VOL XVII, ISSUE 08

 30 April 2018

Top Stories Policy Scan Industry Scan Business Opportunity ELCINA Update Upcoming Events
 

Top Stories                                                                                

 

EV charging stations don’t need separate license under Electricity Act: Power Ministry

 

The government clarified its position on electric vehicle charging stations and has said that a separate license will not be required under the Electricity Act 2003 for setting them up. “The clarification has been issued in this regard that the Electricity Act 2003 does not need to be amended to allow electric vehicle charging stations. We will soon be bringing out technical specifications for these charging stations too,” A K Bhalla, Secretary, Ministry of Power told BusinessLine. The Power Ministry’s logic is that the electricity supplied to the station has been converted to chemical energy when the vehicle charging occurs. So it is no longer in the form of electrical energy and the service of charging a vehicle does not mean sale of electricity. 

(BusinessLine, Apr 16, 2018)

  

TOP

BYD plans 50% localisation for eBuses in 2 years

 

Chinese language e-vehicles big BYD, which has gained main orders in India, doesn’t get any subsidy in its nation, its Indian companion Goldstone Infratech has stated, refuting Indian rivals’ claims that they face unfair competitors.Moreover, a Goldstone Infratech spokesperson informed ET, the corporate will be capable of localise half the elements for electrical buses being constructed for India, within the subsequent two years. “BYD is a world firm, broadly held and backed by marquee buyers like Warren Buffett and Samsung Electronics, with manufacturing services throughout the globe. There aren’t any export subsidies given on Chinese language electrical automobile (EV) producers. Such issues are unfounded,” he stated. “Goldstone-BYD buses adjust to all localisation norms beneath Sooner Adoption and Manufacturing of Hybrid & Electrical Automobiles (FAME) coverage and Make in India. We anticipate to ramp up localisation element above 50% in subsequent two years,” the spokesperson stated.A authorities official stated Ashok Leyland has localisation of 37%, whereas Tata Motors is at 35%. 

(ET, Apr 19, 2018)

 TOP

Exits in smartphone market up six-fold on rising competition, says report

 

The shakeout in India’s smartphone market mirroring the telecom industry saw number of new entrants nearly halved between 2015 and 2017 while exits grew six-fold as the capital intensive business weeded out weak players unable to sustain and expand as competition capped prices. The top five smartphone brands — Xiaomi, Samsung, Oppo, VivoNSE 0.00 % and Huawei — currently control over 72% of the market against 63% in 2015, albeit with a different brand combination. The top 15 have cornered over 90%, of the market according to Counterpoint Research and experts believe exits and consolidation will gather pace this year. The export duty on PCBA’s for mobile phones are considered to be the main cause for the exit of small domestic players. The PCB population needs huge investments and huge sales are required to justify that.

 

(ET, Apr 30, 2018)

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India mobile manufacturing industry to touch Rs 132000 cr by 2018: Ravi Shankar Prasad

 

Indian mobile manufacturing industry is expected to touch Rs 1,32,000 crore by end of 2018, said Ravi Shankar Prasad, Union Minister, of Electronics & Information Technology on Thursday. In India, about 110 million mobile phones were manufactured in 2015-16 as compared to 60 million in 2014-15 thereby recording over 90% growth.Moreover, India’s mobile manufacturing industry produced mobile phones worth Rs 54000 crore in FY15-16 as compared to Rs 18900 crore in FY14-15. By the end of 2017, the number reached Rs 94000 crore. Talking about the volume, Prasad told that in 2014 India produced 5 core mobile phones which were made locally which increased to 15 crore in 2015-16. It further grew to 22 million mobile phones in 2017. “The industry would produce 50 million mobile phones by 2020,” he said. Giving an overview of the electronics manufacturing units, the minister said within three years, the industry added 120 such units out of which two-third are mobile manufacturing units and there are 54 such units in Noida alone.

(ET, Apr 26, 2018)

 TOP

Indian Consumer Electronics Industry to grow by 25% annually: MD, Mirc Electronics, Noida

The stress on the Indian consumer electronic brands is lessening. In the past few years, the homegrown brands, which dominated the markets in the pre-liberalized era, have been making a comeback. One of the biggest factors that have helped the Indian consumer electronic brands gain confidence in a market dominated by foreign brands with deep pockets is Goods and Services Tax (GST.) It has helped create a level playing field, enabling homegrown brands to become competitive once again.

Amid this changing market dynamics, Onida, the brand known for its iconic devil mascot, is making a big comeback. From new product launches to big marketing spends, Onida’s resurgence is poised to upset other players (mostly MNCs) who least expected a comeback story from a local brand. 

(Exchange 4 Media.com, Apr 17, 2018)

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  SECTION I - POLICY SCAN                                                                                               

Clarification on import by EOUs

 

The Central Board of Indirect Taxes and Customs (CBIC) has issued a useful circular. It clarifies the procedure for import by export-oriented units (EOUs) and units of software technology parks, electronic hardware technology parks and bio-technology parks, collectively referred to as EOUs here.

It can go further and clarify other related issues. EOUs import their requirement without payment of duty or taxes, under notification 52/2003-Customs dated March 31, 2003. Before introduction of the Goods and Services Tax, these were required to get procurement certificates from their jurisdictional excise/customs authorities and give this to the authorities at the customs station of import..  This changed with  introduction of the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, with effect from July 1, and suitable amendments to the said notification 52/2003,r equiring the EOUs to follow the procedure prescribed in the new Rules.

(BS, Apr 30, 2018)

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DoT to release draft National Telecom Policy on May 1

 

Moneycontrol reported that at the Annual General Meeting of US industry body Amcham, Telecom Secretary Aruna Sundararajan informed that the direction of the new policy, which is likely to be early as on May 1, will be reform-oriented. She further said that it will be investor friendly and bring down the cost of compliances and that the proposed NTP 2018 will be placed for public comments for 15-20 days. After the public comments, the Department of Telecom (DoT) will start inter-ministerial consultation on the policy and thereafter approach the Cabinet for final approval, she said. The NTP 2018 is expected to present a growth road map of the Indian telecom sector, which is reeling under debt of around Rs. 7.8 lakh crore, for a period of next five years. Telecom operators have demanded that the government lower spectrum usage charges, licence fees and other levies on the sector to make business viable. 

