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The State of the Indian PCB Industry
Muniswamy AnilkumarPresident
Indian Printed Circuit Association,Indian Printed Circuit Association, Bangalore, India
Indian Printed Circuit Association 1
AgendaAgenda
I t d ti• Introduction - India Inc. Balance sheet in brief
• Indian PCB IndustryEvolution- Evolution
- Present state- Future prospects
• Government Initiatives to boost theGovernment Initiatives to boost the Industry
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IntroductionIntroduction
India Inc.- a macro economic view
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India Inc why a macro economic view?India Inc.- why a macro economic view?
Understanding India has often beenUnderstanding India has often been difficult for those who look for archetypes in each country India’sarchetypes in each country. India s sheer size, variety and apparent contradictions confound many observers.
P. ChidambaramFi Mi i tFinance MinisterGovt. of India
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India Inc why a macro economic view?India Inc.- why a macro economic view?
The persistence of poverty, illiteracy, p p y, y,malnutrition and the low rank in human development index makes it likedevelopment index makes it like somewhat similar to other poor and developing countries.
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India Inc why a macro economic view?India Inc.- why a macro economic view?
However, its software and engineering skills its exports itsengineering skills, its exports, its human resources and, more recently, it biti f i t i iti fits ambitious forays into acquisition of businesses abroad make every bus esses ab oad a e e e yforeign observer sit up and take notice of the elephant that has beg nnotice of the elephant that has begun to dance.
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India Inc balance scorecardIndia Inc. balance scorecard F t t G i F M k t E• Fastest Growing Free Market Economy
• Average growth last 10 years : >6%: last 3 years 8% (>9% March-Sept in 2006)(>9% March-Sept in 2006)
• Goldman Sachs Forecast:– Indian GDP would overtake Italy, France and Germany by y y y
2025 and Japan by 2030• Industrial growth of 9% being maintained;
manufacturing sector growing faster Attemptsmanufacturing sector growing faster. Attempts being made to take it to 12-14%.(11.4% growth March-Sept in 2006)( g p )
• 4th Largest Economy by PPP (purchasing power parity)
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Indian Economy – on a swing• Growing Global Engagement; merchandise exports of over US$105 bn and imports of US$156 bn. Both growing at over 20% annually.20% annually.
• Surging Foreign Exchange Reserves > US$165 bn.
• Fll investments of US$14 bn and FDI of US$ 8 bn in 2006-• Fll investments of US$14 bn and FDI of US$ 8 bn in 2006-06
• 70% of the companies with FDI yielding higher profitability p y g g p ythan that of the parent company.
3 0 0 6
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1 9 9 6 -9 7
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Indian Economy – on a swing (contd.)
Fast improving Infrastructure
• Some of the largest infrastructure creation in the world (Golden Quadrilateral 5 400 kms)the world (Golden Quadrilateral -5,400 kms)
• Planned investment of about USD 300 bn during the next 10 years for creation of expressways and roads p y
•Formation of Special Economic zones (SEZ), th 300 l d d i th t 3more than 300 zones planned during the next 3
years through public-private partnership
Indian Economy – on a swing (contd )Indian Economy on a swing (contd.)
Robust frame-work for Global Business
World’s largest democracyWorld s largest democracy
Global Indians: 30 Min
English widely spoken
Strong judicial system
Indian Economy – on a swing (contd.)
• Large and growing domestic market – 210 million middleLarge and growing domestic market 210 million middle class, increasing by 15-20 million annually
• Huge upwardly mobile young population with highHuge upwardly mobile young population with high propensity to spend .
• Massive investments planned in infrastructure, both urbanMassive investments planned in infrastructure, both urban & rural- sizable demand for cement, steel, machinery.
• Wide spread modernization in Indian industry with p yliberalization and globalization .
The state of Indian PCB Industry y
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Indian PCB Industry evolutionIndian PCB Industry-evolution
• Some scientists and research institutes started making PCBs in the late 50sg
• The first commercial PCB production started for in house requirements bystarted for in-house requirements by Bharath Electronics in 60s, followed by Indian Telephone industries and many more defense and space research pinstitutes.
