Post Show Report

Redefining the Indian Electronics Supply Chain….

Conference on

“Make in India for the Global Supply Chain”

Supported by:

Department of Electronics & IT(DeitY) Ministry of Communications & IT

Government of India

Country Partner

Supported & Sponsored by Co-Sponsors

Badge & Lanyard Sponsor Media Partner

Supporting Associations

----------------------------------------------------------------------------------------------------------------------- Organized By

ELCINA ELECTRONIC INDUSTRIES ASSOCIATION OF INDIA

ELCINA House, 422 Okhla Industrial Estate, Phase III

New Delhi 110020, INDIA

Tel: +91-11-26924597, 26928053, 41615985

Fax: +91-11-26923440

Website: www.elcina.com

6th Source India – Electronics Supply Chain 2015

Post Show Report 5th February, 2015, Chennai Trade Centre, 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 consist of a Conference,

Mini-Exhibition of about 30 booths 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:

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

Challenges faced by the Industry which are being addressed in the proceedings of Source India

are

Lack of Component Base

Infrastructure bottlenecks

High costs of Power, transport & logistics, Finance; poor availability of power

Economics of scale lacking due to small manufacturing base

Zero import Tariff on most items

ITA-1, FTA regime – leaves little scope to cover disability costs

Complex tax regime but improving

The sixth edition of Source India - Electronics Supply Chain which was held on 5th February,

2015 at Chennai Trade Centre, Chennai, received a very encouraging response from all the

stake holders. Over 120 companies and organization participate including 14 buyer companies

and interacted in one-to-one buyer seller meetings. UK Trade and Investment, a Govt of UK

undertaking participated as Country Partner. Government of Tamil Nadu, ELCOT and Tamil Nadu

Industrial Guidance & Export Promotion Bureau (Guidance Bureau) has supported & were the

event sponsors. Salcomp Manufacturing & Nokia were Co-Sponsors of Source India. ECIL has

supported this event as a Badge & Lanyard Sponsor.

A Summary of 6th Source India – Electronics

Supply Chain 2015

Highlights of Source India 2015:

Initiated in the year 2009, Source India – Electronics Supply Chain 2015 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 120 participating companies and exhibitors from across the country.

UK Trade & Investment Partnered the Event Country Partner.

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 "Make in India for the Global Supply Chain”

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 “Make in India for the Global Supply Chain”

5th February 2015

Convention Centre, Chennai Trade Centre, Chennai

Conference Program

0930

0945 - 1100

Welcome Address:

Special Address:

Guest of Honour

Guest of Honour

Chief Guest

Vote of Thanks

Registration

Inaugural Session

Subhash Goyal, President ELCINA & Managing Director, Digital Group

Josh Foulger, Director India Operations, Nokia

Bharat Joshi, British Deputy High Commissioner

Thiru Velmurugan, Executive Director, Tamil Nadu Guidance Bureau

C. V. Sankar, Addl. Chief Secretary, Industries,

Govt. of Tamil Nadu

N Ramachandran, Past President ELCINA, Managing Director MEL

Systems & Services

1100-1130 Networking Tea Break

1130-1400

Session - I

Presentations:

(1130-1230)

Session – II

Panel Discussion

1230 – 14:00

Doing Business in India simplified “From Red tape to Red Carpet”

Session Coordinator- Josh Foulger, Director India Operations, Nokia

o Amrit Manwani, Hony. Secretary - ELCINA & MD, Sahasra

Electronics Pvt. Ltd.

o Hidehiro Ishiura, Director General, JETRO

o S. Jaikumar, Advocate, Swamy Associates- Perspective on GST

Make in India for Global Supply Chain: Views of Buyers & Suppliers

Panel Discussion - I

Requirements of Key buyer companies and their Sourcing challenges o Sasikumar Gendham, Director, Salcomp Manufacturing

o Madhusudan Moudgal, Director – Business Development,

Flextronics Ltd.

o Sunil Vachani, CMD Managing Director, Dixon Technologies

o P Viswanath, Executive Director, ECIL

o Gururaj V Hiremath, DGM (CSE/IEC-CMS), BEL

Panel Discussion - II

Opportunities & Challenges for Domestic Suppliers o Vikram Desai, Vice President ELCINA & CMD, Desai Electronics

o Paresh Vasani, MD, Circuit Systems (India) Limited.

o Pankaj Gulati, Exec. Vice President and COO, CDIL

o Rajiv Venkatraman, Managing Director, PEC Mfg Co.