(Electronics B2B.com, Apr 27, 2018)

 TOP

Framework for national e-commerce policy to be finalized soon this year

 

A think tank of key stakeholders headed by commerce minister Suresh Prabhu will finalize a framework for a national e-commerce policy in six months’ time that will settle India’s stand on key issues such as taxation, competition policy, foreign investment and server localization, among others. India has been finding it difficult to arrive at a consensus on a domestic e-commerce policy to effectively respond to a proposal for multilateral discipline in e-commerce at the World Trade Organization (WTO) as various government departments have contradictory views on the matter, Mint first reported on 7 March, 2017.

For example, while the department of telecom wants server locations of global e-commerce companies operating in India to be based in the country, the ministry of electronics and information technology supports no such restriction. 

(LiveMint, Apr 25, 2018)   

 

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 SECTION II - INDUSTRY  SCAN                                                                                            

 

 General

Despite Modi-Xi bonhomie, India still finds it tough to enter the Chinese bazaar

It was dubbed a heart-to-heart summit. As Prime Minister Narendra Modi informally met Chinese President Xi Jinping in the city of Wuhan on April 27 and 28, there was a sense of hope and enthusiasm. In the past two days, Xi took Modi on a museum tour, a walk around a lake and a boat ride. Xi told journalists that he was very happy to meet the Indian PM, adding: “Spring is a good time to meet.” Hindi Chini bhai-bhai seems to be back in the air. But the ground realities are different.  

Take the case of film capacitor maker Deki Electronics Ltd, which imports one of its inputs, a type of metal wire, from China. The material is shipped from Shanghai at a reasonable cost of about Rs 4 a kg, and the delivery of the raw material is always on time. But Noida based Deki still has a problem. It has not been able to get a toehold in the promising Chinese market. What makes it strange is that there are no legal or tariff barriers stopping Deki. “The customs in China always ensures that our goods can’t enter their market. They always bring up a number of reasons to discourage items produced there. When we play football, we follow international rules. When the Chinese play football, they craft their own rules,” says Vinod Sharma, managing director of Deki Electronics.  

(ET, Apr 29, 2018)

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Electronics exporter Syrma sets up domestic production unit

 

San Jose and Chennai based Syrma Technology, an exporter of electronic products and solutions announced its foray into the domestic market with a $10 million investment in its fifth manufacturing unit in the Delhi-Mumbai corridor. The unit will service the opportunities in the Indian market and will focus on the Auto, Industrial, Aerospace & Defence and Healthcare sectors which the company already makes products for. Syrma designs and manufactures RFID tags, Magnetic products, Printed Circuit Boards Assembly (PCBAs) and box builds for a range of applications. In a,ddition to two units in the Madras Export Processing Zone (MEPZ), Chennai the company has two manufacturing units located in Tamil Nadu and Maharashtra.

(ET, Apr 26, 2018)

TOP

 

Desi e-tailers set up body to frame e-commerce laws; leave Amazon, Google, FB in cold

 

A think tank led by Indian e-commerce and internet firms has begun the groundwork to help the government bring out a draft policy on e- commerce by August. However, there is a call by some global firms and offline-retailers body to be included in the working group. The members have been given two months’ time to prepare reports on various aspects of the commerce industry, following which there will be deliberation for a month for a new policy. The 70-member think tank met the Union commerce minister Suresh Prabhu for its first deliberations

(Gadgets Now, Apr 25, 2018)

 TOP

Trade office, expo part of Taiwan bid to ramp up business with India

It's the IPL season, and as you enter the Wankhede cricket stadium in Mumbai, you would least expect a foreign trade outfit like Taiwan Excellence to pitch its marketing tent, more so when the island nation has neither diplomatic nor deep trade relations with India. As for doing business, the cash-rich economy has been looking the other way, largely towards China, where a staggering 80,000 Taiwanese companies have set up shop. Back home, the number stands at 110. James Huang, Chairman, Taiwan External Trade Development Council (Taitra) is candid about the grim state of trade ties. “We haven’t paid much attention to India so far,” he said, but quickly added, “India is emerging as an important market for us, as has been indicated in our latest foreign policy framework.”           

(Indian Express, Apr 24, 2018)

 TOP

Electronics giant Philips posts 27% drop in Q1 profits

Dutch electronics giant Philips today posted a 27 per cent drop in first quarter profits, hit partly by the costs of restructuring and some acquisitions as it evolves its portfolio. Net income fell in the first three months to 94 million euros (USD 115 million) compared to 128 million euros over the same period in 2017, the company reported in a statement. Best known for the manufacture of light bulbs, electrical appliances and television sets, the Amsterdam-based company has gradually pulled out of these activities in face of fierce competition from Asia. It focuses now more on high-end medical and health technology, such as computer tomography and molecular imaging, as well as household appliances. 

(PTI, Apr 23, 2018)

 TOP

Aadhaar, PAN cards mandatory for opening bank accounts, says RBI

 

The Reserve Bank of India (RBI) has made Aadhaar and PAN cards mandatory for opening bank accounts. The RBI said the updated know-your-customer (KYC) requirement was subject to the Supreme Court’s final judgment on Aadhaar, for which the hearing is under way.

The central bank updated its master circular on KYC norms where it omitted various documents that could be used for due-diligence purposes. The updated circular said Aadhaar and PAN numbers must be quoted for new bank accounts. If these details are not available, the customers would have to provide proof that they have applied for these identification documents within the past six months. 

