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ERICSSON SUPPLY SITE JAIPUR

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ERICSSON SUPPLY SITE JAIPUR

CII Seminar 2012-07-31 | Page 2

Ericsson supply site Jaipur

› Node Assembly & Test

› Module Assembly & Test

› Printed Circuit Board Mfg & Test

› Repair Service

Manufacturing Services Offering

Year Founded 1994

Footprint80747 sq.mt (Total Factory Area)

20758 sq mt (Built up Area)

Work Force 1130

Mission

To create competitive advantage

by driving end to end, flexible,

reliable and cost effective Supply

Chain to fulfill customer demands

in India and other Regions.

ProductsRadio Base Stations

CORE

Transmission & Access

Certifications ISO 9001:2008, ISO 14001:2004

ESSJ – SITE DETAILS

CII Seminar 2012-07-31 | Page 3

ESSJ – journey…

Year Milestones

1994 JAIPUR Factory operations started

1995 Inauguration by Dr. Lars Ramqvist, Ericson Group CEO

1995 BSI Awarded ISO 9002

1997

1st telecom Company in India & 3rd in Ericsson to be BSI Awarded

ISO14001.

2001

1.3 M lines Wire-line Subscriber Exchanges delivered to DOT/ BSNL /

MTNL

2004 550 KC D-TAX Exchanges delivered to BSNL / Reliance

2005 DNV Global Certification for ISO QMS 9001:2000 and ISO EMS14001

2005 Inauguration of RBS 2204 Production by Telecom Minister, GOI

2006 AXE 810 Production Started

2007 Mobile Soft Switch production started

2008 MINILINK – E production started

CII Seminar 2012-07-31 | Page 4

ESSJ – journey…

Year Milestones

2008

1/3RD Global RBS volume Delivered , Highest Global monthly RBS

Delivery volume in May

2008

100,000th RBS delivered in sept’08 & 2000th core node delivered in

dec’08

2008

TEMA 2008 Award for “Excellence in Telecom Equipment

Manufacturing (Cat.->1 BINR)”

2009

INFOCOM CMAI Telecom Awards 2009 for "Largest Telecom

Equipment Manufacturer

2009 Minilink- TN deliveries Started

2010 1st deliveries of RBS 6000

2010 SMT line 1 installed

2010 Repair Business started

2011 SMT line 2 installed

2011 1st Delivery of LTE

2011 Export started

CII Seminar 2012-07-31 | Page 5

A glance of 2010-2012

New Facility

Start up of Repair Centre

1st SMT Line

2nd SMT LineStart up of Repair Centre

CII Seminar 2012-07-31 | Page 6

Portfolio localized

Equipment Board level

EDRU MMU R/RUS TRX Board

› Core, Radio and

Transmission

– MSC, MGw

– Base Station Controller

– Radio Base Station for 2G, 3G and LTE

› Indoor, Outdoor, Main-Remote

– Mini Link

› Radio Modules

› Transmission Modules

CII Seminar 2012-07-31 | Page 7

delivered volumes till date

~ 250 000

~ 64 000

~ 30 000

RBS

MINILINK

REPAIR

~ 10 000

CORE

CII Seminar 2012-07-31 | Page 8

Supplier base – local suppliers within india

DELHIDELHI

CHENNAICHENNAI

PUNEPUNE

CALCUTTACALCUTTA

BANGALOREBANGALORE

GUJRAT

RUDRAPURRUDRAPUR

ANDRA PRADESHANDRA PRADESH

Delta Rudrapur

Emerson Pune

Epcos Calcutta

Ebm Papst Local Hub

Prasha Gurgaon

Flex Chennai

Foxconn Chenai

Rittal Bangalore

AQ India Pune

Nefab Gurgaon

Brady Pune

MS Chhabra NCR

SAPA Andra Pradesh

Alteams Chennai

Cast Master NCR

G Ace Chennai

Rosenberger Gurgaon

Amphenol Chennai

Huber & Suhner Gurgaon

Tyco Bangalore

Volex Chennai

FCI Bangalore

Molex Bangalore

ESK India Gurgaon

Jabil India Pune

CII Seminar 2012-07-31 | Page 9

17/20 Top Supplier

17/20 Top Supplier

1/20 Top Supplier

1/20 Top Supplier

Top 20 Import Suppliers -ESSJ

2/20 Top Supplier

2/20 Top Supplier

ESSJESSJ

Europe

S.E. AsiaChina

NANJING ERICSSON PANDA

SCANFIL OYJ

EFORE OYJ

EMERSON ENERGY SYSTEMS AB

MULTEK HONG KONG LTD

EATON INDUSTRIES MANUFACTURING GMBH

TAT FOOK (SHENZHEN) TECHNOLOGY CO

AAVID THERMALLOY SRL

PANASONIC CORPORATION

JST TECHNOLOGIES

DANTHERM A/S

DENSO CORPORATION

CHONGQING DAJIANG MILLISON DIE-CAST

SUZHOU DONGSHAN SHEET METAL WORKING

SOURCE PHOTONICS INC.

ELEC & ELTEK COMPANY LTD

COOLER MASTER CO. LTD

ARROW Components Sweden AB HK

BOARDTEK ELECTRONICS CORP TW

EBM-PAPST GMBH

CII Seminar 2012-07-31 | Page 10

Localization, value addition

Localization Value Addition

› Available Domestic Supplier and capabilities are in place,

– Network of >25 suppliers

› Board level Manufacturing, Assembly, and Testing are done locally

› Local BoM & Local Conversion incld Boards

– Substantial Transformation

› Value Addition shall be seen as

– (Local BoM + Local Conversion Cost)/ Total BoM

– Depends on the Product Volumes, Market Demand and maturity.

› BTS is the volume product

› 2G is matured, 3G &

LTE picking up

CII Seminar 2012-07-31 | Page 11

Achieve higher local value add

› Step by Step approach and Deemed % of Value Add.

– Final Assembly & Test (FAT) : Say 25% Value Add

– FAT + PCBA (Printed Circuit Board Assembly) : Say 50% Value

Add

– FAT+ PCBA + domestic component sourcing: 80% Value add.

› Support existing & Create environment for new companies to set up manufacturing base in India.

CII Seminar 2012-07-31 | Page 12

Achieve higher local value add

› Government Support needed to build the eco System in India

– Eliminate disability factors relating to Infrastructure, rules and regulations etc.

– Incentives for setting up Electronic Manufacturing Clusters (EMCs) geographically

– Encourage domestic supplier through funding, subsidy to start component Level Manufacturing.

– Facilitate setting up of Semiconductor Wafer Fab

– Invite Global Suppliers, extend benefits eg. Tax, funding etc..

› Availability of Global Suppliers in India

Ericsson is committed to meet the target of NTP 2012 for DM and LVAEricsson is committed to meet the target of NTP 2012 for DM and LVA