1400- 1500

Networking Lunch

1500 - 1830 One to One Buyer-Seller Meetings (Pre-Arranged)

LIST OF PARTICIPATING COMPANIES

EXHIBITORS/*SPONSORS

Avalon Technologies

Axiom Energy

Digital Circuits

ECIL

EFY Group

ELCOMPO Group

ELCOT*

EMI Solution

Guidance Bureau*

Heads & All Threads

Indo-American Chamber of

Commerce (IACC)

Kramski

LiteonMobile

MEL System

Nokia

Qmax Test Equipments

Salcomp Manufacturing*

Sree Vishnu Magnetics

Super Mount Pack

Syrmatech

Trade Corp

UK Trade & Investment (UKTI)*

DELEGATES

ACCOLADE Wireless LLP

Aditya Electronics

Alphion India

Amballal

Apex Tooling

Avon Data Cables

Bikal Distribution GKB Ltd.

Brady India

CDIL

Chennai Consultancy

CII Guardian

Cipsa Tec

Circuit Systems

CLIK

Cookson India

Cosmo Ferrites

CRP India Pvt. Ltd.

CSA Group

Data Pattern

Degree Controls, Inc

Desai Electronics

Dixon Technologies

Dow Corning

ELCOM Int'l

Elektronika Sales

EPCOS

Eskocast

FCI OEN

Flotek

Gemni Electro

GMR

GTS TOOL PLAST LLP

Henkel Adhesive

Indira Industries

Innovative Engineering

J Electronics

JETRO

Jones Lang LaSalle

Jumpstart Now Services

Kaynes Technology

KDDL

KGP Solar

KK Press Tools

Kostal

KR Industries

KRAMSKI Stamping and Molding

Lemon Advisors UK Ltd.

Lenovo

MAIT

Maxim SMT

Microsoft India

MMI India

Nec Nova

OEN India

PEC Components

Pentair

PMI

Precision Electronic

Precision Tooling

Rabbs Engineering

Sahasra Electronics

Samco Alloys

SANYO DENKI Singapore PTE Ltd.

Senju Malaysia SDN BHD

Shakthi Data Cables

Sims Recycling

Skills4stem Ltd.

Smartlink Network

Southern Rubbers

SPEL Semiconductor

Square Network Solutions

Sri City

Stanesh Semiconductor

Stera Engineering

Sundaram Infotech

Surekha Electronics

SVK Electronics

Techspark Ltd.

TES-AMM India

Trade Corp

TUV Rheinland

TUV Sud

Twentyfifty Ltd.

UL

BUYERS

Amara Raja Electronics

Anchor Panasonic Ltd

Bharat Electronics

Bharat Heavy Electricals Ltd.

C-DOT

DELL

ECIL

Delphi Automotive

Flextronics Technologies

Magnetti Marelli India

Salcomp Mfg. India

Stanley Black & Decker

SFO Technologies

Whirlpool of India Ltd.

STATUS OF INDUSTRY AND OPPORTUNITIES

Indian Electronic hardware industry* India's Production of Electronic Hardware during 2012-13 was Rs.177500 crore (US$ 32.87

billion).

Production in 2012-13 registered a growth of 24% (10 % in US$ terms) over 2011-12.

Annual average growth during the past five years in the production of Electronics Hardware

has been 16 % (9.4% in US$ terms). Maximum production is seen in the

Telecommunication sector followed by consumer electronics sector

In 2012-13, Indian share was 1.51% in world electronic equipment production.

India’s export of electronics goods during 2012-13 was Rs. 44000 crore (US$ 8148 million)

Production of electronics components in 2012-13 registered a growth of 7% in rupee terms

over the year 2011-12.

In value terms, Production of electronics components is estimated to be Rs. 26500 crore

(US$ 4907 million) during 2012-13.