(BS, Apr 22, 2018)

 TOP

India, Finland settle Nokia tax row

 

India and Finland have reached an accord on the tax dispute with Nokia under the Mutual Agreement Procedure (MAP), clearing the way for the sale of the company’s Chennai plant, which has been idle for more than three years, officials said. This involves a payment of Rs.1,600 crore, a sum that was deposited with the government by Nokia in March. The resolution covers disputes pertaining to Nokia India as well as Nokia Corp., said the officials. Soon after taking over in 2014, the Narendra Modi government had pledged to put in place a taxpayer friendly regime and take steps to reduce litigation. Nokia India had been issued a demand notice for Rs 2,500 crore in 2013, which underwent rectification to remove errors to Rs 1,600 crore. A Rs 10,000 crore tax raised on Nokia Corp. for the same transaction on the grounds that it had a permanent establishment in the country — a move regarded as overzealousness on the part of the department by some — was not found sustainable and has been dropped.

(ET, Apr 20, 2018)

 TOP

Blockchain Is About to Revolutionize the Shipping Industry

Globalization has brought the most advanced trading networks the world has seen, with the biggest, fastest vessels, robot-operated ports and vast computer databases tracking cargoes. But it all still relies on millions and millions of paper documents. That last throwback to 19th century trade is about to fall. A.P. Moeller-Maersk A/S and other container shipping lines have teamed up with technology companies to upgrade the world’s most complex logistics network. The prize is a revolution in world trade on a scale not seen since the move to standard containers in the 1960s -- a change that ushered in the age of globalization. But the undertaking is as big as the potential upheaval it will cause. To make it work, dozens of shipping lines and thousands of related businesses around the world -- including manufacturers, banks, insurers, brokers and port authorities -- will have to work out a protocol that can integrate all the new systems onto one vast platform.

(BS, Apr 20, 2018)

TOP 

ATM cash crunch: Inactive point of sale terminals to be redeployed

 

A large chunk of point of sale (PoS) terminals set up after demonetization are inactive and need to be redeployed, industry players have said. The Indian government set a target for banks of deploying an additional one million PoS terminals after demonetization. Following this, the number of PoS terminals went up from 1.5 million in the pre-demonetization period to over three million in February 2018, according to RBI data. However, PoS monthly transactions, both in terms of volume as well as value, are roughly at the level of the pre-demonetization era. Barring the spike in December 2016 due to note ban, PoS transactions have remained stagnant in the 14 months since then.

(BS, Apr 20, 2018)

TOP

Prabhu promises exporters to take up GST refund issue

Commerce and Industry Minister Suresh Prabhu on Wednesday assured exporters of taking up the issue of Goods and Service Tax (GST) refund with the finance ministry and said he plans to call a ministerial meeting to discuss export related issues. As exports dipped in March after a gap of four months, Prabhu sought a detailed action plan from exporters of all sectors in an interaction with them here. “I have asked exporters to give me the details of the pending refund. GST refund is a major issue for exports. I will take it up with the finance ministry,” he said.  

(ET, Apr 19, 2018)

 TOP

Why Flipkart thinks it needs to win only one category to take the game away from Amazon India

So Jerry Shen, CEO of Asus, was in Bengaluru on Tuesday, for Flipkart’s ‘Big’ reveal that the e-commerce company’s top boss Kalyan Krishnamurthy had been teasing out in a video recently. There were two announcements, or rather one, and a statement-of-ambition, which were kind of related. The ambition is for Flipkart to dominate the Indian smartphone sales scene by 2020. The announcement was about a partnership with Asus to further that ambition. If this all sounds ra ra and not much substance — and given Taiwan’s Asus, an excellent maker of laptops too, among other things, lags China’s Xiaomi and Lenovo in India — Krishnamurthy laid out the plan, and here is what he didn’t say: dominate the smartphone sales market, and you get a fair shot at dominating the Indian e-commerce market itself.

(Forbes India, Apr 18, 2018)

 TOP

These outsourcing firms have room to run; Trade war, China cost give them a spark

India's outsourcing players in the consumer electrical and appliances (CEA) space such as Dixon Technologies and Amber Enterprises have a lot going for them -- rising disposable income, rapid urbanization, mounting labour and power costs in China and availability of easy finance. The story doesn't end there. Craze for electronic products, along with bulging manufacturing investments, comes as music to their ears. According to Frost & Sullivan and Consumer Electronics and Appliances Manufacturers Association (CEAMA), the domestic CEA market revenue is expected to grow at a CAGR of 18.6 per cent to Rs 5,93,960 crore in FY21, from Rs 3,55,830 crore in FY18.  

(ET, Apr 18, 2018)

 

TOP

Environment Ministry eases targets for E-Waste Collection for Electronics Makers

 

The Ministry of Environment and Forests has reportedly simplified targets for electronics makers to collect e-waste depending on their yearly sales. The government rules have identified that the life of a smartphone is five years, while that of a feature phone is seven years. Following this, the reports claim that “handset makers selling phones prior to five years or seven years have to collect e-waste equal to 10% of the sales done in the financial year five or seven years back, while those starting operations later will need to meet lower targets of 5%.”

(Inc 4, Apr 18, 2018)

  TOP

These outsourcing firms have room to run; Trade war, China cost give them a spark

India's outsourcing players in the consumer electrical and appliances (CEA) space such as Dixon Technologies and Amber Enterprises have a lot going for them -- rising disposable income, rapid urbanization, mounting labour and power costs in China and availability of easy finance. The domestic CEA market revenue is expected to grow at a CAGR of 18.6 per cent to Rs. 5,93,960 crore in FY21, from Rs 3,55,830 crore in FY18. Dixon Technologies jumped over 24 per cent to Rs 3,608.55 on April 12, from Rs 2,892.80 on September last year. The domestic CEA market has grown at 13 per cent CAGR during FY13-17. 

(ET, Apr 18, 2018)

 TOP

Employment to be main criterion for coastal economic zones

Coastal Economic Zones (CEZs) may be renamed Coastal Employment Zones, keeping in view their job-generating potential and giving them an identity. Union Shipping Minister Nitin Gadkari’s favourite project will make employment generation the main condition while giving approval to industrial units looking at setting up shop in these zones. Under its Sagarmala programme, the government had in July 2016 announced building 14 CEZs, which will be aligned to ports in maritime states. These will house Coastal Economic Units for setting up manufacturing facilities. According to a senior official in the know, “The proposal to change the name and definition of CEZs was mooted by the NITI Aayog in the last inter-ministerial committee meeting. The focus of the economic zones will be on employment and have an identity distinct from that of the existing SEZs (special economic zones).”

