Post Show Report

Redefining the Indian Electronics Supply Chain….

Conference on

“Leveraging the Market: Time to Target 50% Domestic Content”

Supported by:

Co-Sponsor:

Associate Sponsors:

Affiliate Industry Sponsor:

Media Partner

Organisers

Electronic Industries Association of India (ELCINA)

(Formerly ELCINA Electronic Industries Association of India) ELCINA House, 422 Okhla Indl. Estate, Phase III, New Delhi – 110020

Manufacturers Association of Information Technology (MAIT) PHD House, Ramakrishna Dalmia Wing, 4

th Floor,

4/2, Siri Institutional Area, August Kranti Marg, New Delhi 110 016

http://sourceindia-electronics.com

8th Source India – Electronics Supply Chain 2017

Post Show Report 20th January, 2017 - Hotel Green Park, Chennai

ELCINA initiated “Source India - Electronics Supply Chain”, in 2009, as a business development

program to strengthen local sourcing and value addition and since then it has witnessed five

consecutive successful editions, all organized in Chennai. The event consists of a Conference,

Mini-Exhibition and Buyer Seller Meet and provides great value to all large and Small/Medium

industries.

SOURCE INDIA is a B2B event catering to the high volume segments of electronics mentioned

above and enables the following:

This year Manufacturers Association of Information Technology (MAIT) has joined as a “Co-

Organizer” for Source India which will add value and attract greater participation from the ICT

industry.

Focusing on

Interaction for business development

Opportunities – Demand-Supply gap

One-to-one meetings between OEMs, ODMs, EMS companies with

manufacturers of components, parts, consumables, etc.

Opening a gateway to India by inviting global manufacturers & investors

interested in the Indian market enable JVs and partnerships

Electronic Industries Association of India (ELCINA) & Manufacturers Association of Information

Technology (MAIT) organized the 8th edition of Source India 2017- Electronics Supply

Chain” on 2nd January 2017 at the Hotel Green Park, Chennai. The event theme focused

on Leveraging the Market for achieving 50% Value Addion in Electronics Manufacturing in the

country. The event was inaugurated by Mr. Vikram Kapur, IAS, Principal Secretary to

Government of Tamil Nadu, Industries Department, who shared the details of the strategy being

followed by Govt. of Tamil Nadu to retain its lead in manufacturing and providing due

importance to the ESDM sector. Mr Kapur appreciated the fact that ELCINA had organized

Source India in Chennai for last 8 years and the event was very popular with the industry as a

source for business development.

The Theme of the Conference was “Leveraging the Market: Time to Target 50% Domestic

Content” higher value creation locally by the domestic ESDM industry.

ELCINA & MAIT conducted a half day session of Buyer Seller interaction between Buyers &

Vendors in the format of “One to One Buyer-Seller Meetings” which focused on indigenization of the Electronics Supply Chain based on the Gov’t of India’s ongoing “Make in India” initiative.

The event also included a Mini Exhibition in which some key industry stakeholders, including

component manufacturers, service providers and infrastructure companies displayed their products and services.

The ESDM Industry was represented by more than 130 participating organisations and 19 Large Buyer Companies, 11 Exhibitors and 200+ delegates.

We would like to thank all our Government & Industry Sponsors, Exhibitors & Delegates for wholeheartedly contributing to the success of this event.

Co-Sponsor:-

Nokia Solutions & Networks the world’s specialist in communication technology.

Associate Sponsors:-

Alpha Assembly Solutions a global leader in the development, manufacturing and sales of

innovative specialty materials used in a wide range of Electronic Industry.

Salcomp Manufacturing India Pvt. Ltd. develops and manufactures adapters for mobile phones and other electronic devices.

Covestro (India) Private Limited, is among the world’s largest polymer companies.

Affiliate Industry Sponsors:-

AMRL Hi Tech City Ltd. is an integrated development that is emerging as the destination of choice for world-class industries & business in the state of Tamil Nadu.

Mouser Electronics, is a semiconductor and electronic component distributor for electronic design engineers and buyers.

Foxconn India, is a world leader in mobile and mobile phone assembly, Communication

network related products.

A Summary of 8th Source India

Electronics Supply Chain 2017

Highlights of Source India 2017:

Initiated in the year 2009, Source India – Electronics Supply Chain 2017 is First of its

kind Event promoting ESDM initiatives based on National Electronics Policy.