Annual average growth rate of 22.44% (15.45 percent in US$ terms) during the past five

years

*From Tamil Nadu Guidance Bureau presentation

Electronics industry is one of the fastest growing manufacturing industries in the world. The

demand in the Indian market is expected to reach USD 400 Billion by year 2020. At the

current rate of growth domestic production can cater to only USD 100 Billion by year 2020

creating a demand supply gap of nearly USD 300 Billion which would be higher than oil

imports.

To correct this Union Cabinet approved the National Policy on Electronics (NPE) with a vision

of transforming India into a global hub for electronic design and system manufacturing

(ESDM) and to meet both local and global demand. One of the important objectives of the

NPE is to achieve a turnover of about USD 400 Billion by 2020 involving investment of about

USD 100 Billion and employment to around 28 million.

Key objectives of the National Electronics Policy are:

To create an eco-system for a globally competitive Electronic System Design and

Manufacturing (ESDM) sector; achieve a turnover of about USD 400 billion by 2020

involving investment of about USD 100 billion

To build on the emerging chip design and embedded software industry to achieve global

leadership in VLSI, chip design etc. and achieve a turnover of USD 55 billion by 2020.

Build a strong supply chain of raw materials, parts and electronic components to raise

the indigenous availability from the present 20-25 per cent to over 60 per cent by 2020.

To significantly enhance availability of skilled manpower in the ESDM sector.

Develop and mandate standards and certification for electronic products and services to

strengthen quality assessment infrastructure nationwide.

SUMMARY OF PROCEEDINGS

Mr. Subhash Goyal, President ELCINA and Managing

Director, Digital Circuits, delivered the welcome address

highlighting that ELCINA has continued this event in Chennai

due to strong support by buyers and Tamil Nadu Government.

Mr Goyal said there is a positive transformation happening in

the Government and the procedures are being simplified. Ease

of doing business is buzz word in the country and businesses

are confident of growth specially in the Manufacturing Sector.

The National Electronics Policy (NEP), he said, has thrown open

a host of opportunities for ESDM Sector which when combined

with the growing domestic demand made India an attractive

manufacturing destination. Mr. Goyal shared the salient

features of the NEP including the EMC & M-SIPS Schemes, Preferred Market Access Policy,

approval of two semi-conductor fabs, and other key initiatives. He also dwelt on the

disability costs faced by electronics manufacturers in India and how the NEP would mitigate

the same. Mr. Goyal highlighted the role being played by ELCINA in promoting electronics

manufacturing, especially in developing new Clusters. He appreciated the sincere efforts of

DeitY in promoting the ESDM sector.

Mr. Josh Foulger, Director India Operations, Nokia

Mr. Foulger shared the Nokia story of coming to India 10 years

back. He was given the responsibility to set a plant in India

which can manufacture 2.5 mn phones permonth. Nokia SEZ

park at its peak was producing 7 phones per second or .5 mn

phones per day. Park employed 30,000 people, 100 bn

components coming to factory and the revenue close to $ 4 Bn.

All these happened in India when the conditions were not

favourable as compared today. Nokia had a program called

Source In which extended to Source India and thus this event

was initiated in Chennai 6 years back.

Today, the Make in India program is good initiative by Govt of India. India is a huge market

bu the contribution of Electronics industry in the IIP is merely 1.99%. If the Prime Minister

wants that the contribution of manufacturing sector to increase from current 14% to 22%,

Electronics Industry has a major role to play for four reasons. One, it is a labour intensive

section, two, its tech intensive and as we are moving the digital india, the strategic

importance of this sector is immense, three it requires high volume global supply chain and

four, it can be a multiproduct shared platform.

The Chief Guest, Shri C. V. Shankar, Additional Chief

Secretary, Industries, Govt. of Tamil Nadu

The Global electronics Industry is over 2 Trillion US$ and

electronics is touching every corner of our lives. Tamil Nadu has

cellphone availability of 120 per 100 people which shows the kind

of demand India offers for Electronic products. Mr Sankar said

India has a large pool of talented Manpower. Tamil Nadu itself

produces 100,000 engineers every year. The primary objective of

the Govt is to create jobs and electronics Industry offers

employment opportunity to a large number of people of diverse

skill level. He praised the Fab policy announced by Govt of MP.

