BADGE & LANYARDSPONSOR
MEDIA PARTNERASSOCIATE SPONSOR
SILVER SPONSORSGOLD SPONSOR
Supported by
DRDODepartment of Electronics &
Information TechnologyGovernment of India
Electronic IndustriesAssociation of India
Organised by
POST SHOW REPORT
30th and 31st July, 2015
Bangalore International Exhibition Centre, Bengaluru
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Electronic Industries Association of India ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi – 110020, India
Tel: +91 11 26924597| Fax: +91 11 26923440 | E-mail: [email protected] | URL: www.elcina.com
STRATEGIC ELECTRONICS SUMMIT 2015 Post Show Report
30th & 31st July, 2015, Bangalore International Exhibition Centre (BIEC), Bengaluru
______
The 6th Strategic Electronics Summit 2015 (SES 2015) – Defence & Aerospace, was
organised by ELCINA on 30th & 31st July, 2015 at Bangalore International Exhibition
Centre (BIEC), Bengaluru. The idea of SES was mooted by the ELCINA Executive
Committee in 2009. It recognized the potential of this sector and the Indian industry’s
special skills in the high technology low volume production.
ELCINA identified the following key factors, which inspired us to focus on strategic
electronics -
Rapid and supportive changes in Government thinking regarding Defence
Production as well as Procurement Policies. Encouraging indigenous production
and value addition, as well as participation by SME’s
Large and growing budgets for the Defence & Homeland Security
Greater importance of defence avionics, as well as, an expanding aviation
industry
Increasing threat in dependence on imports, for national security equipment
High potential for employment and revenue generation
Capability and keenness of the Indian industry to participate in manufacturing
The last 5 editions of SES from 2010 to 2014 successfully Brought Industry,
Defence Establishment & Government Together !
Earlier editions of Strategic Electronic Summits demonstrated great interest and
opportunity that the industry saw in the Strategic Electronics sector and participated
wholeheartedly. Deliberations and discussions were intense and passionate between all
stakeholders. There were over 250 organisations participated as Exhibitors and / or
Delegates. All the activities like Conference, Exhibition & Technical Sessions witnessed
keen participation with over 400 delegates in the Conference and good footfalls of
business visitors.
This year Dr VK Saraswat Member Niti Aayog graced the occasion as the Chief Guest
and Dr. K. D. Nayak, DG - MED & CoS. & ECS, DRDO was the Guest of Honour on the
opening day with special addresses by Mr. Rahul Chaudhry, CEO, Tata Power SED and
Mr. Philip Jacob, Executive Director D&E, Bharat Electronics Ltd.
On Day 2, Guests of Honour Dr. Ajay Kumar, Additional Secretary, Department of
Electronics & IT, GOI and Mr. J Rama Krishna Rao, Additional Secretary, Ministry of
Defence, GOI inaugurated the Conference and spoke on the Policy and eco-system for
defence electronics. The conference also had Shri Kartikeya Misra, IAS, Director of
Industries, Industries Department, Govt. of Andhra Pradesh as a VIP Guest while the
Industry Address was delivered by Mr. M.V. Appa Rao, Chairman & MD, Centum
Electronics Ltd.
The earlier five editions of the Summit proved to be an excellent forum for sharing of
views with top policy makers and a Special Report on the Strategic Electronics Sector
prepared by ELCINA was released by Dr Saraswat.
Snapshot of Previous SES Events
1st Strategic Electronics Summit – 2010
- Date – 2nd July, 2010
- Venue – Indian Institute of Science,
Bengaluru
- Number of Participating companies - 62
- Number of Exhibitors - 32
- Number of buyers - 9
2nd Strategic Electronics Summit – 2011
- Date – 29th June, 2011
- Venue – HAL convention Center, Bengaluru
- Number of Participating companies - 85
- Number of Exhibitors - 21
- Number of buyers – 11
3rd Strategic Electronics Summit – 2012
- Date – 26th – 27th July, 2012
- Venue – HAL Convention Center,
Bengaluru
- Number of Participating companies - 135
- Number of Exhibitors - 33
- Number of buyers - 11
4rd Strategic Electronics Summit – 2013
- Date – 2nd August, 2013
- Venue – HAL Convention Center, Bengaluru
- Number of Participating companies – Over 120
- Number of Exhibitors – 33
- Number of buyers – 04
5th Strategic Electronics Summit – 2014
- Date – 30th & 31st July, 2014
- Venue – Bangalore Int’l Exhibition
Centre, Bengaluru
- Number of Participating companies –
Over 150
- Number of Exhibitors – 35 - Number of buyers – 04
6th Strategic Electronics Summit – 2015
- Date – 30th & 31st July, 2015
- Venue – Bangalore Int’l Exhibition Centre,
Bengaluru
- Number of Participating companies – Over 250
- Number of Exhibitors – 48
A Summary of SES 2015
OBJECTIVES OF THE EVENT
Bring all stakeholders on one platform to enable better communication and
understanding of requirements of the defence establishment.
Facilitate in creating indigenous capability to manufacture defence equipment and
meet these requirements.
Create awareness about opportunities in the Strategic Electronics sector.
Involve the Small and Medium Enterprises to meet the requirements of Defence
Forces.
Bridging the gap between R&D, Government organizations and businesses.
Explain and highlight the new Defence Production and Offset Policies.