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Indian PCB Industry evolutionIndian PCB Industry-evolutionTh fi t f i l d i t i• The first professional grade private companies started PCB manufacturing in 70s
• The first boom in PCB started between 1985-• The first boom in PCB started between 1985-1990
• The major market drivers-Telecom, defense andThe major market drivers Telecom, defense and space research
• Boom could not sustain due to problem such as, low domestic demand for hardware components, lack of ecosystem (infrastructure), sudden change in technology (telecom) extremely highchange in technology (telecom), extremely high cost of capital and poor financial muscle.
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Indian PCB Industry evolutionIndian PCB Industry-evolutionTh d b t t d ft 2001 ith th t f• The second boom started after 2001 , with the entry of some MNC and NRI (non resident Indian) companies in to India
• New set of homegrown entrepreneurs and young management teams infused fresh lease of life in to the i d tindustry
• Some companies also changed the strategy from volume to quick turn productionto quick turn production
• Exports started picking up and quality reached world class standards
• M&A helped domestic companies to reach new heights
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India’s position in the world productionIndia s position in the world productionCountry Revenue
(USD Millions)
China 10830North America 4494North America 4494
Europe 3587Japan 10059Taiwan 5869
S. Korea 5020Other Asia 2584Other Asia 2584
India 200
Indian Printed Circuit Association 21Hong kong 154
Major Rigid single/side Manufacturersj g g
Sr No Company ProductionSr. No Company ProductionM2 p.a
1 Epitome Components Ltd 7200001 Epitome Components Ltd 720000
2 Akasaka Electronics Ltd. 480000*
3 Ascent Circuits Pvt. Ltd. 300000
4 Garg Electronics 180000
5 Genus Electrotech Pvt. Ltd. 108000
6 Shogini Technoarts 660006 Shogini Technoarts 66000
7 NSP Electronics 60000
Indian Printed Circuit Association 22*Estimated Figure
Major double/side, Multi-layer Manufacturers (in terms of Sq Meters)(in terms of Sq. Meters)
Sr. No
Company DoubleSid
Multi-L
Total ProductionNo Side Layer Production
1 AT&S 75000 150000 2250002 Shogini Technoarts 13500 45000 1800002 Shogini Technoarts 13500 45000 1800003 Sonic Technology 72000 12000 840004 Circuit Systems India Ltd 52260 23400 756604 Circuit Systems India Ltd. 52260 23400 75660
5 CIPSA RIC 72000 - 72000
6 Fineline Circuits Mumbai 19740 36660 564006 Fineline Circuits, Mumbai 19740 36660 56400
7 Meena Circuits 43200 - 432008 Ascent Circuits Pvt Ltd 36000 5000 410008 Ascent Circuits Pvt. Ltd. 36000 5000 410009 Genus Electrotech Pvt. Ltd. 36000 - 3600010 Fineline Circuits Baroda 28800 6000 34800
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10 Fineline Circuits, Baroda 28800 6000 34800
Top Ten manufacturers (Turnover)p ( )Rank Company Turnover
(USD Millions)1 AT&S 40 01 AT&S 40.0
2 Shogini Technoarts 13.3
3 Circuit Systems India Ltd. 12.24 Ascent Circuits Pvt. Ltd. 11.555 E it C t Ltd 11 105 Epitome Components Ltd. 11.10
6 Sonic Technology 9.3
7 CIPSA RIC India Pvt Ltd. 8.0
8 Fineline Circuits, Mumbai 6.6
8 Akasaka Electronics Ltd. 6.6
9 Hi Q Electronics. 5.3
Indian Printed Circuit Association 2410 Genus Electrotech Pvt. Ltd. 4.0
Key PCB Exporter’s y pSr. No.
Company Total Export(Rs. in Millions)
1 AT&S 35.5
2 Sonic Technology 9.3gy
3 Ascent Circuits Pvt. Ltd. 6.6
4 Fineline Circuits Mumbai 6 44 Fineline Circuits, Mumbai 6.4
5 CIPSA RIC India Pvt Ltd 5.6
6 Circuit Systems India Ltd. 2.8
7 Hi Q Electronics 2.1
8 Fineline Circuits, Baroda 2.08
9 Shogini Technoarts 1 5Indian Printed Circuit Association 25
9 Shogini Technoarts 1.5
Competitiveness of Indian LabourCompetitiveness of Indian Labour
Indian Printed Circuit Association 26
Domestic Market for PCBs (Sector-wise)USD in Millions
Sector 2004 2005 2006
Consumer 129 144.31 159.75
Industrial 38.24 43.82 50.22
Computer 99.64 129.44 167.84p
Comm. & B.cast
161.95 204.68 258.62B.cast
Strategic 22.48 25.6 29.13
451 31 547 85 665 56Total
451,31 547.85 665.56
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Where is the Big Picture?
