Industries Association of India) ELCINA House, 422 Okhla Indl. Estate, Phase III, New Delhi – 110020
Manufacturers Association of Information Technology (MAIT) PHD House, Ramakrishna Dalmia Wing, 4
th Floor,
4/2, Siri Institutional Area, August Kranti Marg, New Delhi 110 016
http://sourceindia-electronics.com
8th Source India – Electronics Supply Chain 2017
Post Show Report 20th January, 2017 - Hotel Green Park, Chennai
ELCINA initiated “Source India - Electronics Supply Chain”, in 2009, as a business development
program to strengthen local sourcing and value addition and since then it has witnessed five
consecutive successful editions, all organized in Chennai. The event consists of a Conference,
Mini-Exhibition and Buyer Seller Meet and provides great value to all large and Small/Medium
industries.
SOURCE INDIA is a B2B event catering to the high volume segments of electronics mentioned
above and enables the following:
This year Manufacturers Association of Information Technology (MAIT) has joined as a “Co-
Organizer” for Source India which will add value and attract greater participation from the ICT
industry.
Focusing on
Interaction for business development
Opportunities – Demand-Supply gap
One-to-one meetings between OEMs, ODMs, EMS companies with
manufacturers of components, parts, consumables, etc.
Opening a gateway to India by inviting global manufacturers & investors
interested in the Indian market enable JVs and partnerships
Electronic Industries Association of India (ELCINA) & Manufacturers Association of Information
Technology (MAIT) organized the 8th edition of Source India 2017- Electronics Supply
Chain” on 2nd January 2017 at the Hotel Green Park, Chennai. The event theme focused
on Leveraging the Market for achieving 50% Value Addion in Electronics Manufacturing in the
country. The event was inaugurated by Mr. Vikram Kapur, IAS, Principal Secretary to
Government of Tamil Nadu, Industries Department, who shared the details of the strategy being
followed by Govt. of Tamil Nadu to retain its lead in manufacturing and providing due
importance to the ESDM sector. Mr Kapur appreciated the fact that ELCINA had organized
Source India in Chennai for last 8 years and the event was very popular with the industry as a
source for business development.
The Theme of the Conference was “Leveraging the Market: Time to Target 50% Domestic
Content” higher value creation locally by the domestic ESDM industry.
ELCINA & MAIT conducted a half day session of Buyer Seller interaction between Buyers &
Vendors in the format of “One to One Buyer-Seller Meetings” which focused on indigenization of the Electronics Supply Chain based on the Gov’t of India’s ongoing “Make in India” initiative.
The event also included a Mini Exhibition in which some key industry stakeholders, including
component manufacturers, service providers and infrastructure companies displayed their products and services.
The ESDM Industry was represented by more than 130 participating organisations and 19 Large Buyer Companies, 11 Exhibitors and 200+ delegates.
We would like to thank all our Government & Industry Sponsors, Exhibitors & Delegates for wholeheartedly contributing to the success of this event.
Co-Sponsor:-
Nokia Solutions & Networks the world’s specialist in communication technology.
Associate Sponsors:-
Alpha Assembly Solutions a global leader in the development, manufacturing and sales of
innovative specialty materials used in a wide range of Electronic Industry.
Salcomp Manufacturing India Pvt. Ltd. develops and manufactures adapters for mobile phones and other electronic devices.
Covestro (India) Private Limited, is among the world’s largest polymer companies.
Affiliate Industry Sponsors:-
AMRL Hi Tech City Ltd. is an integrated development that is emerging as the destination of choice for world-class industries & business in the state of Tamil Nadu.
Mouser Electronics, is a semiconductor and electronic component distributor for electronic design engineers and buyers.
Foxconn India, is a world leader in mobile and mobile phone assembly, Communication
network related products.
A Summary of 8th Source India
Electronics Supply Chain 2017
Highlights of Source India 2017:
Initiated in the year 2009, Source India – Electronics Supply Chain 2017 is First of its
kind Event promoting ESDM initiatives based on National Electronics Policy.
Premier B2B Industrial Show with Vendor & Supplier Development programs through
Buyer Seller Meet
Over 130 participating companies and exhibitors from across the country.
