Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.
-
Upload
nicole-romero -
Category
Documents
-
view
223 -
download
1
Transcript of Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.
![Page 1: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/1.jpg)
Electronics India The Second Sunrise
Vandana Srivastava 27-02-32013
![Page 2: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/2.jpg)
Electronics Industry: World Scenario
• Largest and fastest growing manufacturing industy in the world.
• Reported at USD 1.75 Trillion and expected to reach USD 2.4 Trillion by 2020.
![Page 3: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/3.jpg)
Electronics Industry: Indian Scenario
Huge Market : Rapid increase in domestic demand due to-
Growth in income levels leading to higher off take of
Electronics products
Automation demands of corporate sectors
Government’s focus on e-governance.
![Page 4: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/4.jpg)
Why India ?
1. Huge Market
2. Large Talent Pool
3.Conducive Policy
4. Low Operating Costs
4 Big Reasons
![Page 5: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/5.jpg)
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-200.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
32.5
99.5
69.6
400
Dem
and
& P
rod
uct
ion
Year
Demand CAGR – 24.4%
CAGR – 37%
CAGR – 15%
Values in US$ Bil
Demand & Production Trends for 2020
![Page 6: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/6.jpg)
Electronics Market in IndiaBurgeoning Needs, Emerging Opportunities
![Page 7: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/7.jpg)
| Semiconductors
Cost of semiconductor design (US$ Mil, 2010)
Projected semiconductor design market in 2020
US$ 60-80 Bil
Projected semiconductor market in 2020
US$ 60-80 Bil
![Page 8: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/8.jpg)
8
Demand in 2010
~ US$ 11 BilProjected demand 2020
~ US$ 34 Bil
•Broadband on Demand by 2015, 600 Mil connection by 2020 at min. 2 Mbps speed
•NOFN : US$ 4 Bil project to provide broadband connectivity to panchayats
•NKN : US$ 1.2 Bil Infra project to connect educational and research institutes
|Telecom equipment
• Total telephone subscribers ~ 950 Mil, teledensity 77%
![Page 9: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/9.jpg)
9
• The consumer durables market recorded revenues of USD6.3 billion in FY10
• During FY03-10, the industry expanded at a CAGR of 11.7 per cent
• Urban markets lead the revenues, accounting for two-thirds of the total sales in India
• Refrigerators , Air conditioners (ACs) , Washing Machine & Televisions Driving Growth
| Consumer Durable Market
![Page 10: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/10.jpg)
10
•Consumer Electronics (CE) represents one of the largest segments of the overall electronics industry in India.
•The market is anticipated to grow at a CAGR of around 17% during 2012-2015 to reach over US$ 15 Billion by the end of 2015
| Consumer Electronics
![Page 11: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/11.jpg)
11
• Value of electronics in automobiles ~ 20%-40%, increasing rapidly
• Production of nearly 18 Mil Automotive vehicles in 2010-11
| Automotive Electronics
•Digitization of controls and expanding inclusion of safety and sophistication features.
•Evolving trend of localization in product procurement by Auto OEMs
![Page 12: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/12.jpg)
12
• Size of medical electronics equipment market by 2020 ~ US$ 5 Bil
• GoI committed to development of • Affordable medical electronic device
industry
• Devices typical to the environmental & infrastructural condition prevalent in India
| Medical Electronics
Adapted from Indian Medical Electronics Industry Outlook 2020 , Deloittee & FICCI , December 2011
![Page 13: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/13.jpg)
13
• India has had significant scope in solar cell and module manufacturing.
• The disability due to lack of presence in the upstream sectors, such as polysilicon and wafer is getting addressed
• Government in the advanced stage of getting a Fab setup in India.
• Jawaharlal Nehru National Solar Mission
• Enabling policy framework for the deployment of 20,000 MW of solar power by 2022.
• Ramp up capacity of grid-connected solar power generation to 1000 MW within three years – by 2013
• An additional 3000 MW by 2017 through the mandatory use of the renewable purchase obligation by utilities backed with a preferential tariff.
| Solar Power
![Page 14: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/14.jpg)
14
Aviation• Passenger and cargo movement has
increased by a CAGR of 19.14% and 9.91% during the period from 2003-04 to 2007-08.
• The fleet size has grown by 23.77%. • The civil aviation market is expected
to register more than 16 per cent CAGR during 2010-2013.
• The Indian commercial aerospace market is estimated to absorb about 1,100 commercial jets worth Rs.585,000 crore over the next 20 years.
| Aerospace Sector
Defense• Major defence acquisition and
development programmes comprising Medium Multi Role Combat Aircraft (MMRCA), Fifth Generation Fighter Aircraft (FGFA), Multirole Transport Aircraft (MTA), Medium Lift Helicopters (MLH) and Light Utility Helicopters (LUH).
Space• Indigenous suppliers provide an
estimated 70 per cent of the technology content.
• The current major space programmes are PSLV, GSLV, INSAT and IRS.
