1967-2017
YEARS
OF MAKING ELECTRONICS IN INDIA
YEARS
OF ELCINA
A Message to ELCINA from its First President Dr. Behram Wadia
during conversation with current President Mr. Vikram Desai Heartiest congratulations to ELCINA on its Golden Jubilee Year Celebrations! Electronics has made rapid progress since I returned in 1957 from the US, after completing my PhD in Physics from Stanford University. I came back because I believed that there was much to be done in India in comparison with the US. I recall meeting Pandit Jawaharlal Nehru who said to me, that I am too educated for India and way ahead of the times.
The electronics industry was in a very nascent stage when I started Semiconductor Ltd. (Advani Oerlikon group) in 1961, where we made the first transistor. From that humble beginning of electronics components in India to now, I think we have come a long way. ELCINA was founded in 1967 with a few friends of mine, such as Mr. Gurpreet Singh, Prof. Bhat and others.
At that time, due to paucity of technical knowledge and foreign exchange, it was a highly regulated industry requiring lots of licenses from the Government. It was a big challenge to represent the interest of the industry to the Government. With liberalization and reduction in import duties, electronics industry has grown by leaps and bounds. It now needs investments and pure hard work to improve productivity and competitiveness with imports, to achieve Make in India.
Mr. Vikram Desai with Dr. Behram Wadia
ELCINA has served the industry well and am sure can do much more. All the very best to ELCINA for its journey ahead !
ELCINA in its Golden Year ELCINA celebrates its Golden Jubilee having been set up in 1967. We look back with pride – how it grew slowly but steadily over the last 50 years. With modest beginnings, it was a single man organization, its office located in the premises of Member Companies for the first 4 years. During its initial couple of years, ELCINA functioned from Mumbai and it was moved to Delhi in 1971 as it was felt that operationally it would be better to be closer to the central policy making officialdom. ELCINA has come a long way since its start-up years of slow growth. Today we have our own building constructed in 1994-95 with most modern facilities – a dream come true – which was realized with the support of Members. From a one man show, the Association today, has a strong Secretariat with diverse skills to address a wide range of industry issues. We have a galaxy of Industry Leaders on the Executive Committee led by President and include Past Presidents to provide guidance on all important matters.
The Birth of ELCINA
Crucial Role of Component Giants Seven prominent Players got together in Mumbai in 1967 to discuss the problems and prospects of the electronic component industry which was tiny and in its infancy. They were trying to find out how component manufacturing could be nurtured and put on a growth path. Their unanimous view was that there was need for a body to steer local manufacturing. Total component manufactured in the country in 1970-71 was worth Rs.37 crores while electronics industry production in totality was Rs.138 crores. A look at the accompanying table shows low levels of production during initial years.
Initially the role of electronics was not considered to be of any great importance. The stress in those
The Beginning of ELCINA House
Pooja at Inauguration of ELCINA House
years was on conventional industries like steel, cement, power, textiles, chemicals and others. Low priority given to Electronics is testified by the fact that in 1970 “Electronics” was being looked after by a Branch in the Defence Ministry by Deputy Secretary. One Deputy Secretary in Defence was the sole interaction point for the Industry. Department of Electronics (DoE) as it was later constituted, was placed under the Ministry of Science and Technology. DoE was headed by a prominent professional – Prof. MGK Menon. He was part time Head and spent 2-3 days in a week in Delhi and devoted most of his time in Bombay as he was heading the Tata Institute of Fundamental Research. Prof. Menon was the first Secretary of DoE but could spare very little time for electronics. He used to call industry meetings in Bombay whenever any urgent issue cropped up for discussion. One of the important meetings was discussion on import policy which used to be held in TIFR in Bombay. Import policy was in those days a very critical issue – equipment makers sought liberal imports while the component industry insisted on locally produced parts being used and imports allowed only if a particular component was not available in the country. Directorate General of Technical Development (DGTD) – now called DGFT which was a powerful department under the
ELCINA Team with Mr. Rajiv Gandhi
Ministry of Commerce supported the component industry and ELCINA. DGTD framed a rule that if a particular component was being manufactured in the country by two units with sufficient capacities to meet the demand of the electronics equipment makers, it should not be allowed to be imported. Force of circumstances also came to the rescue of ELCINA and its membership. Foreign Exchange was very hard to come by in those days with very limited reserves available with the government. Because of these constraints, imports were controlled. No import particularly in the field of electronics, was permitted without a licence issued by the Chief Controller of Imports and Exports (CCI&E). Over and above this, import duties on electronic components were over 100% which helped local manufacturing of components to grow for the initial years.
Growth of Electronics Industry over last three decades Year
Total Electronics Component Production Production
1985
1890 Cr
1100 Cr
1994
11800 Cr
3000 Cr
1997
16300 Cr
4070 Cr
2005-06
56000 Cr
8800 Cr
2010-11
121760 Cr
14970 Cr
2016-17
314704 Cr*
52099 Cr
*major growth in 2016-17 is due to spurt in assembly of mobile phones valued at Rs. 94,000 cr
Mr. Vasant Sathe with Mr. Shiv Nadar at ELCINA Awards
Mr. Ratan Tata at ELCINA House
ELCINA also played its part in indigenization of capital goods for electronics and expansion projects in initial years. No electronic capital manufacturing machinery was available in the country and had to be imported with payment of prohibitive import duties. The cost was very heavy involving outflow of precious foreign exchange. After intensive discussions with DGTD which was the competent organization for such approvals,our plea for permission to import capital goods for manufacturing of a large number of critical electronic components was accepted. This led to faster growth of the industry. To encourage and incentivize growth, one of the first ELCINA Awards introduced in 1976 was for“Indigenization of Capital Goods and Import Substitution.” Although inverted duty structure is still a source of discomfort to electronic manufacturing, the problem was at its peak in early 1980’s. Because of far higher customs duty on raw materials which were mostly imported, local component manufacturing suffered making it uncompetitive paving the way to higher imports. ELCINA’s efforts to mitigate the anomaly, supported by the Department of Electronics fructified in 1983. An official Notification was issued identifying lower duty levels for inputs of various components. This brought a great relief and fillip to our Members. Till mid 90’s it could not be imagined that Electronics would become crucial for all sectors and become an integral part of all industries as we witness today.
Then Union Defence Minister Mr. Manohar Parrrikar at SES 2016
No growth is possible without more and more electronic inputs and adoption of new technologies which are changing rapidly. Electronics is indeed a game changer. Digitization has brought a new dimension to industrial growth. This has revolutionized production processes making manufacturing fast-paced, more efficient even more cost effective.
In this Industry Book, we have tried to trace the history of the electronics industry in India and how it has evolved over the last 50+ years. Technology is changing at a fierce pace and there is no doubt that we have a lot of catching up to do. Growth of internet, mobile communication, surface mount technology and miniaturization, nanotechnology, artificial intelligence and Internet of Things have altered the landscape of electronics by 360 degrees. SMT components and semiconductors are driving design and functionality of new products. India must change its conventional thinking and invest heavily in electronics technology, components, special materials and semiconductors. A lot is happening but it is not enough. We must do more and help industry to drive growth of value addition, R&D and manufacturing in our industry.
50 years of ELCINA | 50 years of Making Electronics in India
13
Contents Electronics Industry in India
Pages 2-3
Key Phases of the Industry
Pages 4-7
Inception Phase 1940 - 1960
Conceptualization Phase 1961 - 1970
Pages 22-37
Growth Phase 1.0 1971 - 1990
Pages 40-53
Deregulation Phase 1991 – 2005
Pages 56-65
Sustainable Phase 2006 - 2013
Pages 66-72
Growth Phase 2.0 2014 – 2017
Pages 76-85
Major Investments in the Indian Electronics Industry
Pages 8-19
Pages 88-90
Into the Future : The Road Ahead for the Electronics Industry Pages 91-93 Technologies that will Make India Future Ready
Pages 94-95
50 years of ELCINA | 50 years of Making Electronics in India
1
Electronics Industry in India India is rapidly emerging as one of the principal global economies ranking third in terms of its GDP (PPP) in 2016. Since liberalization in early 1990s, the Indian economy has witnessed rapid and consistent growth in the contribution of the services segment. In recent times, the Government of India realized the opportunities that this Industry sector provided for the country and has increased its focus on Electronic Systems Design and Manufacturing (ESDM) by launching various promotional programs and initiatives. One of the crucial components within the Industry sector is manufacturing, and the country has been relentlessly striving to enhance its manufacturing capabilities. Within manufacturing, Electronics Manufacturing has been instrumental in propelling growth of Manufacturing, primarily due to its enormous market size which promises a bright future for Electronics Manufacturing in the country.
As per information available in public domain and Government sources and estimates of Kantar IMRB, the Electronics market in India which reached a remarkable US$104 billion in 2016, is projected to grow within a range of 20-25% 2
50 years of ELCINA | 50 years of Making Electronics in India
CAGR over next 4 years and thus range between US$ 216 billion and US$254 billion in 2020. While the demand for electronic products/ equipment in India has recorded a surge, particularly in the segments of Consumer Electronics, Mobile and Broadband, LED, Automotive Components and Industrial Electronics, the domestic manufacturing has not kept pace with this growth in demand due to several reasons. Therefore, around 65% of the current demand for electronics is met through imports and most of the domestic production is heavily dependent on imported inputs, specially raw materials, parts and components. Some of the strategic challenges the Indian manufacturers have been facing in the past are listed below. Major initiatives have been launched to overcome these eco-system issues, but some more time is required to bring these up to global standards: INFRASTRUCTURE ISSUES Consistent and reliable supply of quality Power, water, and land transport connectivity. Further improvements in Road and Rail infrastructure and systems is required. Implementation of GST has resulted in major improvement in transportation across States.
HIGH TURNAROUND TIME Unavailability of component supply results in delayed turnaround time and increased production costs. NASCENT ECOSYSTEM Majority of domestic manufacturing activity at present is high level assembly, resulting in low value addition. Additionally, limited availability of components and other raw material at competitive cost and quality leads to low localization of electronic products. These in turn have triggered a depressed demand for domestically manufactured components. In order to mitigate the impact of these issues, the Government of India has introduced various initiatives to make investment in manufacturing lucrative for investors – both domestic and international. The ‘Make in India’ program is one such initiative launched in 2014 to promote and showcase India as a prime manufacturing destination. The Electronics sector ranks as a priority sector within the ‘Make in India’ program with the objective to drive investments and rapid growth in manufacturing, and thus reduce import dependence. Along with Government of India, industry associations like the Electronic Industries Association of India (ELCINA) have been instrumental in further fostering the growth of the Electronics Industry by encouraging and promoting
India as a manufacturing destination to it members, affiliates and other global companies. Apart from these, ELCINA empowers the industry through business development platforms, global and domestic networking, training programs, research & publications and facilitates in developing an ecosystem for establishing electronics manufacturing in India. In addition to the thrust in driving domestic manufacturing, the country has also witnessed the roll-out of the 4G/LTE networks, the adoption of the Internet of Things (IOTs) across the major verticals and the creation of a vibrant technology start-up ecosystem amongst various other developments. These are expected to play a critical role in propelling Indian Electronics Industry into an overdrive and rapid growth in the years to come. In order to appreciate the growth of the Indian electronic industry and the impact it will potentially have on the country’s GDP, it is important to understand the history of the industry and the manner in which the industry has evolved over the last 6-7 decades. In order to appreciate the growth of the Indian electronic industry and the impact it will potentially have on the country’s GDP, it is important to understand the history of the industry and the manner in which the industry has evolved over the last 70 years or so.
50 years of ELCINA | 50 years of Making Electronics in India
3
Key Phases of the Industry
4
The development of the Electronics Industry in India began in the 1940s when the industry was in its inception stage. At this time, the industry was predominantly limited to the development and maintenance of fundamental communication systems, including radio- broadcasting, telephonic and telegraphic communication, as well as augmentation of the defence capabilities. Since then, the Electronics Industry has crossed several milestones over the years.
The significant phases of the evolution of the Indian Electronics Industry can be categorised under six major time periods:
The industry has evolved both in terms of products and organisations. Commencing with the manufacturing of basic communication systems such as radio receivers to the development of LCDs and LEDs in the current scenario, the Electronics Industry in India has evidently matured in terms of technology and moved up the value chain. Similarly, on the organisation front, the Electronics Industry has advanced from the establishment of a single government-owned organisation i.e. Hindustan Aircraft in the 1940s to the formation of a full-fledged ministry – the Ministry of Electronics & Information Technology (MeitY) in 2016.
Conceptualization Phase
50 years of ELCINA | 50 years of Making Electronics in India
1 2 3 4 5 6
1940 - 1960
Inception Phase 1961 - 1970
1971 – 1990
Growth Phase 1.0 1991- 2005
Deregulation Phase 2006 – 2013
Sustainable Phase 2014 - 2017
Growth Phase 2.0
Electronics Manufacturing Timeline
1
1940 - 1960
Inception Phase
1940 Establishment of Hindustan Aircrafts
4
1991 - 2005
Deregulation Phase
1991 Set up of Software Technology Parks of India (STPI) by the Government of India
1954 Set up Bharat Electronics Limited (BEL) 1954 Establishment of Atomic Energy Establishment, later renamed to BARC
1991 Significant increase in the number of foreign companies entering India
1958 Formation of the Defence Research and Development Organisation (DRDO)
1995 First mobile telephone service started on a noncommercial basis
2
1961 - 1970
Conceptualization Phase
1962 Set-up of the Indian National Committee for Space Research (INCOSPAR) 1967 Establishment of the Electronics Corporation of India Limited (ECIL) 1967 Establishment of ELCINA 1969 INCOSPAR grew into the Indian Space Research Organisation (ISRO) 1970 The Department of Electronics (DOE) functioning as a separate department
3
1971 – 1990
Growth Phase 1.0
1997 Signing of Information Technology Agreement (ITA) 1997 Emergence of the BPO and IT Services Industry 2000 Implementation of the National Task Force (NTF), New Telecommunication Policy (NTP), IT Act 2000 2005 Imports from China continue to increase, posing a challenge to local manufacturing 2005 Revenue of Indian EMS/ODMs at US$935 million
5
2006 - 2013
Sustainable Phase
2009 Constitution of Task Force on IT Sector 2010 Launch of Solar Mission 2011 National Manufacturing Policy 2012 National Manufacturing and Investment Zones
1971 First Satellite earth station for domestic communications established by Shri N. Pant
2012 National Policy on Electronics (NPE) formulated
1975 Launch of the first Indian Satellite
2013 Policy announced for Preference for Domestically Manufactured Electronic Goods (PMA)
1980 Development of electronic products such as Black & White TVs, Calculators 1980 Emergence of Doordarshan as National Broadcaster
2013 India’s growth as a manufacturing destination
2013 Formation of Electronics Sector Skills Council of India (ESSCI)
1982 Launch of the Integrated Guided Missile Development Program
6
1983 The first analog stored program control exchange for trunk lines was commissioned
2014 Launch of ‘Make in India’
1982 Introduction of Colour Television sets
1984 Establishment of the Centre for Development of Telematics (C-DOT) 1985 Production of Computers and Telephone Exchanges 1985 Emergence of China as a major manufacturing destination 1988 Arrival of Digital Exchanges 1990 Beginning of the Electronics Manufacturing Services (EMS) industry
2014 - 2017
Growth Phase 2.0
2014 National Centre for Flexible Electronics established 2015 Launch of Digital India Initiative 2015 Smart Cities Initiative 2016 Amendments in the Modified Special Incentive Package Scheme (M–SIPS) 2016 Government approves the Electronics Development Fund of US$ 959 million 2016 Enhancement of Electronics Manufacturing Clusters 2016 Elevation of DeitY to a full-fledged Ministry
50 years of ELCINA | 50 years of Making Electronics in India
5
1961-1970
CONCEPTUALIZATION PHASE
1940-1960 INCEPTION PHASE KEY EVENTS
1940
Establishment of Hindustan Aircrafts
1954
Set up Bharat Electronics Limited (BEL)
1954
Establishment of Atomic Energy Establishment, renamed to BARC
1958
Formation of the Defence Research and Development Organisation (DRDO)
1962
Set-up of the Indian National Committee for Space Research (INCOSPAR)
1967
Establishment of the Electronics Corporation of India Limited (ECIL)
GROWTH PHASE 1.0
KEY EVENTS
1975
Launch of the first Indian Satellite
1980
Emergence of Doordarshan as the National Broadcaster
1984
Establishment of the Centre for Development of Telematics (C-DOT)
1967
1988
Establishment of ELCINA
Arrival of Digital Exchanges
1969
KEY PRODUCTS
INCOSPAR grew into the Indian Space Research Organisation (ISRO)
1970
The Department of Electronics (DOE) functioning as a separate department
TV transmitters for Doordarshan Frigate Radars Tropo Communication Equipment Image Converters and Image Intensifier Tubes
KEY PRODUCTS
Magnesium Manganese Dioxide Batteries
KEY PRODUCTS
Transistor Radio
Tank Electronics
Radio Receivers
TV Picture Tubes
Telegraphic Communication Equipment
Telecom Switching and Transmission Systems
Microwave Tubes
Products Augmenting Space & Defence Technologies
1940 6
KEY EVENTS
1971-1990
50 years of ELCINA | 50 years of Making Electronics in India
Electronic Warfare Equipment
Calculators
Electronic Voting Machines (EVMs)
Nuclear Instruments
Computers & Telephone Exchanges
1951
1961
1971
Key Events & Products
across different phases of the Electronics Industry
1991-2005
DEREGULATION PHASE
KEY EVENTS
SUSTAINABLE PHASE
2014-2017
GROWTH PHASE 2.0
1991
KEY EVENTS
Software Technology Parks of India (STPI)
2010
KEY EVENTS
Solar Mission
2014
1997 Information Technology Agreement (ITA)
2000 National Task Force (NTF), New Telecommunication Policy (NTP) and IT Act 2000
KEY PRODUCTS Microprocessor based Instruments Smart Energy Meters Vehicle Monitoring Systems Air Traffic Management Systems Integrated Security Systems
1981
2006-2013
1991
2012
Make in India
National Policy on Electronics (NPE)
2013 Preference for Domestically Manufactured Electronic Goods (PMA)
KEY PRODUCTS Radiological Detection Equipment MACE Telescope 32M Deep Space Network Antenna
2001
2015 Digital India
2016 Enhancement of Electronics Manufacturing Clusters
2016 Elevation of DeitY to a fullfledged Ministry
KEY PRODUCTS LCD Panel Manufacturing LED Lights
2011 50 years of ELCINA | 50 years of Making Electronics in India
7
1940 - 1960 Inception Phase
The inception of the Indian Electronics Industry happened in the 1940s, when the industry was being to take roots. During the initial two decades, the development of electronic products or equipment was restricted to the growth and maintenance of the basic communications systems, including radio-broadcasting, telegraphic communication and the augmentation of defence capabilities. This was strictly controlled and, most often, it was the government that drove the investments through its initiatives. This provided a strong foundation for electronics though limited to strategic electronics sector. To enable the domestic Electronics Industry to advance further, the Government of India made three key investments that set the base for electronic manufacturing in India: •
Set up Hindustan Aircrafts in the 1940s
•
Set up Bharat Electronics Ltd. (BEL) and Bhabha Atomic Research Centre (BARC) in the early 1950s
•
Setup the Defence Research and Development Organisation (DRDO) in 1958 With the main objective of Research and Development in the defence sector.