Premier B2B Industrial Show with Vendor & Supplier Development programs through

Buyer Seller Meet

Over 130 participating companies and exhibitors from across the country.

Ministry of Electronics & IT (MeitY), Government of India, Government of Tamil Nadu,

Electronics Corporation of Tamil Nadu (ELCOT) & Tamil Nadu Industrial Guidance &

Export Promotion Bureau (Guidance Bureau) supported the event.

Objectives of the Event:

Bring all stakeholders on one platform to enable better communication and understanding

among buyers and suppliers of Electronics Value Chain

Facilitate in creating indigenous Supply Chain for Electronics Industry to meet increasing

demand.

Create awareness about opportunities in the Electronics sector.

Involve the Small and Medium Enterprises to meet the requirements of Big Buyers from

Consumer Electronics, Telecom and IT equipment, Auto Electronics etc.

Bridging the gap between Government organizations and businesses.

Encouraging and enabling investments in the Electronics Industry

Program Details:

A Conference on “Leveraging the Market: Time to Target 50% Domestic Content”.

A mini exhibition to showcase opportunities for buyers and sellers.

Pre-arranged Business to Business Meetings at Buyer Seller Meet.

Reserved Buyer-Seller Meeting Area for pre-arranged meetings.

Industry Networking Session

Opportunity for informal meetings and networking.

Buyer-Seller Meet – Pre-arranged one-to-one meetings in a reserved area between

potential suppliers and large buyers.

Conference on

“Leveraging the Market: Time to Target 50% Domestic Content”

Conference Program

0900

0930 – 1100

Welcome Address:

Special Address:

Industry Address

Chief Guest

Vote of Thanks

Registration

Inaugural Session

Vikram Desai, President ELCINA & Managing Director, Desai Electronics

N Ramachandran, Past President ELCINA & MD, Mel Systems & Services

Nitin Kunkolienker, VP, MAIT - The Importance of Developing Component

Ecosystem and India as a Component Hub

Josh Foulger, Managing Director, FIH India (Foxconn)

Thiru Vikram Kapur, IAS, Principal Secretary to Government of Tamil Nadu,

Industries Department

Pankaj Gulati, Sr VP ELCINA & COO, CDIL

1100-1130 Networking Tea Break

11130-1300

Session - I

Discussion on Market Growth and Demand Drivers

Vinod Sharma, Past President ELCINA & MD, Deki Electronics Ltd –

Advantage Domestic

Vipin Tyagi, ED & Chairman of the Board, C-DOT

Sasikumar Gendham, MD, Salcomp Manufacturing

Sanjay David, Head-Sales, Covestro India

Note: Session Opening: Background research paper presentation: A. M.

Devendranath, AVP and Head - Energy Vertical, Feedback Consulting – (10

minutes)

1300 - 1400

Networking Lunch

1400- 1530

Session - II

Opportunities in the Indian Supply Chain & Strategy to achieve 50%

indigenisation

Pankaj Gulati, Sr VP ELCINA & COO, CDIL

Richard Puthota, Director-Business Dev., Alfa Assembly

Sudarshan Pitty, Head, Nokia Solutions and Networks

Madhusudan Moudgal - GM, Syrma Technology- Opportunities for India

Supply Chain for 50% Indigenisation - The Unspoken India Advantage

S Nagarajan, ED, Kramski Stamping & Molding India P. Ltd. –Common

Facility Centres

Note: Session Opening: Background research paper presentation: A. M.

Devendranath, AVP and Head - Energy Vertical, Feedback Consulting – (5

minutes)

1530 – 1545 Summing up & Vote of Thanks

1545 - 1900 One to One Buyer-Seller Meetings (Pre-Arranged)

1900 onwards Networking Dinner

LIST OF PARTICIPATING COMPANIES

SPONSORS

Alpha Assembly Solutions

AMRL Hi Tech City Ltd.

Covestro (India) Private Limited

Electronics Corporation of Tamil

Nadu Ltd. (ELCOT)

Foxconn India Pvt. Ltd.

Guidance Bureau

Mouser Electronics

Nokia Solutions & Networks

Salcomp Manufacturing

EXHIBITORS

Alisha Coils and Transformers

(Division of Cosmo Ferrites Limited)

AMRL Hi Tech City Ltd.

