future & growth of electronics industry in india

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Page 1: Future & growth of                           electronics industry in india

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Future & Growth of Electronics Industry In

India

Presented By : Rajendra Singh

Page 2: Future & growth of                           electronics industry in india

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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

Page 3: Future & growth of                           electronics industry in india

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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.

Page 4: Future & growth of                           electronics industry in india

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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?

Page 5: Future & growth of                           electronics industry in india

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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

Page 6: Future & growth of                           electronics industry in india

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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

Page 7: Future & growth of                           electronics industry in india

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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.)

Page 8: Future & growth of                           electronics industry in india

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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

Page 9: Future & growth of                           electronics industry in india

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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

Page 10: Future & growth of                           electronics industry in india

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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

Page 11: Future & growth of                           electronics industry in india

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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

Page 12: Future & growth of                           electronics industry in india

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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

Page 13: Future & growth of                           electronics industry in india

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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

Page 14: Future & growth of                           electronics industry in india

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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

Page 15: Future & growth of                           electronics industry in india

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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

Page 16: Future & growth of                           electronics industry 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)

Page 17: Future & growth of                           electronics industry in india

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Opportunities in India

Access

(Wireless)

Digitization

(Electronic Society)

Security

(Integrated Surveillance Systems)

Education (Digital Classrooms)

Page 18: Future & growth of                           electronics industry in india

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Energy(Smart Meters, LEDs, Green

Energy Wireless)

Healthcare(Affordable medicine/

Telemedicine)

Automotive(Low cost/zero

emission)

Page 19: Future & growth of                           electronics industry in india

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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

Page 20: Future & growth of                           electronics industry in india

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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.

Page 23: Future & growth of                           electronics industry in india

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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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