1958 Formation of DRDO
1954 Set up BEL Establishment of BARC
1940 Establishment of Hindustan Aircrafts
INCEPTION PHASE
1940
Establishment of Hindustan Aircrafts Later renamed Hindustan Aeronautics Limited (HAL)
Hindustan Aircrafts was incorporated on Dec 23, 1940 at Bengaluru by Shri Walchand Hirachand, a farsighted visionary, in association with the Government of Mysore and Authorised Capital of Rs. 4 crores (paid-up capital Rs. 40 lakhs) and with the aim of manufacturing aircraft in India.
One year after its formation, in 1941, the Government of India became one of the shareholders in the company, holding 1/3 of its paid-up capital; subsequently the Government took over its management in 1942. The company began with manufacturing the Harlow Trainer, Curtiss Hawk Fighter and Vultee Bomber Aircrafts in collaboration with the Inter Continental Aircraft Company of USA. On Oct 1, 1964 the name Hindustan Aircraft was changed to Hindustan Aeronautics Limited (HAL), after it joined
10
50 years of ELCINA | 50 years of Making Electronics in India
the consortium formed in June by the IAF Aircraft Manufacturing Depot, Kanpur. During this period the main focus of HAL was to support the aerospace industry in the aspects of design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories. The organisation is fully owned by the Government of India and is ranked 35th among the top defence companies in the world. This was
Key Products from HAL AVIONICS • Communication Equipment • Missile Inertial Navigation • Radio Navigation Equipment • Missile Inertial Navigation • Laser Range Systems SYSTEMS & ACCESSORIES • Flight Control System • Panel Instrumentation • Fuel Management System
a significant leap for HAL and Indian electronics industry. Later in 1982, the Combined Map & Electronics Display (COMED) was manufactured in India. Additionally, the Strategic Electronics Factory at Kasaragod, Kerala, a unit of HAL Hyderabad, was established in Nov 2012, with the focus on Avionics Electronics in order to strengthen the manufacturing of electronics in India. HAL is currently able to meet the requirements for structures necessary for the aerospace launch vehicles and ISRO satellites through its dedicated Aerospace Division.
http://airheadsfly.com/2015/03/25/india-receives-first-upgraded-mirage-2000s/
It has 19 production units and 10 research design centres at 8 locations across India. HAL is a major partner for the Space programs of the Indian Space Research Organization (ISRO).
50 years of ELCINA | 50 years of Making Electronics in India
11
INCEPTION PHASE
1948
Setting up of ITI Ltd
(Indian Telephone Industries Limited) India's first ever PSU India’s first Public Sector Unit (PSU) - ITI Ltd was established in 1948. Ever since, as a pioneering venture in the field of telecommunications, it has contributed to 50% of the present national telecom network. With state-of-the-art manufacturing facilities spread across six locations and a countrywide network of marketing/ service outlets, the company offers a complete range of telecom products and total solutions covering the whole spectrum of Switching, Transmission, Access and Subscriber Premises equipment.
of mobile equipment manufacturing facilities at its Mankapur and Rae Bareli Plants in 2005-06. This ushered in a new era of indigenous mobile equipment production in the country. These two facilities supply more than nine million lines per annum to both domestic as well as export markets.
ITI joined the league of world class vendors of Global System for Mobile (GSM) technology with the inauguration
The company is consolidating its diversification into Information and Communication Technology (ICT) to hone its competitive edge in the convergence market by deploying its rich telecom expertise and vast infrastructure. Network Management Systems, Encryption and Networking Solutions for Internet Connectivity are some of the major initiatives taken by the company.
http://photodivision.gov.in
50-line Automatic Exchange at the stall of Indian Telephone Industries, Bangalore at the Indian Industries Fair, New Delhi (December 1955
12
50 years of ELCINA | 50 years of Making Electronics in India
Secure communications is the company's forte with a proven record of engineering strategic communication networks for India's Defence forces. Extensive in-house R&D work is devoted towards specialized areas of Encryption, NMS, IT and Access products to provide complete customized solutions to various customers.
Association with ELCINA helped Covestro gain strong connections & collaboration with the Indian Electronics industry. Their structured approach is noteworthy, right from the membership registration process, to meeting announcements, industry delegations, policy and market updates. The ELCINA team supported our initiative on the Electronics Industry awareness workshop at the Covestro Factory in Greater Noida, by inviting the whole value chain of the Industry ranging from the molder to Government officials. We are honored to keep the connection going, and growing!
Covestro With 2016 sales of EUR 11.9 billion, Covestro is among the world’s largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health and the chemical industry itself. The company is very well established in India with three manufacturing facilities across the country at Greater Noida, Ankleshwar and Cuddalore Covestro, has 30 production sites worldwide and employs approximately 15,600 people (calculated as full-time equivalents) at the end of 2016. Covestro constantly works on improving products and technologies to serve customers better and explore new markets. The development of innovative solutions to meet new customer requirements and inarticulate needs is very important to us. Covestro’s portfolio of polycarbonate resins and blends plays an important role in bringing these next-generation products to the market. The market for electronics, IT and communication devices is constantly evolving with a focus on "what's next". High flowability, stiffness, good cosmetic, easy processing, flame retardance, dimensional stability are important properties that are highly requested by product manufacturers in the electronic, information technology (IT) and Communication industries. Our experts are happy to help your local Innovation & Design Development @ CCDC, Gr. Noida. Visit our website www.covestro.in for more details.
50 years of ELCINA | 50 years of Making Electronics in India
13
INCEPTION PHASE
1954
Setting up of Bharat Electronics Limited (BEL) The BEL Story
Bharat Electronics Limited (BEL) was set up in 1954, with the objective of developing electronic products for Indian Armed Forces and was headquartered in Bangalore. Over the years it has evolved from being a defence centric organization to serving multiple industries and customers dealing with diverse products and solutions across India and abroad. http://www.bel-india.com
Bhoomi Poojan at Jalahalli, Bangalore, 1954
Factory Construction at Jalahalli, Bangalore
The state owned enterprise is supported by the Government of India and has been accorded with Navratna Status. The far-sighted vision of its pioneers, faith of its customers and immense effort by its employees, made the journey of Bharat Electronics Limited a resounding success and a major resource for the defence forces.
14
50 years of ELCINA | 50 years of Making Electronics in India
Pt. Jawaharlal Nehru, the then Prime Minister of India, being briefed during a BEL Product Presentation at New Delhi, 1958
Starting from manufacturing Black & White picture tubes, X-ray tubes and microwave tubes to manufacturing Electronic Voting Machines (EVM), BEL has played a critical role in strengthening the Electronics Industry in India. Major Products of BEL include Electronic Warfare System, Radars, Electronic Voting Machine Simulators, Defence Communication, Composite Communication System (CCS).
Key Milestones of BEL
1985 The 5th unit set up in Chennai 1979 The 3rd unit established at Pune in 1979 to manufacture
1986 Setting up of 7th unit at
Image Converters and Image
Kotdwar to manufacture switching
Intensifier Tubes.
Manufacturing of black &
for the supply of Tank Electronics.
equipment, 8th unit to manufacture
white TV picture tubes, X-ray
1980 The first overseas office
TV glass shells at Taloja, Navi
Tubes and microwave tubes
of BEL set up in New York
Mumbai and 9th unit at Hyderabad
started.
for component and material
to manufacture electronic warfare
procurement.
equipment.
manufacture of integrated
1981 Manufacturing facility for
1987 A separate naval equipment
circuits and Hybrid
Magnesium Manganese Dioxide
division set up at Bengaluru to give
Microcircuits set up.
batteries set up at Pune.
greater focus to naval projects.
1971 Facilities for the
1970-1971 1967-1968
1979-1981
1972-1974
established in Ghaziabad.
1985-1987 1982-1983
1992 Second research Lab
1996 US$ 215 million turnover 2002 Mini Ratna Status
1992-2002 1988-1990
PCB Manufacturing
Manufacturing of TV transmitters
1982 The Space Electronic Division
1988 The first central research
facility established
for Doordarshan.
set up at Bangalore to support the
laboratory established at Bangalore
satellite program. Achieved a turnover
in 1988 to focus on futuristic R&D.
1973 Frigate radars for the Navy started. 1974 The 2nd unit of company set up at Ghaziabad, for manufacturing radars and troposcatter
of INR 100 crore.
1989 Manufacture of Telecom
1983 Andhra Scientific Company
Switching and Transmission
(ASCO) taken over by BEL as the 4th
Systems, setting up of the Mass
manufacturing unit at Machilipatnam.
Manufacturing Facility in Bangalore and the manufacture of the first
communication equipment.
branch on 75,000 Electronic Voting Machines (EVMs). 1990 The agreement signed for
2011 Developed network centric warfare technology
setting up BEL’s first joint venture
2016 Achieved turnover of INR 8,810 crores (US$1.3 billion)
(JV) company, BE DELFT, with Delft of Holland.
50 years of ELCINA | 50 years of Making Electronics in India
15
INCEPTION PHASE
1954
Establishment of
Atomic Energy Establishment, Trombay (AEET) Later renamed Bhabha Atomic Research Centre (BARC)
Dr. Homi Jehangir Bhabha established the ‘Atomic Energy Establishment’, (AEET) at Trombay on Jan 3, 1954 for a multidisciplinary research program crucial for the nation’s ambitious nuclear program. The objective was to consolidate all the R&D activity for nuclear reactors and technology under the Atomic Energy Commission.
Apart from the research on nuclear reactors and atomic energy, BARC also focuses on research on other aspects of nuclear technology like accelerators, microelectron beams, materials design, supercomputers and computer vision. Anupam, a series of supercomputers, has been designed and developed by BARC using its own infrastructure and state-of-the-art technology. The project was initiated in 1991 and BARC has developed more than 20 different supercomputer systems to date. BARC is one of the pioneers amongst R&D institutions in India and serves as a beacon of research and innovation
16
50 years of ELCINA | 50 years of Making Electronics in India
for other organizations such as the Indira Gandhi Centre for Atomic Research (IGCAR), Raja Ramanna Centre for Advanced Technology (RRCAT), the Variable Energy Cyclotron Centre (VECC) etc., which conduct ground-breaking research on nuclear and accelerator technologies . BARC also guides and supports industrial establishments such as the Nuclear Power Corporation of India Ltd. (NPCIL), Nuclear Fuel Complex (NFC), Electronics Corporation of India Limited (ECIL) etc. commanding nuclear power production, materials technology, electronics and instrumentation.
http://www.dailyo.in/politics/jawaharlal-nehru-congress-indira-gandhi-modern-india-secularism/story/1/3961.html
https://www.nationalheraldindia.com/author/93547
Opening of BARC Bhabha Atomic Reactor by Pandit Jawaharlal Nehru, Bombay, Mumbai, Maharashtra, India, 16 January 1961
http://www.barc.gov.in/reactor/index.html
After the sad demise of Homi J. Bhabha in 1966, the organisation was renamed the Bhabha Atomic Research Centre (BARC).
Transformation of AEET into BARC
Jan 03
Jan 20
The Atomic Energy Commission started the Atomic Energy Establishment, (AEET) Trombay
AEET was formally dedicated to the nation by the then Prime Minister - Pt. Jawaharlal Nehru
1954
1957
Jan 12
1967
Renamed as Bhabha Atomic Research Centre - BARC, by the Prime Minister of India - Mrs. Indira Gandhi
50 years of ELCINA | 50 years of Making Electronics in India
17
INCEPTION PHASE
1958
Formation of
Defence Research and Development Organisation (DRDO) Inception of The Defence Research and Development Organisation (DRDO) was a landmark for Indian R&D and electronics Industry.
http://shortbiography.in/scientists/apj-abdul-kalam-short-biography-essay/
In 1958, it was formed by merger of the Defence Science organisation and a few technical development establishments. The Ministry of Defence, GOI has administrative control over DRDO and the organization is involved in military research and development activities. DRDO commenced its first major project in surface-toair missiles (SAM) termed Project Indigo, in the 1960s. Indigo was discontinued in later years without achieving complete success. Project Indigo led to Project Devil, 18
50 years of ELCINA | 50 years of Making Electronics in India
Dr. APJ Abdul Kalam at DRDO
along with Project Valiant, to develop short-range SAM and intercontinental ballistic missiles (ICBM) in the 1970s. DRDO has 52 laboratories across India, all engaged in developing defence technologies in the fields of aeronautics, armaments, electronics, land combat engineering, life sciences, materials, missiles, and naval systems etc.
Three major units were established under DRDO with the focus on R&D for the Electronics sector
https://www.cgtrader.com/3d-models/military/rocketry/aad-missile
http://parnika.co.in/
DRDO Bhavan, New Delhi
Akash Missile
Centre for Defence Electronics Application Laboratory (DEAL), DEHRADUN •
Mainly works on the R&D aspect of the radio communication devices for defence applications.
•
Also engaged in the development of many world class image processing software for the defence forces.
Defence Electronics & Research Laboratory (DLRL), HYDERABAD •
Established in 1961, functions principally on the design and development of the integrated Electronic Warfare systems for the Indian Armed Forces.
•
Engaged in systems integration and evaluation of these technologies on various platforms, such as aircraft, ships, helicopters, vehicles, etc.
Electronics and Radar Development Establishment (ERDE), BENGALURU •
Focuses in the radar and related technologies.
•
Possesses a variety of radar systems in production as well as development. 3D Surveillance Radars developed by DRDO
https://www.drdo.gov.in
50 years of ELCINA | 50 years of Making Electronics in India
19
With Best Compliments from FIEM FIEM Over 40 years, Fiem Industries Limited has scripted a trailblazing path in its field with farsighted vision, innovation and sheer dynamism. Today, FIEM is a formidable name in automotive lighting industry with 8 state of the art manufacturing units. Ever since the Auto Industry has gone global in India; more and more companies are coming up with the new and updated products in the market. Thus, there is a constant demand for renewed products, to be developed and delivered with in shortest development cycle. FIEMis one of the leading manufacturers of automotive lighting &signalingequipments and rear view mirrors. It’s major business comes from the two-wheeler segment of the vehicle industry. They have a wide range of lighting systems and rear view mirrors, sheet metals parts and plastic components for two and four wheeler our diversified products portfolio ranging from rear view mirrors, head lamps, tail lamps, signalling lamp, roof lamps, wheel covers, warning triangle, complete rear fender assembly, frame assembly, mudguards, LED Display Panels and various sheet metal & plastic parts etc. They are capable of catering to the needs of almost all segments of automobile industry viz., four-wheelers, LCVs, HTVs and tractors. www.fiemindustries.com
20
50 years of ELCINA | 50 years of Making Electronics in India
‘ELCINA’ has played a vital role in connecting government to the industry. It is the most active organisation for Electronics Component Industries. It has worked selflessly to promote ‘Make in India’ and other initiatives of the government while keeping the industry concern in mind. We are proud to be part of ELCINA when it is turning ‘50’! We are sure ELCINA will continue to help industry overcome the after effects of various FTA’s, ITA’s, etc and Indian component Industry can grow in coming future. We wish ELCINA a bright future.