Encouraging and enabling investments for developing strategic strengths.
PROGRAM DETAILS
International Conference : “Make In India– A Reality Check & the Way Forward”
Day -1
Opportunities & Challenges for Electronic Industry – Special Focus on
SME’s
Indian Defence Electronics Market Opportunities – Perspective of Large
Companies & MNCs
Technology Sessions :
Directorate of Indigenisation
Centre for Development of Telematics – (C-DOT)
Day -2
Reinventing the Policy Framework – Creating an Enabling Environment
“A world Class Electronics Manufacturing Cluster is ready to facilitate Make-in-India” – Special Presentation by Sri City (P) Ltd.
Indigenization – The Way to Self-Reliance
Technology Sessions :
Bharat Electronics Ltd. (BEL)
Exhibition to showcase opportunities for buyers and sellers
Special Technology/Business Promotion Sessions
Release of ELCINA Report - “A Study on Opportunities &
Challenges in Strategic Electronics in Aerospace & Defence
Sector with Focus on MSME’s”.
Conference on
Make in India – A Reality Check & the Way Forward
CONFERENCE PROGRAM Day–1 30th July 2015
0900- 0930 Hrs Arrival & Registration
Session – I Inaugural Session
0900 – 1100 Hrs
0915 Hrs Arrival of Guests & Welcome
0930 Hrs Lamp lighting
09:35 am Welcome Address - Mr. Subhash Goyal, President ELCINA
09:45 am Industry Address - Mr. Rahul Chaudhry, CEO, Tata Power SED
10:00 am Guest of Honour - Mr. Philip Jacob, Executive Director D&E, Bharat Electronics
Ltd.
10:15 am Guest of Honor - Dr. K. D. Nayak, DG - MED & CoS. & ECS , DRDO
10:30 am Address by Chief Guest – Dr. V K Saraswat, Member, NITI Aayog
10:45 am Release of ELCINA Report on Strategic Electronics
10:50 am Vote of Thanks – Mr. Vikram Desai, Vice President ELCINA & Presentation of
Mementos 11:00 am Inauguration of Exhibition & Visit of VIP Guests to Exhibition
Tea Break & Visit to the Exhibition(Jacaranda Hall) : 1100 – 1145 Hrs
Session – II Opportunities & Challenges for Electronic Industry – Special Focus on SME’s
1145 – 1315 HRS
Mr. N Ramachandran, Managing Director, MEL Systems (Session Moderator)
Maj Gen S Bhattacharya, ADG, EME (B), Directorate of Indigenisation -“Scope and
Oppurtunities for MSMEs in the Defence Industry”
Mr. Vipin Tyagi, Executive Director, Localisation of Telecommunication Systems – CDOT
Commander PK Bhattacharya, Officer on Special Duty, Defence Offsets Management Wing
(DOMW), MOD
Cmde Shishir Shrotriya, ADG, WESEE
Mr Parimal Kumar, Scientist ‘F’, DRDO – Transfer of Technology
Lunch Break : 1315 – 1400 Hrs
Session – III Indian Defence Electronics Market Opportunities – Perspective of Large
Companies & MNCs
1400 – 1530 HRS
Lt. Gen. (Retd.) AKS Chandele, PVSM, AVSM (Session Moderator)
AVM P K Srivastava, Larsen &Toubro
Mr. Deepak Talwar, Director Purchase, Thales India Pvt Ltd
Mr. Nikhil Mallavarapu-Director, Centum Electronics Ltd
Mr. David Keynan, Federation of Indo Israel Chamber of Commerce (FIICC) - "Indo Israeli
defense offset relations - a growing success"
Tea Break & Visit to Exhibition 1530 – 1600 Hrs
Special Technology Sessions:
I 1600 – 1645 Hrs Directorate of Indigenisation
II 1700 – 1745 Hrs Centre for Development of Telematics – (C-DOT)
Day – 2 31st July 2015
0930 – 1000 Hrs Arrival & Registration
Session – I Reinventing the Policy Framework – Creating an Enabling Environment
1000 – 1145 Hrs
Mr. Amrit Manwani, CMD, Sahasra Electronics Pvt Ltd.
Col (Retd.) K V Kuber, Indian Defence Veteran, Expert on Offsets & DPP
Mr. M. V. Appa Rao, Chairman & MD, Centum Electronics Ltd.
Shri Kartikeya Misra, IAS, Director of Industries, Industries Department, Govt. of Andhra
Pradesh
Guest of Honour - Mr. J Rama Krishna Rao, Additional Secretary, Ministry of Defence, GOI
Guest of Honour - Dr. Ajay Kumar, Additional Secretary, Department of Electronics & IT, GOI
Tea Break & Visit to the Exhibition(Jacaranda Hall) : 1145 – 1300 Hrs
Special Technology Session I :
I 1215 – 1300 Hrs Bharat Electronics (BEL)
Lunch Break : 1300 – 1400 Hrs
Special Presentation: 14:00 – 14:10 Hrs Cassia (Conference Hall)
“A world Class Electronics Manufacturing Cluster is ready to facilitate Make-in-
India” – Ms. Raghini Peter, Sr. Vice President – Business Development, Sri City (P)
Ltd.