Ministry of Electronics & IT (MeitY), Government of India, Government of Tamil Nadu,
Electronics Corporation of Tamil Nadu (ELCOT) & Tamil Nadu Industrial Guidance &
Export Promotion Bureau (Guidance Bureau) supported the event.
Objectives of the Event:
Bring all stakeholders on one platform to enable better communication and understanding
among buyers and suppliers of Electronics Value Chain
Facilitate in creating indigenous Supply Chain for Electronics Industry to meet increasing
demand.
Create awareness about opportunities in the Electronics sector.
Involve the Small and Medium Enterprises to meet the requirements of Big Buyers from
Consumer Electronics, Telecom and IT equipment, Auto Electronics etc.
Bridging the gap between Government organizations and businesses.
Encouraging and enabling investments in the Electronics Industry
Program Details:
A Conference on “Leveraging the Market: Time to Target 50% Domestic Content”.
A mini exhibition to showcase opportunities for buyers and sellers.
Pre-arranged Business to Business Meetings at Buyer Seller Meet.
Reserved Buyer-Seller Meeting Area for pre-arranged meetings.
Industry Networking Session
Opportunity for informal meetings and networking.
Buyer-Seller Meet – Pre-arranged one-to-one meetings in a reserved area between
potential suppliers and large buyers.
Conference on
“Leveraging the Market: Time to Target 50% Domestic Content”
Conference Program
0900
0930 – 1100
Welcome Address:
Special Address:
Industry Address
Chief Guest
Vote of Thanks
Registration
Inaugural Session
Vikram Desai, President ELCINA & Managing Director, Desai Electronics
N Ramachandran, Past President ELCINA & MD, Mel Systems & Services
Nitin Kunkolienker, VP, MAIT - The Importance of Developing Component
Ecosystem and India as a Component Hub
Josh Foulger, Managing Director, FIH India (Foxconn)
Thiru Vikram Kapur, IAS, Principal Secretary to Government of Tamil Nadu,
Industries Department
Pankaj Gulati, Sr VP ELCINA & COO, CDIL
1100-1130 Networking Tea Break
11130-1300
Session - I
Discussion on Market Growth and Demand Drivers
Vinod Sharma, Past President ELCINA & MD, Deki Electronics Ltd –
Advantage Domestic
Vipin Tyagi, ED & Chairman of the Board, C-DOT
Sasikumar Gendham, MD, Salcomp Manufacturing
Sanjay David, Head-Sales, Covestro India
Note: Session Opening: Background research paper presentation: A. M.
Devendranath, AVP and Head - Energy Vertical, Feedback Consulting – (10
minutes)
1300 - 1400
Networking Lunch
1400- 1530
Session - II
Opportunities in the Indian Supply Chain & Strategy to achieve 50%
indigenisation
Pankaj Gulati, Sr VP ELCINA & COO, CDIL
Richard Puthota, Director-Business Dev., Alfa Assembly
Sudarshan Pitty, Head, Nokia Solutions and Networks
Madhusudan Moudgal - GM, Syrma Technology- Opportunities for India
Supply Chain for 50% Indigenisation - The Unspoken India Advantage
S Nagarajan, ED, Kramski Stamping & Molding India P. Ltd. –Common
Facility Centres
Note: Session Opening: Background research paper presentation: A. M.
Devendranath, AVP and Head - Energy Vertical, Feedback Consulting – (5
minutes)
1530 – 1545 Summing up & Vote of Thanks
1545 - 1900 One to One Buyer-Seller Meetings (Pre-Arranged)
1900 onwards Networking Dinner
LIST OF PARTICIPATING COMPANIES
SPONSORS
Alpha Assembly Solutions
AMRL Hi Tech City Ltd.
Covestro (India) Private Limited
Electronics Corporation of Tamil
Nadu Ltd. (ELCOT)
Foxconn India Pvt. Ltd.
Guidance Bureau
Mouser Electronics
Nokia Solutions & Networks
Salcomp Manufacturing
EXHIBITORS
Alisha Coils and Transformers
(Division of Cosmo Ferrites Limited)
AMRL Hi Tech City Ltd.
Axiom Energy Conversion Ltd.
ChipTest Engineering Limited
Continental Device India Pvt. Ltd.