![Page 15: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/15.jpg)
15
Demand in 2010
< US$ 1 BilProjected demand 2020
~ US$ 35 Bil
• Lower carbon emissions by 20-25% by 2020
• Distribution of free LED lights to all Below Poverty Line (BPL) families (20 Mil lights)
• Government initiatives :
• Excise duty reduced to 6% on LED lamps and LEDs
• SAD fully exempted on LEDs used for manufacture of LED Lamps
| LED Market
![Page 16: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/16.jpg)
16
• India PC shipments increase in 2012 ~ 17%; world average ~ 4.4%
• GoI aims to provide 1 tablet to every student under Aakash scheme
• State Government initiatives
• Free laptop to students in Tamil Nadu and Uttar Pradesh
• Other states coming up with similar schemes
Projected Market for laptop, desktop by 2020
US$ 34 Bil
| Computers
![Page 17: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/17.jpg)
17
• Cabinet has approved providing Digital Addressable System (DAS) throughout country by December 2014
• Tamil Nadu state government owned Arasu Cable TV Corporation floated tender for 2 Mil STB
Projected Market for Set Top Box in next 5 years
200 Million units
| Set Top Box
![Page 18: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/18.jpg)
Electronics Market by segment
SegmentMarket Size *
Telecom Equipment 34Laptops, Desktops, Tablets
34LED 35Set Top Boxes 10Automotive Electronics
10Medical Electronics 8.5Consumer Electronics
India: 2020
* US$ Billions
![Page 19: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/19.jpg)
ChallengesInfrastructure gap
Tax Structure
Supply chain and logistics
Inflexible labour laws
Limited R& D focus
Inadequate funding
Limited value addition
Strengths•Chip Designing
•Embedded system software
•Huge market
•Large talent pool
•Low operative costs
•Conducive environment
![Page 20: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/20.jpg)
Conducive Policy Environment Infrastructure, Incentives, Innovation
![Page 21: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/21.jpg)
National Policy on Electronics, 2012
Holistic, Investor-friendly, Market-driven
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 22: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/22.jpg)
“To create a globally competitive electronics design and manufacturing industry to meet the country's needs and serve the international market”
Investment : US$ 100 BilProduction : US$ 400 BilEmployment : 28 Mil
NPE Vision 2020
![Page 23: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/23.jpg)
ESDM Sector
National Policy on Electronics | Major strategies
• Setting up of Semi-conductor Wafer Fab in IndiaI
• Preferential Market AccessII
• Modified Special Package Incentive Scheme (M-SIPS)III
• Electronics Manufacturing Cluster Scheme (EMC)IV
• Electronics Development Fund (EDF)V
• Mandating Safety StandardsVI
• Human Resource Development VII
• Communication & Brand buildingVIII
Number of strategies identified under
NPE >50
![Page 24: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/24.jpg)
•Subsidy upto ~USD 10 mil per 100 acres of land
•Applicable to both Greenfield and Brownfield projects
•Targeting 10 Clusters in 2013, and 200 by 2020
Electronics Manufacturing Clusters
Infrastructure Development• Roads• Power• Water• ETP’s• Testing facilities• Social Infrastructure
Subsidy of 50-75%
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 25: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/25.jpg)
•Reimbursement of CVD/excise for capital equipment in non-SEZ units
•Reimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPs
•Available for entire value chain of identified electronics products
• Incentives available for 10 years from the date of approval
Substantial CAPEX subsidy
Subsidy of 20-25%
Modified SIPS
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 26: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/26.jpg)
• India : Latest destination for Chip mfg. based on strength of Chip design
• Global responses sought in the form of EOI to setup Fabs
• Leading players have expressed interest
• Partners for Fab project to be finalized by March 2013
Semiconductor Fab
FAB in India
Decision by March 2013
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 27: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/27.jpg)
• Preference to domestically manufactured electronic
goods in
• Government procurement
• Electronic goods having security implications
• Extent of Government procurement from domestic manufacturers will not be less than 30 % of the total procurement.
• Enabling framework
• WTO compatible
• No discrimination between foreign and Indian companies
Preferential Market Access (PMA)
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 28: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/28.jpg)
Electronics Development Fund (Proposed)
Size of EDF
US$ 2 Bil
• Fund to promote Innovation and IP and R&D, product commercialization, etc in ESDM, nano-electronics & IT sectors
• Comprises of “Daughter Funds” of size US$ 20 Mil -100 Mil
• Each fund to have Govt. share from 25% - 75%; remaining from private and financial institutions
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 29: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/29.jpg)
• 15 electronics products notified under safety standards on October 3, 2012
• Allows Self registration
• BIS accredited labs to test the goods
Mandating standards
Order comes into effect from
April 3, 2013
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 30: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/30.jpg)
Export Incentives on FOB Value
Export Incentives
2-5%
• Focused Product Scheme -2% duty credit script
• Special Focused Product Scheme-5% duty credit script
• Focused Market Scheme
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 31: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/31.jpg)
• Electronics and Telecom Sector Skill Council set up
• 31 ICT and Electronics Academies-Scheme under approval
• Skill Development for 1 mn persons
• Special Manpower Development Programme- Phase III for VLSI and chip design for 10,000 students .
HR Initiatives
PhDs in Electronics by 2020
2500 annually
ELECTRONICS INDIA
Billion Needs, Million Chips
![Page 32: Electronics India The Second Sunrise Vandana Srivastava 27-02-32013.](https://reader036.fdocuments.us/reader036/viewer/2022062223/55161bc9550346cf6f8b66dd/html5/thumbnails/32.jpg)
Electronics?
Think India !