Globe Capacitors GLOBE CAPACITORS LTD was established in 1978 for production of A. C. Motor Capacitors and has the manufacturing facility at Faridabad, an established industrial township in the NCR Delhi India. Globe Capacitors is a high-tech enterprise and has grown consistently from 1 million capacitors / annum in 1978 to 35 million capacitor/ annum. Globe Capacitor is one of the largest professional MPP Film Capacitors manufacturer in India. Manufacturing covers an area of 100,000 square feet of fully airconditioned, dust proof area, have more than 500 employees, and has all the International approval of products and its safety. Our capacitors are produced in an environmental friendly premise which run partially on solar power and conserves rain water. We believe in manufacturing capacitors with responsibility. The company is ISO 9001& ISO 14001 certified. Manufacturers of Air conditioners, Home Appliances, Motors, Pumps and Power Electronics use Globe range of Capacitors. It exports 40% of the production to countries in Middle East, Americas, and South-East Asia. Globe is a preferred supplier in terms of Quality, Delivery and Cost. The manufacturing equipment’s are imported from most reputed suppliers in Europe, Korea, Japan and China. The testing lab is recognised for TMP (Test at Manufacturing Premises) by TUV RHEINLAND. Globe Capacitors has a strong technical strength where the various Team Leaders have a very rich experience in manufacturing, research and development, marketing, logistics, etc. Globe Capacitors has received several awards for Quality, Entrepreneurship, Exports from Customers, Elcina and various industrial bodies. Website: www.globecapacitors.com
50 years of ELCINA | 50 years of Making Electronics in India
21
1961 - 1970 Conceptualization Phase
1970
Functioning of DOE as a Separate Department
The period from 1940 to 1960 saw a gradual but definite establishment of the foundations of a strong electronics Industry in India. However, the industry, as such, remained largely unnoticed till about 1960.
It grew in visibility in the early 1960s with the manufacture of electronic products such as transistor radios, products augmenting space and defence technologies, picture tubes of TVs, microwave tubes and calculators. The major drivers for the growth of the electronic Industry during this period were Defence and Aerospace. During the conceptualization phase, massive changes occurred in the electronics sector of this young developing nation.
1969 INCOSPAR grew into ISRO
1967 Formation of ECIL & ELCINA
1962 Set up INSCOPAR
CONCEPTUALIZATION PHASE
1962 Set-up of the
Indian National Committee for Space Research (INCOSPAR)
Dr. Vikram Sarabhai
Prof. M.G.K. Menon
Known as the Father of India’s Space Program
Key Positions held: Director, TIFR Chairman, ISRO Vice President, CSIR
[1919-1971]
The Indian National Committee for Space Research (INCOSPAR) was established in 1962 by the first Prime Minister of India, Pt. Jawaharlal Nehru, under the guidance of Dr. Vikram Sarabhai to formulate the Indian Space Program. At that time, this committee was part of the Tata Institute of Fundamental Research (TIFR), led by Prof. M.G.K. Menon.
24
50 years of ELCINA | 50 years of Making Electronics in India
[1928-2016]
The committee assumed the responsibilities of the Department of Atomic Energy in space science and research. INCOSPAR decided to set up the Thumba Equatorial Rocket Launching Station (TERLS), at Thumba. Dr. A.P.J. Abdul Kalam was part of the initial team of rocket engineers forming the INCOSPAR. INCOSPAR was the predecessor of ISRO.
http://www.rvcj.com/11-facts-indias-best-president-apj-abdul-kalam-didnt-know/
Dr Sarabhai and Dr Kalam. A photograph from the early stages of the Indian space programme
http://www.thehindu.com/thehindu/mp/2002/11/18/stories/2002111801050200.htm
https://history.nasa.gov/SP-4401/ch8.htm
There were no proper transport facilities at Thumba at that time and hence the rocket nose cone had to be carried on a cycle!
An Arcas rocket being loaded into the launch tube on one of Thumba's beaches. The beginnings of TERLS in 1968
Dr. Vikram Sarabhai and Dr. Homi Bhabha at Thumba
50 years of ELCINA | 50 years of Making Electronics in India
25
CONCEPTUALIZATION PHASE
1967
Establishment of
Electronics Corporation of India Limited (ECIL) The Electronics Corporation of India Limited (ECIL) was established as a Public Sector Company under the Department of Atomic Energy on April 11, 1967, under the leadership of Dr. A.S. Rao. Dr. A.S. Rao (1914-2003) was the Director of the radiation health protection and electronics groups at the Bhabha Atomic Research Centre (BARC) prior to setting up ECIL, when the Dept. of Atomic Energy (DAE) decided to go commercial in its electronics research.
26
The objective of establishing ECIL was to create a strong indigenous base of Electronics Ecosystem in India.
•
This was also the period when the ECIL produced India’s first digital computer, called the ‘TDC 12’.
Throughout its first decade, ECIL worked closely with BARC in the installation and commissioning of the Rajasthan atomic power station, the first pressurised heavy water reactor (PHWR) in India. Subsequently, ECIL expanded its activities to include the industrial, consumer and communication sectors.
•
ECIL, in its second decade, diversified into other critical sectors, through the manufacture of X-ray baggage inspection systems, satellite communication systems, hybrid microcircuits, thermal batteries, and commercial data processing systems for banking and insurance.
•
During these years, the challenges of a rapidly burgeoning population necessitated greater technological innovation in order to conduct fair, fast and foolproof elections. ECIL responded to this need by manufacturing an innovative product — the Electronic Voting Machine, popularly called
ECIL became the first and only company to develop and manufacture all solid state Black and White television sets, under the name ‘Apsara’. ECIL's TVs became an instant success and were immensely popular and remained thus for a long time.
50 years of ELCINA | 50 years of Making Electronics in India
Products of ECIL Nuclear Sector
Defence Sector
Commercial Sector
•
Control & Instrumentation products for nuclear power plants
•
Radio Communication Equipment
•
Electronic Voting Machine (EVM)
•
Electronics Warfare Systems
•
Voter-verified paper audit trail
•
Integrated Security Systems
•
•
•
Radiation Monitoring Instruments
Missile Support Control and Command Systems
Wireless Local Loop (WLL) systems
•
Stabilised Antenna tracking for Light Combat Aircraft
•
Electronic Energy Meters
•
X-ray baggage Inspection systems for airports
•
Secured Network of all the departments of atomic energy units via satellite
•
Jammers with direction finding abilities
the EVM. The EVM was conceptualised, designed and developed by ECIL, with no extraneous support. At a later stage, EVMs were also manufactured by BEL which contributed significantly to the overall electronics industry and made huge impact on the electoral process in India. It is imperative to mention here that both these organizations were instrumental in developing Voterverified paper audit trail in EVMs. The following years observed the development of the Electrical SCADA systems and a process control system, as well as the Monitoring and Control Instrumentation of nuclear power plants. Over time, the systems extended to the other sectors such as power, oil and gas.
ECIL developed the first EVM with no extraneous support
http://electronicsforu.com/electronics-projects/software-projects-ideas/electronic-voting-machine-demo-program
At present, ECIL is a multi-product, multi-disciplinary organisation providing innovative technology solutions to users in strategic sectors such as Defence, Atomic Energy, Aerospace, Electronic Security, IT & e-Governance.
50 years of ELCINA | 50 years of Making Electronics in India
27
CONCEPTUALIZATION PHASE
1967
Establishment of ELCINA Electronics Industries Association of India (ELCINA) was established in 1967. Since the beginning ELCINA has become the interactive forum for IT manufacturers and electronics. Seven enterprising leaders of Electronics Industry united to establish Electronic Component Industries Association (ELCINA) – a forum formed to deliberate on the various ways the Electronic Component Industry could be developed to satisfy the local demand and replace imports in the shortest possible time. ELCINA was registered as an Association in Bombay in 1967 under Section 25 of the Companies Act. Office operations continued from the premises of Asian Electronics Ltd., for three years. The then Department of Electronics (DOE) welcomed the setting up of the body and thus a regular interaction between ELCINA and DOE was established. The DOE would consult with ELCINA for any request of import of components to ensure that the local industry was not affected. As most of the interactions required were with DOE in Delhi under the controlled economy, the ELCINA office was shifted to New Delhi in 1971. Later, during 1973, ELCINA published a comprehensive directory for the Indian Electronics Industry, for the first
28
50 years of ELCINA | 50 years of Making Electronics in India
time in India. Today, this is recognised as an excellent guide and reference source not only in India but in all electronic centres across the world. Apart from publishing a comprehensive directory on the Electronics Industry for the first time in the country, ELCINA was the first association in India to institute annual awards for excellence in electronics manufacturing as far back as in 1976. Awards like the ‘Electronics Man of the Year Award’ were conferred to recognise the thought and business leaders for their individual efforts which have powered the Electronics Industry to greater heights. ELCINA, through this award system,achieves its goal of encouraging the industry to attain global standards and strive for excellence. Over the years, eminent personalities like Ratan Tata, Narayana Murthy, Azim Premji, Prof UR Rao, Satish Kaura, Mukesh Ambani and Ajai Chowdhry are among the other industry icons have been awarded the “Electronics Man of the Year award”.
Contribution of ELCINA to the Electronics Industry The association was formed with the objective of promoting the Electronics Industry in India. While the initial focus of the Electronic Industries Association of India was the promotion of manufacturing components –essentially the building blocks of the industry, ELCINA, has expanded its horizons and broadened its activities to embrace the development of the entire Electronics and IT Hardware, including Electronic Components, Parts & Raw Materials, Electronics Manufacturing Services (EMS), Electronic design, Products and Services. Some of the key initiatives where ELCINA has played a pivotal role are: After moving office from Mumbai to Delhi, the association began to operate from Televista’s office in the Okhla Industrial Estate in New Delhi. It then occupied rented accommodations and till 1995 when it finally shifted to its own premises – ELCINA HOUSE. Generous Credit is due to the Members who contributed to the best of their ability to make ELCINA House a reality and a permanent resource for the electronic industry. Mr. Om Wadhwa, who chaired the ELCINA Building Committee, played a vital role in fund raising for this prestigious project, which has placed the Association on a sound footing. Later, the “Center for Knowledge Management” (CKM) was conceptualised by ELCINA in 2008 to actively share and develop training and knowledge sharing platforms for the Electronics Industry. From a membership of 7 companies in 1967, the industry association has come a long way to enrol about 300 organizations as its members at present.
SUMMITS & EVENTS •
Strategic Electronics Summit. Defence & Aerospace
•
Source India. Development of the Electronics Supply Chain
•
CEO Forum and India PCB Tech at Electronica India
•
EFY EXPO. Conceptualised & supported by ELCINA
•
B2B Meetings and Buyer Seller Meets
POLICY & PROJECTS •
Supporting investments through implementation under the NPE 2012
MSIPS
•
ELCINA Electronics Manufacturing Cluster in Bhiwadi
•
Establishment of Electronic Sector Skills Council of India – Established in 2013-14 with ELCINA and 5 associations (MAIT, CEAMA, IESA, ELCOMA AND IPCA) as promoter members
INTERNATIONAL BUSINESS DEVELOPMENT •
India Taiwan Electronics Meet @Taipei from 2015 onwards
50 years of ELCINA | 50 years of Making Electronics in India
29
Founding Members of ELCINA
Dr. Behram Wadia
Behram Wadia & Associates, Pune
Mr. Gurpreet Singh CDIL - New Delhi
Mr. Ved Prakash Luthra Varicon Pvt Ltd, Hyderabad
Mr. Donald Edward Morris Morrris Electronics Pvt Ltd, Pune
Mr. P A Bhat
Asian Electronics Ltd, Mumbai
Mr. Norman James Kite Philips India, Mumbai
Mr. Chandrashekhar Lele
Rescon Manufacturing Company Pvt Ltd, Pune
Story of Electronic Components in India Electronic Components are basic building blocks for the Electronics Industry and involves maximum value addition. This was realized by the entrepreneurs in the beginning of 60s and they started localization of the components which were very difficult to import due to a number of tariff and non-tariff barriers during that time. Gradually the component industry started to expand in India and the growth of electronic components provided a boost to the overall electronics industry. The production of electronic components such as Picture Tubes, Diodes, Transistors, Power devices, Resistors, Capacitors, Switches, Relays, Connectors and others gradually started expanding. The component industry is classified in to 4 major categories: •
Active Components (such as Integrated Circuits (ICs), Cathode Ray Tube (CRT), Diode, Transistor, LED)
•
Passive Components (such as Wound Components, Capacitor, Resistor, Piezo-electric Crystal, Crystal Oscillator)
•
Electro-Mechanical Components (such as Printed Circuit Boards, Connector, Speakers, Switch, Cables, Relays, Fuse, Micro/Stepper Motor)
•
Associate Components (such as Optical Disc, Magnets, RF Tuners, Heat Sinks, Magnetron, Magnetic Tapes, Other Components)
As the industry progressed, number of component manufacturers started establishing their manufacturing
facility in India. Till date, numerous companies have set up their facilities and continued to expand those further. The contribution of these companies across key phases of electronics industry continues to be crucial. The phases where the component manufacturers witnessed a visible change by are:
Conceptualization Phase (1961 – 1970) The component manufacturing industry witnessed the emergence of a few iconic companies such as Continental Device India Pvt. Ltd who are a founder member of ELCINA since 1967 followed by O/E/N India Limited which joined ELCINA membership in 1969. Founder members of ELCINA who played a key role during this period included Behram Wadia& Associates, CDIL, Varicon, Morris Electronics, Asian Electronics, Philips and Rescon Manufacturing. Component manufacturing during this period was majorly focused on Active components such as Integrated Circuits (ICs), Diode, Transistor etc. and Electro Mechanical Components such as Connector, Relays, Printed Circuit Boards, Switches etc.
50 years of ELCINA | 50 years of Making Electronics in India
31
Growth Phase 1.0 (1971 – 1990) This phase was characterised by rapid expansion of component manufacturing in the country and a host of companies established their facilities in India. Over 50 companies joined ELCINA membership and the key names included: Siva Electronics, Amphenol Interconnect, Globe Capacitors, J V Electronics, WEBEL, Allied Electronics Corporation, Elin Electronics, ELICO, Keltron, PEC Mfg Co., CTR Manufacturing, Mahindra CIE (Mahindra Hinoday), Desai Electronics, Alcon Electronics, Solid State Systems, Elcompo, Andhra Electronics, Vetril Electronics, Film Electronics, Intron, Cosmo Ferrites, Essen Deinki, Salora International, Protectron Electromech, CII Guardian, FCI OEN Connectors, Super Cassettes Industries, Advance Components, Watts Electronics, Molex India, Hi-Tech Resistors, AT&S India, TEKNIC Electromeconics, SGS Tekniks, Silkee Electronics, Kwality Photonics and more. This is the time when component manufacturing industry in India started to produce all types of components spanning across Active, Passive, Electro Mechanical and Associate Components. There was high Customs duty on imported components and this provided necessary protection for manufacturers to invest and expand. ELCINA worked consistently to facilitate duty free import of inputs for manufacture of components which was allowed against duty concession certificates and later Custom Notification 25/99.
Deregulation Phase (1991 – 2005) This period was one of opening of the Indian economy and rapid reduction of import duties. There was immense pressure on government to deregulate, lower Customs duties and improve our Foreign Exchange reserves which had dwindled to less than 2 weeks of imports.
32
50 years of ELCINA | 50 years of Making Electronics in India
This process resulted in anomalies in the taxation and inverted duties wherein for many components inputs were at a higher Customs Duty compared to the duty on the finished component. This caused serious damage to the component manufacturing industry and Customs Notification 25/99 was issued to allow specific inputs at zero duty for actual users. Further India signed the ITA-1 agreement in 1998 for its implementation wef April 2005. While many of the import duty issues were resolved through this Notification, anomalies persisted and Finance Ministry was reluctant to keep adding inputs for duty free imports due to their dual use in nature and probability of misuse of duty free imports. These issues continued till recently and only now most of the issues have been resolved. This was a challenging time for component manufacturers and many of them shut down as they could not compete with zero duty imports. Also investments slowed down sharply in this period and Indian slipped behind considerably while competing with Asian Tigers such as Taiwan, South Korea, Malaysia, and of course China who surged ahead and established huge capacities . Some of the key manufacturers enrolling as ELCINA members in this period include Rosy Electronics, Bhansali Udyog, Hical Technologies, Semikron Electronics, Gujarat Poly Electronics, TE Connectivity (Tyco), Deki Electronics, Ahuja Radios, Centum Electronics, Southern Optoelectronic Devices, RMC Electronics, MEL Systems and Services, Interplex Electronics India, EPCOS India, Vishay Components (India), Dhruv Industries, Duggar Power Products and many more. During this phase, the component industry was majorly focused upon manufacturing of passive components that includes various components such as Capacitor, Resistor, Crystal Oscillators etc along with other electro mechanical & associate components such as wound components in which India has a substantial capacity.
Prominent ELCINA Members over the Years
50 years of ELCINA | 50 years of Making Electronics in India
33
ELCINA Presidents over the Years ...
