VOL XX, ISSUE 9

15 May 2020

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

 

 Top Stories                                                                                

 

Companies welcome government’s PLI-scheme, but work still to be done

 

The Indian government’s new production linked incentive (PLI) scheme for mobile manufacturers has been well received by the industry, but there’s work left to be done. The scheme is meant to encourage companies to export products from the country and ramp up manufacturing here. The companies have reacted “very positively" and the scheme could help meet the targets set in the National Policy on Electronics 2019 (NPE 2019).  All major companies are already in India, producing 97% of India’s domestic requirement. Only the component base has to come to India, which is not necessarily about shifting but of setting up additional capacities. This is the most appropriate time for setting up capacities in India. At the moment, the industry mostly gets semi knocked down (SKD) units of phones into the country and assembles them here, claiming duty benefits. However, the new PLI-scheme is amongst the first steps by the government that will allow completely knocked down (CKD) units to be brought here, spurring the growth of component manufacturing for mobile phones.

(LiveMint, May 11, 2020)

  TOP

 

Economic recovery could take one year for India Inc

 

Despite lifting the national lockdown in phases, Indian companies expect the economic recovery to take about a year because of the lasting impact on businesses, a survey of the Confederation of Indian Industry (CII) showed. The survey found that 44.7% of respondents expect companies to take six to 12 months for a recovery. The Indian government recently relaxed curbs to allow businesses to resume gradually across the country. The government had announced a total of 733 zones in the country, divided into red, orange and green, based on the number of infections in an area and the doubling rates of the disease. Red zones are the worst affected and around 130 fall in this category, followed by 284 orange zones that are less affected and 319 green zones, which are nearly disease-free. “Aggressive measures are required to ensure that an industrial district moves from red to orange and green within 21 days," said Chandrajit Banerjee, director general, CII, adding that the cost of preventive measures, such as repeated sanitization or testing, and providing protective gear to ease towards infection-free zones, will be less than the cost of shutting down business for a long period in certain high-performing districts.

(LiveMint, May 03, 2020)

 TOP

Ministry of Electronics & IT lists start-ups for securing Work from Home environment

 

The Ministry of Electronics and Information Technology, Government of India along with DSCI (Data Security Council of India) and National Centre of Excellence for Cyber Security Technology Development and Entrepreneurship has officially announced the list of Indian Start-ups for securing Work from Home Environment. The list includes:  WiJungle is an Indian cyber security company that develops and markets a unified network security gateway to organizations across 25+ countries worldwide. The company serves government and private giants across industry verticals like hospitality, healthcare, education, retail, défense, and transportation, among others. The platform helps in network data leak prevention along with malware protection, cloud sandboxing & zero-day protection. Additionally, it lets users impose granular access control to network resources. It also provides users VPN: SSL & IPsec, Hub& spokes, multi-layer auth, and split tunneling features for a more secure connection, the company mentioned in its official release.

 

(Business Line, May 02, 2020)

TOP

 

DR VK SARASWAT CALLS UPON DRDO TO FOCUS ON BIOLOGICAL DEFENCE PROGRAM

 

The entire country is currently battling the Corona virus. NITI Aayog member and former Defence Research & Development Organisation (DRDO) chief V K Saraswat said on Monday that the DRDO must “revive work on a bio (logical)-defence program”. Speaking at a video conference on National Technology Day, Saraswat called on the DRDO to provide “more focus” on its six laboratories that work on life sciences. Dr. V.K. In his address, Saraswat congratulated DRDO for its outstanding work during the first 45 days of the fight against COVID-19. He said that in this fight, the country has strengthened the infrastructure of science and technology. They advised DRDO to pay more attention to the biological lab. They said the bio-defence program should be restarted. He emphasised the development of more robotic devices in which DRDO specialises.  Rajnath Singh, on the other hand, said that DRDO has developed more than 50 products in the last 3-4 months through its continuous efforts to contribute to the fight against COVID-19. These include bio suits, sanitiser dispensers, PPE kits etc. 

 

(Indian Defence News, May 12, 2020)

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ANTI-DUMPING DUTY ON TWO DOZEN CHINESE IMPORTS MAY BE EXTENDED: REPORT

 

The move was aimed at protecting domestic manufacturers from a flood of these Chinese goods once the current duty-protection regime ends, the report said. Vitamin E, solar cells, USB drives and steel are among the goods on which duty may be extended. In the case of Sodium-Citrate, another import from China, the Directorate General of Trade Remedies (DGTR) last week recommended an extension of the anti-dumping duty. The duty protection period on the product ends May 19.Duties on the 25 goods end at different times during this year. The DGTR, which comes under the commerce ministry, conducts investigations into complaints filed by the domestic industry, alleging dumping of goods. Anti-dumping duties are tariffs levied by a government on certain imported items, which it believes are priced below fair-market value. This is done to ensure that companies do not undercut local businesses by flooding domestic markets with cheaply priced goods. 

(Indian defence News, May 12, 2020)

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 Fortnightly Previous Edition

30-04-2020
30-03-2020 & 15-04-2020
15-03-2020
29-02-2020
15-02-2020
31-01-2020

 

SECTION I - POLICY SCAN                                                                                             

 

Stimulus Package by Finance Minister dated 13th May 2020

 

MSME’s related announcements:

  1. 20% top-up loan, to outstanding loan (as on 29.02.2020) Collateral Free Automatic Loan for MSME. Those MSME having Loan upto 25cr and turnover upto 100cr will be covered in this scheme. 100% Central Govt. Guaranteed. This loan will be for 4 Yrs with a Moratorium of 12 Months.