(BS, Apr 17, 2018)

TOP

DAFZA holds roadshows in India to woo investments

 

Dubai Airport Free zone Authority (DAFZA) recently hosted roadshows in New Delhi and Bangalore as part of its efforts aimed at boosting bilateral trade between India and the UAE. The roadshows were themed 'Gateway to Growth', with a focus on increasing Foreign Direct Investment (FDI) from India to Dubai. "The events highlighted the attractive investment opportunities that DAFZA has created for international businesses, with the aim of increasing Foreign Direct Investment (FDI) from India to Dubai, in line with Dubai Plan 2021," the company said in a statement. The roadshows were led by a senior delegation from DAFZA and provided Indian businesses of all sizes insights on the business landscape in Dubai and the investment trends across key sectors within the Emirate.

(BS, Apr 17, 2018)

 TOP

Demand for air purifiers increasing due to pollution

If you are someone living in a city and spends long hours inside a car, you might unknowingly be breathing in irritants like dust, fungi, viruses, pollen etc. which find refuge in the interiors of your precious vehicle. To protect you from all these, consumer electronics giant, Sharp has launched a portable Car/Personal Air Purifier IG-GC2. “Air quality in cities such as New Delhi, Mumbai, Chennai, Bangalore are deteriorating due to the high level of particulate matter and poisonous gas emissions. Surging demand for air purifiers can be attributed to increasing indoor pollution and growing awareness among people. In the coming future, corporate offices, embassies, hospitals, government buildings, colleges, and schools will be major demand generators for air purifiers,” said Sharp’s President of Consumer Electronics Division, Kishalay Ray. 

(News Today, Apr 16, 2018)

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Honeywell eyes more tie-ups with India in aerospace systems

 

US software-industrial conglomerate Honeywell is working on finalizing a couple of collaborations with Indian companies for the local production of defence technologies. The company, which has been working with defence PSU Hindustan Aeronautics Ltd (HAL) for more than four decades, is looking at new partnerships on the lines of its tie-up with Tata Power’s Strategic Engineering Division for domestic inertial land navigation systems. The decision to look for more partnerships comes in the wake of growing demand for its technology in new aircraft platforms for the Indian defence. 

(BusinessLine, Apr 16, 2018)

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Ola Wants a Million Electric Rides on India's Roads by 2021

Ola, Uber Technologies Inc.’s fiercest Indian competitor wants to roll out 10,000 electric three-wheeled rickshaws within a year and a million battery-powered vehicles by 2021. The startup run by ANI Technologies Pvt.Ltd. said it’s in policy discussions with several state governments, and is talking with potential partners from automakers to battery producers. It aims to build out an existing pilot project in the central Indian city of Nagpur, where Ola’s first EVs have already traveled more than 4 million kilometers.

(Bloomberg, Apr 16, 2018)

 

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CBIC details procedures on e-way bill verification, inspection of goods

The Central Board of Indirect Taxes and Customs (CBIC) has issued detailed instructions on the procedures to be followed by field officers for e-way bill verification and interception of vehicles for inspection/detention of goods under the GST regime. These instructions are intended to ensure uniformity in the implementation of the provisions of the CGST Act, according to a circular issued by the CBIC. The circular details the procedures to be followed in case of interception of ‘conveyances' for inspection of goods in movement and detention, seizure and release and confiscation of such goods and vehicles. Tax experts hope that the new e-way bill inspection procedures do not lead to return of Inspector Raj.

(BusinessLine, Apr 16, 2018)

 

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Direct delivery system: Govt. says importers free to hire own transporters to move boxes

Importers will be free to hire their own transporters for moving direct port delivery (DPD) containers, the government said, after Jawaharlal Nehru Port Trust (JNPT) selected four transporters through a tender for moving such containers to different parts of the country. JNPT will not enter into any direct commercial arrangement with the transporters, according to the new transport arrangement set to come into from May 1. JNPT initially said it would be mandatory for importers to hire the selected transporters for moving DPD containers from the port terminal by entering into a commercial arrangement with them. The successful transporter shall have the exclusive right to clear the DPD containers from the port for the corresponding route for which it is selected. 

(BusinessLine, Apr 16, 2018)

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Combat drones to get lift from govt

Unmanned Aerial Vehicles (UAVs), or drones, will play a major role in the contactless wars of the future, NITI Aayog Member VK Saraswat said, adding that the Centre is in the process of firming up a roadmap to develop capabilities in the area. Saraswat, who was the former head of the Defence Research and Development Organization (DRDO), said miniaturization will be the key to all future vehicles. “We want smart systems and it can only be possible by using Artificial Intelligence (AI) in a big way. There is need to pursue research in hypersonic, propulsion, stealth and other technologies,” he said, addressing a technical meet of the Aeronautical Society of India (AeSI). DRDO’s labs have developed indigenously a UAV called Rustom (warrior). In addition, the Defence Ministry is in talks with Israel for procuring some advanced versions and more of the Heron, which it already has in its arsenal.

(BusinessLine, Apr 16, 2018)

 

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By buying stake in Flipkart, Walmart wants to achieve these 3 lofty targets

Walmart, the world’s biggest retail chain, has set three clear targets while trying to pick a controlling stake in Bengaluru-based Flipkart, sources aware of the developments said. Through Flipkart, the American major is looking for the first real entry into the promising Indian retail market after having dabbled in cash-and-carry or business-to-business (B2B) operations for about a decade. Also, it plans to take the Flipkart model to the US to pep up its e-commerce business, which has disappointed investors. More than anything else, it wants rival Amazon to burn much more cash in the India market to compete with Walmart-backed Flipkart. In the American market too, the deal could give some stress to Amazon, currently facing the US administration’s attack.