Session – II Indigenization – The Way to Self-Reliance
1410 – 1530 Hrs
Dr. K Maheswara Reddy, Scientist H, Associate Director, DARE
Dr. Mahesh V, Chief Scientist CRL, Bharat Electronics Ltd
Mr. Y V Subbarao, Head, CBDG, ECIL
Dr. C Ranganayakulu, Scientist H, Aeronautical Development Authority (ADA)- “Indigenous
development of Tajas Line Replaceable Units (LRUs) and its challenges - Airworthiness
requirements”
Mr. Sanjeev Sehgal, Managing Director, Samriddhi Automations Pvt Ltd- Growing
Opportunities in Homeland Security
Dr. Vyas Raj, Head Strategic & Electronics for Defence Application, Accord Software &
Systems Pvt Ltd -“Indigenous GPS Receiver Technology and Solutions for Indian Defence and
Aerospace”
Tea Break
Closing of the Event
1700 Hrs onwards
List of Participating Companies EXHIBITORS/SPONSORS
515 Army Base Workshop
Accord Software & Systems
ADD Ind. Park
Aero Euro
Airborn, India
Amphenol
Andhra Electronics
Anritsu
APSIS Solutions
Arihant Electricals
Astra Microwave
Avalon Technologies
BEL
C-DOT
Centum Electronics
Coreel
Deepti Electronics
DeitY
Digital Circuits
Directorate of Indiginesation
DRDO
ECIL
EEMC
EFY Enterprises Pvt. Ltd.
Elcomponix
Electrosolve
ESSCI
Geosensors
GKAY
ITI Ltd
Kaynes Technology
Keetronics
Keysight Tech.
LDRA
MapuSoft Technologies (P) Ltd.
Mel System
Mymo Wireless
Qmax
RCI
Rohde & Schwarz
Saankhya Labs
Sahasra
Samriddhi Automation
SLN Technologies
SM Creative
Sree Vishnu
Sri City
Tata Power SED
TE Connectivity
Trident Techlabs
Videotronix
DELEGATES/SPONSORS
Asteria Aerospace Pvt Ltd
BE Analytic Solutions LLP
Bewo
Bikal UK Technology
British Deputy High Commission
Bydesign India Pvt Ltd
Captronic Systems Pvt Ltd
CRPF
DCX Cable Assemblies Pvt Ltd
Degree Controls, Inc.
Dixon Technologies (India) Pvt Ltd
Easterline - Souriau
Esko Die Cast
Finetuning
Hical
Indira Industries
Kirloskar
KPMG India
Kramski
Larsen & Toubro
LRDE
Manipal Technologies
Napino Auto
Ray-Q Interconnection Technologies India Pvt Ltd
RF Wave Technologies Pvt Ltd
Spectross
Stanesh Semiconductor
System Control
Vishay Components India Pvt Ltd
DARE
Desai Electronics
Industries Dept., Govt. of AP
Aeronautical Development Authority
WESEE
Thales India
FIICC
BEL
C-DOT
Centum Electronics
DeitY
DRDO
Sri City
Tata Power SED
Aarjay International
Accenture
Ace Micrometic
Advance Components & Instruments
Alcatel-Lucent India
Alstom
Ambtech
AMC Engineering
American Technical Ceramics
Amsis Consulting
Analog Semiconducters
Ananya Cabletech
Ananya Technologies
Anil Gears
Applied Realtech
Aristos Electronic
ARM Embedded Technologies
Arrina Education Services
Ascent Circuits
Astute Sattva Electronics
AT&S India
Axiscades Aerospace
BDO India LLP
Bhima Soft
Bosch
Cable Crafts
Caliban Software
Champion
Chokdi Designs
Chrystec Machine Tools
Comavia Systems
Comnet Publishers
Conet Technologies
Copebit Technologies
Cosel Asia Ltd.
CSA India
Defence Standardisation Cell
Deitel Technologies
Delco Electronics
Delta Power Solutions
Deutsch
Dexcel Electronics
E & E E
East India Technologies
Ekadantha Automation
Electromech India
ELIN Electronics
Elite Electronics
ELKAY Electromech
Ellsworth Adhesives
EMC-RF Technology
EMI Solutions
EMST Marketing
Enterprise Software
EOS Power
EPC World Media
EPT Global Logistics
ESSL
Esterline Avionics
FCI OEN
FTD Infocom
Geo Systems
Gowrishankar & Co.
HAL
Hanuman Automation
Hyva India Pvt. Ltd.
IACC
IBM India
IMRB
IN VECAS
Indian Airforce
Infosree Technologies
International Electronics &
Communication
IPCA
ITT Corporation India
J. J. Glastronics
Jabil
Josh Tech Services
K P Rao & Co.
Kemsys Technologies
Kilick Engineering
Kingsly Instumentation &
Communication
Kritikal Solutions
Magna Tech India
Magnum Technologies
Mahindra Telephonics
Mark Fleming
Mayflower Lanugage Services
Messe Munchen International
Micrologix Integrated Electronic
MOOG
Motorola
Nadi Electronic
NAGARJUNA ENG COLLEGE
Nav8 Pvt. Ltd.
Navika Electronics
Nettur Technical Trg.
Nicomatic India Electronics
Nispana
Nolato Silikonte
NSIC
Ok International
Orbit 9 Electronics
Padmavathi Securitech
Park Electrochemical Corp.
Pentagon Rugged Systems
Pentair Electronics
PME Power Solutions
Powertec Supplies
Printwires Solutions
PRO Innovative Technologies
PWC Pvt. Ltd.