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IT Market Indian IT Industry – Year 2005-06 : An Overview
IT Industry in India : USD 37.5 Bn +
Hardware Domestic : USD 7
Hardware E t USD 1 25
Software Domestic : USD
Software & Services E t USD 23 4Domestic : USD 7
Bn Exports : USD 1.25 Bn
Domestic : USD 6.1 Bn
Exports : USD 23.4 Bn
A l S lAnnual Sale :
PCs: 5.1 million TVs: 10 million Mobile Phones : 38 million
I t ll d BInstalled Base:
PCs: 18 million TVs : 110 million Telephone (fixed ) : 50 million
Penetration :
PCs: 18 per 1,000
TVs : 45 per 100 household
Mobile : 75.8 per 1,000,
Access:
Internet Users: 35 Broadband : 0.50 Telephone subscribers (Fixed+Mobile) :
Indian Printed Circuit Association 29
Internet Users: 35 milliion
Broadband : 0.50 million
Telephone subscribers (Fixed Mobile) : 140 million India is a Twenty Billion Dollar domestic ICT (including CE) market today !
IT Market Market demand by major cities
D e s k t o p S a l e s b y T o w n - C l a s s : 2 0 0 5 - 0 6D lhi
18 % of ICT demand
1 1 1 36 8 5 6 5 3 4 3 3 8 3 36 0 %8 0 %
1 0 0 %
R e s t o f In d ia N e x t 4 T o p 4• Delhi
• Kolkata
4% of ICT demand
1 3 3 0 3 5 4 5 5 1 5 42 01 4 1 2 1 2 1 1 1 3
0 %2 0 %4 0 %6 0 %Kolkata
21% of ICT demand
2 0 0 1 -0 22 0 0 2 - 0 32 0 0 3 - 0 42 0 0 4 - 0 5
2 0 0 5 - 0 62 0 0 6 - 0 7
• Hyderabad3% of ICT demand
Mumbai • Pune
1 % of ICT demand
Consumption in smaller towns improving rapidly
• Bangalore
•Chennai
5% of ICT demand
•Chennai
5% of ICT demand
IT Market PC Market in India : 2005-06
6 0 0 0 0 0 0
7 0 0 0 0 0 0 PC (Desktops + Notebook) Sales
4 0 0 0 0 0 0
5 0 0 0 0 0 0
6 0 0 0 0 0 0
3 0 0 0 0 0 0
4 0 0 0 0 0 0
1 0 0 0 0 0 0
2 0 0 0 0 0 0
02 0 0 1 - 0 2 2 0 0 2 - 0 3 2 0 0 3 - 0 4 2 0 0 4 - 0 5 2 0 0 5 - 0 6 2 0 0 6 - 0 7
• Desktop sales crossed 4.6 million units in 2005-06; expected growth in 2006-07:21%
• Notebook sales crossed 431 K units in 2005-06; expected growth in 2006-07 : 100% +
IT Market
The growing Domestic Mobile Phone MarketThe growing Domestic Mobile Phone Market
2 5 0
P r o j e c t e d G r o w t h i n s u b s c r i b e r B a s e
4 88 0
1 3 0
2 1 0
1 0 01 5 02 0 02 5 0
llion
U
nits
4 8
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Y E A R
Target 2007 : 200 + million subscribers
Booming mobile phone businessBooming mobile phone business
Si f th k tSize of the market• 2001 – $ 43.47 million • 2006 - $ 4.34 Billion • 2010 $ 50 Billion?• 2010- $ 50 Billion? • India expected to be the second largest
f f 2010market for Nokia in terms of value by 2010• Nokia has committed to invest $150 million $
at its India facility and already shipped 20th
million mobile phone in Oct. 2006 Indian Printed Circuit Association 33
p
IT Manufacturing
India is now ready for IT manufacturingStandard & Poor upgrades its outlook on India to ‘positive’ from ‘stable’ (April 2006)
Surge in confidence in IT manufacturing
Most leading mobile brands have invested in ghandset and related equipment manufacturing in India- Nokia, Motorola, Samsung, LG, Ericsson .