Axiom Energy Conversion Ltd.

ChipTest Engineering Limited

Continental Device India Pvt. Ltd.

(CDIL)

Electronics Corporation of

Tamilnadu Ltd. (ELCOT)

Electronics Sector Skills Council of

India

IDFC Bank Ltd.

Relyon Softech Ltd.

Sri City (P) Ltd.

Syrma Technology Private Limited

DELEGATES

ACCEL Transmatic Limited

Alfa Assembly Solutions

Alisha Coils and Transformers

Andhra Electronics Limited

Apollo Aerospace

AT&S India Pvt Ltd

ACMA, Southern Region

Berger Becker Coatings Pvt Ltd

BlackPepper Technologies

Brady Company India Pvt Ltd

ChipTest Engineering Limited

Classic Exports

CLIK

CX Precision Mechanical

Datafield

Deki Electronics Ltd.

Desai Electronics Pvt Ltd

EFY Group

Elcom International Pvt Ltd

Electronic Relays India Pvt Ltd

ELICO Limited - Mechoptronix Division

EPCOS India Pvt Ltd

Epitome Components Pvt Ltd

Esko Die Casting Pvt Ltd

FCI OEN Connectors Ltd (Amphenol FCI)

Feedback Business Consulting

Hiflo Solders Pvt Ltd

Indian Society of Lighting Engineers

(ISLE)

Infineon Technologies

Innovative Engineering

JLW Electronics (HK) Ltd.

KDDL Limited

KRAMSKI Stamping and Molding

Linkwell Telesystems

Macom Technology Solutions

Magway Magnetic Cores

Manav Packaging Private Limited

Manipal Technologies Limited

MEL Systems and Services Limited

Mentor Media

Miracle Electronic Devices Pvt Ltd

MMI India Pvt Ltd

Molex India Pvt Ltd

MRO-TEK Realty Limited

Mucho International

NeoGrowth Credit Pvt Ltd

Nihon Technology Inc

Nippon Avonics

Parker Chomerics

Parksons Packaging Ltd

Pinshine Industrial Co. Limited, Suzhou,

PRC

PPG Asian Paints Pvt Ltd

PEC Manufacturing Company

ProSIM R&D Pvt Ltd

Radiant Polymers Pvt Ltd

Ready LED Lighting Pvt Ltd

Regus Business Center

Relyon Softech Ltd

Rising Stars Mobile India Pvt Ltd

RMC Electronics Private Limited

Sabic Innovative Plastics (I) Pvt Ltd

SANYO DENKI India Pvt Ltd

Sealed Air India

SGS Tekniks Manufacturing Pvt Ltd

ShenZhen SanXiangYuan Electronic , PRC

Shin-Etsu Polymer

Silkee Electronics Ltd

Sparr Electronics Ltd

Sreenidhi Inst. of Science and Tech.

Stanadyne India Private Limited

Super Mount Pack Pvt Ltd

Supply Technologies India Pvt Ltd

Synegra EMS Ltd

TE Connectivity Ltd

Teamlease Services Limited

TITAN Time products Ltd

TUV Rheinland India Pvt Ltd

BUYERS

ABB India Limited

Amara Raja Electronics Ltd

Bosch Automotive Electronics

Centre For Development of Telematics

(C-DOT)

Dell International Service

Delphi Automotive Systems

Electronics Corporation of India Ltd.

Foxconn India Pvt. Ltd.

Hubbell India

Icomm Tele Limited

Lava International Ltd.

Lenovo India Pvt. Ltd.

Maruti Suzuki India Limited

Napino Auto & Electronics Ltd.

Nokia Networks India Pvt. Ltd.

Panasonic Automotive Systems India

Salcomp Manufacturing India Pvt. Ltd.

Stanley Black & Decker

Valeo Lighting Systems India Pvt. Ltd.