Dr. B. H. Wadia
Mr. N. J. Kite
Mr. P. R. Mulchandani
Mr. Gurpreet Singh
Mr. V. P. Luthra
Mr. K. K. Khandelwal
Mr. P.A. Bhat
Mr. Vinay Rai
Mr. Satish K. Kaura
Mr. J. S. Monga
Mr. N. D. Desai
Mr. K. Krishnam Raju
Mr. O. N. Sharma
Mr. Om Wadhwa
Mr. R. Venkataraman
Col. Paul Varghese
1967-1969
1976-1977, 1972-1973
1983-1984
1990-1991
34
50 years of ELCINA | 50 years of Making Electronics in India
1973-1974, 1969-1971
1977-1978
1985-1986
1991-1992, 1986-1987, 1980-1982
1974-1975
1978-1979, 1971-1972
1987-1988, 1982-1983
1992-1993, 1984-1985
1975-1976, 1970-1971
1979-1980
1989-1990
1993-1994
Mrs. Pamela Anna Mathew
Mr. Anil K. Singh
Mr. N. Ramachandran
Mr. Inderdeep Singh
Mr. Jawad Basith
Mr. Raj Kapur
Mr. K. Vijay Kumar Gupta
Mr. B. S. Sethia
Mr. Sanjiv Narayan
Mr. R. G. Deshpande
Mr. Vinod Sharma
Mr. A.G. Rohira
Mr. Robert D. John
Mr. T. Vasu
Mr. Subhash Goyal
Mr. Vikram Desai
1994-1995
1998-1999
2002-2003, 1988-1989
2009-2011
1995-1996
1999-2000
2003-2005
2011-2013
1996-1997
2000-2001
2005-2007
2013-2015
1997-1998
2001-2002
2007-2009
2015-
50 years of ELCINA | 50 years of Making Electronics in India
35
CONCEPTUALIZATION PHASE
1968 INCOSPAR grows into
Indian Space Research Organisation (ISRO) The Indian Space Research Organisation (ISRO) formed in 1969, superseded the erstwhile Indian National Committee for Space Research (INCOSPAR) set up by Pandit Jawaharlal Nehru, in 1962. Headquartered in Bengaluru, its vision is to “harness space technology for national development”, while pursuing space science research and planetary exploration. http://www.isro.gov.in/about-isro/genesis
The two main units within ISRO that focuses on electronics research and development are as under:
SEMICONDUCTOR LABORATORY CHANDIGARH This centre focuses on Research & Development in the field of semiconductor technology, micro-electromechanical systems and process technologies relating to semiconductor processing.
LABORATORY FOR ELECTRO-OPTICS SYSTEMS The Indian Space Research Organisation (ISRO) formed BENGALURU in 1969, superseded the erstwhile Indian National Committee for Space Research (INCOSPAR) set up by Pandit Jawaharlal Nehru, in 1962. Headquartered in Bengaluru, its vision is to “harness space technology for national development”, while pursuing space science research and planetary exploration.
This laboratory is responsible for the development of altitude sensors for all satellites. The high precision optics for all cameras and payloads in all the ISRO satellites including Chandrayaan-1 have been developed in this laboratory.
Indian Space Research organisation (ISRO) is the primary agency under the Department of Space for executing the space programs. 36
50 years of ELCINA | 50 years of Making Electronics in India
CONCEPTUALIZATION PHASE
1970
The Department of Electronics (DOE) Established as a separate department
The Department of Electronics (DOE) started out as a wing of the Defence Ministry and began functioning as a separate department only in 1970. Prof. M.G.K. Menon was the first Secretary of DOE, although he continued for a couple of years as part-time Secretary, because he had a dual role to play as Director of the Tata Institute of Fundamental Research, Bombay, too. From the time the DOE was set up, human resource development in Electronics has always been one of its principal goals.
In the early 1980s the M.Tech degrees in Microwaves and Underwater Electronics were initiated by the DOE at the University of Delhi and IIT, Delhi respectively. Later, in March 1985, while announcing the Integrated Policy measures on electronics, great emphasis was laid on the human-power development in the Electronics sector. As a result, the M.Sc. degree in Electronics was initiated to train a wide spectrum of professionals at all levels in the field of electronics.
http://www.photoink.net/gallery/pastexhibition/exhibition_id/47#2
M.Sc. in Electronics was introduced in 1985 as a part of the course curriculum in universities.
Electronics Department at IIT Delhi
50 years of ELCINA | 50 years of Making Electronics in India
37
I am very proud and privileged to be your President in the Golden Jubilee year. ELCINA has established a reputation right from its inception as a highly credible and ethical association representing the interest of the electronics components and manufacturing industry. I commend ELCINA in participating with the Government for formulation of the NPE 2012 and establishing relations with international associations. ELCINA has excelled in organising seminars, exhibitions and imparting training. I wish ELCINA success in pursuing the goal of zero imports by attracting investments and nurturing an environment conducive to the growth of electronics industry in India.
Desai Electronics Pvt. Ltd. Desai Electronics Pvt. Ltd. (DEC), is a manufacturer of Plastic Film Capacitors, based at Pune, India. DEC has organically grown from an installed capacity of 0.5 million nos. per annum in 1980 to 400 million nos. per annum today. DEC manufactures Plain and Metallised - Polyester and Polypropylene capacitors used in the electronics industry for Fan Speed Regulation, DC Link, Snubber, Induction Cookers, EMI/RFI (X2, Y2), Appliances, Lighting, Energy Meters, Automobiles, Instrumentation, Power Electronics, Telecom etc. DEC is the first Indian manufacturer to get UL certification for X2 capacitors. The Quality Management Systems are certified under ISO 9001:2015. All its capacitors conform to IEC 384 and are RoHS compliant. DEC’s processes and all operations are in compliance with EMS 14001. DEC markets its capacitors directly to OEMs and through a network of distributors all over India. DEC has been
Gat No. 553, Kondhanpur Road,
years. DEC has a state-of-the-art manufacturing, testing and R & D facilities. The
Khed Shivapur, Pune 412205.
growth of DEC is attributed to its deep knowledge of the capacitor technology. DEC
Ph.: 0091-25654553 / 4
Capacitors. DEC is known for its consistency and reliability in quality. DEC enjoys
E-mail: mktg@deccapacitors.net Website: www.deccapacitors.net
38
an undisputed market leader, in capacitors for fan speed regulation, for over fifteen
50 years of ELCINA | 50 years of Making Electronics in India
designs and manufactures the entire plant and machinery required for Plastic Film high credibility amongst suppliers and customers in India as well as internationally. Along with success in business, DEC is actively involved in bettering the lives in the rural areas surrounding its factory, through its corporate social initiatives.
It is a matter of great pleasure to celebrate the golden Jubilee of ELCINA.This 50 years Journey of ELCINA virtually represent the journey of Electronics Industry in India. We are proud to say that ELCINA has strived hard to serve the cause of Electronics Industries and has significantly contributed towards sustaining the industry against all the odds like FTA, ITA and Zero import duty etc. We are also proud to see that ELCINA has been able to uphold the high level of ethics and values through its journey of 50 years which is recognized by one and all in Industry as well as in the Ministry. Now it is time, ELCINA broadens its horizon and goes Global and help the industry in becoming global players. Elcina need to expand its activities abroad, connect with foreign associations and create opportunities for its members to tap the Global market having JV’s, technical tie- ups and close business relations with companies abroad.
Digital Digital is one of the leading Electronics Manufacturing Solution company with plants in 6 different locations across India and Head Quarters at Bangalore. Our pioneering journey started way back in 1983, expanding consistently. Starting with Government business and maturing into supporting India`s large private sector like Tata Power, BEL, GE, L&T, Otis, Pricol, A.O.Smith, Schnider and SunEdison to name a few. We are servicing key sectors such as Industrial, Automotive, SolarPower, Energy, IT and Defense etc. It is Make in India time and Digital is looking forward to service this mission. OurState of the art EMS facilities are geared up for the upcoming demands. Be it your requirement for PCB assembly, Wiring Harness, Plastics, Box build or design to manufacturing solution, welook forward to service all yourrequirements. Digital has a vision for World class quality at affordable prices. We are fully certified to ISO 9001 and TS 16949 standards by TUV. Belief in long term customer and vendor relationship is our strength. Website: www.digitalcircuits.in
50 years of ELCINA | 50 years of Making Electronics in India
39
1971 - 1990 Growth Phase 1.0
The Growth Phase witnessed several noteworthy developments in the domain of Electronics. This included the launch of the first Indian satellite and the establishment of the first satellite earth station for communications in 1975 and 1980 respectively. This period also witnessed a rapid growth of the electronics industry, particularly during the early 1980s with the introduction of several domestically manufactured products like Transistor radios, Black & White TVs, Calculators etc. Additionally, the import of colour televisions began in 1982 in India, which fostered a revolutionary growth in demand for electronic products in the country. This era also marked the beginning of the Electronics Manufacturing Services (EMS) industry – with the entry of foreign and local firms in this segment in India. During this period, initiatives from the Government were introduced to promote the Electronics Industry in India. Establishment of the Centre for the Development of Telematics (C-DOT) in 1984 was one such initiative instituted to focus upon the designing and development of digital exchanges. The year 1985 observed the production of Computers & Telephone Exchanges and other audio products entering the Indian market. However, when there was a surge in demand for electronic products in India, domestic production was inadequate to meet the growing needs of the market and industry. Therefore, there was no other option but to increase dependence on imports of electronic products to meet the growing demand. At the same time, domestic production was inefficient since it was producing average quality products at higher costs compared to imports, thereby, selling at prices higher than that of the competitors in the market. Besides, the emergence of competitive manufacturing destinations like China posed challenges to the Indian manufacturers. This period also witnessed licensing policy restrictions resulting in higher entry barriers for new businesses for setting up operations.
1971 First Satellite Earth Station Established
1984
1975 Launch of First Indian Satellite
1980
Establishment of Centre for Development of Telematics (C-DOT)
1985
China emerges as a key manufacturing destination Telephone Exchanges & Computers
Development of Electronic Products Emergence of Doordarshan
1982
1988
Arrival of Digital Exchanges
Colour Televisions Integrated Guided Missile System
1983
First Analog stored program control exchange for trunk lines.
1990 Beginning of the EMS Industry
GROWTH PHASE 1.0
1971
First Satellite Earth Station for Domestic Communications established
India’s first Satellite Communication Earth Station was established under the guidance of Shri. N. Pant in 1971. The Earth Station operates through a satellite called the Intersat-III satellite which is positioned over the Indian Ocean. This was one of the strategic moves in the domestic communication space. Since then a second station has also been established at Dehradun in 1977.
Shri. N. Pant joined the team that had been assigned the task of setting up India's first Experimental Satellite Communication Earth Station (ESCES) at Ahmedabad. He was the Chief Systems Engineer for India's first commercial earth station at Arvi, near Pune. Shri. Pant made significant technical and managerial contributions in the setting up of this station.
42
50 years of ELCINA | 50 years of Making Electronics in India
GROWTH PHASE 1.0
1975
Launch of Aryabhatta India's First Satellite
http
lsta
atica
athem
w.m ://ww
-gb
ln=en
/81?
news
.eu/ mps
The first satellite by India ‘Aryabhatta’, named after the ancient Indian astronomer and mathematician was launched on April 19, 1975 from Kapustin Yar, a Russian rocket launch and development site. This satellite was built by the Indian Space Research Organisation (ISRO) to build its expertise in developing and managing a satellite in space. The launch was a result of the agreement between India and the USSR and was signed under the supervision of Mr. U.R. Rao in 1972. This allowed the USSR to use the Indian ports for tracking ships and launching vessels. Later during the 70s, India demonstrated its ability to launch space applications for communication, television broadcasting and remote sensing, building experimental satellites such as APPLE, Bhaskara – and the experimental satellite launch vehicles, SLV-3 and ASLV. http://www.isac.gov.in/experimental-satellites/html/aryabhata.jsp
The key person involved in the launch of the first Indian satellite is Mr. U.R. Rao. In addition to the above positions, Mr. Rao was the Chairman of the Governing Council of the Physical Research Laboratory at Ahmedabad and Nehru Planetarium at Bengaluru and chancellor of the Indian Institute for Space Science and Technology (IIST) at Thiruvananthapuram. Mr. U.R. Rao is a space scientist and former chairman of the Indian Space Research Organisation (ISRO).
50 years of ELCINA | 50 years of Making Electronics in India
43
GROWTH PHASE 1.0
1980
Development of Electronic Products such as
Black & White TVs, Calculators
http://www.hindustantimes.com/india-news/thebrands-that-shaped-pre-reforms-india-still-live-on-inour-national-memory/story-cgopk8eMkI8KMPdHadvpvM.html
During the 1980s, black and white TV entered the Indian market. These TVs required large sized antennas attached at the top for better reception.
At that time, only one national channel Doordarshan, was available which was owned by the Government of India. During late 1980s, Doordarshan became increasingly popular with the introduction of TV serials. As a result of which the sales of television sets observed a significant surge during the same time period.
A family huddled around their black and white TV
http://www.isro.gov.in/space-applications-centre-celebrates-ruby-year-of-site
The swift expansion in the number of television sets raised the demand for more programs to occupy the broadcast hours, which eventually resulted in the expansion of program production in the television industry and triggered the need for more television transmitters in the country. In the same year, basic computing devices like mechanical calculators were also introduced, which were soon replaced by digital calculators with progressive technologies leading to the advancement of computing devices.
Assembly of TV sets during SITE programme
44
50 years of ELCINA | 50 years of Making Electronics in India
GROWTH PHASE 1.0
1980
Emergence of Doordarshan as the National Broadcaster The emergence of Doordarshan as a National Broadcaster in the early 1980s was a major event in revolutionising the TV adoption in India. Several television brands like Oscar, Beltek, Webel, Weston, and Crown, ONIDA, BPL etc were launched during this period. Most Television brands were initially launched as B&W TV sets followed by Colour TV sets. The entry of Black & White Television established a platform for consumer electronics in India.
http://mediamagazine.in/content/53-years-indian-television
50 years of ELCINA | 50 years of Making Electronics in India
45
GROWTH PHASE 1.0
1982
Introduction of
Colour Television Sets 1982 was a landmark year for Television industry in India which also had a huge impact on the growth of the electronics Industry in India. http://www.primeindiatoday.in/2016/12/defining-moments-1975-2016/
A Doordarshan cameraman focuses on the action during the opening ceremony of the November 1982 Asian Games, which were held in Delhi.
http://indiatoday.intoday.in/
46
50 years of ELCINA | 50 years of Making Electronics in India
http://indiatoday.intoday.in/
In 1982, Colour Television sets were introduced in India with the live telecast of the Independence Day speech by the then Prime Minister of India, Mrs. Indira Gandhi, on August 15. This was followed by the broadcast of the 1982 Asian Games held in Delhi. In that year the Union Government permitted the import of 50,000 colour Television sets by November. By the end of 1982, India had imported about 1,00,000 Colour Television sets. Further, the number of television transmitters leaped from 35 to 100 in the same year covering a larger geographical area and the burgeoning number of television sets in Indian households. These developments had a big impact on the electronics industry in the country.
http://blogs.economictimes.indiatimes.com/
GROWTH PHASE 1.0
1982
Launch of the
Integrated Guided Missile Development Program The year also witnessed the launch of the Integrated Guided Missile Development Program by the Ministry of Defence, Government of India. The program was launched with the objective of setting up a comprehensive Research & Development program for a wide range of missiles. The program was managed by the DRDO and Ordnance Factories Board in partnership with the other Indian government organisations.
This initiative was started in 1982–83 with the support from the Government of India. Later, the program was managed under the guidance of Dr. A.P.J. Abdul Kalam who administered it upto its completion in 2008.
https://alchetron.com/Prithvi-(missile)-4087931-W#-
technutty.com/wp-content/uploads/2012/04/Agni-V.jpg
http://www.ibtimes.co.uk/india-successfully-test-fires-nuclear-capable-prithvi-ii-ballistic-missile-1624493
50 years of ELCINA | 50 years of Making Electronics in India
47
GROWTH PHASE 1.0
1983
First Analog Stored Program Control Exchange for trunk lines commissioned Stored Program Control (SPC) is a telecom technology where switching system is used to control telecom exchanges. SPC was an enabling factor for the invention of the Electronic Switching System (ESS) developed by Bell Systems, as early as the 1950s. However, in India, SPC was introduced into the electronic switching systems in 1983 at Mumbai.
As the SPC exchanges evolved, their reliability and versatility increased. By the late 1980s, SPC technology dominated the telecommunications industry.
48
50 years of ELCINA | 50 years of Making Electronics in India
GROWTH PHASE 1.0
1984
Establishment of the
Centre for Development of Telematics (C-DOT) C-DOT is the brain child of Satyanarayan Gangaram Pitroda, more popularly known as Sam Pitroda. He is one of the pioneers of the telecom revolution in India. The initial focus of C-DOT was to design and develop digital exchanges. At present, C-DOT has been expanded to develop a platform which helps in building connectivity in the Smarter cities.
Apart from the developments such as first satellite earth station and first control exchange in the early 1980s, a prominent development of this period was establishment of the Centre for the Development of Telematics (C-DOT). In August 1984, C-DOT was established as an autonomous body, with the goal of developing telecommunication technology to satisfy the requirements of the Indian telecommunication network. During the initial years, C-DOT encouraged various equipment manufacturers and component vendors to support the telecom revolution in the country, focusing particularly on connectivity in the rural areas.