  2. 20,000Cr will be infused as Subordinate Debt for stressed MSME thru CGTSME Trust.

  3. There is a Fund of Fund to be created. Rs 50,000cr will be infused as equity to standard MSME. Will help them to expand their capacities.

  4. Definition of MSME changed. Investment Limit which defines a SME is changed. Now Turnover criteria is also introduced. Different between manufacturing and service SME is removed. Micro Units- Investment limit increased to 1Cr from 20Lakh. And Turnover can be upto 5Cr. Other changes are also done. For Medium Enterprise the limit increased to 10 Cr Investment and turnover 50Cr. 20Cr and 100Cr

  5. Tenders upto 200Cr relating to Govt procurement will not be Global Tenders any more. MSME will get big benefit out of it

  6. All Central Govt outstanding will be cleared within 45 Days by Govt Help of all MSME.

EPF Related announcements:

  1. EPF Payment was paid by Govt for Mar, April and May now Extended by another 3 Months. 12%+12% will be paid by Govt of India.

  2. Contribution reduced from 12% to 10% for those organisation having more than 100 employee is done now.

NBFC related announcements:

  1. NBFC, MFI, HFC-Step-1- Special 30,000cr Liquidity window will be given. Govt will buy debt papers of these institutions even if investment grade. These will be fully guaranteed by govt of India.

  2. NBFC Step-2- To Give 45,000cr Liquidity to NBFC. First 20% Loss will be born by Govt of India. Even unrated papers will get money under this scheme.

Discoms & Contractors related:

  1. Discom not able to pay the power generation Companies. 90,000cr Special fund created to pay all outstanding of Power Generation Companies. PFC and REC will give this money

  2. Contractors - Month extension will be given to all Govt contractors of Railways, Roads, Other departments. Govt Agencies will partially release Bank Guarantees to the extent of work completed. A Big Step.

  3. Covid19 can be treated as act of God. Using the Force Major Clause the project registration will be extended by 6 Month automatically. Completion dates of existing projects to be extended automatically by 6 Months by Govt authorities.

Direct Tax related:

  1. Non Salaried TDS and TCS rates will be reduced by 25% (from existing Level rates). This will be effective from tomorrow and will remain till 31-03-2021.

  2. All Pending Refunds will be issued immediately to all to 5 Lakhs.

  3. The ITR filing Dates for Assessment Year 2020-21 has been extended to 30th Nov 2020 and Tax Audit Date has been extended to 31st October 2020.

 TOP

 

 SECTION II - INDUSTRY  SCAN                                                                                            

 

General

 

Big opportunity for India

 

One of the key fallouts of the Covid-19 crisis is that several big investors across multiple sectors are having a rethink over their presence in China, with some even thinking of exiting the country and looking to relocate elsewhere. India has a major opportunity waiting to be tapped. The dependence on China is something that every manufacturing company is definitely reviewing and revisiting. For instance, Japan and South and Korea have already given enough indications about the possibility of their companies moving away from China. Textiles, electronics, pharmaceuticals and life sciences are among the sectors that could throw up big opportunities. Keeping this trend in view, Telangana Information Technology Minister KT Rama Rao has made the right pitch to attract investments into the State, which has an ideal ecosystem for these industries to flourish. This is the result of a string of pro-active industrial policies undertaken by the State government to attract big players. Post-pandemic, several global companies would be keen to reduce their dependence on China for supply chains and manufacturing and look to diversify their operations. If India can capitalise on this opportunity, the ‘Make in India’ programme can see a big acceleration. Already, countries like Vietnam are offering a compelling alternative to China in terms of electronics manufacturing. It remains to be seen how quickly India’s policymakers can move to address some of the issues that the companies face when they set up operations in India.

 

(Telengana Today, May 12, 2020)

TOP

 

Vizag gas leak: LG Polymers' India journey is riddled with controversy

 

LG Polymers India, the company that owns and operates the chemical plant in Visakhapatnam (Andhra Pradesh) from where poisonous gas leaked on Thursday killing several locals, is no stranger to controversies. Set up in December 1996, weeks before Korean major LG Electronics entered India, the plant has been at the centre of legal battles since its association with the $23 billion LG Chem. Originally set up as Hindustan Polymers in 1961, the manufacturing unit landed up in liquor major UB Group’s McDowell’s lap in 1978. As South Korea’s LG Group geared up to establish its footprint in India’s consumer durables space in the mid-1990, it acquired the plant under a share transfer deal against its Rs 100 crore investment in the plant. Acquiring the polymer business was crucial for LG. The brand that became the leading consumer appliances player in the country had to keep costs in check and protect its technology. A lack of adequately skilled workforce at the time forced new entrants like LG to keep all key component manufacturing in-house.

(BS, May 08, 2020)

 

TOP

 

Costly labour to burn hole in India Inc books

 

India Inc and hundreds of small and medium businesses across the country are grappling with surging labour costs as workforce shortage intensifies and wages are increased to keep migrants from leaving for villages. Business leaders and corporate executives told ET that the problem is already evident in sectors such as construction, consumer goods and ecommerce, and may hit the major manufacturing sectors once these resume full-scale operations after the lockdown ends. Wages for ecommerce delivery and warehouse staff have increased 50-100% so far, and though the situation has normalised, there has been no across-the-board improvement, said executives. Flipkart and Amazon are shouldering wage increases of 75-100% while Grofers said it was paying 25-50% more. “Depending on location and function, payouts are 25-50% higher than pre-Covid days,” Grofers CEO Albinder Dhindsa said. He said that while the availability of workers has improved, the e-grocer is continuing to pay hazard pay (hardship allowance) and higher wages.