 

(BS, Apr 16, 2018)

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Siemens Gamesa not to bid for wind projects, will focus on EPC market

 

Siemens Gamesa Renewable Energy, the second-largest wind turbine maker in the world, will stay away from bidding for Indian wind power projects owing to changes in regulatory policy. The company, however, is looking at a strong engineering procurement and construction (EPC) market in the country as the demand for cost-efficient wind turbine generators grows. Talking to Business Standard, Markus Tacke, Siemens Gamesa Renewable Energy chief executive officer (CEO), said changes in the regulatory regime in India had a considerable impact on the global business of the company. 

(BS, Apr 16, 2018)

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New set-top boxes may soon carry chips to track channels

The Information and Broadcasting Ministry has proposed installation of a chip in new television set-top boxes which will provide data about channels watched and their duration. A senior official of the ministry said the move is aimed to get "more authentic" viewership figures for every channel. "This would help advertisers and the DAVP to spend their advertising expenditure wisely. Only those channels which are widely watched will get promoted," the official added. The Directorate of Advertising and Visual Publicity (DAVP) is the nodal agency of the government for advertising by various ministries and its organizations.

In the proposal, the Information and Broadcasting Ministry has told the TRAI, "It is also proposed to ask DTH operators to install a chip in the new set-top boxes which can give data about channels watched and their duration."

(BS, Apr 16, 2018)

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Manufacturers may soon find themselves In a GST Tax pickle

 

Manufacturers across the country may soon be staring at credit reversal notices from the tax department—thanks to a recent Supreme Court ruling in a case related to UltraTech Cement Ltd. For transporting goods from factory to a customer’s location, manufacturers use services   of Goods Transport Agencies or GTA on which service tax was applicable prior to GST coming into force. The service tax was applicable on 25 percent of the freight value on a reverse-charge basis—i.e. the tax was paid by the manufacturer on behalf of the transport agency on which input credit was availed. Input credit simply means that the amount of tax that needs to be paid by the manufacturer on the output is reduced to the extent of tax paid on inputs. The apex court directed India’s largest cement maker to reverse the input credit availed since 2008 for transportation of finished goods. And experts say the tax department may soon extend this treatment to all manufacturers. 

 

( BloombergQuint, Apr 16, 2018)

 

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Information Technology

 

 Party in mid-cap IT stocks to continue: MindTree, Zensar gain of over 35%

Mid-cap IT stocks have been in the limelight, gaining 20-40 per cent over the last month with a large chunk of the gains coming over the last couple of weeks driven by improving deal pipeline, growing digital business and rupee depreciation. While MindTree and Zensar Technologies posted gains of over 35 per cent, Mphasis, NIIT Tech and the L&T software twins gained upwards of 19 per cent. The broader markets were up 5 per cent during this period. The near-term trigger has been the strong March quarter numbers and the improving deal pipeline.

(BS, Apr 30, 2018)

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 US-based i-Life Digital Partners with Flipkart to Enter the Indian Electronics Market

 

US-based i-Life Digital Technology, today announced signing an exclusive partnership with Flipkart, India’s largest e-commerce platform, to enter the Indian electronics market. I-Life has started accepting pre-orders of its top-selling “ZED” range of budget-smart products for Indian consumers in its maiden sale and will start delivering from May 3 onwards.

 The company is targeting first-time buyers and consumers in tier 1&2 cities by leveraging Flipkart’s country-wide network. The “ZED” series includes: ZED Book 2-in-1 Detachable Laptop (in gold and grey), ZED Air laptop (in silver and grey) and ZED Air Pro (silver) ultra-slim notebook (the slimmest notebook in its category). These products, according to IDC, ruled the top spot in the entry-level notebook and tablet category last year in the META region. All the products are attractively priced in the INR 10,000 -15,000 range. 

 

(BW Online Bureau, Apr 23, 2018)

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Broadcasters push for bundled ad sales as more viewers go digital

 

With the rapid rise in video consumption over digital platforms, broadcasters are pushing for bundled advertising sales for television and digital to unlock greater value. For IPL 2018, Star India is offering bundled advertising spots across Star Sports and Hotstar at Rs 10 lakh per 10 seconds compared with just Rs 5.85 lakh to Rs 6.5 lakh for a 10-second TV spot last year on Sony. The response has so far been mixed. While some advertisers like Vivo and Coca Cola have opted for the bundled deals, others have chosen either TV or digital. But the concept has definitely created a buzz in the market. Most media experts agree that with falling data prices and increasing smartphone penetration, bundling is definitely a trend to watch for.

 

(ET, Apr 23, 2018)

 

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Micromax plans an electric vehicle trip as mobile battle gets fiercer

 

Homegrown consumer durables maker Micromax Informatics plans to enter electric vehicles and battery manufacturing, especially at a time when handset and consumer electronics segments have become hyper competitive. Micromax is in advanced stages of completion of the testing formalities for the vehicles   and has got approvals for some of its lithium battery categories. The company is keen on entering the e-two and three-wheeler categories and its prototypes are being tested, industry sources have said. It recently got certification for lithium batteries for e-rickshaws and e-autos. The Gurugram-based mobile phone and consumer durables maker is in talks with various investors for funding, sources have further said.

(ET, Apr 23, 2018)

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China's ZTE seeks resolution of U.S. export ban

 

China’s ZTE is seeking a resolution to a U.S. ban on selling it parts and software that it has said threatens its survival.

ZTE “has learnt from its past experiences on export control compliance and attaches significant importance to the work on export control compliance,” the mobile phone and telecoms company said in a statement to the Hong Kong stock exchange. ZTE said on Sunday it had set up a compliance management committee led by its chief executive officer. It also said it had invested in export control compliance, provided compliance training to staff and cooperated with the work of independent compliance monitors, the company added.The U.S. Commerce Department has granted a request from ZTE to submit more evidence after the agency imposed the ban, a senior Commerce official said. 

(The Reuters, Apr 22, 2018)

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Indian Intelligence Services monitoring Russia's war on Telegram

 

Indian intelligence services are "closely following" the progress of Russia's ongoing effort to shut encrypted messaging giant Telegram, a senior government official has told Business Standard. The move comes amid mounting concerns in India over the use of encrypted messaging services by criminal organizations and terrorists -but also about illegal surveillance by the government. Last week, Russia's top court granted a request by the country's federal security service, the FSB, to block Telegram after it declined to decrypt messages sent by an individual involved in the St Petersburg metro bombing on April 3, 2017. Sixteen people were killed, including the perpetrator, and another 64 people were injured in the jihadist attack.