The C-DOT infrastructure •
EDA Tools for Hardware and ASIC Design
•
CASE Tools for the development and testing of software
•
Captive Labs
•
Computing Centre
The current C-DOT infrastructure is equipped with Captive Labs, Computing Centre, EDA Tools for Hardware & ASIC design and CASE tools for software development and testing.
50 years of ELCINA | 50 years of Making Electronics in India
49
GROWTH PHASE 1.0
1985
Production of
Computers and Telephone Exchanges The production of computers has also resulted in significant growth of electronics manufacturing, post 1985. During this time, the government opened up computer manufacturing to the private sector. As a result Indian production of computers increased from 7,500 units in 1985 to 60,000 units in 1988. There was considerable growth in the domain of Telephones during 1980s due to expansion of telecom services. http://oldcomputers.net/ibm5150.html
Some of the remarkable developments in the field of telephones
1980
First satellite earth station for domestic communications established at Sikandrabad, U.P.
50
50 years of ELCINA | 50 years of Making Electronics in India
1983
First Analog stored programme control exchange for trunk lines commissioned at Mumbai
1984-88
C-DOT established for indigenous development and production of digital exchanges
GROWTH PHASE 1.0
1985
Emergence of China
As a Major Manufacturing Destination China has emerged as a significant manufacturing destination because of its favourable government policies, availability of a large labour pool, relatively lower wage rates and efficient supply chain. The Indian electronics Industry has seen significant growth during the 1980s. Various initiatives of the Government of India during the period also enabled the Indian industry to grow. However, this growth and achievement that the Indian electronics industry witnessed was rather small in comparison to the manner in which the world was moving. Several countries across the globe were adopting strategies to garner the opportunities that were being offered by a growing electronics industry. No one was able to drive this advantage more impactfully than China which emerged as a hub for low cost electronics manufacturing in a very short time. The emergence of China was driven by key factors which were very difficult for other countries to emulate at that time. These included the following:
FAVOURABLE GOVERNMENT POLICIES •
Electronics Industry Development Fund (EIDF)
•
High Technology Development Zone (HTDZ) policy
•
Incorporation of Large Firm Strategy
LARGE LABOUR POOL & LOW WAGE RATES EFFICIENT SUPPLY CHAIN The emergence of China also had an adverse impact on
the growth of domestic manufacturing of electronics in India. This resulted in slowing down of Electronics manufacturing and had a negative impact on the overall electronics growth story of India. While China designed a compelling strategy to boost manufacturing in their country, India was a protected economy which did not encourage global investments resulting in challenges in setting up and operating manufacturing in India. Other disadvantages faced by manufacturers included high energy & transportation costs, high finance costs and logistics etc. All of these added to cost of manufacturing thereby reducing efficiency and competitiveness of domestic manufacturers and of doing business in India. This eventually resulted in increased manufacturing costs in India and increased reliance on the import of electronic products, while the contribution of exports was minimal.
% share in the Total Global Exports of Manufactured Products over the decades
4.7
CHINA
1.9 0.8 0.5 1980
0.5 1990
0.7
INDIA
2000
50 years of ELCINA | 50 years of Making Electronics in India
51
GROWTH PHASE 1.0
1988 Arrival of
Digital Exchanges
http://www.sampitroda.com/telecom/
The growth story of the Indian electronics sector received a further boost when C-DOT launched the first set of digital telephone exchanges. C-DOT migrated all analog exchanges existing at that point in time to digital
52
exchanges in a phase wise manner. This resulted in huge efficiencies of the exchanges and, thus, enabled DOT to provide more telephone connections.
1960's
1980's
Initially, the telephone exchanges were manually operated
C-DOT laid the development for digitized exchanges
50 years of ELCINA | 50 years of Making Electronics in India
1990's
Significant improvement by introduction of Digital Electronic Exchanges in the network
GROWTH PHASE 1.0
1990
Beginning of the
Electronics Manufacturing Services (EMS) Industry The dawn of 1990 brought a new era in Indian electronics industry as Electronics Manufacturing Services (EMS) Companies began to set up facilities in India. During the period from 1990 onwards upto 2005, EMS companies expanded from just a few handful to about 50 such companies in India. This included large global players like Flextronics, Jabil and Solectron setting up its facilities in the country and also included successful indigenous firms like Deltron, TVS Electronics, SGS Tekniks, NTL Electronics, Hical Technologies, Digital Circuits, PG Electroplast and Sahasra Electronics. The growth in the EMS activity was primarily attributed to the rapid growth in the electronics hardware market in segments such as Telecom Infrastructure Equipment, computers, consumer and handheld devices. The advent of Surface Mount Technology was another driver for this segment to which product manufacturers started outsourcing their PCB Assemblies in large numbers. The key growth drivers include: •
Availability of talented workforce, especially for design and engineering services
•
Presence of the EMS majors in India and their plans for expansion
•
More outsourcing of manufacturing by both Indian and global original equipment manufacturers
At present, most of the EMS companies are playing the role of ODMs (Original Design Manufacturers) and also providing final system integration and logistical support.
50 years of ELCINA | 50 years of Making Electronics in India
53
It’s a mile stone moment of Golden Jubilee ELCINA is celebrating and we wish it would further continue to put its best efforts with respective government agencies to implement policies which would make “ease of doing business“ possible as it says. EOS family wishes ELCINA and all its members great successful and sustainable years ahead.
EOS POWER INDIA PVT. LTD.
“Making of Electronics in INDIA” wouldn’t have possible without “Making Electronics in INDIA” wouldn’t have without theofcontribution of ELCINA’s 50 possible year long efforts. It’s a mile the contribution of ELCINA’s 50 yearlong efforts. EOS POWER India Pvt. Ltd. stone moment of Golden Jubilee ELCINA is celebrating and It’s a mile stone moment of Golden Jubilee ELCINA is celebrating we wish it would further continue to put its best efforts with Unit no #57 and we wish it would further continue to put its best efforts government agencies to implement SDF II ,Seepz with respective respective government to implement policiesis apolicies EOS Power Indiaagencies Pvt. Ltd., Mumbai leadingwhich design and manwould make “ease of doing business“ possible as it says. EOS which would make “ease of doing business“ possible as it says. Andheri (East),Mumbai 400 096 ufacturing company for Mode Power Supplies (SMPS) family wishes ELCINA and all Switch itsgreat members great success and EOS family wishes ELCINA and all its members successful India. and sustainable years ahead. and also provides Electronics Manufacturing Services (EMS) sustainable years ahead.
About EOS Power
to its global customers. EOS specializes in designing, manufac-
Phone: +91 22 67744004 turing, marketing and supporting high density, high efficiency, india@eospower.com EOS POWER India Pvt. Ltd. About Power EOS India Pvt. Ltd. lowEOS toPower medium power AC/DC switching power supplies ranging Unit no #57 Website: www.eospower.com SDF II ,Seepz EOS Power India Pvt. Ltd., Mumbai is a leading design and manAndheri (East),Mumbai 400 096 India. Phone: +91 22 67744004 india@eospower.com Website: www.eospower.com
54
50 years of ELCINA | 50 years of Making Electronics in India
from 25 to 550 watts for Medical, Industrial, Telecom, Lighting
EOS Power India Pvt. Ltd., Mumbai is a leading design and manufacturing company
ufacturing company for Switch Mode Power Supplies (SMPS) for Switch Mode Power Supplies (SMPS) and also provides Electronics Manufacturing and Audio-Video customers. and also provides Electronics Manufacturing Services (EMS) Services (EMS) to its global customers. EOS specializes in designing, manufacturing, to its global customers. EOS specializes in designing, manufacEOS was established in California in 1991 by several pioneers in marketing andand supporting high high density, high efficiency, low to medium power AC/ turing, marketing supporting density, high efficiency, the field of AC/DC power electronics. EOS isfora Medical, product company with low to medium power switching power ranging DC switching power supplies ranging from 25supplies to 550 watts Industrial, from Telecom, 25 to 550Lighting watts for Medical, Industrial, Telecom, Lighting and Audio-Video customers. The company is the largest manufacturn key support operations. and Audio-Video customers. turer and exporter of1991 power supplies India and also EOS was established in California in by by several pioneers EOS was established in California inbranded 1991 several pioneersin in the field of in power the field of power electronics. EOScompany is a product electronics. EOS is a product withcompany turncustomer key with support operations. The offers complete VAM, ODM to partners. turn key support operations. The company is the largest manufaccompany is the largest manufacturer and exporter of branded power supplies in EOS employs 500+ skilled team members in design and manturer and exporter of branded power supplies in India and also and also offers complete VAM, ODM to customer partners. offersIndia complete VAM, ODM to customer partners. ufacturing facility based in SEEPZ, Mumbai, India and global sales EOS employs 500+ skilled team members in design and manEOS employs 500+ skilled team members in design and manufacturing facility based locations in US andMumbai, Europe. ufacturing facility based in SEEPZ, India and global sales in SEEPZ, India and global sales locations in US and Europe. locations in USMumbai, and Europe. EOS Power is certified for IS0 9001:2015 and ISO 14001. In line EOS Power is certified for IS0 9001:2015 and ISO 14001. In line EOS Power is certified for IS0 9001:2015 and ISO 14001. In line with green withmanufacturing green manufacturing concepts, the products and manufacturwith green concepts, the products and manufacturmanufacturing concepts, the products and manufacturing lines are RoHS compliant. ing lines arelines RoHS compliant. ing are RoHS compliant. EOS is recipient of various awards for Excellence in Quality, EOS is recipient of various awards for Excellence in Quality, Environment, Business, EOS isBusiness, recipient ofManufacturing various awards for Excellence in Quality, Environment, Export, from Export, Manufacturing fromAMEA, ELCINA-DUN & BRADSTREET AMEA, FICCI and RGNQA. ELCINA-DUN & BRADSTREET FICCI and RGNQA. Environment, Business, Export, Manufacturing from EOS facility in India graduatedfrom from being being product to a solution EOS facility in India hashas graduated productmanufacturing manuELCINA-DUN & BRADSTREET AMEA, FICCIandand RGNQA. facturing to atosolution provider its customers for their power provider its customers fortotheir power switching requirements electronics switching requirements and electronics manufacturing, manufacturing, In linein with this objective the facility has In setline up a design center and EOS facility India has graduated from being product manuwith athis objective the facility has set up a design center and a test lab that is accredited by UL and Nemko. The manufacturing lines are capable facturing to abysolution provider to its customers for their power test lab that is accredited UL and Nemko. The manufacturing of producing high volume and low variety and low volume and high variety products. lines are capable of producing high volumeand and low variety and manufacturing, In line switching requirements electronics low volume and high variety products. Company sells their products to global OEMs and through distribution channel withsells this objective facility hasthrough set up a design center and a Company their products tothe global OEMs and located globally. For more information, visit us at www.eospower.com distribution channel located globally. For more information, test lab that is accredited by UL and Nemko. The manufacturing visit us at www.eospower.com
lines are capable of producing high volume and low variety and low volume and high variety products. Company sells their products to global OEMs and through
It’s a matter of great pride that Elcina is celebrating Golden Jubilee of its existence. It is also commendable that it has kept is core value of supporting high value added manufacturing inspite of facing adverse environment against manufacturing. ITA, FTA’S, RCEP etc. are posing great challenge to ‘Net Zero Imports’ target for electronics as well as ‘Make-in-India’ programme. We expect Elcina to Device goal oriented innovative and ethical solutions and get them implemented with enforced vigour for desired growth of industry. We wish Elcina and its membership a great blissful future.
Elin Electronics Ltd. Elin Electronics Ltd. is a leading Engineering & Electronic/Electric manufacturing company established in 1969. It has capacity to manufacture 6 mln.nos.of various types of mini/micro motors for electrical appliances. World class complete in-house facility available to design and manufacture Electronic & Electro-Mechanical devices/ Components, with backward integration of Dies and Mould making, Sheet Metal fabrication, Plastic Molding, Metal Die
It has attained sales revenues of Rs. 750 Crore in 2017 with its 3000 plus workforce in three factories located at Ghaziabad, Baddi (H.P.) and Goa. Its ROHScompliant operations are ISO-9001, ISO-14001, ISO-TS-16949 certified. Its DSIR (Min. of Science &Technology, Govt. of India) recognized R&D is equipped with world class tool room for developing internationally acceptable products as well as process automation.
Casting, SMD PCB Assembly lines with
Elin group is proud recipient of more than 30 Awards from highly acclaimed
auto insertion, wave soldering and
organizations from 2009 to 2017 such as FICCI, Assocham, NPC, Elcina, NSCI etc.
Complete Appliances Assembly having
in the fields of quality, safety, CSR, environment protection etc.
particular specialty in manufacturing & assembling of Electric Light Fittings, Electronic Ballasts, Electronic Drivers, LED
Its customers include highly prestigious MNC’s such as Philips, Panasonic, Denso, Grunner, Eveready, Cadbury, Faber, Havells, Hitachi, Voltas etc.
Lights and LED Flash Light (Torch), Electric
Under its CSR Program it is supporting schools in rural areas, building toilets, planting
Irons, Toasters, Juicer Mixer Grinders, Hand
& maintaining thousands of trees, developing tourist Parks in Himachal Pradesh.
Blenders, Audios, Cooling/Heating cabinets, modular switches etc.
Website: www.elinindia.com
50 years of ELCINA | 50 years of Making Electronics in India
55
1991 - 2005 Deregulation Phase
The advent of 1990s saw a radical change in the electronics industry in India. This was driven by a combination of policy changes, the emergence of China as a global powerhouse in electronics manufacturing and liberalisation.
As a result of this, India became one of the major destinations for foreign companies. While these companies were setting up facilities in the country, traditional domestic companies started facing severe of competition and suffered due to lack of a level playing field on the policy and eco-system front. Thus, Indian government took a set of initiatives to improve opportunities for Indian manufacturers in the market and tried to create a supportive eco-system wherein domestic companies could try and compete in the global market under a zero duty regime. This phase also witnessed several new initiatives including the setting up Software Technology Parks of India (STPI), the launch of the first mobile telephone service in mid 1990s, the signing of Information Technology Agreement (ITA), implementation of National Task Force (NTF) on electronics, New Telecommunication Policy (NTP) and the IT Act 2000 in early 2000s.
1975 Launch of First Indian Satellite
1980 1971
Development of Electronic Products Emergence of Doordarshan
First Satellite Earth Station Established
1982 Colour Televisions Integrated Guided Missile System
1983 First Analog stored program control exchange for trunk lines.
DEREGULATION PHASE
1991
Setting up of
Software Technology Parks of India (STPI) STPI were set up by The Department of Information Technology, currently known as Ministry of Electronics and Information Technology (MeitY). The objective of setting up STPI was to encourage, promote and increase the Software Exports from India. Today, STPIs across the cities in the country are equipped with outstanding infrastructure and notable support for fuelling the growth of Information and Communications Technology in the country. The STPI also set up an “electropreneur Park” recently in collaboration with IESA to focus on IP creation and product development with the objective of increasing the value addition in the domestic manufacturing of electronic products such as smartphones, smart meters, micro ATMs and set-top boxes. This aims to support about 50 startups over the next five years and bring them to commercial success.
http://www.noida.stpi.in/p-lko http://www.noida.stpi.in/p-ind
FUNCTIONS OF STPI
58
•
Establish Software Technology Parks/ Centres at numerous locations in India
•
Perform Financial Management
•
Perform all actions necessary to satisfy the core objectives of the Software technology Parks
•
Promote entrepreneurship and incubation programs, specifically in the field of Information Technology
•
Work together with the venture capitalists to provide financial assistance to the IT industry
50 years of ELCINA | 50 years of Making Electronics in India
DEREGULATION PHASE
1991
Significant Increase in the Number of
Foreign Companies Entering India https://manjeetwhatif.wordpress.com/2016/07/02/25-year-of-rupees-devaluation-father-of-indian-reforms-manmohan-singh-has-a-regret-in-crisiswe-act-when-its-overwe-back-to-status-quo/
Mammohan Singh meets the press on July 24, 1991, before the budget.
This year observed a significant increase in number of foreign companies entering India. Department of Electronics (DOE) has been instrumental in bringing advanced technologies to India by collaborating with foreign entities. During early 1990s, MoU was signed with the European community for gaining access to high definition television technology. At the same time, it also funded a project in the area of digital technology to the
tune of INR 4 Crore (US$0.6 million). This is the same period where foreign companies such as LG (known as Lucky Goldstar, later renamed as LG Electronics India) started entering India market. There were a number of investments and collaborations during this period specially in consumer electronics and auto electronics segment which were expanding rapidly.
50 years of ELCINA | 50 years of Making Electronics in India
59
DEREGULATION PHASE
1995
Beginning of
Mobile Telephone Services First mobile telephone service started on a non-commercial basis on August 15, 1995 in Delhi
1995
1995
First Cellular Call made in India on July 31
First Mobile Service on non-commercial basis launched on August 15
1995
1995
Commercial Operations launched later during the year
Circles formed based on mobile services offered in multiple zones
India’s wireless revolution started with one test call made by the then CM of West Bengal Jyoti Basu to Sukh Ram, the then Union Communications Minister. Since then, India has emerged as the fastest growing telecom market in the world.