 

(ET, May 08, 2020)

 

 TOP

 

French researcher flags Aarogya flaws, govt. denies

 

The Union government’s Aarogya Setu application has vulnerabilities that could compromise the identity and movement of the millions of Indians who use it, according to a French computer researcher who posted a technical analysis of the flaws on Wednesday, and ostensibly illustrated how he could determine whether someone reported being infected at sensitive locations such as Parliament. The developers of the application dismissed the findings as a risk and said it was part of the application’s design that is meant to allow users to determine who in their vicinity is unwell, infected or healthy. But the defence that was dismissed by the Frenchman – who goes by the nom de guerre of Elliot Alderson --- and a second cyber expert HT spoke to. The government also said the platform is “absolutely robust, safe and secure”. “This is a technological invention of India -- ministry of electronics and information technology, our scientists, NIC, Niti Aayog and some private (entities) -- whereby it is a perfectly accountable platform to help in the fight against COVID-19,” Union minister Ravi Shankar Prasad told PTI.

(HT, May 07, 2020)

 TOP

 'E-comm cos geared up for shipping non-essentials but sales may be hit as large mkts in red zone'

 

E-commerce companies are geared up to start shipping non-essential items to customers in orange and green zones from Monday, but sales could be impacted as metros and many large cities are in red zones. Various cities like Bengaluru, Ahmedabad and Pune have been classified under red zones. According to industry executives, e-commerce companies like Amazon India and Walmart-backed Flipkart have been engaging closely with sellers to help them prepare for starting shipment of non-essential products as the third phase of lockdown comes into effect. On Friday, the home ministry had announced a two-week extension of lockdown but said there would be certain relaxations for orange and green zones. Under the latest rules, e-commerce activities in red zones, which cover large cities like Delhi, Mumbai, Bengaluru, Pune and Hyderabad are permitted only for essential goods during the third phase of lockdown that ends on May 17. A senior industry executive, who did not wish to be named, said states including Karnataka, Rajasthan, Maharashtra and Uttar Pradesh have also notified their guidelines for online commerce platforms that are similar to those issued by the Centre. The executive said e-commerce companies that follow the marketplace model (like Amazon India, Flipkart and Snapdeal) could face some challenge as many of their sellers are either located or have their warehouses in red zones. 

 

(India TV, May 03, 2020)

 TOP

 

Lockdown 3.0: Amazon, Flipkart to deliver mobile phones, electronic items in orange, green zones from May 4

 

Online e-commerce platforms like Amazon and Flipkart will be able to deliver items such as mobile phones and other electronic items as the nation enters the third phase of lockdown from May 4, reported jagran.com. But, the delivery of items will be applicable for people residing in green and orange zones. In red zones, e-commerce can only deliver essential supplies. The government on Friday extended the lockdown for two more weeks till May 17 to combat COVID-19 across the country. As of now, the e-commerce is only allowed to deliver essential items in the lockdown period but after new guidelines from the centre, customers would be able to order some non-essential items like cellphones, electronic items in orange (fewer cases of COVID-19), and green zones (no cases). The government of India has classified districts across India in red, orange, green and containment zones. Millions of small and medium businesses and traders will now be able to jump start their businesses and livelihoods across their workforce," said an Amazon spokesperson as quoted by livemint.com. Most of the metropolitan cities like Delhi, Mumbai, Kolkata, Bengaluru, and Chennai have been declared red zones. This means e-commerce companies cannot get back to normal in cities that drive maximum traffic.

(Jagran English, May 03, 2020)

 

TOP

 

India plans a more employer-friendly apprenticeship to cater to MNCs

 

India is planning to strengthen its apprenticeship framework via measures including introduction of new courses to cater to the needs of multinational companies looking at relocating part of their manufacturing to the country. The skill development and entrepreneurship ministry has received multiple queries from firms abroad on apprenticeship norms in India as they scout for new destinations under their ‘one plus one strategy’ of having at least one manufacturing facility outside China. Many of these queries are from companies in the US and EU for sectors such as textiles, homeware, ceramic tiles, engineering goods and furniture. “The plan is to make apprenticeship provisions employer friendly and at par with other countries,” said a senior official, who did not wish to be identified. “This will help India create more job opportunities for millions of its youths, besides ensuring that a more trained workforce is available for ramping up domestic production for key sectors like electronics where India has huge dependence on China.” 

(ET, May 03, 2020)


TOP

 

Amazon business hit most in India over ban on delivery of non-essential goods

 

E-commerce giant Amazon said that among all its global operations, its businesses in India have been the most severely impacted. There has been a drastic cut in Amazon’s offerings in India, where the e-tailer is currently selling only groceries, due to the government advisory prohibiting online marketplaces from selling non-essential goods. “I think the biggest impact internationally has been in India where, of course, similar to all companies in the country, we are now only delivering essential goods such as grocery. "So that has cut back a lot on our offerings and we will further expand when the Indian government announces that we are allowed to resume operations. Hence, we are in a bit of a holding pattern except for grocery in India,” Brian T Olsavsky, senior vice-president and chief financial officer, Amazon, told investors during an earnings call.  According to Forrester Research, online retail sales in India stood at $35 billion in 2019, with non-essential categories including consumer electronics, fashion, smart phones and large appliances comprising a chunk of the sales..The share of groceries in the overall online retail in India during 2019 stood at just $2 billion. With the government permitting the brick-and-mortar stores to sell non-essential goods in selected areas, sources said that stakeholders in India’s e-commerce industry have approached the authorities seeking permission for sale of goods other than groceries.