(BS, Apr 21, 2018)

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Google, FB, Visa seek time to set up data centres, to meet RBI officers

 

With six months given to comply with the Reserve Bank of India’s (RBI) guidelines to bring and store India’s financial data onshore, global financial technology giants such as Visa, Google and Facebook are trying to meet officers of the central bank, the finance ministry and the information technology ministry to modify the order, sources said. Facebook’s chat messaging app, WhatsApp, is testing the software for a mobile wallet, WhatsApp Pay. Google recently launched Tez, a similar app. Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments.

(BS, Apr 21, 2018)

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TCS logs stellar Q4 results, announces dividend of Rs29/share

 

India’s largest information technology (IT) services firm, Tata Consultancy Services Ltd (TCS), posted a stellar Q4 results that beat analyst estimates both on revenue and profitability. The double-digit growth for the quarter came on the back of thirteen straight quarters of underperformance, and the board of the Mumbai-based company immediately rewarded shareholders with a 1:1 bonus issue while also recommending a final dividend of Rs29 per share.

 

(LiveMint, Apr 20, 2018) 

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Centre asks states, Union Territories to integrate with PayGov India

 

The integration will enable citizens to make online and mobile-based payments for availing of government services, payment of taxes, and utility bills  With the Union government encouraging digital payments, the Ministry of Electronics and Information Technology (MeitY) has asked state governments and Union Territories (UTs) to integrate their applications with PayGov India, the national payment service platform.

 

(BS, Apr 16, 2018)

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Chinese scientists find ductile semiconductor for flexible electronics

 

Chinese scientists have found a kind of inorganic semiconductor, which has good ductility and flexibility at room temperature and may be used in flexible electronics. Chinese scientists have found a kind of inorganic semiconductor, which has good ductility and flexibility at room temperature and may be used in flexible electronics. Fulfilled by researchers from the Shanghai Institute of Ceramics, the harvest was published in journal "Nature Materials", reports Xinhua news agency. Ductility is common in metals while it is rarely observed in inorganic semiconductors, especially at room temperature. Most semiconductor materials are brittle and cannot bend, pull or compress.

 

(Zee News, Apr 16, 2018)

 

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Telecom

 

Reliance Jio's subscriber revenue rate highest in Q4

 

Though Reliance Jio has reported a drop in its average revenue per user (Arpu) in the March quarter, the telecom company still commands the highest revenue per user in the industry compared to other operators. The Mukesh Ambani-owned company’s Arpu was Rs137 per month in the fourth quarter, 11 per cent lower than Rs154 in the previous. The drop could be attributed to the launch of a Rs 49 per month plan for Jio users and the latter opting for lower-priced plans. However, despite the drop, Jio is still the highest. Airtel’s for the March quarter stood at Rs 116 and Idea’s was Rs 105. Vodafone has not reported its March numbers but analysts expect a further drop in revenue per user from Rs 146 for the December quarter. The launch of services by Jio in September 2016 had disrupted the whole sector, with operators matching low rates to maintain competitive edge. However, in doing so, their revenues and profit have gone for a toss. Arpu of the market leader, Bharti Airtel, has dropped by about 70 per cent since Jio’s launch.

 

(BS, Apr 30, 2018)

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Sprint, T-Mobile in $26.5 bn deal to take on AT&T, Verizon Communications

 

T-Mobile US and Sprint agreed to combine in a $26.5 billion merger, creating a wireless giant to compete against industry leaders AT&T and Verizon Communications. Deutsche Telekom AG, the Bonn, Germany-based company that controls T-Mobile, and SoftBank Group, the Tokyo-based owner of Sprint, agreed to a combination that values each Sprint share at 0.10256 of a T-Mobile share, the companies said in a statement Sunday. That ratio values Sprint at $6.62 a share based on T-Mobile’s Friday closing price of $64.52.

(BS, Apr 30, 2018)

 

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Nokia focusses on North-East for ‘faster growth’

 

Mobile phone-maker Nokia, which re-entered Indian markets in June last year, is looking at a “faster growth” in the North-East. Apart from leveraging its brand recall, Nokia is ramping up the portfolio spanning all price points (across feature and smartphones) as its USP in the region. Typically, the North-East includes Assam, Tripura, Manipur, Mizoram, Arunachal Pradesh, Nagaland, Meghalaya and Sikkim. According to Amit Goyal, Business Head, North and East, HMD Global — makers of Nokia phones — the company is already ramping up its distributor network there with focus on smaller towns.

 

(BusinessLIne, Apr 25, 2018)

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Asus Zenfone Max Pro M1 launched in India: Price, specs and more

 

Taiwanese electronics company Asus launched a new smartphone in affordable range in India in exclusive partnership with Flipkart. The smartphone, named Asus Zenfone Max Pro M1 will come in three variant. The Zenfone Max Pro has been priced at Rs 10,999 for the 3GB + 32 GB variant. The device with 4GB + 64GB variant will come at Rs12,999, the variant with 6GB + 64GB will come at Rs 14,999. The phone sports a 5.99-inch FullHD and it will be powered by Qualcomm Snapdragon 636 processor. 

(Zee Media Bureau, Apr 23, 2018)

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AT&T, Verizon face U.S. Probe over Mobile Technology

 

AT&T Inc. and Verizon Communications Inc. are under investigation by U.S. antitrust officials over whether the companies colluded to make it tougher for consumers to switch wireless carriers, according to three people familiar with the matter. Apple Inc., a pioneer in the eSIM technology that makes switching easier, was joined by other equipment makers in complaining to the government about the carriers’ practices, two other people with knowledge of the matter said. The department issued demands to the companies and the GSMA, a mobile industry standards group, for information on possible collusion, said the people, who asked not to be named because the matter isn’t public.