Strengthening presence of EMS companies –Flextronics, Solectron, Celestica, Jabil Circuits and the latest- Foxconn
All leading PC Brands- Lenovo, Acer , HP have g , ,assembly plants and are aiming at expansion; Dell is the latest entry with a combined investment of $300
illi ( ith li )Indian Printed Circuit Association 34
million (with suppliers)
Nokia, Finland - Mobile Phones: USD 150 Mn
New Electronic Flextronics, USA - Electronic Hardware: USD 100 Mn
Hardware Manufacturers
Hon Hai / Foxconn, Taiwan: Electronic Hardware: USD 110 Mn
ASPOCOMP Finland: Electronic Hardware:ASPOCOMP, Finland: Electronic Hardware: USD 80 Mn
Motorola, USA - Mobile handsets: USD 30 Mn (I Phase)
Spelmech Semi-conductors: USD 45 Mn
Salcomp (USD 40 Mn),
Perlos (USD 45 Mn) and many more component
Indian Printed Circuit Association 35manufacturers
IT Market The Four Tigers of IT growth
2004 2007Worldwide : 160 Million : 234 Million
India-Volume : 4 Million : 9 Million
India Share : 2 5 % : 4%
2004 2007
India Share : 2.5 % : 4%
India Growth : 32% : 30%
2004 2007 2004 2007 Worldwide : 650 Million : 1040 Million
India-Volume : 22 Million : 90 Million
India Share : 3 % : 9 %
India Growth : 58% : 24 %
W ld id 136 Milli 261 Milli
2004 2007 Worldwide : 136 Million : 261 Million
India-Volume : 1 Million : 10 Million
India Share : 0.4% : 4 %
Worldwide : 51 Million : 80 Million
India-Volume : 1 Million : 5 Million
Indian Printed Circuit Association 36India Share : 2 % : 6 %
Future Potential
India can be your ideal business partnerDomestic electronics hardware equipment market slated to US $ 126.6 billion
in 2010 and USD 363 billion in 2015 , (Source: ISA-Frost & Sullivan, January, 2006)
Domestic electronics manufacturing to grow to USD 58 billion by 2010 and USD 155 billion by 2015. ( Source: ISA-Frost & Sullivan, January, 2006)
National goal- PC penetration 65 per 1,000 by end 2009; Targeted PC sales g p p y gfor terminal yar: 28 million (Source: Ministry of Communications & IT, April 2005 )
Semiconductor and embedded design market size expected to cross USD g p14.4 billion in 2010 and USD 43 billion in 2015 ( Source: ISA-Frost & Sullivan, January, 2006)
Software and Services exports expected to cross US $ 60 Billion by 2010 ( p p y (Source : NASSCOM , February 2006)
Indian Printed Circuit Association 37Indian IT Industry offers great Business Opportunities!
Have you partnered with it as yet?
Percentage of population aged 65 and olderIndia is young and talented
India leads in R & D
6 . 9 7 . 1 5 . 2 51 4 . 7 1 2 . 31 3 . 2 1 6 . 9
1 1 . 4 8 . 3
2 1 . 5 1 8 . 72 2 . 72 7 . 4
2 1 . 11 4 . 8
2 9 . 22 1 . 4
Current patents by Indian Entity
Texas Instruments0 50 100 150 200 250
Chi
na
Kor
ea
Thai
land
Indi
a
Euro
pe
Nor
thA
mer
ica
Intel Oracle Cisco systemGE2 0 0 0 2 0 2 5 ( p r o j e c t e d ) 2 0 5 0 ( p r o j e c t e d )
Source : UN world Population Prospectus; the 2000 Revision and Taipei; China: council for Economic Planning and Development, Official Communication 2002
GE IBMICI
PhD -12,000 p.a2002.
Additional working age population by 2010
PhD 12,000 p.a
Engineers- 600,000 p.a
Graduates -8.5 Mn p.a Intel 3500
U S W . A s i a L . A m e r i c aS E A s i a C h i
In mn
Intel 3500 Motorola 2100Texas Instrument 3450Samsung 2100Sanyo 700
8 37 35 6
4 13 8
2 01 3
C h i n aA f r i c aI n d i a
Sanyo 700HP 3500 Cisco system 2100National Semi conductor 950
8 3
Source: World Economic ForumIBM 3750
Government Incentives for InvestorsGovernment Incentives for Investors
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The Policy Structure: Reforming to Globalize IT Agreement of WTO from March 01, 2005
Customs duty on 217 hardware items are ZERO
Excise Duty (Domestic Levy): 12% on Computers; 16% on Peripherals
One integrated seamless market
State VAT introduced on April 01, 2005; most IT products attract 4%
National GST of 16% by 2010 –a single rate encompassing all local levies e g ExciseNational GST of 16% by 2010 –a single rate encompassing all local levies e.g. Excise duty, State VAT, Octroi etc.