(CDIL)
Electronics Corporation of
Tamilnadu Ltd. (ELCOT)
Electronics Sector Skills Council of
India
IDFC Bank Ltd.
Relyon Softech Ltd.
Sri City (P) Ltd.
Syrma Technology Private Limited
DELEGATES
ACCEL Transmatic Limited
Alfa Assembly Solutions
Alisha Coils and Transformers
Andhra Electronics Limited
Apollo Aerospace
AT&S India Pvt Ltd
ACMA, Southern Region
Berger Becker Coatings Pvt Ltd
BlackPepper Technologies
Brady Company India Pvt Ltd
ChipTest Engineering Limited
Classic Exports
CLIK
CX Precision Mechanical
Datafield
Deki Electronics Ltd.
Desai Electronics Pvt Ltd
EFY Group
Elcom International Pvt Ltd
Electronic Relays India Pvt Ltd
ELICO Limited - Mechoptronix Division
EPCOS India Pvt Ltd
Epitome Components Pvt Ltd
Esko Die Casting Pvt Ltd
FCI OEN Connectors Ltd (Amphenol FCI)
Feedback Business Consulting
Hiflo Solders Pvt Ltd
Indian Society of Lighting Engineers
(ISLE)
Infineon Technologies
Innovative Engineering
JLW Electronics (HK) Ltd.
KDDL Limited
KRAMSKI Stamping and Molding
Linkwell Telesystems
Macom Technology Solutions
Magway Magnetic Cores
Manav Packaging Private Limited
Manipal Technologies Limited
MEL Systems and Services Limited
Mentor Media
Miracle Electronic Devices Pvt Ltd
MMI India Pvt Ltd
Molex India Pvt Ltd
MRO-TEK Realty Limited
Mucho International
NeoGrowth Credit Pvt Ltd
Nihon Technology Inc
Nippon Avonics
Parker Chomerics
Parksons Packaging Ltd
Pinshine Industrial Co. Limited, Suzhou,
PRC
PPG Asian Paints Pvt Ltd
PEC Manufacturing Company
ProSIM R&D Pvt Ltd
Radiant Polymers Pvt Ltd
Ready LED Lighting Pvt Ltd
Regus Business Center
Relyon Softech Ltd
Rising Stars Mobile India Pvt Ltd
RMC Electronics Private Limited
Sabic Innovative Plastics (I) Pvt Ltd
SANYO DENKI India Pvt Ltd
Sealed Air India
SGS Tekniks Manufacturing Pvt Ltd
ShenZhen SanXiangYuan Electronic , PRC
Shin-Etsu Polymer
Silkee Electronics Ltd
Sparr Electronics Ltd
Sreenidhi Inst. of Science and Tech.
Stanadyne India Private Limited
Super Mount Pack Pvt Ltd
Supply Technologies India Pvt Ltd
Synegra EMS Ltd
TE Connectivity Ltd
Teamlease Services Limited
TITAN Time products Ltd
TUV Rheinland India Pvt Ltd
BUYERS
ABB India Limited
Amara Raja Electronics Ltd
Bosch Automotive Electronics
Centre For Development of Telematics
(C-DOT)
Dell International Service
Delphi Automotive Systems
Electronics Corporation of India Ltd.
Foxconn India Pvt. Ltd.
Hubbell India
Icomm Tele Limited
Lava International Ltd.
Lenovo India Pvt. Ltd.
Maruti Suzuki India Limited
Napino Auto & Electronics Ltd.
Nokia Networks India Pvt. Ltd.
Panasonic Automotive Systems India
Salcomp Manufacturing India Pvt. Ltd.
Stanley Black & Decker
Valeo Lighting Systems India Pvt. Ltd.
SUMMARY OF PROCEEDINGS
Mr. Vikram Desai, President ELCINA & Managing Director, Desai
Electronics, delivered the welcome address highlighting that ELCINA has
continued this event in Chennai due to strong support by buyers and Tamil
Nadu Government. He spoke of the vision of our Prime Minister which had
energised the industry. Demonetisation despite all its positives he said, has
affected the industry severely with dwindling demand and inventories piled
up. Roll out of GST which was scheduled for launch on 1st April launch was
eagerly looked forward to as would be a game changer. For targeting 50%
Domestic content in electronics it was necessary that passive components, PCBs and even
electro-mechanical parts are promoted and sourced locally. The demand for components has
attracted few new investments and these have to be pushed aggressively. Rapid growth in
assembly plants of Mobiles was mainly due to 11.5% duty differential between imported mobile
devices and indigenously made ones. Similar benefit may be accorded to all components and
electronic goods that are presently imported. This will also encourage high value addition
manufacturing in India.