RBP Technology
Reinshaw Metrology Systems
Relay Solutions
Religare
RMC Electronics
Romarsh Elcomponics Technologies
S R Electronics
Sanyu Rec Co. Ltd.
Saru Smelting
Schneider Electric
SDR Electric Pvt. Ltd.
Seerams Informatics
Segnius India
Sensata Technologies
SGS India Pvt. Ltd.
Shavo Technologies
Shobha Engineering
Shree Technologies
SIATI
Siddalingappa & Associates
Sienna ECAD Technologies
Sierra Software Design
SM Electronic Technologies
Spectra Innovations
Square Circle
ST Microelectronics
Static Systems
Steinmetz Technologies
Sulakshna Circuits
Sustainable Power Developer
Synthesis Winding Technologies
System Aids
T&V S
Talentedge
Tamura Elcomponics
Team Technology
Technocomm Instruments
Teknic Electromeconics
Tessolve Semiconductor
Test & Verification Solutions
Titan Timeproducts
Tomen Electronics
Total Strategic Solutions India
Trident Techlabs
TTI Electronics
TUV Rheinland
TUV SUD
Unicodes
Unicontrols
Unisem Electronics
Universal Automation
UTL Technologies Ltd.
V2i Global Services
V5 Semiconductors
Vectron
Velpa Tech
Venkatesh Electronics
Venus Technologies
Verdant Telemetry & Antenna
Versabyte Data System Pvt Ltd
Vizayle Steel Plant
Wittur Components
STATUS OF INDUSTRY AND OPPORTUNITIES
India is the biggest importer of defence equipment importing thrice as much as China
and Pakistan. Large scale modernisation of defence forces is on the anvil. The next
decade is likely to see an exponential growth in combat systems as well as non-platform
based defence strategic electronics programs, with the requirement for the 12th plan
(2012-2017) being pegged at over Rs.100,000 crores. This report is focussed on
production of electronics in A&D sector and hence also deals with the procurement
process and the scenario.
The production of strategic electronics in India has been growing steadily from Rs. 5700
crores in 2007-08 to Rs.9000 crores during 2010-11. As per projected growth rates and
industry estimates, electronics production in Defence Sector in India reached Rs.12,000
crores during 2012-13 and exceeded Rs. 13,800 Crores during 2013-14 recording a
growth of over 15%. This growth is fuelled by the expanding budgetary allocation for
Defence Sector which jumped from Rs. 164,415 crores in 2011-2012 to Rs. 193,407
crores in 2012-13 and further allocation has been increased by 5% to Rs. 2,03,672 crore
for 2013-14 with provision for further funding depending on actual requirements.
Present year budget for Defence Sector is INR 2.46, 727 Crs.
Government initiatives such as Defence Offsets and Defence Procurement Policy (DPP)
have opened a host of opportunities which the domestic industry must seize. This brings
opportunity for all industry players who are keen to gain from and also contribute to the
growth of the Strategic Electronics industry in India and enable greater domestic value
addition and indigenization. Offsets have the flexibility in fostering partnerships with
foreign majors. Aim is to actively involve indigenous industry in this sector, enable
greater value addition and indigenization, and reduce the country’s heavy dependence
on imports.
Post-independence, Defence Industry in India, was classified under the strategic sector
and placed under the reserved list and we created the large pool of 09 DPSUs, 39 OFs
and 50 plus DRDO labs. The sector was opened for the first time to private sector in
2001, when the Defence Sector was removed from the Reserved category and placed in
the Licenced Category with 100 % private participation and a restrictive 26% FDI cap.
The FDI policy has however now further liberalised FDI cap to 49% in 2014.
A Technology Perspective & Capability Roadmap (TPCR) based on the LTIPP has been
issued to the industry to help plan its R&D and infrastructure creation. Based on the
approved Long Term Integrated Perspective Plan (LTIPP), equipment/ weapon systems/
platforms required in 10 years and further down the line will by and large be developed/
integrated/ made within the country.
Provisions have been made in the DPP 2013 as well as DPM 2009 to support participation
of MSME in the procurement process, particularly multiplier norms which provides a
steady business to them.
‘Report of Working Group on Defence Equipment’1, estimates Defence Electronics of the
size of INR 25700 Crores. This amounts to about 25% of the capital expenditure
projections of the working group by 2016-17. Thus, looking form the Offset perspective,
the opportunity for Indian Electronics manufacturing is huge. At the same time,
government agencies will have to create enough interventions to make this happen.
Through the SES 2015 and a Report on the sector released during SES, ELCINA took
stock of the known requirements of the defence platforms under procurement for the
Armed Forces and estimated the future requirement based on the Technology
Perspective and Capability Roadmap (TPCR-April 2013) developed by Headquarters-
Integrated Defence Staff, Ministry of Defence and identify contribution made by strategic
electronics in these procurements.