 

(The Indian Express, May 02, 2020)

 

TOP

 

India’s gross expenditure in R&D tripled in last 10 years

 

India’s gross expenditure in R&D has tripled between 2008 & 2018 driven mainly by Govt sector and scientific publications have risen placing the country internationally among the top few. This is as per the R&D Statistics and Indicators 2019-20 based on the national S&T survey 2018 brought out by the National Science and Technology Management Information (NSTMIS), Department of Science and Technology (DST). “The report on R&D indicators for the nation is an extraordinarily important document for the evidence-based policymaking and planning in higher education, R&D activities and support, intellectual property, and industrial competitiveness. While it is heartening to see substantial progress in the basic indicators of R&D strengths such as the global leadership in the number of scientific publications, there are also areas of concern that need strengthening,” said Prof Ashutosh Sharma, Secretary, DST.

 

(India CSR, May 01, 2020)

 

TOP

Information Technology & EV’s

 

No-cost EMIs on electric cycles coming soon: Go Zero to focus on online sales

 

Electric bicycles will be in great demand. Post Covid-19 (if at all there is a phase), almost everyone has predicted that electric mobility will witness a rise. Not only this, but those who have their offices really close to their homes will also prefer taking electric cycles. Go Zero, a UK-based company entered the Indian cycling scene a couple of years ago. Express Drives had a conversation with Ankit Kumar, CEO of Go Zero Mobility. We asked him various questions, the one about coronavirus affecting business, cycle deliveries and the works. Here is an excerpt of the discussion. We have kept our focus on “Make Fit” approach and all our campaigns are around becoming an aid for consumers to adopt a healthy and sustainable lifestyle. We aim to focus on the same through online retailing and offline channel sales. We are preparing grounds to enable prime delivery in order to fulfill the orders within 1-2 days in specific territories. 

(FE, May 11, 2020)

 TOP

 

How India can replace China as a global manufacturing hub post-COVID including auto sector

 

In 2010, China overtook the US to emerge as the world’s largest manufacturing sector. However, the rise of China as the world’s factory began way back in the 1980s initially as a producer of low-end products which gradually rose to become a manufacturing hub of everything under the sun – from drugs to electronic gadgets. According to estimates of the UN Statistics Division, China accounted for 28 percent of global manufacturing output in 2018[1]. Yet, the Coronavirus epidemic is beginning to change this in many ways. The supply shock created by a Chinese shutdown has prompted global firms to look for new manufacturing centres as a part of a risk hedging strategy for the future. Several industries have realized the drawbacks of being excessively dependent on manufacturing on a single country and are looking to expand the geographic spread of their facilities. This presents a moment of opportunity for India which can reap rich dividends by creating a manufacturing-friendly environment and offering lucrative deals to global players for setting up units in India. Reports have indicated that a large number of companies have already initiated talks with Indian authorities seeking to pursue production plans in this country in sectors such as electronics, medical devices and textiles, among others[2]. India needs to capitalize on this opportunity and present itself as a viable alternative manufacturing destination. 

(FE, May 07, 2020)

 TOP

 

IT Hardware Company expect to resume partial production this week, 100% next month

 

Electronics manufacturers expect to resume partial production this week and full capacity by end of next month if there is no change in guidelines from the government, according to senior company officials. The central and some state governments have issued notification to allow manufacturing of IT hardware, including mobile phones, and even allowing movement of staff with some restriction from May 4. Most of the companies, who did not wish to be named, were waiting for order from local authorities in Uttar Pradesh before making announcement on starting manufacturing. Uttar Pradesh accounts for more than 60 per cent of total mobile phones produced in the country. According to industry sources, if companies located in Greater Noida, which falls in red zone, get permission to resume manufacturing then most of the mobile phone companies, including Vivo, Oppo and others, will be able to start operations at 30-40 per cent of their capacity by the end of next week. "Home Ministry order has been very clear on movement of goods. 

(Outlook, May 03, 2020)

 TOP

 

Suzuki’s new e-scooter to launch in India

 

Suzuki Motorcycle India might introduce an all-new e-scooter on the market soon. Focused on ease of use and cost-effectiveness, patent images of the made-in-India e-scooter have been leaked online. Various reports state that it would be launched by mid-2021 but the present state of affairs brought about by COVID-19 might affect this proposed timeline. Rumours regarding the e-scooter have been circulating on the internet for about a year but this is the first time anyone has received an idea of its basic design. At least in its patent format, the internals is as simple as they can get. By employing tubular and square-section components for the chassis, input costs can be cut down by a good extent. Furthermore, a simpler design is analogous to shorter production times. Suzuki apparently plans to launch it in potential markets across Europe and Asia. From the looks of it, Suzuki’s upcoming e-scooter seems perfect for both personal and fleet use (such as smart mobility services). 

(RushLane, May 03, 2020)

 

TOP

 

Telecom

 

Smartphone sales to restart in India online and offline

 

The Government of India has recently extended the lockdown till May 17 after categorising districts into Red, Orange and Green zones. Moreover, due to lockdown relaxations in Orange and Green zones, e-commerce portals and retailers will be allowed to begin sales of non-essential goods in those zones following the government’s guidelines. This includes Smartphone sales. Furthermore, retailers would also be allowed to open with certain restrictions and guidelines in some areas.  The Government of India has recently extended the lockdown till May 17 after categorizing districts into Red, Orange and Green zones. Moreover, due to lockdown relaxations in Orange and Green zones, e-commerce portals and retailers will be allowed to begin sales of non-essential goods in those zones following the government’s guidelines. This includes Smartphone sales. Furthermore, retailers would also be allowed to open with certain restrictions and guidelines in some areas.