Mr. Desai also recommended that our Government must replicate the story of the auto sector in
building up indigenous capacities for other sectors of electronics.
Mr. N Ramachandran, Past President - ELCINA & Managing
Director, MEL Systems & Services
Mr. Ramachandran highlighted the high dependence on imported
components and specially semiconductors which often comprise 50% of
the BOM. The domestic content varies but in most of the products it ranges
from 6% to 20%. The situation in China is 70%, Taiwan 60% and even
Vietnam 30%.
He proposed the Cluster approach by choosing a range of products for
indigenization and build capacities in these Clusters. Mr Ramachandran
recommended that Meity should form a task force to handle this project which must work with
the industry, and choose components to be made in India.
He suggested that components of Plastics/Metal Parts, Wound components, Ferrites, Capacitors,
Resistors, Switches, Connectors, PCBs and EMS/Assembly and testing of Semiconductors had
the maximum potential. He also emphasized that the promised incentives should be delivered
on time to encourage investments.
Mr. Nitin Kunkolienker, Vice President, MAIT
Mr. Nitin Kunkolienker is Director-Corporate Affairs, Smartlink Network
Systems Ltd – India’s one of the top most companies in the field of
Computer Networking and Information Technology.
Mr. Kunkolienker spoke on the Importance of Developing Components
eco-system and India as a Component Hub. He shared his views about
the urgent policy support required for this initiative without which our
value addition would always remain low and R&D would never grow.
Mr. Josh Foulger, Managing Director, FIH India (Foxconn)
Mr. Josh Foulger, Managing Director of Foxconn gave his views on the
need for a supportive policy to promote manufacturing of mobile phones
and to recover the situation after the closure of the Nokia Plant in
Sriperumbudur. Josh spoke at length about the differential duty policy
which had given a big phillip to the Mobile assembly eco-system and
emphasized the need for continuing this support and moving to the next
stage of the phased manufacturing program for mobile phones. Due to
this policy over 260 Million smart phones had been assembled in the
country and we could soon exceed 500 million, he said.
The phased manufacturing program would result in over 50% localization in next 2 years and
barring semiconductors, all other components and parts would be manufactured in India.
The Chief Guest, Shri Vikram Kapur, IAS
Principal Secretary to Government of Tamil Nadu,
Industries Department
Mr. Vikram Kapur is a 1988 batch officer of the Indian Administrative
Service, borne on the Tamil Nadu State cadre. He expressed great
satisfaction at the fact that ELCINA had been conducting this event in
Chennai since last 8 years and it was growing gradually. He assured
continued support from Tamil Nadu Government for Source India.
Mr. Kapur shared the policies and initiatives being taken by his Government
to promote high tech industry and how the auto industry had grown over the last decade. He
informed that Tamil Nadu Government was working on a special policy for Electronics
Hardware and many of the problems faced by industry were being actively looked into for
solutions. He invited the industry to meet him and share their recommendations on the policy
so that the same could be effective in promoting electronics manufacturing in the State.
Mr. Pankaj Gulati, Sr. VP, ELCINA & COO, CDIL
Delivering the vote of thanks in the Inaugural session Mr. Gulati expressed
appreciation towards the sponsors, MeitY and Government of Tamil Nadu,
specially Guidance Bureau and ELCOT for their unstinted support to the
event. He also thanked the Organising Committee members for their
guidance.
Mr. Gulati also spoke on the Opportunities in the Indian supply chain and
strategy for achieving higher indigenization. He spoke about the
opportunity in discrete semiconductors and how his company had entered this segment almost
60 years ago. He advised that India was not competitive in semiconductor manufacturing but
there was great immediate scope in EMS and electromechanical components as well as PCBs
which needed to be promoted.