According to Mr Sankar there has been a positive change in

terms of policy making and functioning of Govt departments. He emphasized the need of

conducive environment for business rather depending over financial incentives or subsidies.

He mentioned in his speech about the robust infrastructure that Tamil Nadu has which not

available in any other state.

Guest of Honour Mr. M Velumurugan, Executive Vice

Chairman, Guidance Bureau, Govt. of Tamil Nadu,

Mr. Velumurugan thanked ELCINA for organizing Source India for

sixth time in Chennai. He foresee the potential in Source India to

become one of the Flagship Event of Tamil Nadu for Electronics

Industry.

Mr Velmurugan presented a detailed presentation on electronics

Industry in Tamil Nadu which was very informative. He explained

his vision for growth of Electronics Industry. Most of the east

Asian countries which have done extremely well in this field have

investment to GDP ratio close to 40% while in India it is merely 28%. To bridge this gap we

are dependent to FDI. There is fierce competition among countries to attract FDI.

India has a large sum as house hold saving but we are unable to us that as productive

capital to increase our domestic production. Now India is focusing on ease of doing business

and creating a conducive environment for Industries to manufacture here. He mentioned

that Tamil Nadu and specifically Chennai has big Manufacturing industry, 40 thousand

workers are employed in cell phone manufacturing and Chennai produces a car every 20

Seconds.

Mr. Velmuruagan informed delegates about the Tamil Nadu Global Investors Summit which

is Scheduled during May 2015 and invited all to participate in the summit

Guest of Honour Mr. Bharat Joshi, British Deputy High

Commissioner, Chennai

Bharat Joshi

Mr. Joshi regretted that he missed Source India last year and very

happy to see that it is very targeted and focused event. The

objectives are very clear and very well organized. Mr. Joshi said in

contrast to general perception, the manufacturing section is still

alive in the UK and doing pretty well in the cutting edge

technologies and innovation. UK manufactures 1.2% of global

electronics. The intellectual property is protected in the UK with its robust legal system.

Mr. Joshi underlined that a lot of innovation and new things are happening, creating a big

opportunity for collaboration between Indian and UK companies. 7 such companies

participated in Source India event and interacted with Indian companies.

Mr. N Ramachandran, Past President, ELCINA

Mr. Ramachandrand shared his concerns while presenting the Vote

of Thanks. The Idea of Source India was to enable MNCs and Large

manufactures to procure components locally but unfortunately the

local procurement by these major players is still below 15%. While

ITA has caused the major harm to local industry still he suggested

that there may be ways to overcome challenges and we need to

think innovatively. To protect local industry we may think of some

not tariff barriers such as administrative or procedural. Electronics

Industry faced zero duty regime when it was not prepared to fight

global competition. It was unfair as the industry outside was

matured and in a developed stage, while we were developing technology indigenously. Zero

duty forced these industries to shut their shop.

Session I – Doing Business in India Simplified “from Red

Tape to Red Carpet”

Mr. Josh Foulger, Director India Operations, Nokia

Mr. Josh Foulger introduced the panalists to start the discussion

on Ret Tape to Red Carpet. He referred to ABCD of Hon’ble PM

which is Avoiding, Bypassing, Confusing and Delaying as the

Government approach which is now changing since new

Government has taken over. This new approach to deal with

business, India has never seen before. Government officers are

now more proactive in dealing with the Industry

Mr. Amrit Manwani, Hony. Secretary – ELCINA & MD

Sahasra Electronics Pvt. Ltd.

Mr. Manwani felt that this is most opportune time to do business in

India and Make in India is the need of the hour. With the dynamic

leadership at the center India is on right path of making it happen.

Cost of labour in china has increased in China substantially. The

excitement in the industry in unprecedented and the enthusiasm

among entrepreneurs of this kind has never seen before in India.

Mr. Manwani also explained the policy initiative by the

Government.