(ET, Apr 23, 2018)

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Xiaomi, India’s largest smartphone maker cruising along in startup mode

 

Xiaomi, India’s largest smartphone maker intends to keep its “startup culture” intact even as it expands into new categories such as TVs.  The Chinese company has not defined performance parameters or sales targets for its 400-plus employees in India, making it a one-of-a-kind organization in the Rs 1.5 lakh-crore mobile and consumer electronics industry, where chasing numbers is the norm. Xiaomi entered India four years ago and now counts the country as its second-largest market, after China. It moved into a new office in Bengaluru earlier this week, with a capacity for 750 seats, a likely indicator of plans to ramp up the headcount according to three senior industry executives.

(ET, Apr 20, 2018)

 

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In-flight Wi-Fi over Indian airspace moves closer to reality

 

Flyers will soon be able to avail data services during flights with the Telecom Commission, the highest decision-making body at the department of telecommunications (DoT), set to approve the much-awaited proposal at its next meeting scheduled on 1 May, a person aware of the matter said, requesting anonymity. “We have taken approvals from all (including ministry of home affairs)... we will initially  allow data services but slowly get into voice services also,” the person said.

(LIveMint, Apr 19, 2018)

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TECNO Mobile launches new affordable smartphone in India

 

TECNO Mobile, a subsidiary of Hong Kong-based Transsion Holdings, on Thursday launched a new "Camon i Sky" smartphone in India for Rs 7,499. The launch of 'Camon i Sky' is pivotal in strengthening our portfolio and ensuring that we have offerings at key price points," Gaurav Tikoo, Senior Vice President, Marketing, TRANSSION India, said in a statement.

 

(ET, Apr 19, 2018)

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Samsung Electronics Selected as Most Trusted Brand in India

 

Samsung Electronics has been chosen as the most trusted brand in India, a mega market of 1.2 billion people, for the second consecutive year. LG also ranked third from two years in a row, enhancing its brand value. On April 18, the Economic Times, a major economic daily in India, reported that Samsung Electronics was selected as the most trusted brand in India according to a survey conducted by TRA Research, a market research agency in India. Since being established in Mumbai, India in 2011, TRA Research has conducted a brand survey and announced the results every year.

 

(Business Korea, Apr 19, 2018)

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BRITZO Unveils ‘Make in India’ Mobile Phone Brand iVVO

 

A new entrant in the Indian market, BRITZO launched its smartphone brand "iVVO" on Tuesday, followed by the rollout of eight smart 2G feature phones segmented across five product categories; BEATZ, PRIMO, SELFEE, TUFF, and VOLT as part of the "Make in India" initiative. All of the launched products are priced from Rs 649 to Rs 5,999.

(News18, Apr 18, 2018)

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Make in India: Lemon Mobiles to invest Rs 150 crores in new manufacturing facility

 

Noida-based Lemon Mobiles will be spending Rs 150 crores in setting up a manufacturing facility for mobile phones and LED televisions, the firm in a statement Wednesday said.  The production unit, according to the company, would be equipped to produce 1 million mobile handsets every month, and is expected to become operational by 2020.

(ET, Apr 18, 2018)

 

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Consumer Electronics

Premiumisation trend catching up in consumer durables

 

From Jharkhand’s Jhumri Telaiya to Mumbai’s Cuffe Parade, Indians are shunning smaller brands as well as sizes in favour of large televisions, high-capacity refrigerators, front-load washing machines and inverter ACs. With rising incomes and aspirations, premiumisation is the buzzword in consumer durables, with premium category products growing faster than the overall industry growth rate. “The exposure to global technologies and lifestyle has created a perception shift and consumer durables are not just viewed as utility products anymore. Consumers are today well aware and equipped with information that helps them understand how opting for better technologies will result in better usability,” Rajeev Bhutani, Senior Vice-President, Consumer Electronics, Samsung India, told BusinessLine.

(BusinessLine, Apr 23, 2018)

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Samsung eyes 40% share of Indian microwave market in 2018

 

Consumer electronics major Samsung is aiming 40 per cent market share in the microwave segment in India by the end of this year on the back of more innovative range of products, a top company official has said. In 2017, Samsung had 33 per cent market share in the segment by volume in the country and 35.5 per cent by value in 2017. In 2013, it had 22 per cent market share by volume and 23.5 per cent by value. "We are looking to better our market position and we would be touching 37 per cent (market share) by the end of first half of 2018)... We would touch market share of 40 per cent by the end of this year as we launch more innovative products," Samsung India vice president consumer electronics business Rajeev Bhutani told 

(ET, Apr 23, 2018)

 

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Solar Energy

Solar cell imports: EU, Japan question safeguard duties recommended by India

 

The European Union and Japan have questioned the preliminary safeguard duties of 70 per cent on imported solar cells recommended by the Directorate General of Safeguards in India, adding to the on-going debate on the appropriateness of the duties. “In a meeting of the World Trade Organization (WTO) Safeguards Committee on Monday, the EU and Japan criticized the conduct of the investigations and the initial findings leading to the proposed safeguard duties on solar cells in India. New Delhi, however, stated that it follows WTO rules and regulations on the imposition of safeguard measures,” a Geneva-based trade official told BusinessLine.

 

(BusinessLine, Apr 25, 2018)

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PHD Chamber pushes for generation & sustainability of solar energy

 

PHD Chamber of Commerce and Industry on today recommended that the focus of solar power should shift away from installations of solar plants to generation and sustainability of solar energy. The Chamber also feels that the withdrawal of safeguards measures against solar panel imports should be undertaken in a phased manner as India’s solar plant installations are largely import-fed with better quality inputs. 

(RuralMarketing (press release) , Apr 19, 2018)

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India probes dumping of EVA sheets for solar modules by 5 nations

 

India has initiated a probe into the alleged dumping of EVA sheets used in solar cell industry, imported from China, Malaysia, Saudi Arabia, South Korea and Thailand. The investigation on imports of 'Ethylene Vinyl Acetate (EVA) sheets for solar modules' is carried out by the Directorate General of Antidumping and Allied Duties (DGAD), which is an arm of the commerce ministry.