Session I – Discussion on Market Growth and Demand Drivers
Eminent Speakers :-
Mr. Vinod Sharma, Past President ELCINA & MD, Deki Electronics Ltd.
Mr. Vipin Tyagi, ED & Chairman of the Board, C-DOT
Mr. Sasikumar Gendham, MD, Salcomp Manufacturing
Mr. Sanjay David, Covestro India
Mr. A. M. Devendranath, AVP and Head - Energy Vertical, Feedback Consulting
Session II – Opportunities in the Indian Supply Chain & Strategy to achieve 50% Indigenisation
Eminent Speakers :-
Mr. Pankaj Gulati, Sr. VP ELCINA & COO, Continental Device India Ltd. (CDIL)
Mr. Richard Puthota, Director-Business Development, Alfa Assembly Solutions
Mr. Sudarshan Pitty, Head, Nokia Solutions and Networks India Pvt. Ltd.
Mr. Madhusudan Moudgal - GM, Syrma Technology Private Limited
Mr. S Nagarajan, ED, Kramski Stamping & Molding India Pvt. Ltd.
Industry perspective on the State of the Electronics Industry currently
Summary of the Industry Perspective
1. Current state and outlook for the Industry
Based on the discussions with the Industry leaders and ELCINA, it was agreed universally that
the EDSM industry in India is likely to grow at a CAGR of 23% going forward. The current ~$
100 Bn industry is likely to reach around $ 280 Bn by 2020 and about $ 400 Bn by 2022.
As per the survey responses, 92% of the respondents have a positive outlook on the industry
and expect more from the Government and industry ecosystem to grow further.
N=26 respondents
2. Key growth factors driving the EDSM industry in India
There was a consensus that there were cross sectoral levers for growth of EDSM in India, while
there were also a many specific growth drivers such as Power Sector growth, Make in India –
Mobile story, Digital India, Automotive electronics growth etc.
N=41, multiple responses from 26 respondents
3. Key factors impacting the growth of the EDSM industry in India
On the factors impacting the growth of the EDSM industry, close to 65% of respondents believe
it is due to the poor state of the Supply Chain - raw materials availability and components base
in India. Nearly 88% of the respondents had views on the various Government policies
impacting the Industry.
1
1
1
1
2
4
4
7
8
16
0 2 4 6 8 10 12 14 16 18
Foreign OEM's using their own components from principal countries
Lack of standards - for products and for manufacturing
Poor Power Quality and uniterrupted supply
Quality issues
Lack of advanced manufacturing
Labour policies & issues
Inefficient logistics & paper work
High cost of doing business - high interest, capex requirement, Duties &mfg. costs
Poor Government support for Indian firms (Chinese dumping)
Raw materials (Poor component base, high imports, inefficient supplychain)
Factors impacting the growth of Indian Electronics industry
N=44, multiple responses from 26 respondents
4. Opinion on Government Policies
On the Government policies relating to the EDSM industry, there was a near unanimity in the
industry that the policies were good but needs better implementation and some policies may
need some modifications (88% of the respondents).
N= 26 respondents
5. Suggestions and recommendations from the industry
There was a near consensus from the industry that Policies for a better domestic demand
creation would be the key for leveraging towards 50% domestic content. Industry has a few
options but nearly all the industry leaders felt that it will need to be driven by the Government
else the Imports will nearly kill the nascent industry.
1
1
2
3
3
4
4
15
26
0 5 10 15 20 25 30
Need to sell India 'well' to atttract manufacturing
Skilled talent in Electronics needs to be retained in India
Improve power quality and supply
Invest in testing and certification centers, individuals and policies
Industry voices more in Govt & make Industry part of decision making
Improve Ease of doing business
Policies for increased availability of raw materials
Need for transparency from Government & Clarity in policies
Policy intervention for domestic demand creation
Suggestions to achieve 50% domestic content
N= 59 responses from 26 respondents
Snapshot of 8th Source India – Electronics Supply Chain
Hon’ble Chief Guest Mr. Vikram Kapur Lighting the Lamp
Mr. Vikram Kapur delivering the Inaugural Speech
Hon’ble Dignitaries on the Dias during Inaugural
Session Hon’ble Dignitaries during the Lamp Lighting
Mr. Vikram Kapur at one of the Stall Audiences during the conference