On the other side, ELCINA planned to identify the existing indigenous manufacturing
capability and supporting eco-system in the Strategic Electronics sector including Micro
Small and Medium Enterprises (MSMEs), including Defence Public Sector Units (DPSUs),
Ordnance Factories (OFs), Private Sector companies to understand possibilities to bridge
the gap between existing capability and desired requirement
Homeland Security in India
In 2014-15, the cumulative annual budget allocation for all States and Union Territories
under the specific expenditure head of ‘Police’ has reached to over INR 50,000 Crores
approximately, still amounts to a meager 6.7 per cent of the total budgeted expenditure
of all States and Union Territories in 2009-10 . Of this amount, more than 80 percent is
spent on salary and maintenance of the forces and only about 20 percent is available for
training and other capability building activities. In addition to this amount, the Ministry
of Home Affairs released INR 1,230 crores as central funds for the modernization of
India’s police forces in 2009-10 . Also, in order to enhance the Homeland Security of the
country through a specific focus on certain identified cities, the Ministry of Home Affairs
allocated over INR 450 crores for city surveillance projects. The Indian homeland
security budget reached US$10.1 bn in 2012and will surpass US$ 17.03 bn by 2016
providing a huge opportunity to domestic as well as foreign vendors.
Electronic equipment with supply potential for industry players
Explosive detection and containment, EO-IR sensors including Night vision devices,
Intelligent Airfield & Runway Surveillance & Fallen Object & Debris Detection System,
Automatic Vessel Detection, Identification & Classification system, Perimetric control
including Boom Barrier, Bollards, Turnstiles, Door, Frame Metal Detectors, Scanners :
Hand-held, Body Scanners, Baggage Scanners, Access Control System including
Biometrics & RFID Cards, Surveillance including Intelligent Surveillance System, Mobile
Video, Surveillance, CCTV & PTZ Cameras, DVR's, UAVs, UUVs, UGVs.
Establishment of “Centre of excellence on internal security” (CEIS)
Establishment of “Centre of excellence on internal security” (CEIS) at IIT-Bombay by
Indian Government in association with private industry is a step forward. CEIS with its
state of the art facilities is expected to function as a resource centre that will pursue
research and development (R&D) into cost effective electronic equipment that can then
be mass produced by Indian industry for India's security agencies.
Setting up a Multi-Agency Centre (MAC)
Ministry of Home Affairs has proposed to create a Multi-Agency Centre (MAC) that will
work at both the Centre and State level to compile and disperse intelligence to the police
and paramilitary forces. India is expected to spend `4,500 crore on domestic security
before 2016.
National Counterterrorism Centre (NCTC)
Government has also set up a National Counterterrorism Centre (NCTC) which would be
the nodal point for handling all aspects related to terrorism In India. There is
approximately `324 crore allocated for this
endeavor. A further amount of Rs. 10.50 crore
has been released to establish seven counter
insurgency and anti-terrorism schools.
Homeland Security is increasingly perceived as
being critical to the overall security of the
country. Indian security market is growing at
35% against 7% globally.
Source: http://www.indiastrategic.in
India’s share in global expenditure in the sector is also expected to rise to 6 per cent by
2020 from 3.6%. And this is a positive trend for the manufacturers/suppliers of
Homeland security equipment.
Though no comprehensive study has been done to determine the size of the Indian
homeland security market, estimates peg the market to be between $20 and 50 billion)
over the next decade with about $10 billion in the next three years alone. Over half of
the market growth is expected to come from a demand in new equipment – especially
for electronic surveillance, mine detection and early warning systems. In addition, an
estimated 10-20 per cent of additional funds are expected to be spent on the
strengthening of internal security network.
SUMMARY OF PROCEEDINGS
The 6th edition of Strategic Electronic Summit was inaugurated by Dr. V K Saraswat,
Member, NITI Aayog on 30th & 31st July, 2015 at Bangalore International Exhibition
Centre (BIEC), Bengaluru.
Day 1 – 30th July, 2015 - Inaugural Session
Dr. V. K. Saraswat, Member, NITI Aayog:
Dr. Saraswat, the Chief Guest, spoke of the great potential of the Defence Sector for
growing the Indian Manufacturing sector and the potential for encouraging domestic
value addition and R&D. He emphasized the role played by DRDO and how domestic
manufacturers should avail the benefits of the Indian technology and IP created by
DRDO.
He commended the new National Policy on Electronics and how it was supporting the
growth of ESDM Sector in India. Dr Saraswat spoke passionately about the need for local
value addition which was possible only if domestic electronics industry invested in R&D
and this required support from Government and transfer of technology to MSME’s and
domestic companies investing in manufacturing in India.
Dr. K. D. Nayak, DG - MED & CoS. & ECS , DRDO :
Dr. Nayak was the Guest of Honour for the event. Dr Nayak shared information about
DRDO and its achievements in designing and manufacturing strategic items worth INR
1,17,000 thousand Crores. He appealed to the industry to focus on “Design in India”
rather than producing only with foreign IPR and claiming it to be “Make in India”.
He quoted an example of iPhone wherein 55% of the revenue goes to the company as a
cost of IPR and the production cost which is only 10% reaches to the manufacturer. He
accepted the responsibility of DRDO as a trigger to “Design in India” and appeals the
private industry to follow and sustain with the research initiatives. He gave the concept
of “Create in India” by “Designing in India” along with “Make in India” and finally earning
the IPR share of the business.