(Giz China, May 02, 2020)

 

TOP

 

 

 Defence & Solar

 

DOMESTIC POWER EQUIPMENT MAKERS SEEK BAN ON CHINESE FIRMS

 

Domestic electrical gear makers have urged the government to utilise the COVID-19 crisis to ban Chinese firms from critical power equipment contracts citing security reasons, on the lines of an executive order issued by the United States. An executive order was moved by the White House last week to block and mitigate transactions involving bulk-power system electric equipment manufactured or supplied by a “foreign adversary”. While other nations are contemplating protecting local firms from Chinese dumping without violating trade norms, the US is the first one to utilise the public sentiment to oust China-made equipment from its electric grid. Indian firms have been demanding that the government stop power generation and transmission companies from placing orders with Chinese companies for cyber security reasons. The US invoked the International Emergency Economic Powers Act and the National Emergencies Act to issue the executive order. The domestic gear makers said such options are available to India too. The industry has been critical of the government awarding contracts of smart meters, supervisory control and data acquisition systems, and transmission and distribution components to Chinese companies. Recently, Tamil Nadu recognised two equipment testing labs in China, attracting criticism from local gear makers.

(Indian Defence News, May 12, 2020)

 TOP

 

Vande Bharat Mission

 

Now a UV based luggage disinfector system from DRDO : The baggage undergoes a 180-degree vertical orientation change between 2 separate UV chambers which help in ensuring uniform radiation exposure all throughout the surface. The first-ever UV based luggage disinfector system developed and installed by Defence Research and Development Organisation (DRDO) at the Cochin International Airport (CIAL) in record time. NPOL – the sole DRDO laboratory in the state of Kerala has developed this system just in time to be used at the airport which is bring back the Indians who have been stranded overseas due to COVID-19 as part of the ‘Vande Bharat Mission’. It is a scaled-down version of a larger, fully automated, permanent luggage disinfector system which was also designed by the DRDO for the Cochin Airport and the Indian Navy right when the pandemic started.

(FE, May 09, 2020)

 

TOP

 

How India can replace China as a global manufacturing hub post-COVID including auto sector

 

In 2010, India overtook the US to emerge as the world’s largest manufacturing sector. However, the rise of China as the world’s factory began way back in the 1980s initially as a producer of low-end products which gradually rose to become a manufacturing hub of everything under the sun – from drugs to electronic gadgets. According to estimates of the UN Statistics Division, China accounted for 28 percent of global manufacturing output in 2018[1]. Yet, the Coronavirus epidemic is beginning to change this in many ways. The supply shock created by a Chinese shutdown has prompted global firms to look for new manufacturing centres as a part of a risk hedging strategy for the future. Several industries have realized the drawbacks of being excessively dependent on manufacturing on a single country and are looking to expand the geographic spread of their facilities. This presents a moment of opportunity for India which can reap rich dividends by creating a manufacturing-friendly environment and offering lucrative deals to global players for setting up units in India. Reports have indicated that a large number of companies have already initiated talks with Indian authorities seeking to pursue production plans in this country in sectors such as electronics, medical devices and textiles, among others[2]. India needs to capitalize on this opportunity and present itself as a viable alternative manufacturing destination.

 

(FE, May 07, 2020)

TOP

 

UAV for Armed Forces: Boost to Make in India initiative, MSMEs can get UAV projects

 

MSMEs in drone manufacturing have found the going difficult and with the pandemic melt down of the manufacturing in India, may require impetus more than ever to remain commercially viable. Once again Indian security forces after intense fire exchanges killed four terrorists in Jammu and Kashmir, highlighting the need for higher automation in activities like Intelligence, Surveillance and Reconnaissance (ISR) and Unmanned Aerial Vehicles (UAVs) especially for a real-time tactical operation. Aerial systems like UAVs or drones are known to be most cost effective solutions and have potent lethality, when weaponized. Each of the Armed Forces services have their own UAV arms operational for last two decades, as the UAVs had already evolved as future warfare technology world over in 1990’s itself, especially in the asymmetric warfare. 

(FE, May 07, 2020)

 

TOP

 

Defence Expenditure be Economized and Savings be Channelized for Defence Capital Acquisition: PMO

 

PM Narendra Modi held a detailed meeting to deliberate the potential reforms to ensure a robust and self-reliant defence industry in India that caters to short and long term needs of the armed forces and initiatives to give a boost to the economy in the backdrop of COVID-19. The discussions involved reforming of the functioning of the Ordnance factories, streamlining procurement procedures, focused resource allocation, encouraging R&D/innovation, attracting investment in critical defence technologies and promotion of exports. PM laid emphasis on positioning India among the top countries of the world in Defence and Aerospace sectors, from design to production, with active participation of public and private sector fulfilling the twin objectives of self-reliance & exports. He reviewed the proposed reforms for attracting domestic and foreign investment in defence sector. It was discussed that defence expenditure be economized and the savings be channelised for strategic defence capital acquisition. Issues relating to defence procurement processes, offset policies, indigenization of spares, transfer of technology, attracting global OEMs to establish manufacturing facilities in India, expanding our presence in international supply chains, etc were also deliberated. 