1997 TRAI
(Telecom Regulatory Authority of India)
formed to regulate telecom services & tariffs
http://www.news18.com/news/tech
After the success of this symbolic call, the first mobile telephone service on a non-commercial basis commenced on the 48th Independence Day in the history of our nation. Modi Telstra (India’s first mobile operator) was a joint venture between India’s Modi Group and Australian telecom company Telstra.
60
50 years of ELCINA | 50 years of Making Electronics in India
The then Chief Minister of West Bengal Jyoti Basu made the first call using hand held mobile phones on July 31, 1995.
DEREGULATION PHASE
1997
Signing of the
Information Technology Agreement (ITA) Information Technology Agreement (ITA) is enforced by the World Trade Organisation (WTO) and started with just 29 countries in 1997. India signed the ITA1 (Information Technology Agreement) in the same year (1997) and implemented it in 2005. Although India signed the ITA with the objective to reform the electronics manufacturing industry of India, the results did not go
as expected. Imports became cheaper and domestic products became more expensive, mainly due to inverted duties. However, the ITA facilitated the growth of the software services sector by facilitating import of low cost IT products and India eventually became a software industry hub in the world. Telecom Apparatus
ITA •
Enforced by WTO in 1997
•
29 countries participate initially
Semiconductor Manufacturing Equipment
The Agreement •
The participant shall bind and eliminate customs duties and other charges on any kind of IT products
India •
Joined : ITA in 1997
•
Objective : Promoting Electronics Manufacturing
•
Results : Growth in software market
IT PRODUCTS COVERED WITHIN THE ITA
Semiconductors Data Storage Media and Software
Computers Parts & Accessories
Instruments & Apparatus
50 years of ELCINA | 50 years of Making Electronics in India
61
DEREGULATION PHASE
1997
Emergence of the
BPO and IT Services Industry The growing significance of the Indian IT industry acted as a launching pad for the BPO sector. Eventually, the Indian market significantly emerged as a unique combination, as an IT-BPO outsourcing destination. The signing of the ITA-1 in 1997 was a major event during the post liberalisation era. The initiative was targeted at propelling the growth of the Electronics and Information Technology industry. The early '90s observed a boom in the outsourcing market. Initially, a few global airlines began to outsource back-end work to India, which was then followed by the IT companies. Some of the earliest entries for the Indian outsourcing market were Texas Instruments, American Express, Swissair, British Airways and GE.
Growth of India IT Industry 2.7%
1.2%
1.5%
2.9%
4.1% 3.2%
1.9%
3.5% 28.4 21.6
16.1 Share in National GDP IT Industry (US$ billion)
4.8
6.0
12.1
13.4
8.2
1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Source: Nasscom
http://indianexpress.com/article/business/economy/india-fdi-in-services-no-newjobs-2821048/
62
50 years of ELCINA | 50 years of Making Electronics in India
Policy Implementation enabled boosting the IT Service Industry, which in turn offered a market for the BPO sector as well.
DEREGULATION PHASE
2000
National Task Force (NTF),
New Telecommunication Policy (NTP) and IT Act 2000 All these reforms facilitated the Indian IT industry to move at a faster pace. The NTF through its recommendations facilitated implementation of more than 100 recommendations by Government which were presented to it by the IT firms. These were favourable to the IT industry from 1998 onwards. The new Telecom Policy of 1999 had helped in freeing the telecom sector in India, which aided in infrastructure availability for the telecom sector and rapid expansion of services. The Information Technology Act 2000 offered legal recognition for electronic documents, digital signatures, contraventions and offences.
National Task Force (NTF), 1997-98 This Task Force was to formulate the National Policy on Informatics, focused on empowering India to rise in recognition as an attractive information and Technology destination.
New Telecommunication Policy (NTP), 1999 NTP defined certain specific objectives including the facility of telephone on demand, provision of world class services at economically affordable prices etc.
IT Act 2000 The IT Act 2000 ensures IT governance by prescribing penalties for Cyber-crimes.
50 years of ELCINA | 50 years of Making Electronics in India
63
DEREGULATION PHASE
2005
Imports from China continue to increase, posing a challenge to local manufacturing
While the IT industry (primarily the software and IT services) observed substantial growth both in terms of domestic market and exports, the Electronics Industry did not grow as anticipated because of increased focus on IT & BPO sectors which were booming and favourable policies were framed around these industries. The Government was continuously seeking out initiatives to
promote the Electronics Industry during the same phase. A weak Hardware sector in India and zero duty imports under the ITA-1 agreement resulted in growth of imports from China and other key Asian countries which are strong in electronics manufacturing. Imports from other developed economies such as USA, Singapore, Germany were minimal and did not grow much due to their higher costs.
From 1991 to 2010 the percentage share of the imports of ITA products from China to India increased from close to 2% to nearly half of the total import of ITA classified items.
https://www.ft.com/content/9e2533d6-dbd8-11e5-9ba8-3abc1e7247e4
64
50 years of ELCINA | 50 years of Making Electronics in India
DEREGULATION PHASE
2005
Revenue of Indian EMS/ODMs at $935 million During the 2000s, only about 50 Electronics Manufacturing Services (EMS)/ Original Design Manufacturers (ODMs) were present in India, contributing an insignificant revenue. In about 5 years’ time after 2000, the revenue of the Indian EMS/ODMs grew to US$ 935 million. DISPLAY TECHNOLOGIES
PASSIVE COMPONENTS
SEMICONDUCTOR DESIGNING
Electronic Contract Manufacturing Revenue (US $ Million)
2033
ENTERTAINMENT ELECTRONICS
OPTICAL STORAGE DEVICES
TELECOM EQUIPMENT
ELECTRONIC MANUFACTURING SERVICES (EMS)
TRANSMISSION & SIGNALLING EQUIPMENT
At that time, the Indian Electronics Industry comprised a mere 0.7% of the global Electronics Industry. India exported multiple electronic products such as Display Technologies, Entertainment Electronics, Optical Storage devices, Passive components, Telecom equipment, Transmission & Signaling equipment, Semiconductor designing and Electronic Manufacturing Services (EMS). The volume and values of these exports were not high. The OEMs present in India primarily outsourced manufacturing to satisfy the demands of the Indian market. Those OEMs engaged in the contract manufacturing
935
2005
1131
2006
1372
2007
1669
2008
2009
Source: ELCINA
services in India could assist in penetrating the local market. However, numerous risks were associated with contract manufacturing – fluctuation in exchange rates and volatile oil and component prices, apart from frequently changing government policies resulting in unpredictable prices. Post 2005, the manufacturing scenario in India improved. ELCINA generated data suggests that the electronics contract manufacturing revenue in India continued to escalate, with an average of more than 20% year-on-year growth.
50 years of ELCINA | 50 years of Making Electronics in India
65
2006 - 2013 Sustainable Phase
This phase saw India emerge with a plan of action to move up the electronics manufacturing value chain through major policy initiatives. The period also witnessed results of the various initiatives of the Government of India bearing results towards the end of the period. During this period, while India stepped up growth, China continued to lead the global industry though it began facing challenges due to rising labour cost.
This phase marked the time when the Electronics Industry in India unlocked multiple avenues in terms of opportunities and growth for the country, placing it at the forefront as one of the principal electronic product manufacturing destinations. Several policies were introduced which made India an attractive destination for electronics manufacturing and specially for multinational companies. Government of India backed the industry by announcing policies such as the National Policy on Electronics, Modified Special Incentive Package (MSIPS), Electronics Manufacturing Clusters Scheme (EMC), Preference for Domestically Manufactured Electronic Goods (PMA). Post 2012, these were followed by initiation of mission mode initiatives such as Make in India, Digital India and Smart cities to attract global investors to set up their manufacturing units here and showcase India as an attractive manufacturing destination.
2011 National Manufacturing Policy
2013
Formation of ESSCI
2010 Launch of Solar Mission
2009
PMA announced
2012 National Manufacturing & Investment Zones
Task Force on IT Sector
2012 National Policy on Electronics (NPE)
SUSTAINABLE PHASE
2010 Launch of
Solar Mission The Government of India launched the Jawaharlal Nehru National Solar Mission (JNNSM) in early 2010. The mission was launched with an objective to reduce the use of fossil fuels and increase the capacity of renewable energy in the country.
https://wearechange.org/world-trade-organization-shutting-indias-massive-solar-project-whats-wrong-world/
Initially, the mission was kick started with a plan of deploying 20,000 MW of grid connected solar power by 2022. Additionally, it was also aimed at reducing the cost of solar power generation in the country through policies, large scale deployment goals, Research & Development and producing components and equipment required for it domestically. 5 years later, in mid of 2015, the present Prime Minister of India, Mr. Narendra Modi advanced this mission a
68
50 years of ELCINA | 50 years of Making Electronics in India
step forward and approved to expand the solar mission capacity to reach 100,000 MW by 2022. •
In 2016-17, the country’s solar energy capacity increased by 5,525.98 MW.
•
At present country’s solar capacity stands at 12,288.33 MW and by end of next year the country aims to add another 7,750 MW to reach 20,000 MW helping to progress the mission.
SUSTAINABLE PHASE
2012
Formulation of
National Policy on Electronics (NPE) To strengthen the Electronics Industry in India, the Government approved the National Policy on Electronics (NPE), one of the significant initiatives to encourage the growth of the Electronics Industry. TURNOVER
Objectives of NPE by 2020
$400 billion
INVESTMENT
$100 EXPORTS
billion
$80 billion http://dineroclub.net/wp-content/uploads/2016/02/FABRICAINDIA2.jpg
•
One of the major objectives of this policy was to achieve about US$ 400 billion turnover by 2020, which includes $100 billion investment and create employment for around 28 million people.
•
Includes US$55 billion for chip design and embedded software industry and $80 billion by way of exports. In this initiative, the Government proposed setting up 200 EMCs for providing a competitive eco-system.
•
Besides this, under NPE, the Government of India included Schemes for providing Skilled manpower, E-Waste Management, Electronic Development Fund for promoting R&D and Innovation and all round support for the ESDM Sector to grow and become globally competitive.
50 years of ELCINA | 50 years of Making Electronics in India
69
SUSTAINABLE PHASE
2013 Growth of
India as Manufacturing Destination The three major factors that contributed towards the shift in focus on India as a manufacturing destination are 1) Lower Manufacturing Wages The cost of manufactured goods largely depends upon the labour cost. As per the data published by U.S. Bureau of Labor Statistics, International Labor Comparisons, August 2013, the average manufacturing labour cost was $ 1.24 per hour in India compared to $ 1.74 per hour in China in 2009. India’s relatively lower labour costs can be an attractive feature that will invite foreign companies to set up their factories in India.
http://www.theweek.in
The companies which had set up their manufacturing units in China slowly began to face an increase in the production costs. This created some space for India to find a foothold in ESDM sector and grow its manufacturing.
PER HOUR COMPENSATION COST IN MANUFACTURING India
US$1.24
China
US$1.74
GDP GROWTH RATE (2016) IN % India
70
7.1
50 years of ELCINA | 50 years of Making Electronics in India
China 6.7
2) Aging Population in China
In China, almost 50% of population will attain 60 years of age in the near future resulting in lower productivity, whereas India’s demographic dividend is significantly better than that of China 3) Decreasing GDP Growth in China
Over a period of time, China’s growth has now become stagnant. As per the data published by The World Bank, India is growing at a GDP rate of 7.1%, building positive sentiments among the investors, while China is growing by 6.7%.
SUSTAINABLE PHASE
2013 Policy announced regarding the
Preference for Domestically Manufactured Electronic Goods (PMA) In 2013, the Department of Electronics and Information Technology (DeitY) notified the PMA (Preference for Domestically Manufactured Electronic Goods) policy for providing preference for domestically manufactured electronic products. As a policy, the PMA reveals the potential to present a pathway for increasing the capabilities and capacities of domestic manufacturers, as well as in encouraging foreign direct investments in India.
Salient features of the PMA •
All companies registered in India, which are engaged in the manufacture of electronic products are eligible under this policy.
•
Selling agents/authorised distributors/authorised dealers/ of electronic products are also included.
•
There is a minimum quota of 30% in the Government procurement of electronic production for domestic players.
Role of Distributors in PMA This policy is not only applicable to the manufacturers but also applicable to the Distributors involved in selling domestically manufactured electronic goods. As Electronics market in India is highly channel driven, authorised dealers/distributors play a critical role in driving the sales. The policy enables the authorised dealers/distributors to bid on behalf of the domestic manufacturers empowering them to drive the electronics sales in the country. This further builds mutual trust, respect and cooperation amongst the distributors and the manufacturers and strengthens the supply chain.
50 years of ELCINA | 50 years of Making Electronics in India
71
SUSTAINABLE PHASE
2013 Formation of
Electronics Sector Skills Council of India (ESSCI) 2013 also saw the formation of the Electronics Sector Skills Council of India (ESSCI) with an objective of creating an ecosystem for developing and nurturing skills required for Electronics Systems, Design and Manufacturing (ESDM) Sector.
http://www.business-standard.com
http://nifaindia.com/skill_projects.php
The not-for-profit organization is promoted by five associations that include Manufacturers' Association for Information Technology (MAIT), Consumer Electronics and Appliances Manufacturers Association (CEAMA), India Electronics & Semiconductor Association (IESA), Indian Printed Circuit Association (IPCA) and Electronic Industries Association of India (ELCINA) and financially by the National Skill Development Corporation. ESSCI is embarked on a mission to strengthen and drive the existing vocational training system in India in order to enhance the skill development in ESDM sector.
72
50 years of ELCINA | 50 years of Making Electronics in India
http://www.skillyoungindia.com/area-sector/Electronics-Sector-Skill-Council
ESSCI is focused towards achieving this goal through a combination of the following: •
Leveraging NSDCs partnership with multiple stakeholders like Private sector, central ministries, state governments, universities/schools, non-profit organizations to enhance the skill ecosystem in our country.
•
Offering specific skilling programs under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) focused on industry-relevant skill training to help individuals secure a better living.
ELCINA has provided outstanding service to the Electronic Component & EMS Industry in India over these glorious 50 years. Today it stands out as one of the foremost electronic associations and is closely working with Govt. Agencies on policy formulation for enhancing the local manufacturing industry. Best wishes to ELCINA on the occasion of its Golden Jubilee.
SGS Tekniks SGS Tekniks Manufacturing Pvt. Ltd. has been a preferred value creator for its customers over the last 27 years through innovative and efficient Electronic Manufacturing Services and Solutions. SGS Tekniks is a AS/EN 9100 (Aviation, Space & Defence), ISO/EN 13485 (Medical), TS 16949 (Automotive), ISO 9001, ISO 14001 and OHSAS 18001 certified company for Electronic Manufacturing Services and has four manufacturing locations in India along with design & development centres at Stuttgart, Germany and Gurgaon, India. The Plant 1 at Gurgaon (Haryana) & Pant 2 at Manesar(Haryana) are located near the New Delhi International airport, Plant 3 at Baddi (Himachal Pradesh) and Plant 4 at Bangalore (Karnataka). The company was set up by a group of 4 professionals in 1990, headquartered in Gurgaon, SGS Tekniks has emerged as one of the leading Electronic Manufacturing Services provider to OEMs of Global and Indian brands. Its expertise lies in Electronic Design Services, PCB Assemblies & Box Build Products. SGS Tekniks is focused on delivering end-to-end solutions to OEM involved in Industrial, Office Automation, Consumer Electronics, Automotive, Railways & Defence. SGS is committed to grow in every facet of its business and continuously scale new heights of success through delivering the most innovative, efficient and comprehensive solution to their customers year after year. Website: www.sgst.com
50 years of ELCINA | 50 years of Making Electronics in India
73
Global competitiveness is a result of the alignment and team work between the actors, enablers and drivers of any ecosystem. ELCINA, as our key enabler has played a stellar role in listening to us, in analysing and understanding the issues, formulating an industry vision and engaging professionally and pro-actively with the drivers - the policy makers. The small but committed team at ELCINA has been punching more than their weight, in areas of business development, policy advocacy, investor advocacy, international representation and pursuing ease of doing business for all of us. We are blessed with a dedicated secretariat led by Rajoo - the pleasant, erudite, committed, professional and dynamic leader. As members, we enjoy an enviable cohesiveness, singularity of purpose and a spirit of belongingness amongst colleagues in the industry. It is indeed a matter of tremendous pride that we have never had the need for an election in these 50 years. ELCINA is home to all of us.
Deki Electronics Ltd. Deki Electronics Ltd manufactures film capacitors. Over 1.2 billion of them each year and this is bound to grow, as it has since 1984 when the first one rolled out with our name on it. Has it been easy becoming India’s largest plastic film capacitor manufacturer (we are specialists, after all)? And, the short answer is yes. You may have expected a long winded explanation about how we battled the system and stood up against the external factors and so on. Quite a bit of this is true, but then, who says it is easy out there in the manufacturing world? So, what has helped us in our journey? First, a participative management ethos where we have considered our employees as beyond just a set of eyes and hands. Second, a culture of innovation that has ensured new ideas and new products. Third, a focus on process and benchmarking to ensure consistency in all that we do. Fourth, we believe in mutual respect, transparency and delivering on our commitments. Lastly, sustainability in every sense of the term. This is Deki for you. Website: www.dekielectronics.com
74
50 years of ELCINA | 50 years of Making Electronics in India
om bhūrbhuva sva tátsavitúrvárenyam bhárgodevásyadhīmahidhíyoyóna prachodayāt
ELCINA has been like the Sun providing energy & direction to all its members for the past 50 years. What a glorious journey with relentless pursuit for Excellence. Sahasra Group congratulates ELCINA reaching the Golden Jubilee year and continuing to grow in strength & vision. The industry looks forward to ELCINA’s active role, with government & all other stakeholders in policy formulation & implementation to realise our honourable Prime Minister’s mission of “Make in India”.