SUMMARY OF PROCEEDINGS

Mr. Vikram Desai, President ELCINA & Managing Director, Desai

Electronics, delivered the welcome address highlighting that ELCINA has

continued this event in Chennai due to strong support by buyers and Tamil

Nadu Government. He spoke of the vision of our Prime Minister which had

energised the industry. Demonetisation despite all its positives he said, has

affected the industry severely with dwindling demand and inventories piled

up. Roll out of GST which was scheduled for launch on 1st April launch was

eagerly looked forward to as would be a game changer. For targeting 50%

Domestic content in electronics it was necessary that passive components, PCBs and even

electro-mechanical parts are promoted and sourced locally. The demand for components has

attracted few new investments and these have to be pushed aggressively. Rapid growth in

assembly plants of Mobiles was mainly due to 11.5% duty differential between imported mobile

devices and indigenously made ones. Similar benefit may be accorded to all components and

electronic goods that are presently imported. This will also encourage high value addition

manufacturing in India.

Mr. Desai also recommended that our Government must replicate the story of the auto sector in

building up indigenous capacities for other sectors of electronics.

Mr. N Ramachandran, Past President - ELCINA & Managing

Director, MEL Systems & Services

Mr. Ramachandran highlighted the high dependence on imported

components and specially semiconductors which often comprise 50% of

the BOM. The domestic content varies but in most of the products it ranges

from 6% to 20%. The situation in China is 70%, Taiwan 60% and even

Vietnam 30%.

He proposed the Cluster approach by choosing a range of products for

indigenization and build capacities in these Clusters. Mr Ramachandran

recommended that Meity should form a task force to handle this project which must work with

the industry, and choose components to be made in India.

He suggested that components of Plastics/Metal Parts, Wound components, Ferrites, Capacitors,

Resistors, Switches, Connectors, PCBs and EMS/Assembly and testing of Semiconductors had

the maximum potential. He also emphasized that the promised incentives should be delivered

on time to encourage investments.

Mr. Nitin Kunkolienker, Vice President, MAIT

Mr. Nitin Kunkolienker is Director-Corporate Affairs, Smartlink Network

Systems Ltd – India’s one of the top most companies in the field of

Computer Networking and Information Technology.

Mr. Kunkolienker spoke on the Importance of Developing Components

eco-system and India as a Component Hub. He shared his views about

the urgent policy support required for this initiative without which our

value addition would always remain low and R&D would never grow.

Mr. Josh Foulger, Managing Director, FIH India (Foxconn)

Mr. Josh Foulger, Managing Director of Foxconn gave his views on the

need for a supportive policy to promote manufacturing of mobile phones

and to recover the situation after the closure of the Nokia Plant in

Sriperumbudur. Josh spoke at length about the differential duty policy

which had given a big phillip to the Mobile assembly eco-system and

emphasized the need for continuing this support and moving to the next

stage of the phased manufacturing program for mobile phones. Due to

this policy over 260 Million smart phones had been assembled in the

country and we could soon exceed 500 million, he said.

The phased manufacturing program would result in over 50% localization in next 2 years and

barring semiconductors, all other components and parts would be manufactured in India.

The Chief Guest, Shri Vikram Kapur, IAS

Principal Secretary to Government of Tamil Nadu,

Industries Department

Mr. Vikram Kapur is a 1988 batch officer of the Indian Administrative

Service, borne on the Tamil Nadu State cadre. He expressed great

satisfaction at the fact that ELCINA had been conducting this event in

Chennai since last 8 years and it was growing gradually. He assured

continued support from Tamil Nadu Government for Source India.

Mr. Kapur shared the policies and initiatives being taken by his Government

to promote high tech industry and how the auto industry had grown over the last decade. He

informed that Tamil Nadu Government was working on a special policy for Electronics

Hardware and many of the problems faced by industry were being actively looked into for

solutions. He invited the industry to meet him and share their recommendations on the policy

so that the same could be effective in promoting electronics manufacturing in the State.

Mr. Pankaj Gulati, Sr. VP, ELCINA & COO, CDIL

Delivering the vote of thanks in the Inaugural session Mr. Gulati expressed

appreciation towards the sponsors, MeitY and Government of Tamil Nadu,

specially Guidance Bureau and ELCOT for their unstinted support to the

event. He also thanked the Organising Committee members for their

guidance.

Mr. Gulati also spoke on the Opportunities in the Indian supply chain and

strategy for achieving higher indigenization. He spoke about the

opportunity in discrete semiconductors and how his company had entered this segment almost

60 years ago. He advised that India was not competitive in semiconductor manufacturing but

there was great immediate scope in EMS and electromechanical components as well as PCBs

which needed to be promoted.