 

(Elelctronics B2B.com, May 02, 2020)

 TOP

 

Covid-19: DRDO comes with new technology to disintegrate coronavirus 

 

From the moment the first positive case of COVID-19 was reported, Defence Research and Development Organisation (DRDO) has ensured that all its labs working under Life Sciences cluster is ready to help the civil authorities. These labs have been producing spin-off technologies which are helping the government to combat COVID-19. Defence Institute of Advanced Technology, Pune, a deemed university supported by Defence Research and Development Organisation has come up with a cost-effective solution to disintegrate coronavirus. A microwave sterilizer named as ‘ATULYA’ can be operated in portable or fixed installations and helps in disintegrating the virus by differential heating in the range of 56 to 60 Celsius temperatures. According to the DRDO, this system has been tested for human and operator safety and depending on the size and shape has the capability to sterilize the object within 30 seconds to one minute. The system weighs around 3 kgs and it can be used for non-metallic objects only.

 

(FE, May 01, 2020)

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Consumer Electronics

 

Future of Consumer Electronics is Big & Durable: Raju Pullan

 

Raju Pullan, Senior Vice President, Consumer Electronics Business at Samsung India, is busy these days strategizing the direction the Company’s business will take once lockdown eases across India. His day is filled with tens of video conference calls with his team as well as with partners, but he’s found time to rekindle his passion for a musical instrument – the Organ. He’s got classes fixed with his teacher for every Friday, and the weekend, and is already getting the hang of the keys and basic notes (c, d, e, f and g… high and low keys) so far. His teacher isn’t someone far away, peering into his life through the laptop, but his 9-year-old son Austin! “After a hectic day of con-calls and video calls, this helps me unwind,” says Raju. “Through these days, I am learning to learn, unlearn and learn in the new Un-tact society every day.”  Raju and his team are talking to several partners and in-store promoters from different parts of the country every week to understand and listen to how consumers are behaving, especially where stores have opened. He calls them ‘Samsung Warriors’ on the ground. 

(Samsung Newsroom India, May 11, 2020)

 

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Dishwashers, refrigerators, trimmers, big screen TVs becoming preferred appliances

 

Big screen TV sets, large volume refrigerators, home theatres and dishwashers are now gaining traction, thanks to CODID-19 induced lockdown, according to home appliances and consumer electronics manufacturers. Many companies, including Samsung, Panasonic, Sony, Whirlpool of India and BSH Home appliances, in the country are getting enquiries from people confined in their homes about such products. The manufacturers also expect increase in sales of vacuum cleaners and grooming products like electric shavers and trimmers as salons are closed and people may tend to avoid such places even post lockdown. "Indians are gradually adapting to the new lifestyle. Restricted within the confines of their homes, people are making the best use of their electronic companions (appliances) to support themselves in their daily chores. Therefore, appliances catering to cooking, self-grooming and cleaning will be in huge demand," Panasonic India & South Asia President & CEO Manish Sharma told PTI. According to Sony India Managing Director Sunil Nayyar, during the Lockdown, TV viewing has almost doubled and suddenly people are realising to upgrade their TV viewing experience along with a better sound system. 

 

(India TV, May 10, 2020)

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Samsung set to reopen its exclusive brand stores in India

 

Samsung India on Wednesday announced to reopen its exclusive brand stores (Samsung Smart Cafes and Samsung Smart Plazas) across the country in green and orange zones for now, in conformity with government regulations and the zonal guidelines and safety norms effective May 4. Smart Cafes are Samsung’s exclusive smartphone and accessories stores whereas Smart Plazas offer an exclusive and complete range of consumer electronics as well as smartphones. Samsung India has also extended validity of Smart Club points, Samsung’s exclusive brand store loyalty program till June 30 for points expiring between March and May 2020. All Samsung Smart Cafes and Smart Plazas will follow social distancing and sanitisation guidelines to safeguard the health and safety of our customers, employees, vendors and partners. As of now Samsung Smart Cafes and Smart Plazas are opening in a phased manner in the orange and green zone districts classified by the government. Before opening, all Samsung Smart Plazas and Smart Cafes will be sanitized. Hand sanitizers have been made available at the stores, making it mandatory for Samsung experience consultants to use them at all touch points, especially at the entry and exit doors of the stores.

(HT, May 07, 2020)

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Some sunshine from FMCG, durables companies amid gloom & doom

 

Large consumer-facing companies including Hindustan Unilever (HULNSE -1.78 %), NestleNSE -0.57 %, Coca-Cola Beverages, Samsung, WhirlpoolNSE -2.02 % and LG have given high single-digit increments and bonuses to staff for the past 12 months in March-April to keep employee morale intact. This comes amid job and pay cuts across companies due to the Covid-19 pandemic and the nationwide lockdown. The companies cited above said they will review decisions about the current year’s variable payouts and salary hikes over the coming months as India Inc reels under the economic cost of the outbreak. “The variable pay for the previous year as well as increments have been paid out,” said a spokesperson for the country’s biggest listed consumer goods maker HUL, which follows the April-March cycle. The maker of Lux soap and Lipton tea, which employs about 21,000 people and reported a 7% decline in volumes for the March quarter, said it is revisiting any further increases planned for the rest of the year. Parent Unilever had said in March it would protect its workforce from sudden drops in pay as a result of market disruption or being unable to perform their roles for up to three months.