Mr. Rahul Chaudhry, CEO, Tata Power SED
Mr. Chaudhary delivered the Industry Address and cautioned the industry and policy
makers about the perception and effectiveness of “Make in India”. He mentioned that
rather than establishing merely assembly lines/units and putting a tag of Made in India
with a value addition of a mere 30%, the industry needs to think and do beyond this. He
mentioned that Strategic Independence and Sustainable and Self Reliance may be
achieved only through team work by PSU’s, DPSU’s, Large private Enterprises along
with the SME’s. He also cautioned about the high life cycle cost of defense equipment
which gets paid to foreign vendors and advised that Team India should take the
responsibility to manage it indigenously and establish capabilities for Maintenance &
Repair.
Mr. Philip Jacob, Executive Director D&E, Bharat Electronics Ltd.
Mr. Jacob informed the participants that BEL has been fulfilling the vision of “Make in
India” since inception and this is evident from its revenue which is 80% from local sales.
He also mentioned that BEL is in continuous touch with private players and
manufacturing many items with the help of indigenous ToT (Transfer of Technology). Mr.
Jacob also highlighted the importance of R&D and informed that BEL consistently invests
around 8% of its turnover in research and advised the private industry to maintain this
ratio. He also discussed that BEL purchases from MSME’s have grown to 8% during
2014-15 from 4.7% in 2013-14 and mentioned that the share of indigenous players
would certainly increase in future.
Mr. Subhash Goyal, President ELCINA & Managing Director, Digital Circuits Pvt.
Ltd.:
Delivering the Welcome Address during the Inaugural Session, Mr. Goyal elucidated the
objectives of Strategic Electronics Summit and its avowed mission to strengthen
domestic manufacturing, Value Addition and involve the MSME sector in the value chain.
He spoke about the National Policy for Electronics and the role of Clusters in providing
an efficient eco-system for cost effective manufacturing.
Mr. Vikram Desai, Vice President ELCINA:
Mr. Desai gave the vote of thanks.
Session II – Opportunities & Challenges for Electronic Industry
Special Focus on SME’s
Mr. N Ramachandran, Managing Director, MEL Systems chaired the 2nd session.
Opening the discussion, Mr Ramachandran shared his experience and policy issues which
needed to be reviewed for successful induction of MSME’s in the Defence Electronics
value chain. He stressed the need for genuine efforts by Ministry of Defence, DPSU’s as
well as Large Private Players to support MSME’s who lacked resources and the capacity
to sustain research and development efforts and investments which most Defence
Procurement programs required.
He spoke extensively about issues such as NCNC, losses due to unexpected Cancellation
of Tenders after sample development, inordinate delays in releasing of orders, low
volumes and uncertainty about repeat orders resulting in very high initial investment
burden.
Major General S Bhattacharya, ADG, EME (B), Directorate of Indigenisation
Major General Bhattacharya explained the opportunity available with the Corps of EME
which was maintaining and upgrading a vast variety of defence equipment. He explained
the process and way by which domestic companies; specially SME’s could play a major
role in this business opportunity and also save valuable foreign exchange for the
country. In most cases Defence forces had to pay exorbitant prices for maintenance and
spares and SME’s with their flexible structure and capability to adapt to needs of
developing spares in low volumes, could play a major role.
Mr. Vipin Tyagi, Executive Director – CDOT:
Mr. Tyagi gave a presentation about the new products and technologies that C-DOT was
developing to strengthen and indigenize Communications for the Defence Sector.
Communications he said was a critical link and component of Strategic Electronics
because robust and secure communications was the backbone for successful Defence
operations in hostile environments.
Mr. Tyagi presented details of Global Landline Access Technologies for Broadband, the
technologies Driving High Speed Broadband through landlines as well as wireless means.
Mr. Tyagi also shared details of the trends in Broad connectivity, the drivers for growing
Mobile Broadband Traffic, need for high security of the networks Telecom technologies
for Indian Networks and role of communications in the Vision of Digital India.
Commander PK Bhattacharya, Officer on Special Duty, Defence Offsets
Management Wing (DOMW), MOD :-
Cdr Bhattacharya gave a detailed presentation about Defence Offsets and the process by
which these were being administered by Defence Offsets Management Wing.
He shared details of the Scope of Offsets, Offset Policy highlights, method for
determination of value addition and the pre and post contractual stages of the Offset
process and its successful implementation.
Cmde Shishir Shrotriya, ADG, WESEE :-
Representing the Naval sector in the Summit, Cmde Shrotriya gave a presentation on
his views about adaptation and management of technology. His presentation included
details on Introduction to Technology Management, Strategic Technology Assessment,
success factors for Make in India in the Strategic Electronics Sector and challenges faced
in this process.
Session III – Indian Defence Electronics Market Opportunities Perspective of Large Companies & MNCs
Lt. Gen. (Retd.) AKS Chandele, PVSM, AVSM coordinated the 3rd Session.
Gen Chandele introduced the speakers and shared details of the Long Term Integrated
Perspective Plan (LTIPP) and the Technology Perspective & Capability Roadmap (TPCR)
prepared on the basis of the LTIPP. Large players needed to plan their future plans for
developing Defence Platforms with a vision for the next decade and beyond. The TOCR
and LTIPP were meant to help industry to plan its R&D and infrastructure creation. Based
on the approved LTIPP, equipment/ weapon systems/ platforms required coming years
are expected to be developed, integrated and made within the country. While Sub-
systems, equipment and components may be imported, ensuring their availability at all
times but design and integration of the platform/ TPCR system should be undertaken
within the country.