Session I – Discussion on Market Growth and Demand Drivers

Eminent Speakers :-

Mr. Vinod Sharma, Past President ELCINA & MD, Deki Electronics Ltd.

Mr. Vipin Tyagi, ED & Chairman of the Board, C-DOT

Mr. Sasikumar Gendham, MD, Salcomp Manufacturing

Mr. Sanjay David, Covestro India

Mr. A. M. Devendranath, AVP and Head - Energy Vertical, Feedback Consulting

Session II – Opportunities in the Indian Supply Chain & Strategy to achieve 50% Indigenisation

Eminent Speakers :-

Mr. Pankaj Gulati, Sr. VP ELCINA & COO, Continental Device India Ltd. (CDIL)

Mr. Richard Puthota, Director-Business Development, Alfa Assembly Solutions

Mr. Sudarshan Pitty, Head, Nokia Solutions and Networks India Pvt. Ltd.

Mr. Madhusudan Moudgal - GM, Syrma Technology Private Limited

Mr. S Nagarajan, ED, Kramski Stamping & Molding India Pvt. Ltd.

Industry perspective on the State of the Electronics Industry currently

Summary of the Industry Perspective

1. Current state and outlook for the Industry

Based on the discussions with the Industry leaders and ELCINA, it was agreed universally that

the EDSM industry in India is likely to grow at a CAGR of 23% going forward. The current ~$

100 Bn industry is likely to reach around $ 280 Bn by 2020 and about $ 400 Bn by 2022.

As per the survey responses, 92% of the respondents have a positive outlook on the industry

and expect more from the Government and industry ecosystem to grow further.

N=26 respondents

2. Key growth factors driving the EDSM industry in India

There was a consensus that there were cross sectoral levers for growth of EDSM in India, while

there were also a many specific growth drivers such as Power Sector growth, Make in India –

Mobile story, Digital India, Automotive electronics growth etc.

N=41, multiple responses from 26 respondents

3. Key factors impacting the growth of the EDSM industry in India

On the factors impacting the growth of the EDSM industry, close to 65% of respondents believe

it is due to the poor state of the Supply Chain - raw materials availability and components base

in India. Nearly 88% of the respondents had views on the various Government policies

impacting the Industry.

1

1

1

1

2

4

4

7

8

16

0 2 4 6 8 10 12 14 16 18

Foreign OEM's using their own components from principal countries

Lack of standards - for products and for manufacturing

Poor Power Quality and uniterrupted supply

Quality issues

Lack of advanced manufacturing

Labour policies & issues

Inefficient logistics & paper work

High cost of doing business - high interest, capex requirement, Duties &mfg. costs

Poor Government support for Indian firms (Chinese dumping)

Raw materials (Poor component base, high imports, inefficient supplychain)

Factors impacting the growth of Indian Electronics industry

N=44, multiple responses from 26 respondents

4. Opinion on Government Policies

On the Government policies relating to the EDSM industry, there was a near unanimity in the

industry that the policies were good but needs better implementation and some policies may

need some modifications (88% of the respondents).

N= 26 respondents

5. Suggestions and recommendations from the industry

There was a near consensus from the industry that Policies for a better domestic demand

creation would be the key for leveraging towards 50% domestic content. Industry has a few

options but nearly all the industry leaders felt that it will need to be driven by the Government

else the Imports will nearly kill the nascent industry.

1

1

2

3

3

4

4

15

26

0 5 10 15 20 25 30

Need to sell India 'well' to atttract manufacturing

Skilled talent in Electronics needs to be retained in India

Improve power quality and supply

Invest in testing and certification centers, individuals and policies

Industry voices more in Govt & make Industry part of decision making

Improve Ease of doing business

Policies for increased availability of raw materials

Need for transparency from Government & Clarity in policies

Policy intervention for domestic demand creation

Suggestions to achieve 50% domestic content

N= 59 responses from 26 respondents

Snapshot of 8th Source India – Electronics Supply Chain

Hon’ble Chief Guest Mr. Vikram Kapur Lighting the Lamp

Mr. Vikram Kapur delivering the Inaugural Speech

Hon’ble Dignitaries on the Dias during Inaugural

Session Hon’ble Dignitaries during the Lamp Lighting

Mr. Vikram Kapur at one of the Stall Audiences during the conference

One-to-One Meetings during Buyer-Seller Meet