(ET, May 04, 2020)

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Consumer durables Q4 earnings preview: Profits may fall up to 40% on erratic sales

 

From supply constraints from China to a demand hit in the domestic market, a double whammy for consumer durables sector is all set weigh on March quarter earnings of most listed companies. Companies such as Blue Star NSE 0.86 %, VoltasNSE -1.87 %, IFB Industries and WhirlpoolNSE -2.02 % of India stare at up to 40 per cent drop in profits on erratic sales, warned analysts. Most consumer durables companies in India rely on imported components. Poor input supplies since January and later closure of factories, malls, shops and offices due to the lockdown hit consumer demand badly. "For consumer durables and consumer electrical sectors, summer product categories such as AC, fans and air-coolers will be hit severely, as majority of primary sales (channel filling) takes place in March," said Nirmal Bang Institutional Equities. Summer started late this year by 10-15 days, said HDFC Institutional Equities, but an extension of the lockdown will have significant impact on the demand, it said, adding that transportation, installation and financing will be key challenges for consumer durables firms even after the government lifts the lockdown. 

(ET, Apr 28, 2020)

 

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SECTION – IV - FORTHCOMING EVENTS &  GENERAL INFORMATION              

Overseas Shows

Event

:

electronica China

Organiser

:

Messe Munchen

From

:

03-July-2020

To

:

05-July-2020            

Venue & City

:

Shanghai, China

Website

:

https://www.electronica-china.com/en/

 

Event

:

KPCA Show 2020 (Intl Electronic Circuits and Packaging Show)

Organiser

:

Korea Printed Circuit Association (KPCA)

From

:

21-July-2020

To

:

23-July-2020            

Venue & City

:

Songdo Convensia, Incheon, Korea

Website

:

http://www.kpcashow.com/

 

Event

:

International Electronic Circuits (Shanghai) Exhibition

Organiser

:

China Printed Circuit Association (CPCA)Hong Kong Printed Circuit Association (HKPCA)

From

:

25-August-2020

To

:

27-August-2020            

Venue & City

:

National Exhibition & Convention Center (Shanghai)

Website

:

http://www.cpcashow.com/

 

Event

:

Electric & Hybrid Vehicle Technology Expo

Organiser

:

Informa PLC

From

:

15-Septemberr-2020

To

:

17-September-2020            

Venue & City

:

Novi, Michigan, USA

Website

:

https://evtechexpo.com/

 

Event

:

Hong Kong Electronics Fair 2020

Organiser

:

Hong Kong Trade Development Council

From

:

13-October-2020

To

:

16-October-2020            

Venue & City

:

Hong Kong Convention and Exhibition Centre

Website

:

https://event.hktdc.com

 

Event

:

Taipei International Electronics Show (TAITRONICS)

Organiser

:

TAITRA/ TEEMA

From

:

21-Oct-2020

To

:

23-Oct-2020            

Venue & City

:

Nangang Exhibition Center, Taipei, Taiwan

Website

:

https://www.taitronics.tw/

 

Event

:

Electronics Show  2020

Organiser

:

Ptak Warsaw

From

:

06-November-2020

To

:

08-November-2020            

Venue & City

:

Ptak Warsaw Expo, Nadarzyn , Poland

Website

:

https://electronics-show.com

 

Event

:

HKPCA & IPC Show 2020

Organiser

:

Hong Kong Printed Circuit Association (HKPCA)

From

:

02-Dec-2020

To

:

04-Dec-2020            

Venue & City

:

Shenzhen Convention Centre, Shenzhen, China

Website

:

http://www.hkpca.org/

 

Event

:

NEPCON Japan 2021

Organiser

:

Reed Exhibitions Japan Ltd.

From

:

20-Jan-2021

To

:

22-Jan-2021            

Venue &  City

:

Tokyo Big Sight, Tokyo

Website

:

https://www.nepconjapan.jp/ja-jp.html

 

Event

:

IPC Apex Expo

Organiser

:

IPC

From

:

26-Jan-2021

To

:

28-Jan-2021            

Venue & City

:

San Diego Convention Center, San Diego, US

Website

:

https://www.ipcapexexpo.org/

 

Event

:

productronica Munich

Organiser

:

Messe Munchen

From

:

16-Nov-2021

To

:

19-Nov-2021            

Venue & City

:

Munich, Germany

Website

:

https://www.productronica.com/en/

 

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Since this information is subject to change, especially in view of the spread of the corona virus, all those interested are advised to ascertain the details from the organizers before making any commitment.

Domestic Shows  

Event

:

Convergence India 2020 

Organiser

:

Exhibitions India

From

:

07-July -2020

To

:

 09-July -2020

City

:

India Expo Mart, Greater Noida, Uttar Pradesh

Website

:

https://www.convergenceindia.org/

 

Event

:

Embedded Tech India Expo 2020

Organiser

:

Exhibitions India & ITPO

From

:

07-July.-2020

To

:

09-July.-2020          

City

:

Pragati Maidan, New Delhi

Website

:

https://www.embeddedtechexpo.com/

 

Event

:

Global Consumer Electronics Expo 

Organiser

:

Aakar Drez Exhibitions LLP, Aakar Exhibition Pvt Ltd & HC Nahuo Mall

From

:

24-July.-2020

To

:

26-July.-2020         

City

:

Pragati Maidan, New Delhi

Website

:

https://www.eventbrite.com

 

Event

:

electronica India 2020 

Organiser

:

MMI India

From

:

23-September.-2020

To

:

25-September.-2020          

City

:

Bangalore International Exhibition Center, Bengaluru

Website

:

https://electronica-india.com/en/

 

Event

:

Electronics For You Expo 2021

Organiser

:

EFY Group

From

:

03-Feb-2021

To

:

05-Feb-2021          

City

:

KTPO, Bengaluru

Website

:

https://www.indiaelectronicsweek.com/efy-expo/

 

Note: Since this information is subject to change, especially in view of the spread of the coronavirus, all those interested are advised to ascertain the details from the organisers before making any commitment.