Aggressive Telecom reforms
Broadband Policy 2004; steep fall in prices of international and domestic bandwidthBroadband Policy 2004; steep fall in prices of international and domestic bandwidth
Special Economic Zones (SEZs)
100% foreign equity permitted.
Income Tax exemptions for 15 years.
Banking system & Currency Transaction- Seamless with any global market operations
Policy for Fab and other high capital intensive products such as LCD, storage devices etc. on the anvil
Indian Printed Circuit Association 40SEZ Act & Rules- Incentives made permanent and not
subject to political or administrative discretion
Investment Policy • FDI up to 100% allowed on ‘ Automatic route’ in manufacturing activitiesg
• Ceilings on FDI limits only in 13 sectors and prohibited in 4.
• FDI without permission allowed in most activities• FDI without permission allowed in most activities.
• Foreign collaborations on liberal terms- royalty upto 5% on domestic sales/ 8% on exports plus lumpsum payment ofdomestic sales/ 8% on exports plus lumpsum payment of US$ 2 million on automatic route and beyond with permission .
• Investments made by Foreign investors receive National Treatment .
• Industrial license needed only in five sectors
Taxation in India • Taxes being rationalised and procedures simplified• Taxes being rationalised and procedures simplified
• Major Central Taxes
Corporate tax 30%Corporate tax 30%
Import duty: max 12.5% except on agricultural and certain specified items
Excise duty – 0- 16%
Service Tax
Double Taxation Avoidance Agreements with 65 countries – with Taiwan under negotiation.
• Major State Taxes• Major State Taxes
Value Added Tax-Basic Rates 4 / 12.5 %
• Move towards a comprehensive Goods and Services Tax (GST) regime• Move towards a comprehensive Goods and Services Tax (GST) regime by 2010 to replace central, state and local taxation on goods.
Policy & InfrastructureThe Policy Structure: Duties & Taxes
Item Custom Duty
Excise Duty/Counter Vailing Duty
Additional Duty*
g yComputer Nil 12% 4 %
Peripherals-Motherboard, Monitor Printer Key Board
Nil 16% 4 %Monitor, Printer, Key Board, Mouse etc. Microprocessor Nil Nil 4%
HDD/FDD/CD-Rom Drive/DVD Drive / Flash Drive
Nil Nil 4 %
All other Storage Devices Nil 16% 4%
Mobile Phones Nil Nil 4%
Parts and Components of Nil Nil 4%pMobile Phones
Excise duty and Additional dutyo on input components and sub-assemblies can be offset (CENVATed) against the Excise duty of the locally manufactured Finished
Indian Printed Circuit Association 43product.
Convergence of Service Tax (12%) and Excise Duty- these can be offset agianst each other
Policy Initiatives: Special Economic Zones Law on SEZ
• Policy
Law on SEZ provides policy
stability
Duty free Zones
IT/ Biotech SEZs -10 ha, single- product SEZs – 100 ha and multi-product- 1000 ha.
Units to be net foreign exchange earner within 5 years. No t it texport commitments.
FDI up to 100% permitted in development of SEZ
Transfer of goods from DTA to SEZ treated as exports,
No Limits on DTA Sales
Can be set up in the public, private or joint sector.
Single Window Clearance 150 SEZs approved and 18 already operational
Policy & Infrastructure
The Policy Structure: SEZ-the new vehicle for investments y
Minimum Area for T hardware/Software :
• 10 hectares (10,000 sq. mtrs)
Customs and Excise :
• Allowed to source duty free all capital goods raw materials consumabels• Allowed to source duty free all capital goods, raw materials, consumabels, spares, packing materials, office equipment, DG sets etc. without any license or specific approval .
D ti l b SEZ it t f Addit l D t ( 4% )• Domestic sales by SEZ units are exempt from Additonal Duty ( 4% )
• Domestic sale of finished products, by-products to the DTA on payment of applicable Custom duty.