Sahasra Electronics ‘Every Big Journey Starts with a first step’, with this thought, Mr. Amrit Manwani, Chairman and Founder, a true visionary who started Sahasra in 2000, and since then it has been one of the most successful and fastest growing electronics companies in India. The Group comprises of 6 businesses providing end to end electronic solution from designing to manufacturing to distribution. Success is a journey, not a destination, and with a journey of over 17 years in the Electronics manufacturing space, today Sahasra prides itself in having established its footprints in India, Europe, Africa as well as North America. Sahasra is a RoHS and REACH Compliance Company, which assembles boards at its 3 manufacturing plants, equipped with 5 high speed SMT lines with a total capacity of 200,000 CPH. The company also provides wire harnesses, plastic injection moulding and system assembly. The group has 2 PCB Fabrication Facilities which helps in meeting captive demand as well as serving other EMS and OEM companies. Our mission at Sahasra is to set the benchmark in new technologies, which are cost effectives, efficient and also environment friendly. We don’t assemble boards, we assemble relationships, we believe in building trust, faith and creating a bond between our business partners and us. Dream Big, Work Hard, with this motto, Sahasra is continuing its journey… Website: www.sahasraelectronics.com
50 years of ELCINA | 50 years of Making Electronics in India
75
2014 - 2017 Growth Phase 2.0
2016 2015 The phase from 2014 till date has been a revolutionary period so far. This phase has brought in the next phase of growth for the Indian Electronics Industry. Powered by strong initiatives and policies from the Government of India, the period saw India emerge as one of the most desired destination of Electronics & Technology. This period saw India launch of two flagship programs – Make In India and Digital India. The launch of these programs provided a boost to the overall electronics industry growth. Apart from these, the focus to build 100 Smart Cities, approval of Electronic Development Fund and the amendments to the Modified Special Incentive Package Scheme (M–SIPS) further fuelled the growth of electronics industry in India. The enhancement of Electronic Manufacturing Clusters (EMCs) during this phase was another key event bringing back the focus on domestic manufacturing in the country.
Smart Cities Initiative
2015 Launch of Digital India Initiative
2014
DeitY becomes MeitY
2016 Enhancement of Electronics Manufacturing Clusters
2016 Approval of EDF
Launch of Make in India
2016 2014
National Centre for Flexible Electronics established
Amendments in M-SIPS
GROWTH PHASE 2.0
2014 Launch of
Make in India
by the Government of India
Launched by the Prime Minister in September 2014 Devised to transfer India into a global design and manufacturing destination
The Make in India campaign was launched by the current Prime Minister of India, Mr. Narendra Modi, in 2014. This initiative was truly an appropriate response to the critical conditions that had emerged during 2013. The overhyped bubble of emerging markets had burst and India’s GDP growth rate plummeted to its lowest point of the last decade. India was teetering on the edge of economic failure. This was the right time to shift focus from boosting the services sector to enhancing manufacturing in India.
Overview of the Make in India campaign with a focus on Manufacturing Government of India has set increased emphasis on a policy focused on improving India’s manufacturing capability known as National Manufacturing Policy. The
78
50 years of ELCINA | 50 years of Making Electronics in India
policy was announced as early as in 2011 with an the following key objectives: •
Increase the % share of manufacturing to the GDP from 16% (2011) to 25% by 2022
•
Creation of 100 million additional jobs by 2022 in the manufacturing sector
•
Increase of manufacturing sector growth to 12-14% per annum
However, the present government has accelerated the progress in terms of focusing upon industries such as aerospace, shipping, IT hardware & electronics, telecommunication equipment, defence equipment and solar energy along with other manufacturing sectors.
GROWTH PHASE 2.0
2014
National Centre for Flexible Electronics
A Centre of Excellence for Large Area Flexible Electronics (FlexE Center) Established http://www.iitk.ac.in/flexe/picture_gallery.html
The National Centre for Flexible Electronics was established in 2014 through a grant from the Department of Electronics and Information Technology (DeitY) under the Electronic System Design & Manufacturing (ESDM) scheme of the Electronics Policy of 2012, by the Government of India and supported by IIT Kanpur. This centre functions as a nodal point in India to draw the academia, industry and public research organisations under one umbrella for research and development of Large Area Flexible Electronics. At full capacity, the centre boasts of a dedicated team of about 50 researchers and project staff.
FlexE Centre at IIT Kanpur http://www.iitk.ac.in/flexe/picture_gallery.html
1st Annual Workshop on Large Area Flexible Electronics 2015
50 years of ELCINA | 50 years of Making Electronics in India
79
GROWTH PHASE 2.0
2015
Launch of
Digital India Initiative The Digital India program is one of the flagship initiatives launched by the Government of India, with the vision of transforming the country to support a society which is digitally empowered, ensuring that the citizens have easy access to various services through digitization.
3 Principal Vision Areas of DiGiTaL InDia
Digital Infrastructure as a Core Utility for Every Citizen
Department of Electronics and Information Technology (DeitY) was identified as the coordination partner for the implementation of Digital India. Nine pillars of growth were selected for the Digital India program to ensure the success of the envisioned campaign across all the segments of the country. Electronics Manufacturing has been ranked as one of the key pillars along with other initiatives. This indicates
80
50 years of ELCINA | 50 years of Making Electronics in India
On Demand Governance & Services
Digital Empowerment of Citizens
the Government’s focus on strengthening the electronics manufacturing sector in the country. The central ministries/ departments and state governments concerned would bear the overall responsibility for the implementation of the various projects under the Digital India program which is expected to drive the IT & Electronics sector in the country.
GROWTH PHASE 2.0
2015 Launch of
Smart Cities Initiative The rapid growth of population in the urban cities has precipitated the need of basic facilities of Housing, Water, Infrastructure, Electricity, Health facilities, Traffic management etc. These challenges gave birth to the concept of Smart Cities in India.
Smart Cities Mission is an urban renewal and redevelopment program with the objective of rejuvenating 100 cities (revised to 109 cities, at present) across the country, making them citizen friendly and smart for sustainability. The Government has a vision of developing 109 Smart Cities by modernizing the existing cities with functionalities that are technology enabled. The expansion of these cities is expected to drive the acceptance of the electronics and IT industry to a greater degree.
50 years of ELCINA | 50 years of Making Electronics in India
81
GROWTH PHASE 2.0
2016 Amendments in the
Modified Special Incentive Package Scheme (M–SIPS) The government had launched an incentive scheme in 2012 called the Modified Special Incentive Package Scheme (M-SIPS) to encourage investment and production in the electronic goods sector. The policy was aimed at developing a domestic manufacturing ecosystem for electronics in the country. This scheme covered all the States and Districts and included opportunities for attracting investments in the field of electronics manufacturing. Initially the scheme was opened for 3 years till 2015. It was further amended in August 2015 and was extended till 27 July 2020. Besides speeding up investments in the Electronics System Design and Manufacturing (ESDM) sector, the amendments in M-SIPS are also expected to generate employment opportunities and minimise dependence on imports. The projects received under the scheme to date have
the ability to generate employment up to 1 million people (direct and indirect).
Modified Special Incentive Package Scheme (MSIPS), provides a CAPEX subsidy of 20-25% RECENT DEVELOPMENTS •
Amendment in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivise investments in the Electronic Sector and moving towards the goal of ‘Net Zero imports’ in electronics by 2020.
•
One of the key amendments is - the applications will be received under the scheme up to December 31, 2018 or until such time that an incentive commitment of INR 10,000 crore (US$ 1,503 million) is reached, whichever is earlier.
So far, the scheme has attracted investment applications of INR 1,26,838 Crore (US$18,990 Million), of which investments of INR 17,997 Crore (US$ 2,705 Million) have already been approved by the Ministry of Electronics and IT (MeitY).
82
50 years of ELCINA | 50 years of Making Electronics in India
GROWTH PHASE 2.0
2016 Government approves
Electronics Development Fund (EDF) of US$959 million EDF is a first of its kind initiative by the Government of India to nurture electronics sector development in India. This initiative is a part of Electronics Development Fund policy launched by Prime Minister Mr. Narendra Modi during the inauguration of Digital India week in July 2015. The objective of launching the EDF along with Prime Minister’s Digital India week was to support Digital transformation in the country. This can be achieved through a well-developed electronics manufacturing segment in the country thereby empowering citizens to improve their digital profiles by providing them access to digital services through electronic equipment such as mobile phones, PC, Tablet etc. •
As a part of further expansion, the initiative was taken forward by Honourable Union Minister for Communications & Information Technology Mr. Ravi Shankar Prasad during February 2016 with an announcement of INR 2,200 Crore (US$ 331 Million) Electronics Development Fund to strengthen electronics manufacturing in India.
•
In February 2017, the Government of India again approved the Electronics Development Fund of INR 6381 crore (US$ 959 million) to support entrepreneurship and innovation in the domains of Electronics and IT.
At present the fund is managed by Canbank Venture Capital Fund Pvt Ltd (CVCFL) and works with Ministry of Electronics and Information Technology (MeitY) which acts as “Funds of Funds”. This in-turn helps Canbank and MeitY to develop the “Daughter Funds” to provide risk capital to companies that are developing new technologies in the fields of Electronics, NanoElectronics and Information Technology (IT). Moreover, these Daughter Funds focuses on building domestic design capabilities through a resource pool of intellectual property (IP) in India in the above areas.
Setting up of the EDF was one of the most significant strategies to enable the creation of a dynamic ecosystem of innovation, research and development (R&D) with active industry involvement. 50 years of ELCINA | 50 years of Making Electronics in India
83
GROWTH PHASE 2.0
2016
Enhancement of
Electronics Manufacturing Clusters (EMCs) The Electronics Manufacturing Clusters (EMCs) scheme provides for financial incentives to private companies for setting up electronics manufacturing units. The Electronics Manufacturing Clusters (EMC) scheme came into notification on October 22, 2012 with the objective of providing support for the development of world-class infrastructure to attract investments in the sector of Electronics Systems Design and Manufacturing (ESDM). Further enhancements in the scheme were announced in 2016 to improvise on the guidelines. Mr. Ravi Shankar Prasad, Union Minister for Electronics & IT, while speaking at a session on ‘IT-ITeS and ESDM: The next era of State’s Growth and Innovation’ at Pravasi Haryana Diwas-2017 said that about 42 mobile phone manufacturing companies and 30 component factories have been established in the country till January 2017.
The Government has also announced its intention of setting up about 18 Electronics Manufacturing Clusters in 400 towns and cities to promote electronics manufacturing in India. The prime objective of this initiative is:
To push more companies to set up their bases in India to manufacture electronic products and components including televisions, set-top boxes, automotive electronics, telecom equipment, RFID tags etc. ELCINA is setting up the first Cluster in Bhiwadi, Rajasthan as a cooperative project initiated by its members and has successfully completed a major part of its infrastructure development. The project has 18 ELCINA members as investors who are driving this project for last 3 years. The project will witness completion by end of this financial year and commencement of setting up manufacturing plants.
84
50 years of ELCINA | 50 years of Making Electronics in India
GROWTH PHASE 2.0
2016
Elevation of
DeitY to a full-fledged Ministry MeitY On July 19, 2016, DeitY became a full-fledged Ministry and was called as the Ministry of Electronics and Technology, bifurcating it from the Ministry of Communications and Information Technology. Previously recognised as "The Department of Information Technology", it was renamed the Department of Electronics and Information Technology (DeitY) in 2012 and became a full-fledged ministry in 2016.
Some of the important objectives within the various areas are:
The objective of MeitY is to promote the inclusive and sustainable growth of the Electronics, IT & ITeS industries in India.
E-INDUSTRY
E-GOVERNANCE Providing e-infrastructure for the delivery of e-services Promotion of Electronics hardware manufacturing and IT-ITeS industries
E-INCLUSION Promoting the use of ICT for more inclusive growth
50 years of ELCINA | 50 years of Making Electronics in India
85
(Formerly Cookson Electronics)
Hearty Congratulations to Electronic Industries Association of India and its able team for reaching the milestone Golden Jubilee year. ELCINA being the first industry association supporting electronics hardware, when India’s Electronics industry was still in its infancy, we at ALPHA - as the industry’s leading player in our assembly materials space recognise the immense contribution by ELCINA to the Electronics Industry. Way forward as things looks bright for our industry at the moment, we wish ELCINA and its members a great success and wonderful years ahead.
Alpha Assembly Solutions Alpha Assembly Solutions is the world leader in the development, manufacturing and sales of innovative materials used in the electronic assembly process. Since our founding in 1872, Alpha has grown into a global company with more than 160 locations and the industry's largest Research & Development capability. For over a century, electronics and manufacturers have relied on Alpha for tailormade materials and solutions that meet and even exceed specifications for quality, efficiency, effectiveness and cost. Our mission as a company is to always uphold a standard of excellence. For industries that are constantly asking for higher performance and more rapid implementation, Alpha is a leader. Alpha is a materials supplier to the electronics assembly, power electronics, die attach, LED lighting, photovoltaics, semiconductor packaging, automotive and other industries. Our breadth of products includes Solder Paste, Solder Preforms, Stencils, Liquid Soldering Flux, Soldering Alloys, Cored Wire, Surface Mount Adhesives, Electronic Cleaners and Sinter Technologies. The breadth of our products, as well as the dedication of our expert scientists and engineers reassures our customers that Alpha will provide the right technology at the right price to meet their specific requirements. Website: www.alfaelectronicsindia.com
86
50 years of ELCINA | 50 years of Making Electronics in India
PCB Power is proud to be a part of this golden-jubilee compilation of ELCINA. The book is a celebration of 50 years of facilitating the electronics industry in our country and to encourage the champions of the Indian Industry who have gone the extra mile to make a significant presence in the world. It is our commitment to create and uphold our standards of excellence and bring in new technology, products, and services. We are sure this publication will add great value and record the momentous journey, and help in setting new manufacturing benchmarks in the Indian Electronics Industry. Managing Director, Paresh Vasani
PCB Power Market With over 20 years of excellence, world-class talent and innovative breakthroughs, PCB Power has come a long way to become one of India’s leading PCB designers and manufacturers today. Our focus on high-quality and economically viable systems combined with unmatched consistency has made us the firm of choice worldwide. Our customers rely on us for their requirements in research & development, aerospace & defence, automotive, railways, medical, educational, telecommunication, industrial electronics and other critical areas of development. We are customer-centric and believe in making things simpler for our customers. It is this value that makes us proud to launch the PCB Power Market. Be it design, customization or a component to do it yourself, the PCB Power Market has solutions for all – from customized designs to PCB layouts, from power stencils to soldering solutions, from fabrication to assembly, from heatsinks & mounting kits to thyristors &triacs, from varistors to switches, from capacitors to rectifiers, to thousands of small and large components that are required to build your state-of-the-art PCB. With everything under a single roof, the PCB Power Market is the first of its kind in India – one stop for infinite solutions. Flexibility and Innovation are at the heart of how we meet our customer’s needs. We believe in providing solutions that meet the customer’s requirements and are revolutionary at the same time. Cutting-edge High Frequency-RF metal clad PCBs, RT Duroid and Higher Layer counts with lean manufacturing and SPC, are among our ground-breaking solutions, manufactured in our UL certified facility. With spirit and enthusiasm, our team of creative, experienced and highly competent engineers, designers and staff at PCB Power take care of customers across the globe, delivering quality - every single time. Website: www.pcbpower.com 50 years of ELCINA | 50 years of Making Electronics in India
87
Major Investments in the Indian Electronics Industry
Last year India witnessed a 6X increase in the proposed investments in the Electronics sector. The positive sentiments along with the initiative such as Make in India from the Government and the effort of Industry Associations such as ELCINA to promote Electronics Manufacturing in the country have contributed significantly to this success. The planned investments were to the tune of US$16.8 billion in 2016 with about 156 proposals submitted to the Government of India. Many global companies have shown their interest to invest in India which is expected to drive the growth of industry further. In August 2017, Wistron Corp. has announced its plan to expand its production base in India. As per the plan, the company is targeting to produce the next generation smaller iPhone, the iPhone SE in India. These phones will be primarily assembled in the Wistron Corp’s manufacturing unit based at Bangalore. With this plan, the company is expecting to double or triple its production capacity in the next 5 years.
In July 2017, Foxconn has announced its plan to invest about US$5 billion in India. The investments include establishing and expanding a manufacturing hub very similar to its China facility. Of the total US$5 billion investments planned, about US$3 billion will be spent on setting up a display lab. About US$250 million is expected to be spent towards mechanics such as CNC (Computer Numerical Control). Other investments are expected to be directed towards setting up lithium-ion cell factory and facilities for printed circuit boards (PCB). The company is in talks with various state governments such as Maharashtra, Uttar Pradesh, Tamil Nadu, Haryana and Telangana which is also expected to drive employment opportunities in the respective states as well.