(BS, Apr 17, 2018)

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SECTION – IV - FORTHCOMING EVENTS &  GENERAL INFORMATION              

 

For Glance of ELCINA Activities 2017-18: Please refer: (https://youtu.be/0H0mHxTi9JA)   

Overseas Shows

 

Event

:

JPCA Show 2018 ((Int’l Electronic Circuits Show)

Organiser

:

Japan Electronics Packaging and Circuits Association (JPCA) Korea Printed Circuit Association (KPCA)

From

:

6-June-2018

To

:

8-June-2018             

City

:

Tokyo Big Sight, Tokyo

Website

:

www.jpcashow.com

 

Domestic Shows   

 

Event

:

Electronica India & Productronica India 2018

Organiser

:

Messe Munchen

From

:

26-Sept. -18

To

:

28-Sept. -18

Venue

:

Bangalore International Exhibition Center (BIEC), Bengaluru

Website

:

http:// www.electronica-india.com

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SECTION - V - ELCINA EVENTS, ACTIVITIES & SERVICES                                          

 

We are pleased to inform you that the 9th edition of SES is scheduled on 5th & 6th July, 2018 at The Lalit Ashok Hotel, Bengaluru. This edition will focus on highlighting the new opportunities, policies and defence projects in which domestic industry can play a major role, specially MSME’s and drive the “Make in India” initiative. 

 

ELCINA had launched the Strategic Electronics Summit (SES) in 2010 and since last 8 Years we have organised the event in Bengaluru, which is a hub for defence R&D and manufacturing. SES offers a platform for the Indian industry to explore opportunities to work together with the defence establishment, bring all stakeholders including the government, defence organisations, private and public sector together and involve indigenous industry in this sector. 

 

 

 

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PUBLICATIONS

“Indian Printed Circuit Board Industry & Market Research Report

The evolution of miniaturization and sub-miniaturization in the design of electronic equipment led to the emergence of a new technique of inter-component wiring and assembly known as the printed circuit board (PCB). This technology has now become the backbone of electronic devices. They provide the required mechanical support structure and electrical connect for the circuit. In addition to providing the connectivity, they also help to reduce the overall size and enhance the efficiency of the device.

  • By 2020, the electronics market in India is expected to increase with a CAGR of 25.1 per cent to USD 400 billion from USD 104 billion in 2015

  • Currently only 35% of this demand is currently being met by local manufacturers. And for the rest 65%, India is still dependent on imports.

  • Hence, PCB- being the backbone of electronics holds a huge demand in India - Current demand of USD 2.01 Billion represents the demand based on the total PCBs (which includes both the bare board PCBs and the populated PCBs)

  • Current market size for bare PCBs is USD 1.2 Billion - Only 30% of this demand for bare PCBs is currently being met by local PCB manufacturers. And for the rest 70%, India.

You may order the same from by following the below link;

http://elcina.com//new_publication.php

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“Opportunities and Challenges in the Strategic Electronics Sector, with special focus on MSMEs”. 

We are pleased to inform you that, a Special Report (update 2016) has been prepared by ELCINA on “Opportunities and Challenges in the Strategic Electronics Sector, with special focus on MSMEs”.  This Report involved detailed research & discussions with varied stakeholders from Defence Sector. It provides updated information as well as recommendations for next steps for Strategic Electronics and policy changes that we believe are required to take the Defence Electronics Sector to new heights. The updated report was released during Strategic Electronics Summit 2016.

This Study provides on insight into the Defence Electronics eco-system in India and is a guide, both for the industry as well as the defence establishment to chalk out a path to success in this important sector. You may order the same from by following the below link;

http://elcina.com//new_publication.php

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 Super Capacitor-Market Landscape Study

A Supercapacitor or Ultracapacitor is a charge storage device that stores electrical charges via electrochemical & electrostatic processes and has an unusually high energy density when compared to common capacitors. Due to their beneficial properties like fast charging ability,

superior low temperature performance, long service and cycle life, and reliability, Supercapacitors hold the potential to replace or complement traditional batteries and capacitors in several applications. Supercapacitors are already being used worldwide in number of applications ranging from automotive, renewable energy to electronics. For more details you can visit below link:

http://elcina.com//new_publication.php

For enquiries, call Ms.Tandra Majumder,
ELCINA HOUSE, 422 Okhla Industrial Estate, Phase III, New Delhi - 110 020.
Tel: +91 (011) 26924597, 26928053; Fax: +91 (011) 2692 3440;
Email: tandra@elcina.com  or info@elcina.com

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Forthcoming ELCINA-CKM  Programmes

Continuing its efforts to establish an extensive source of knowledge to serve Indian Engineering and Electronics Industry and cultivate a manufacturing culture in the country, ELCINA-Centre for Knowledge Management (CKM), since its launch in 2008, has been conducting various workshops on a variety of topics of interest to the satisfaction of the industry with focus on quality improvement and enhancing competitiveness. It has also been organizing In-house training workshops in companies for the benefit of the industry and the number of workshops is growing every year. 

 

S No. Training Programs Date Venue
1. Testing & Certification for Reliability of LED Light Products 11th May, 2018 ELCINA House, New Delhi

 

Please click the link below for more training programs

http://elcina.com/trainingProgram.php  

Please contact Rajesh Rawat (9911445890) for conducting the In-House / Open-House training programs or mail us at rajesh@elcina.com

 

Electronic Industries Association of India

ELCINA House, 422 Okhla Industrial Estate, Phase-III, New Delhi 110020 (India)

E-Mail: info@elcina.com Tel: 011-26924597 / 26928053 / 41615985

Website: www.elcina.com

 

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A newsletter published by ELCINA, New Delhi. The information contained in this newsletter is for private circulation only. Despite our best efforts, some errors could have crept in. You are advised to verify authenticity of the information before further use.


Electronic Industries Association of India (ELCINA )

ELCINA House, 422 Okhla Industrial Estate, Phase-III, New Delhi 110020 (India).

E-Mails: info@elcina.com Tel: 011-26924597 / 26928053 / 41615985, Website: www.elcina.com