Presentation for the PEC Workshop ,27 th April 2011 Mudassar Hussain
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Transcript of Presentation for the PEC Workshop ,27 th April 2011 Mudassar Hussain
Presentation for the
PEC Workshop ,27th April 2011
Mudassar Hussain
Telephone Industries of PakistanMinistry of Information Technology
Overview of Presentation
Historical Perspective: Public Sector R&D and Manufacturing
Survival and sustainability: recipe for the futureSolving real problems , be relevant to markets and
compete: leverage synergiesOpportunity in adversity: The case for indigenous
alternative energy products (Solar/Hybrid)PCRET/NIE/TIP Collaboration: Value propositionProposed Collaboration Framework: the progress
so far and targetsParameters for success Recommendations to the GoP
Historical Perspective: Public Sector R&D and Manufacturing
Multitude of Research organizations set up by the Govt. with different “ Research and Development” mandates.
Successful in development of technology to varying degrees but no visibility in real life scenario due to lack of clear path for commercialization.
Public sector manufacturing organizations primarily JVs between foreign technology companies with narrow product focus primarily targeting public sector market and no focus on diversification and R&D.
Change in technology and focus of principle JV partners , large overheads and outmoded way of working led to gradual decline
• Public Sector R&D and Manufacturing have been operating in silos and have never been meaningfully linked leading to failure on both counts• Local R&D making way to the markets and• Truly indigenous production in public sector manufacturing
Practical Realities and Way forwardAre publicly funded R&D and Indigenous
Manufacturing lost causes?Funding scenario in economic downturn
increasingly fluid and limited: sustainability of research
Govt cannot afford to keep funding sick industrial units that continue to lack innovative product portfolio
• Market and commercial products present a lifeline: Pool Strengths, solve market relevant problems, build commercial products and achieve self sustainability for both R&D and Manufacturing
• Ready example: Cost Effective Alternative energy
Opportunity in adversity: Indigenous Alternative energy products (Solar/Hybrid)
Energy sector scenario: Established need to diversify the mix, increase alternative energy contribution.
The case for solar power: would depend on cost effectiveness & RoI for mass scale adoption in public sector and open market.
Indigenous and tailored solutions can play a vital role in the market: competitiveness against imports across entire ecosystem is crucial
Opportunity for Public sector Organization JVs for innovative and sustained indigenous supply to markets
Case For Possible Synergistic CollaborationTIP/NIE/PCRET
Leveraging Synergies for Tapping Alternative Energy Market
R&D organizations PCRET and NIE have developed an array of alternative energy/solar power generation systems, subsystems and end products, at research prototype level
They however have no capability to address market level production volumes and almost no marketing experience. And most crucially no brand for instant recognition by market even if products produced on commercial level
TIP has extensive strength in mass scale manufacturing, a strong brand name with household recognition, extensive experience in supply testing and commissioning and after sales service. R&D and design are however major weaknesses
• PCRET/NIE/TIP is a natural alliance that can leverage each others strengths through bipartite or multipartite JV arrangements with
• each partner focusing on specialized role.
From R&D to Market for Solar products: The PCRET/NIE/TIP Proposition
PCRET/NIECompetencies
TIP Strengths
TIP OverviewEstablished in 1953: Mandate to manufacture and supply
broad range of engineering products particularly Telco and energy related equipment for the GoP
Remained profitable for 50 years.Established household and industry brand name particularly
for terminal equipment, exchanges and energy meters.Decline in recent decade due to change in technology,
telecom deregulation, PTCL privatization, lack of competitive product development and marketing, narrow telecoms related focus.
Diversification of product line is imperative: TIP is ready for the Alternative energy opportunity due to
expected market volumes
Light/Medium/Heavy Steel Fabrication. Containers refurbish services.CNC Nibbling Facilities.CNC Machining. Conventional Machining. Pressing Work. CNC Plastic Injection Single Moulding.CNC Plastic Injection Double Moulding.Thermoplastic Compression Moulding. Pressure Die Casting,
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Telecommunication Equipment Supply, installation , commissioning and staff training.
Material Testing. Mechanical , Physical, Chemical tests.
PCB and Hybrid Fab Component stuffing through THT & SMT
TIP Manufacturing Capability
Tool designing & Manufacturing.Progressive cutting tools. Pressure Die casting Moulds.Customized Jig and Fixtures. Customized precision gauges
Tool designing & Manufacturing.Progressive cutting tools. Pressure Die casting Moulds.Customized Jig and Fixtures. Customized precision gauges
Packing Solutions: Styropore packing.Card board packing.Wooden Packing.
Surface Treatment & Heat Treatment:Electro Plating. Ferrous and non Ferrous.Precision part bakes painting.Screen Printing. Hot Dipped Galvanizing ( up to 24 feet length)
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Manufacturing Capacity (Per annum)
1. Digital Telephone Exchanges (EWSD) 500,000 lines Units
2. Telephone Sets (All versions) 250,000 Sets
3. Container Shells for Digital Exchanges 200*
4. Cross Connect Cabinets 1000
5. Printed Circuit Boards 5000 Sq. m
6. Thick Film Hybrid Circuits 400,000 Nos.
7. Fire Alarm Systems 300*
8. Drop Wire 36,000 Km
9. Single Phase Energy Meters 200,000
10.Telecom Towers and Masts 300*
11.Earthquake rehabilitation shelter 1000 homes
Capacity enhancement depends on labor force and can be increased any time
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Roles of Collaborating Partners
Complete value chain for R&D, Design, Manufacturing & Marketing
Proposed Collaboration Framework: Developments and progress
Joint Professional Working Group Set up after inter-ministerial meeting to Shortlist priority marketable products from existing designs at
PCRET and NIE Build business plans for the targeted products. Work out operational collaboration framework
Possible scenarios being considered by the Joint Group TIP acting as contract manufacturer for NIE/PCRET with no TIP
brand or role in marketing the product Multipartite inter-organizational JV/MoU with TIP brand for all
solar systems and products Separate commercial limited company with stakes of all three
organizations, corporate style working with independent diverse Board utilizing all shared resources
Since joint product development will entail some production line setup and upgrade, new product test and QA facility as well as the initial input costs the organizations will devise
Revenue and profit sharing model also being worked out by the Joint Group
Ingredients for SuccessSound collaboration FrameworkPrompt and realistic market study and feasibility of
products.Effective product line and brand strategyCompetitiveness. (Quality, capacity, service & price)Bundling of product with financingMarket entry facilitation (Policy and administrative
arrangements)Incentives for both manufacturing outfits/consortia
and the user (tax break, rebates).Sustained high level ownership and funding of
Initiatives
Recommendations to GoP Need for clear-cut policy
for commercialization of academic, public sector and publicly funded research.
Need for institutional support for entrepreneurship and innovation and renewable sector startups
Venture capital style access to resources. Research funding and incentives for this particular area.
Enabling adoption of the products reproduced through the proposed collaboration particularly public sector market in the beginning without distorting free competition.
Enable quick decision making in all collaborating public sector organizations, through their respective Ministries and PPR modification for the purpose to enable such public JVs to stay market relevant.
Enable financing of viable business plans not through PSDP but form specially designed package to support Public sector JVs in the renewable energy area.
Incentives for major economic sectors for conversion to alternatives and for using indigenous products.
Mandate all public sector bodies and authorities to give first priority to indigenous products while considering energy conservation
Thank You
Questions and Answers
Mudassar [email protected]
[email protected] 051-9221048
Fax 051-2870790