88
50 years of ELCINA | 50 years of Making Electronics in India
In June 2017, Samsung announced an investment of INR4,915crore (US$739 million) in India. The investment will be directed towards enhancing manufacturing capability for its Noida plant. At present company manufactures smartphones, refrigerators and flat panel televisions from Noida. This investment proposal was already approved by the Uttar Pradesh Government under a policy called as Mega Policy.
In May 2017, The Government of India approved a proposal of Twin Star Display Technologies INR 9,000 Crore (US$ 1,353 million) FDI from Twin Star Overseas, Mauritius. The investment is expected to generate employment opportunities for over 30,000 people in India and will be directed towards expanding company’s LCD manufacturing facility in India.
In April 2017, Intex revealed its plan for INR 1,500 Crore (US$225 million) investment in its Greater Noida Plant. The additional investment will help to expand company’s manufacturing capability across different assembly lines. Of the total INR 1,500 Crore (US$225 million), about INR 650 Crore (US$98 million) has been invested as a part of Phase I and the production has started in July 2017.
In February 2017, Delta Electronics revealed its expansion plan for India. The expansion plans include setting up and running a plant for manufacturing power electronics and automation solutions in Tamil Nadu. Additionally, the company is in the process of constructing a new research and development lab in Bangalore. With these positive developments, Delta Electronics India is targeting a 50% y-o-y rise in sales in 2017.
In February 2017, Boeing announced its plan to set up local manufacturing unit in India to support India’s defence sector by setting up Boeing Defence India (BDI)
The electronics manufacturer Centum Electronics expanded operations with the launch of its fourth manufacturing facility in Bengaluru. The company has invested about Rs 20 billion, over two years, in the new facility located at the aerospace park near Devanahalli, Bengaluru. Centum’s new facility, Avanza, will integrate design, manufacturing, factory testing, quality control and advanced manufacturing engineering for Centum’s defense automation business in India and abroad.
50 years of ELCINA | 50 years of Making Electronics in India
89
In December 2016, Panasonic has announced its plan to set up a plant in Haryana to manufacture Refrigerators and set up an R&D centre.
In September 2016, Huawei has entered into an agreement with solutions provider Flextronics Technologies (India) to make smartphones in India.
In a noteworthy development, Nidec has acquired Emerson Electric for US$1.2 billion in August 2016. With this acquisition Nidec has agreed to buy Emerson Motor’s drive and power generation units in the US, UK, France, China, India and in other geographies. This acquisition will help Nidec to strengthen its presence in automotive and industrial motor segments in various countries including India.
In February 2016, Havells has announced its plan for an investment of Rs 1,059 crore (US$ 158.85 million) to build a manufacturing unit near Bengaluru.
FIEM is one of the leading manufacturers of automotive lighting & signalling equipment and rear view mirrors in India, mostly catering to the two-wheeler segment of the automotive industry. After strengthening its position in the Automotive Industry, FIEM has now diversified into the manufacturing of LED luminaires for indoor and outdoor applications (bulbs, tube lights, street lights, bay lights, panel lights and flood lights) and has setup its expansion project at Alwar, Rajasthan at project cost of about Rs. 120 crores for which it has recently been accorded M-SIPS approval by MeitY.
Dixon Technologies (India) Limited is the largest* home grown design-focused and solutions company engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India. Dixon plans to set up an LED TV manufacturing unit at its Tirupati facility for enhancement of its backward integration capabilities in its lighting products vertical at its Dehradun facility and for upgradation of its IT infrastructure. Dixon has recently announced launch of Rs 600 Crore IPO.
90
50 years of ELCINA | 50 years of Making Electronics in India
Into the Future The Road Ahead for the Electronics Industry India has strongly made its mark as a global electronic manufacturing hub through its programs and initiatives over the last few years. This puts India in a very good position to push forward its goal of establishing itself as a global hub for electronic manufacturing and achieving “Net Zero Imports”. The empowerment from the Government of India (GOI) through its programs like ‘Make in India’ enabled India to embark on the journey of becoming a hub for High-Tech manufacturing rather successfully. The Government of India continues to push forward its reform agenda. In recent months, the Government of India has increased its FDI in the manufacturing sector up to 82%. Moreover, India has allowed 100% FDI in the Electronics sector with a 25% subsidy last year. These reforms along with the overall business climate and the incentives have motivated several global giants like GE, Bosch & Siemens, Toshiba, LeEco, Apple etc. to establish their manufacturing setup in India. While others like Boeing, Panasonic, Huawei, Foxconn, Havells etc. have planned to expand their investments in India.
Besides, industry associations such as ELCINA have been instrumental in promoting the Electronics Industry, thereby facilitating it to achieve its desired growth. As India continues to grow and strengthen its capabilities in electronics manufacturing, it will be important for the country to identify technologies that will help it leapfrog into the future. That will ensure that the relevance of India as a manufacturing destination continues to build further. With a strong Electronic Design and software development ecosystem already in place, India is most competitively placed to take advantage of the changing tide of global manufacturing in its favour.
50 years of ELCINA | 50 years of Making Electronics in India
91
The electronics industry is at an inflection point today. It has witnessed rapid progress in technology innovation and things that were believed to be possible only in a science fiction movie are rapidly becoming the norm today. From the advent of diodes and transistors on a silicon chip in the early 1960s to wearables & robotics in the current era, the world of electronics has made rapid progress in just over half a century. Today, it is no longer awe inspiring to have our clothes talking to us and giving us vital information or our cars maneuvering itself while we sit and relax inside the car. Electronics technology is becoming more pervasive and personal at one end while being inclusive and effective at the other. Given this, the impact that it can have on mankind will be significant and will touch every aspect of our lives – whether it is our individual aspirations, our relationships, our work or even the way we behave. Electronics will be the leveler that will bridge divide of rich and poor, the haves Vs the have nots and the educated and the illiterate. Technologies like IOT, robotics and autonomous vehicles will also drive increased productivity, higher quality of products and services and enhanced quality of life. At the same time, as the world moves rapidly towards adopting this new world order, it will be important to see how people react to these rapid changes and the larger implications that these will have on their lives. Questions have already been raised on the impact of
92
50 years of ELCINA | 50 years of Making Electronics in India
these emerging technologies on job creation especially for the skilled labour. Rapid reskilling is definitely one of the imperatives that needs to be invoked and the labour force needs to show flexibility in adopting the same. However, there is a lot that potentially needs to be done in driving this message. Closer home, India is well poised to take advantage of the rapidly changing market conditions. Globally, the ability of Indians to create and adopt technology is well documented. Over the last few years, India has also demonstrated their ability to take technology to the grassroot levels to offer basic & fundamental services to the citizens. Led by the Government and implemented by a host of stakeholders, this has not only demonstrated the willingness of people at the highest level in the country to experiment with technology but it has also demonstrated the manner in which technology can be simplified for adoption even at the base of the pyramid. At the same time, India has also embarked on its journey to adopt some of the most advanced technologies and building upon its manufacturing capabilities further for those technologies. The country is looking to leapfrog into the emerging and hi-tech electronics through its research initiatives and EMS capabilities while building on its manufacturing capabilities. The days are not too far when India will be recognized as an established hitech manufacturing destination for electronics. With policies like Make in India, the Government is incentivizing companies to set up manufacturing capabilities. Moreover, Indian research organizations, whether Government and academic or private, have been leading innovation in the emerging and hi-tech electronics space. These are critical for India to emerge as a thought leader in the new economic order.
Electronic components play a critical role as a building block to these products. Thus, the innovation in the components space is a critical one and is important for the sustained growth of such products. Technologies like miniaturization, low power consumption and connectivity are factors that are driven and perfected by the components that are developed for this purpose. With innovation in electronics, there will be a strong need for innovation in the component space too.
In the next 10 years, adoption of electronics is expected a key differentiator for a country’s economic and social prosperity. Countries that lag behind on technology and electronics adoption will lag behind in social and economic prosperity too. That is possibly one area where India has a huge edge. With a large educated youth population willing to experiment and adopt new things and with a progressive mind-set of identifying the role technology can play in driving growth, the country
In the Indian market context, the role of electronics industry to establish the country as a hitech manufacturing destination will lie in the manner in which the country innovates and adapts to the opportunity in electronic component manufacturing.
is expected to emerge as one of the change agents in terms of adoption of emerging and hi-tech products and services. At the same time, given the current economic stature of people in the country, the technology pundits and the innovators will also focus on identifying means of making such technology cost efficient enough to bring it within the means of the common Indian. This is definitely not an aspiration but a goal that many Indian leaders and technology visionaries will carry since this has been achieved several times in the past. When it happens, it will be revolutionary not only for the country, but for the global economic order and will bring India into the forefront of leading the next level global change.
The domestic component manufacturing is currently abysmally low with close to three – fourths of the total components being imported. As the country moves towards being an innovator and a hub for emerging & hitech products, it is imperative that India also focuses on domestic component manufacturing and innovation. This is also an area where the Government of India has taken a very strong view and has been encouraging investments through its various policies and interventions. With the current focus of Government of India and the industry association such as ELCINA on promoting the domestic manufacturing, the goal of showcasing India as a manufacturing destination is very much attainable.
50 years of ELCINA | 50 years of Making Electronics in India
93
Technologies that will make
India Future Ready Automotive
Energy
Indian Automotive Industry is witnessing rapid transformation and growth, primarily driven by country’s economic growth, rise in disposable income and infrastructure development. The automobile industry in India is one of the largest in the world with about 23.96 million vehicles produced during 2015-16. Automotive electronics is complementing the overall industry growth especially in the areas of :
Energy is one of the key sectors that the country is relying upon for its growth. The areas such as Power Electronics that include products which are safe, reliable and offers energy savings along with longer life are the key to such development. Solar power generation is one of such areas which offer equipment that provides a lot of flexibility in terms of power savings and cost.
•
Increased use of electronics in existing vehicles
•
Government’s move towards electric vehicles
•
Autonomous vehicles
In addition to this, the new reforms announced as a part of Make in India initiative is expected to drive the industry growth further. The Automotive Mission Plan (AMP 201626) is aimed to achieve gross revenue of US$300 billion by 2026, making India as one of the top three automobile manufacturing hubs in the world.
In order to strengthen our domestic solar manufacturing capability, Government of India plans to announce a policy to promote manufacturing of the entire range of solar power generation equipment in the country. In addition to this, the Modified Special Incentive Package Scheme (MSIPS) plan which has been predominantly targeted towards the goal of net zero imports in electronics sector by 2020 also encompasses solar equipment manufacturers to avail such benefits. This will also foster the growth of overall electronics industry.
Robotics
Mobility
Recent advances in Robotics have created immense interest across various industry sectors including Electronics. This technology is expected to play a crucial role in transforming the entire mechanism of delivery, automation, maintenance and operation with less human intervention.
With the current revolution on connected devices, robots, smart cities etc., the physical devices are getting connected to each other in a much faster fashion. Therefore, with the objective of enhancing the digital infrastructure in the country, Government of India is reinforcing the need for enhanced mobile technologies such as 5G in order to make connectivity faster, smarter and cheaper. It is estimated that 5G technology to be 1200 times faster than 4G.
Robotics is expected to automate and speed up the assembly line manufacturing capabilities for Electronics Manufacturing optimizing the production costs. As India is aiming to improve its domestic electronic manufacturing capability, Robotics will help in reducing the cost of production through lower product failure and wastage due to higher standardization and automation.
Industrial Internet of Things (IIoT) Industrial Internet of Things (IIoT) is expected to bring the next wave of growth in the manufacturing sector in India. This phenomenon is evolving at a time when the whole country is geared towards strengthening its manufacturing capabilities through initiatives such as Make in India. The industrial production which, till recently, happened in isolation without connecting to the external network, is no longer a viable option. Today, industrial production is much more evolved and being driven by IIOT connecting the physical devices, sensors etc. with the internet network. Therefore, many of the industrial manufacturing products today are IoT ready preparing the country for the next generation of manufacturing called as Manufacturing 4.0. Electronics Manufacturing is evolving with Manufacturing 4.0. Electronics manufacturers today are emphasizing on producing devices that are not only designed to provide seamless connectivity with home/office internet network creating opportunities for connected/smarter home and cities but also future ready.
India is gradually making its way to provide a robust infrastructure to support the advanced mobile technologies. In a recent development, Bharat Sanchar Nigam Limited (BSNL) and Airtel has partnered with NOKIA for developing 5G technology in India. As a part of the agreement, Nokia will help Airtel and BSNL to make them ready for adding up 5G technology in their networks. This will also help to improve future network demands that include areas such as virtual reality, remote healthcare etc. in our country driving the demand for electronics sector in India.
With Best Compliments from Amphenol is one of the largest manufacturers of interconnect products in the world. The Company designs, manufactures and markets electrical, electronic and fibre optic connectors, coaxial and flat-ribbon cable, and interconnect systems. Amphenol is a leading Interconnect solution providing company with a product portfolio of connectors, accessories, cable assemblies and system integration for almost all the applications across various industries. With connectors conforming to almost all the Military and Industrial standards in US, Europe and Asia, Amphenol assumes the leadership in meeting the interconnect needs of Military, Aerospace, Industrial and Telecom market segments. Website : www.amphenol.com
96
50 years of ELCINA | 50 years of Making Electronics in India
ELCINA is the oldest Electronics Manufacturers Association in India serving the industry for last 50 years. We specially thank ELCINA for being one of the key promoters of our Sector Skill council to cater to Capacity building requirement of the Industry. We appreciate ELCINA’s support for giving us a platform through their initiatives such as Exhibitions, Conferences and Delegations. We also thank ELCINA for guiding us through their participation in our Governing Council and in conducting various programmes, taking initiatives and advise us to operate effectively. We wish ELCINA continued success and promote self-sufficiency in the ESDM sector by enabling greater value addition and growth in domestic manufacturing.
ESSCI Electronics Sector Skills Council of India (ESSCI) is a Not‐for‐Profit Organization, registered under the Indian Companies Act, 1956.The Council has been promoted by six Associations i.e. CEAMA,ELCINA, IESA (formerly ISA) , IPCA, MAIT & ELCOMA, with financial support by National Skill Development Corporation (NSDC). ESSCI has been mandated as an apex body for providing skill training based on the National Skill Development Framework, which the Government of India has promulgated as the national standard to supersede all previous skill based programmes. The Government of India under the Skills India mission has promulgated The National Skills Qualification Framework (NSQF). NSQF organizes qualifications according to a series of levels of knowledge, skills and aptitude. These levels are defined in terms of learning outcomes which thelearner must possess regardless of whether they were acquired through formal, non-formal or informal learning. A set of National Occupation Standards, aligned to a job role, called Qualification Pack is available for specific job role in the electronics sector. So far, ESSCI has identified 145 job roles across the 14 sub sectors in the electronics Sector and built corresponding QPs under the NSQF. Website: www.essc-india.org
50 years of ELCINA | 50 years of Making Electronics in India
97
With Best Compliments from Continental Devices India Ltd CDIL, a ISO 9001, ISO/TS 16949, and ISO 14001 certified company, has done a pioneering work in the manufacture of Silicon Semiconductor Chips and Devices in India since 1964, launching of Electronic Manufacturing Services division in 1982 and now venturing into the manufacturing of LED lighting luminaries. This sustained commitment to manufacturing and continuing activities in the high-tech arena of Manufacturing semiconductors for over 50 years puts CDIL in a unique place of pride in the Electronics Industry of India. CDIL has established itself as a world-class manufacturer of a comprehensive range of Semiconductor Devices, Transistors, Diodes, Rectifiers, Thyristors, Transient Voltage Suppressors, Linear Voltage Regulators, etc. The Company has won numerous awards including a Citation from the Parliament for its contribution to the Indian Space Program. Manufacturing semiconductors for over 50 years has created a name for CDIL in India and a brand that is recognized globally. This has only been possible by adhering to international standards of quality, constant technology and process upgrades, and due to the hard work of a team of dedicated professionals who have laid down the standards for R&D, engineering and management in India. Website : www.cdil.com
98
50 years of ELCINA | 50 years of Making Electronics in India
With Best Compliments from Mr. Om Wadhwa
JV Electronics
50 years of ELCINA | 50 years of Making Electronics in India
99
The information provided in this book has been developed by KANTAR IMRB and is based on in-depth secondary research from information in public domain as well as responses from industry and sector experts. ELCINA does not assume any responsibility and risk with respect to the use of information provided in this book. All photographs, trademarks, product names, company names, logos, or service marks mentioned, displayed, cited or otherwise indicated here are the property of their respective owners and ELCINA does not claim any ownership of any such third party trademarks. Use of these trademarks does not imply any affiliation with or endorsement by the third party owners of these trademarks. DESIGN & DEVELOPMENT
visionVIBES
www.visionvibes.com
Promoting Manufacturing & Business Expansion in Electronics & IT/ Hardware Since 1967
ELECTRONIC INDUSTRIES ASSOCIATION OF INDIA (Formerly ELCINA ELECTRONIC INDUSTRIES ASSOCIATION OF INDIA)
ELCINA House, 422 Okhla Industrial Estate, Phase III, New Delhi 110 020, INDIA Tel: +91-11-41615985, 26928053, 26924597 Fax: +91-11-26923440 E-mail: info@elcina.com www.elcina.com CIN: U74899DL1967NPL015218
1967-2017
YEARS
OF MAKING ELECTRONICS IN INDIA