DRDO has issued a list of critical technologies to be developed or to be acquired. There
may be few Indian companies that could potentially be able to pick up few of these, Gen
Chandele informed. These opportunities would come to Indian companies in the shape of
offsets and DRDO had also come out with guidelines for ToT to Indian industry which
would be available for the industry at a small fee.
AVM P K Srivastava, Larsen & Toubro :-
Mr. Srivastava shared his views about the role and perception gaps between PSU’s and
private players and mentioned that while the order books of PSU’s were full for many
years, private players face numerous challenges and pressures with respect to sales,
EBIT, Net Working Capital etc. This gap and insecurities of private players should be
addressed in the policy framework so that full support of the industry may be attained.
He also advised that India must learn from other countries and the way they are
achieving self-reliance with public-private partnership. He highlighted the immense
opportunities emerging out of increased defence spending by the government.
The key subjects presented by AVM Srivastava included Market Segmentation as the key
to further growth of defence electronics within the country, role of defense electronics
industry to fulfill the vision of MAKE IN INDIA, major programs driving growth of defence
electronics sector, Strengths in Strategic electronics of Private Sector, Gap Analysis,
Government Policy and others.
Mr. Deepak Talwar, Director Purchase, Thales India Pvt Ltd
Mr. Talwar pointed out the deficiency of qualified human resource in the manufacturing
sector and also in the research and design area. He largely discussed about the need of
incentivizing these sectors for attracting qualified and talented manpower. He also
focused on the alarming rate of attrition in the industry and appealed for a solution for
the same. Mr. Talwar also elaborated on the key role of good materials management
system and supply chain in enabling expansion of Strategic Electronics manufacturing
specially as this sector depended on a global supply chain with long gestation periods.
Mr. Nikhil Mallavarapu-Director, Centum Electronics Ltd
Mr. Nikhil mentioned the fact that whole world is now recognizing the potential in Indian
Market and also in its Manufacturing Sector. He also discussed various Policy initiatives
by present Indian regime to encourage manufacturing of strategic electronic products in
India like increasing FDI limit etc. Mr. Nikhil drew attention to the immense opportunities
for private manufacturers emerging out of Defence Offset policy and Indigenization
initiatives of upcoming Defence Procurement Policy. He emphasized on the essentiality of
team spirit among DPSU’s and private manufacturers rather than considering the latter
one as only a vendor. He also mentioned that the private players have also emerged as a
potential support for DRDO in the designing and manufacturing of Akash Missile and are
capable of supporting such large and critical upcoming projects.
Technology Sessions: Day – 1
Session – II - Directorate of
Indigenization, Ministry of Defence
Col. Ashutosh Verma
Centre for Development of Telematics – (C-
DOT)
Day 2 – 31st July, 2015 - ‘The Road to Indigenization’
Guest of Honour - Dr. Ajay Kumar, Additional Secretary, Department of
Electronics & IT, GOI
Guest of Honour, Dr Ajay Kumar discussed the challenges which manufacturers are
facing in India and appreciated the courage displayed by the Manufacturers’ fraternity
and positive spirit in which they are carrying their businesses and growing consistently.
He also informed about the success of various initiatives of DeitY like MSIPS, EDF, and
GITA etc. to support electronics manufacturing in India. Dr. Kumar briefed about the
added advantages in the new MSIPS scheme and the vehement response it is getting
from the Industry. He put great importance on the need for “Design in India” to
complement the success of “Make in India” through setting up Technology Incubators
across the country.
Guest of Honour - Mr. J Rama Krishna Rao, Additional Secretary, Ministry of Defence, GOI
Mr. Rao appreciated the endeavors of DeitY in strategic electronics and setting up
incubators for Designs. He also emphasised the need for growth of strategic electronic
industry, which should be targeted at minimum 25% annually to meet the requirements
of the defence forces and reduce dependence on imports. He mentioned that there is
large scope for private players and also for DPSU’s in the Defense Procurement Policy
which is largely unutilized and this demand supply gap is being serviced by global
suppliers. He advised that it’s the time to rewrite the rules of the game and increase the
overall growth of the Strategic Electronic Industry by 25-30%.
Mr. Rao also recommended the establishment of a world class Test Lab for Defence
Electronics with special facilities and affordable costs for MSME’s who are presently
constrained by lack of such facilities.
Mr. Amrit Manwani, CMD, Sahasra Electronics Pvt Ltd.
Mr. Manwani appreciated the endeavors of DeitY and specially of Dr. Ajay Kumar in
formulating and implementing NPE-2012. Dr Kumar’s efforts over last four years and the
time and energy he had put in for timely implementation of all schemes under NPE-2012
like MSIPS, EDF, EMC, etc. has yielded rich dividends for the country and encouraged
the Electronics Manufacturing sector tremendously. Mr. Manwani mentioned that results
of NPE-2012 are now clearly evident and also appreciated the new revised MSIPS Policy
which would further accelerate the growth of ESDM sector by extending the time period
of the scheme by another 5 years and adding 15 more verticals along with the 27 earlier
ones. He advised and requested the Government to address the procedural issues which
are acting as Speed resistors in the growth of ESDM sector.