Income tax
• 100% IT exemption (10A) for first 5 years and 50% for 5 years thereafter.
• Reinvestment allowance to the extend of 50% of ploughed back profits.
•Carry forward of losses
Indian Printed Circuit Association 45
Policy & Infrastructure
The Policy Structure: SEZ-the new vehicle for investments
Foreign Direct Investment
• 100% foreign direct investment is under the automatic route is allowed• 100% foreign direct investment is under the automatic route is allowed in manufacturing in SEZ units.
Banking / Insurance/ External Commercial Borrowings
• External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions.
• Freedom to bring in export proceeds without any time limit• Freedom to bring in export proceeds without any time limit.
• Flexibility to keep 100% of export proceeds in EEFC account. Freedom to make overseas investment from it.
• Exemption from interest rate surcharge on import finance .
• SEZ units allowed to ‘write-off’ unrealized export bills.
Central Sales Tax Act:
• Exemption to sales made from Domestic Tariff Area to SEZ units.
Service Tax:
Indian Printed Circuit Association 46
Service Tax:
• Exemption from Service tax to SEZ units.
Policy Initiatives: Special Economic Zones
TAX Incentives for SEZ companies
For Developer : Income Tax exemption for a block of 10 years in 15 years y y
For units: 100% Income Tax exemption for first 5 years 50% for next 5 years and 50% of the ploughedyears, 50% for next 5 years and 50% of the ploughed back export profits for next 5 years
Exemption from indirect taxes; excise salesExemption from indirect taxes; excise, sales, services tax etc.
F d i ECB i h iFreedom to raise ECB with out any maturity restrictions
India : Comparative Advantages • Low wage costs- unskilled labor at US$ 50-70 / month andLow wage costs unskilled labor at US$ 50 70 / month and semiskilled between US $ 90-120/month
cheaper than in China, Vietnam Indonesia and p ,Thailand.
Wage level expected to be maintained because of g pdemographic profile.
• Substitution of many capital intensive processes by labor is y p p yfeasible – initial capital cost lower by 20-40% .
• High Capacity to produce items requiring design capabilities and embedded software- high availability of IT Skills.
• Huge infrastructure of technical and scientific institutions-annually 600,000 engineers/ technical manpower added.
Conclusion
India Advantage
Local MarketA very rapidly growing domestic market: CAGR 30% +
Gl b l iti f b k d
Profit from
Global recognition for back-end services:
A proven case for IP, embedded systems and IC
Local Sales e bedded syste s a d Cdesign
Attractive for Manufacturing Investments
Advantage
India Improve Costs & quality
for Europe & Others
Use India for IP
and ITeS Services
-New Product development
Skilled employee base
Fast and upcoming modern infrastructure (SEZs)
for Europe & Others - Engineering services
- BPO
Manufacture for Exports
Back end Services
Proximity to EU and MEA markets
Freight Cost; 20% cheaper than China – Faster delivery
d l i li i t Exportsand lesser pipeline inventory
Indian Printed Circuit Association 49
India is a great Opportunity
- Triple Advantage
Setting up and doing business in India is improving fast ……….
Days to get clearance to start business
January 2004 Time taken to clear good at the customs,
in days
3 6Russian Fed 1 0 . 3
India -00
Foxconn/Honhai’s Experience
y y
4 4China 7 . 3
Foxconn/Honhai s Experience • Conceputalised India plan- Apr’05,• First visit to India by CEO – Oct ’05 • MOW with Tamil Nadu government- Mar ‘’05
8 9India 9 . 9China
• Launching production – Jun ‘ 06
1 5 2Brazil 8 . 4Brazil
Source: World Bank Investment climate Survey
Indian Printed Circuit Association 50With States competing with each other, many investors find
setting up business in India quite a quick process
IPCA : Your window to Hardware investments in India
First stop for first hand and complete information on
IT products market and opportunities in India
Policies that are conducive for IT manufacturing
G t i f ti l d il bl l di t t d• Get information already available else sponsor syndicate study
Guidance on how to go about investing in India
Appointments with Key Government officials & ChambersAppointments with Key Government officials & Chambers.
Appointment with industry leaders for first-hand insights.
Networking opportunities for integrating into the IT value chain inNetworking opportunities for integrating into the IT value chain in India from manufacturing to distribution .