Mr. Hidehiro Ishiura, Director General, JETRO, Chennai

Mr. Ishiura underlined the fact that India is strategically

important for Japan. Japanese investment in India is rising. A

study shows India ranks No 1 as long term market destination

and last year India became No. 1 for mid-term market

perspective.

Mr. Ishiura pointed out some key positives about India

1. Huge domestic Market

2. Exports base for Middle East and African Countries

3 Modi Government has created positive sentiments in the

Japanese business circles where Mr. Modi is perceived “Pro-

Business”

While there are some impediments such as India’s position going down for ease of doing

business according to World Bank study. Among BRICS, India ranks last. Finance cost and

procedural hassles for Land acquisition, Taxation (retrospective in some cases),

environment regulation & standards. India need to overcome these impediments to achieve

its targets.

Mr. S Jaikumar, Advocate, Swamy Associates

Mr. Jaikumar referred GST as the greatest taxation reform since

Independence. In his detailed presentation Mr Jaikurmar explained the

advantages of this system for the industry and for the exchequer. There

are still a lot of challenges before GST comes into effect and probably

we will see GST effective from next year.

Session II – Make in India for Global Supply Chain : Views of Buyers & Suppliers

Panel Discussion – I

After the plenary session there was a panel discussion on Make in India for Global Supply

chain in which panelist from Buyer as well as supplier companies shared their view. Panelist

discussed the opportunities and impediment in developing a Local Supply chain for

Electronics goods in India.

Mr. Sasikumar Gendham, Director, Salcomp Manufacturing, Mr. Madhusudan

Moudgal, Director – Business Development, Flextronics Ltd, Mr. Sunil Vachani,

CMD, Dixon Technologies, Mr. P Viswanath, Executive Director, ECIL, Mr. Gururaj V

Hiremath, DGM (CSE/IEC-CMS) BEL represented the Buyer Segment while Mr. Vikram

Desai, Vice President ELCINA & CMD, Desai Electronics, Mr. Paresh Vasani, MD,

Circuit Systems (India) Limited., Mr. Pankaj Gulati,Exec. VP & COO, Continental

Device India Ltd, Mr. Rajiv Venkatraman, Managing Director, PEC Manufacturing

Company shared the views of suppliers during the discussion.

Panelists: Buyer Group

Panelists: Supplier Group

Snapshot of 6th Source India – Electronics Supply Chain

Summary of Feedback Survey of 6th Source India –

Electronics Supply Chain

Some Feedback and comments from the Participants:

Can Bring More Participants

Classification can be more accurate for every

communication

Event should be bigger with more participants

Exhibition Hall is Good, can Allow More numbers of

Buyers from One Company

Exhibition should be broader

Few Stalls, more stalls to be added, Mechanical

Vendors to be included

Include Much More Electronic Components as a participant

Increase number of sellers

information in advance, topic of presentation will

be good

Mini Exhibition scale used to be expanded and

should be manned by senior people, Buyers have to really see it as an opportunity for Vendor Development and come with a strong team from decision making people.

More Companies need to be involved

More discussion/interacting will improve, more

detail on local manufacturing advantages/difficulties will improve

More EMS Cos. need to participate, More basic

suppliers like Ceramics/Sheet Metal

More Interactive with Govt. Officials

More Number of Stalls will be good

More Participants, Buyer and Seller

More specific Pre-information on Buyer needs,

Invitation to large buyers Large Exhibition base is essential

More Stalls may be organized/arranged, Optical

component manufacturer stalls were not found, Solar Manufacturers should be considered for next exhibition

Need More Numbers of Exhibitors / Visitors

No clear focus on Semiconductor, important

Programme, Components Base Manufacturing in India, need to add more Electronic Manufacturer for B/S meet

Request to invite more number of Supplier

Selling more of distribution - Exception of domestic

manufacturing

Speakers should speak with Action Plan

This event should be targeted for wider Audiences, being national level event, much bigger

This type of program can be at Northern & Western

India

Time windows and scheduling to be more practical,

Marketing of Exhibition needs to attract more members, Topics for deliberation /panel discussion on “Know Why” than “Know What”.

We should be informed on the buyers name, profile

etc. before meeting

You can increase the Exhibitor with Technical &

Sales Business