Shri Kartikeya Misra, IAS, Director of Industries, Industries Department, Govt.
of Andhra Pradesh
Mr. Kartikeya captivated the industry delegates by presenting figures on the scope for
private players in Defense and Aerospace Market. He highlighted the huge opportunity
for private parties presented by Defence offset obligations and defence expenditure of
45 bn USD over next 12 years. Mr. Kartikeya mentioned that while Indian private
players are rapidly climbing the aerospace industry value chain including Design,
Engineering and IT Solutions, Simulations, Testing services etc., the substantial Capital
equipment requirement is still being met by imports.
Mr. Kartikeya also appealed to the entrepreneurs present to invest in Andhra Pradesh
and presented a set of Policy and Procedural initiatives taken by AP government to
create a Defence and Aerospace manufacturing hub in the state. He also informed about
the AP Government’s initiatives to offer dedicated land infrastructure for this industry
and promised to offer an international experience to the intending investors.
Mr. M. V. Appa Rao, Chairman & MD, Centum Electronics Ltd.
Mr. Apparao discussed the importance of an enabling environment and framing of
requisite policy framework. He appreciated the endeavours of Department of Electronics
and IT, Govt of India and also congratulated Dr. Ajay Kumar for his recent elevation to
the rank of Additional Secretary. One of his key suggestions was to incentivize “Import
Substitution” exactly on the lines of “export incentives” under MEIS. Mr. Rao stressed on
the need for strong Research base for the development of Indian ESDM sector and
advised that government and private players should join hands for this mission. He
stated that private companies should not shy away from R&D spending and put great
stress for the government support in R&D which was a high risk proposition for industry.
He focused on the importance of ownership of intellectual property by developing or/and
acquiring it and exploiting it for manufacturing hi-tech products and exports.
Col (Retd.) K V Kuber, Indian Defence Veteran, Expert on Offsets & DPP
Mr. Kuber presented his views on Indiginization and the criticality of time as India as a
country had to progress at great speed and make up for lost time bt enhancing its
manufacturing capability and value addition in Strategic Electronics Sector. He advised
that now is the time for redefining the policy and perceptions for the overall growth of
strategic sector. He informed that now government intends to and is committed to seek
and provide support to private players and consider them as potential stakeholders for
empowering our Defence Forces. He mentioned that private players/manufacturers are
not mere vendors of PSU’s but have a potential to become equal partners in the mission
of growth and self-reliance.
Session – II Indigenization – The Way to Self-Reliance
Dr. K Maheswara Reddy, Scientist H, Associate Director, DARE
Dr Reddy chaired the session and gave a perspective of DRDO towards R&D and its key
role in ensuring security of Defence equipment. He highlighted the role of the high
security nature of Strategic Electronics equipment which was prone to Software related
bugs and cyber-attacks.
Dr. Mahesh V, Chief Scientist CRL, Bharat Electronics Ltd
Dr. Mahesh spoke about the role of Indigenization for achieving self-reliance and how
Bharat Electronics Ltd has pursued that objective since inception through intense
indigenous research. He elaborated on the initiatives of Defence Ministry for enhancing
Indigenization and how this was critical in exploiting the major opportunities offered by
the Defence Electronics sector.
Dr Mahesh also apprised the delegates about key Technology requirements of Indian
Armed forces and BEL’s roadmap for indigenization.
Mr. Y V Subba Rao, Head, CBDG, ECIL :- spoke only about ECIL
Mr. Subba Rao made a presentation about the role ECIL had played over the years to
achieve Self Reliance and Indigenization of numerous super critical equipments used in
Atomic Energy and Nuclear Reactors.
ECIL had also participated on behalf of the country in International Mega Science
Projects and contributed to the Development and execution of Defence and Aerospace
projects, Homeland Security, Instrumentation and also in Telecom and e-Governance.
Dr. C Ranganayakulu, Scientist H, Aeronautical Development Authority (ADA)-
Dr. Ranganayakulu made a presentation on “Indigenous development of Tejas Line
Replaceable Units (LRUs) and its challenges - Airworthiness requirements”. This he
informed was a super critical and important project for Indian Air Force and Defence
Ministry as it was meant to establish the capability of DRDO and India as a nation to
develop aircrafts with domestic technology and research.
His presentation included details of the Light Combat Aircraft “Tejas”, its thrust on
Indigenous Development and significant participation by Private Industries.
Dr. Ranganayakulu explained in detail about the scope of Work (SOW) in developing
Tejas LRUs, challenges in indigenization of General System and Avionics LRU’s and the
success achieved in Indigenization of Mechanical LRUs for the LCA. He also apprised
delegates about the available Test Facilities, Test and Integration Facilities and the
Airworthiness Aspects as well as Qualification Tests required for the LRU’s.
Mr. Sanjeev Sehgal, Managing Director, Samriddhi Automations Pvt Ltd &
President, SPGI- Growing Opportunities in Homeland Security
Mr. Sehgal spoke about the vast opportunities and rapid growth of market opportunities
in the Homeland Security sector. He informed that the growth of CCTV Cameras and
Access Control systems itself was in excess of 35% per annum and this sector required
urgent infusion of investments and R&D to meet the domestic requirements.
Dr. Vyas Raj, Head Strategic & Electronics for Defence Application, Accord
Software & Systems Pvt Ltd –
Dr. Vyas Raj made a detailed presentation on “Indigenous GPS Receiver Technology and
Solutions for Indian Defence and Aerospace”
Technology Sessions: Day – 2
Session – I – Bharat Electronics Limited
(BEL)
SNAPSHOTS OF THE EVENT