• IPCA can help you identify the right business partner
Indian Printed Circuit Association 51Come explore the great Indian IT opportunity with MAIT!
Acknowledgements
Data sources 1. IPCA , India2. WECC report3. ELCINA, India4. MAIT, India 5. Economic Times6. Business line
Indian Printed Circuit Association 52
THANK YOU A ti l ?Any questions please?
Contact details M Anil KumarPresident Indian Printed Circuit Association (IPCA) 839A, 100 feet Main Road, Indiranagar 1Stage,Bangalore-560038 INDIABangalore 560038, INDIAPhone: +91-80-25250118, 25651772Fax : +91-80-25213212Mobile:+91 98450 23625Mobile:+91-98450-23625www.ipcaindia.orgE-mail : [email protected]
il@i i [email protected]
Indian Printed Circuit Association 53
…..Infrastructure
• Urban infrastructure :
31 cities of over 1 million population and 393 over 100,000 population.
Elected city governments manage all cities with population over 10,000 persons.
Civic Amenities and infrastructure being modernized under the Jawahar Lal Nehru Urban Renewal Mission US $ 22 bn in 61 cities22 bn in 61 cities
Suburban rail networks: being in 5 million plus metros.
IT Leaders in India … and indicative list The Whose Who
IT Hardware HCLHCL HP Wipro IBM
Software INFOSYSWiproTCS Telecom
TVS-E D-link ACERSamsung
TCS HCL Satyam IBM
MotorolaEricssonNokiaAlcatel
R&DTIIntel
ISPsSatyamVSNL
TrainingNIITSamsung
LG Flextronics Solectron BPO
AlcatelSamsungSiemensHFCLBh ti
IBMMotorolaWiproGE
VSNLMTNLBSNLBharti
NIITAptech
WeP
EMS Flextronics
Wipro-Spectramind
IBM-DakshWNS Global
Bharti BenqITI
PhilipsST
Honhai/FoxconnJabil Circuits
Services E-Funds EXL Services3i InfotechElcoteq
SolectronCelesticaS i
3i Infotech
Indian Printed Circuit Association 55
Sanmina
Wh t k I di i i iWhat makes Indian companies unique is their ability to operate in the presence of the several constraints like lack ofthe several constraints like lack of adequate infrastructure and a set of demanding value conscious customersdemanding value conscious customers. These constraints have forced our companies to innovate on the products,companies to innovate on the products, processes and distribution which in turn has created companies which are able to poffer superior products and services at a much competitive prices as compared to
h l i th ldanywhere else in the world.
Indian Printed Circuit Association 56
SEZSEZ
• The Special Economic Zone (SEZ) policy has been envisaged to ensure that India genhances its competitive strengths in international business The SEZ act ofinternational business. The SEZ act of 2005, aims to help businesses reduce costs improve efficiency and facilitate thecosts, improve efficiency and facilitate the development of core sectors
Indian Printed Circuit Association 57
Why NOKIA “We had visited several locations in the country (India) before zeroing in on Chennai. Our decision has been
chose Chennai based on three key factors...the pro-active approach of the state government, overall development of th d th il bilit fthe area... and the availability of skilled manpower”
Mr. Raimo PuntalaSr VP, Operations & Logistics,Customer & Market Operations, Nokia
Courtesy: Tamil Nadu State Government
Indian Printed Circuit Association 58
TAMILNADU “The accelerated de elopment of o r project in TamilTAMILNADUChennai
“The accelerated development of our project in Tamil Nadu is largely due to the enthusiastic efforts of the Government of Tamil Nadu.
Chennai is choice due to the efforts of a transparent
Automobile Map and pro-active state machinery”
Mr. Y.S. KimCEO, Hyundai Motors India
“When we looked at locations all over India...not only the existing manufacturing base we looked at thethe existing manufacturing base, we looked at the availability of services and infrastructure-power, water, logistics...and I think equally most important is availability of good well trained labour force and cost competitiveness...and made an evaluation of all the f t d T il N d ll t th t f thfactors and Tamil Nadu really came at the top of the list”
Mr. David E. Friedman, MD & PresidentFord India Limited
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One needs an uncanny acumen to spot opportunities in Indiato spot opportunities in India
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If you succeed in spotting theseIf you succeed in spotting these opportunities , the rewards are
plenty
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