ELCIA MSME CLUSTER Presentation to Industry

CONTENTS

The Electronics Manufacturing Revolution

The MSME Cluster Concept ELCIA MSME CLUSTER

THE ELECTRONICS MANUFACTURING REVOLUTION

“”

SELL IN ANY COUNTRY OF THE WORLD BUT MANUFACTURE HERE. WE HAVE GOT SKILL, TALENT, DISCIPLINE, AND DETERMINATION TO DO SOMETHING.”

– NARENDRA MODI, PRIME MINISTER, INDIA Independence Day Address 15th August 2014

BETWEEN 2004 AND 2011 MANUFACTURING HIT A SWEET SPOT, REGISTERING ANNUAL GROWTH OF AROUND 7.25%. HOWEVER, DURING THE SAME PERIOD IMPORTS GREW BY AN AVERAGE OF 23.75% WHILE THE CORRESPONDING GROWTH IN EXPORTS WAS 21.25%!

ECONOMIC DEVELOPMENT THROUGH SUPPORTING THE DEVELOPMENT & GROWTH OF THE ELECTRONICS INDUSTRY

The vision of the Department of Electronics & Information Technology (DeitY) is “the e-Development of India as the engine for transition into a developed nation and an empowered society.”

Over the last couple of decades India has been the epicenter of consumer demand fuelled by a phenomenal GDP growth. The demand for high technology products, specifically electronic products has registered significant growth and going by current estimates, the demand for electronics hardware in the country is projected to increase from USD 45 billion in 2009 to USD400 billion by 2020 (Source: Task Force Report).

The estimated production in the country will reach USD 104 billion by the year 2020, creating a gap of USD 296 billion in demand and production.

This creates a unique opportunity for companies in the ESDM (Electronic System Design & Manufacturing) sector to look at India as their next destination to cater to the domestic Indian demand as well as act as an exports hub.

Leveraging this unique opportunity, the Electronics City Industries Association, has received the government’s approval to set up 2 clusters one for ESDM and the other for MSME in Electronics City Industrial Township area. We have also signed a strategic MoU with CISCO to set up Asia’s first innovation hub for IOT and develop solutions for urban services, a growing market worldwide. Needless to say, this will provide a fillip to the sector and build and nurture an ecosystem for electronics manufacture. Our vision is to achieve 10% of the national hardware manufacturing revenues from Electronics City.

A WORLD OF OPPORTUNITIES

MSME CLUSTER CONCEPT

THE “CLUSTER’ APPROACH – A CONTEXT

The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for

Enhancing the productivity and competitiveness and Building capacity of Micro and Small Enterprises (MSEs) and their

collectives in the country. Enabling providers of various services to industry, including banks

and credit agencies, to provide their services more economically, thus reducing costs and improving the availability of services for these enterprises.

OBJECTIVES OF THE CLUSTER DEVELOPMENT SCHEME

To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc.

To build capacity of MSEs for common supportive action through formation of self help groups, consortia, up gradation of associations, etc.

To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.

To set up common facility centers (for testing, training center, raw material depot, effluent treatment, complementing production processes, etc).

ELCIA MSME CLUSTER

BROAD GOALS

a. To nurture the MSME in the manufacture of electronic products

b. To facilitate the development of supportive eco-systems for MSME companies (including marketing; branding; research and skills development)

c. To augment the requirement of special machines in the manufacture of electronic products

THE PROJECT

Total project cost is ₹ 14.41crores. Contributions will be made as follows: GoI contribution is ₹ 10.08 crores GoK contribution is ₹ 2.16 crores and ELCIA Cluster members contribution is ₹ 2.16 crores

Set up a Common Facilities Centre for MSME.

The building for this set up will be provided by ELCIA to support the objectives of the Cluster. The completed building will be handed over to the cluster in Feb/Mar 2015.

The 20,000 sqft. facility will house machinery and equipment that is intended to support concept to prototype development.

*List of machines available *

CLUSTER – GOVERNANCE

ORGANIZATION STRUCTUREELCIA MSME Governing Council

CEO – ELCIA MSME

Cluster

Technical Committee

Commercial Committee

Admin. Assistant

COMPOSITION OF THE GOVERNING COUNCIL

The Governing Council is also referred to as the Managing Committee The Governing Council will comprise a total of 9 members

Office Bearers in the Governing Council/Managing Committee 1. President 2. Vice President 3. Secretary 4. Treasurer

ROLE OF THE GOVERNING COUNCIL

To make strategic decisions regarding the purchase of machinery, expansion of infrastructure as well as partnerships with industrial bodies; organizations and the government to further the interests of the MSME Cluster.

To oversee the functioning of the ELCIA MSME CFC facility To formulate policies and processes for the smooth functioning of the facility To frame rules regarding membership, voting rights and use of the facility To resolve disputes, if any, among members and others concerning the facility To hire required personnel to support the functioning of the facility To guide the functioning of Technical and Commercial committees To showcase and market the CFC and any other facilities that the SPV will

create, and ensure full utilization of the machineries and equipment.

ROLE OF THE TECHNICAL COMMITTEE

To provide technical expertise and consultancy to the smooth functioning of the facility

To guide the procurement of new machinery To guide the maintenance of existing machinery To approve the portfolio of products that the facility will

produce To craft and implement approaches that nurture an ecosystem

for innovation

ROLE OF THE COMMERCIAL COMMITTEE

To provide market research reports for various products across geographies

To conduct periodic surveys to study needs to inform the development of products

To frame and implement approaches to target products for various customer segments and geographies

To organize events, seminars and workshops and other interventions that strengthen the network of ecosystem partners and support capacity building for entrepreneurs

To build relationships with associations, markets, governments etc., to support the aims of the cluster.

THANK YOU