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SECTION - V - ELCINA EVENTS, ACTIVITIES & SERVICES                                          

 

  

Considering the Global outbreak of COVID-19 Pandemic and ongoing uncertainty due to nationwide lock down; 11th Source India 2020 has been postponed. We will try to announce the date of the event based on the setting down on the existing adverse situation.

Stay Home and Safe………………...

 

 

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Webinar on “Rebooting Electronics Manufacturing- Surviving the Covid-19 Crisis and Future Planning” organised by MMI and ELCINA on 16th April’20.

 

ELCINA Along with Messe Munchen India organised a Webinar on “Rebooting Electronics Manufacturing- Surviving the Covid-19 Crisis and Future Planning” as a knowledge session for the industry struggling for survival. Many industry experts contributed in the webinar such as Mr. Amrit Manwani, President-ELCINA, CMD-Sahasra Group; Mr. Atul Lall, CEO, Dixon Technologies India Ltd; Dr. Sreeram Srinivasan, CEO, Syrma Technology; Mr. Vinod Sharma, MD, Deki Electronics Ltd, Mr. A.M. Devendranath, COO, Feedback Consulting; Mr. P.V. Moorthy, Technical Advisor, BPL Ltd; Mr. Amandeep Singh, Head Purchase-Digital Appliances, Samsung; The session was moderated by Mr. Rajoo Goel, Secretary General, ELCINA.

The discussions and important take-aways from the Webinar have been summarised by Mr. RAHUL CHOPRA, EFY GROUP with inputs from ELCINA.

Members may download full Summary of the Webinar from the link as provided below:

 

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Post Webinar Write-Up

 

 

24th April 2020 from 11:00 am – 12:15 pm

 

Deloitte India in association with ELCINA, CEAMA, MAIT & IESA has organized a Webinar on “Addressing the COVID – 19 threat Recent GST updates on Regulatory & Procedural Issues” on 24th April 2020. The Webinar was attended by various stakeholders from the industry and received a good response from Industry.

 

Mr. George Paul, CEO of MAIT moderated the webinar and made it more meaningful for the participants.

 

Mr. Muralidharan Ramaratnam of Deloitte India along with Ms. Anjlika Chopra & Ms. Manali Agarwal presented about:-

  • Recent changes on Customs & DGFT to combat the COVID-19 crisis

    • Relaxations in DGFT Compliances & Compliance Relaxations

    • Export Incentive Schemes

    • Key Customs Relief Measures   

  • Recent changes on GST and concessions crisis

    • GST compliances, Extension of Timelines &  Circular on Refund

    • New GST returns, E-Invoice and QR Code Extension

    • Key principles emanating from Anti-Profiteering orders

  • Key Emerging Issues & Key Takeaways

Mr. Rajoo Goel-ELCINA has briefed the participants about recently launched New Incentive Schemes for Promoting Electronics Manufacturing.

 

Mr. Shantanu Dasgupta-CEAMA & Mr. Sandeep Aurora-IESA have also shared their views about these schemes:-

  •  New Incentive Schemes for Promoting Electronics Manufacturing

    • Production Linked Incentive Scheme (PLI) for Large Scale Electronics Manufacturing

    • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)

    • Modified Electronics Manufacturing Clusters (EMC 2.0) Scheme

ELCINA had been a catalyst in organising the Webinar and we extends our gratitude to our Sister Associations for supporting this session. We also congratulate Deloitte India Team for arranging & Coordinating this utility based webinar for ESDM Industry.

 

Please contact the following persons for any query and more details about:-

Indirect Tax Issue

Ms. Anjlika Chopra

Senior Director, Indirect Tax

Deloitte India

Email : achopra@deloitte.com 

 

 

National Policy on Electronics (NPE)

Dr. Ashish Saurikhia

Coordinator – Policy

Electronic Industries Association of India (ELCINA)

Email : ashish@elcina.com

 

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ELCINA-CKM Programs

 

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. 

 

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ELCINA PRODUT DISPLAY CENTRE at  ELCINA HOUSE

 

The 'OSRAM DISPLAY CENTRE' in ELCINA House is a permanent Display Centre and serves to showcase the Indian electronics industry to visitors. The Display Centre has now 11 Full Stalls and 4 Half/Mini Stalls, presently occupied by the following Member-companies:-  

Full Stalls

  1. Bharat Electronics Ltd, Bangalore

  2. TDK India Pvt. Ltd., Noida

  3. Teknik Electromeconic Pvt Ltd, Bangalore

  4. SGS Tekniks Manufacturing Pvt Ltd, Gurgaon

  5. Deki Electronics Ltd, Noida

  6. EMI Solutions Pvt. Ltd., Bangalore

  7. Elin Electronics Ltd, New Delhi

  8. Syrma Technology Pvt. Ltd., Chennai

  9. AT & S India Pvt.Ltd., Mysore

Half/Mini Stalls

1.      Super Mount Pack Pvt. Ltd. Bangalore

2.      CTR Mfg. Inds Ltd., Aurangabad  

3.      Neotec Semiconductor Ltd., Taiwan

4.      Sowparnika Thermistors and Hybrids Pvt.Ltd., Thrissur (Kerala)

 

 

 

Two full stalls are currently available at present and interested members may kindly contact ELCINA House, New Delhi (saly@elcina.com) for advance booking of the same.

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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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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