The Union Budget for 2010-11presented by the Finance Minister on 26th Feb/10 has tried to address the issue of high inflation facing the country while also trying not to constrain growth. Major proposals include partial rolling back of the incentive package by increasing Excise duty from 8% to 10%, reduction in excise duty to 4% on LED Lighting, inclusion of some additional raw materials/CGs in concessional customs duty notifications (25/99 & 21/2002), revision in Personal Income Tax slabs, etc.

back top

Lower peak rates, excise duty to boost trade; India to grow fastest at 8.5% for 2010-11 : Economic Survey

The Economic Survey 2009-10 calls fundamental policy changes in trade even as it highlights the fact that the outlook for India’s trade sector in the current year has brightened on signs of recovery in world output and trade volumes. According to the survey document, reforms, including lowering of peak duties, removing some of the unnecessary customs duty exemption and further reduction in excise duties could provide fillip to trade recovery. A positive outlook has overtaken the pessimism of last year, with the government now expecting a double-digit growth in Gross Domestic Product (GDP) within the next four years. The Economic Survey 2009-10 sees India growing the fastest by 2013-14, provided it is able to overcome infrastructure and bureaucratic constraints. It has predicted 8.5% growth for 2010-11 and 9% for 2011-12.

(BS February 26, 2010)

back top

3G auction to start on April 09: 3 Pvt Players in most circles

The government on 25th Feb/10 kick-started the auction process of 3G spectrum, which is slated for April 09, with the release of the Notice Inviting Applications (NIA), the key legal document that formally invites bids from the mobile operators. According to NIA, three private operators would be allotted 5 mhz band in 17 circles, while four private operators would be allotted the same, each in the remaining five circles. State-run BSNL/MTNL, which have already been allocated spectrum, would be an additional operator in all the circles. While successful bidders would be liable to the entire auction amount within 10 days of the auction, the spectrum would be allotted to all private operators by August, 2010, and they would be in a position to offer the services by September only.

(FE February 26, 2010)

back top

DoT mulls incentives to push rural broadband

Aiming to push the growth of broadband services in rural areas, the Department of Telecommunications (DoT) is working on a new proposal to give incentives from the Universal Service Obligation (USO) fund to support wireline services in rural area. The new move would nullify the earlier directive of DoT, which had exempted the licence fee on wireline services provided by all the operators in rural areas. The exemption was announced in August 2008 through an amendment to the licence conditions. State-run telecom major BSNL was the main beneficiary from this as it enjoys the largest presence in such areas.

(BS February 23, 2010)

back top

Electronics Hardware makers seek mother units

Small and medium electronics hardware manufacturers in Andhra Pradesh are urging the government to attract more mother industries to the State, besides accelerating the process of developing infrastructure, to enable them to compete globally. According to ELIAP (Electronic Industries Association of Andhra Pradesh), despite achieving a production of Rs.6,500 crore and exports of Rs.650 crore from A.P. in 2008-09, there are still a lot of lacunae that need to be addressed for the industry to grow rapidly. Mother industries, including Motorola, which proposed its manufacturing base in the state, have gone to Chennai. The government should invite computer peripheral companies like Intel to the state. ELIAP expects 15% growth in production and exports this year. The main contributors to the 2008-09 growth were telecommunications, defence and strategic electronics, railway signaling equipment and medical electronics. ELIAP is demanding SEZ status to the existing Electronics Hardware Park and expediting the process of setting up cargo facilities at the international airport for faster growth of the industry. The Fab City had been started for fab manufacturing, but this was later changed to semiconductor manufacturing and finally to the production of solar cells.

(BS February 23, 2010)

back top

Offset policy to help domestic players enter defence industry

India’s defence offset policy would be the key driver for growth and modernization of the defence industry base, says the government. Speaking at a recent seminar organized by CII, Minister of State for Defence MM Pallam Raju said, the industry therefore will evolve in sync with the overall development, leading to progressive policy initiatives coming up in future. Public sector alone will not be able to absorb the offset that are to be generated in future. Offset, therefore, give domestic players an opportunity to enter the sensitive defence industry. The government is also planning to extend tax sops enjoyed by export firms to domestic players. Combining public and private sector skills that will help achieve higher degree of defence indigenization is also being mulled.

(FE February 18, 2010)

back top

Notifications

Important 2010-11 Union Budget Notifications:-

Customs

Notification no. 16/2010-Cus dtd. 27 Feb 2010

Notification no. 18/2010-Cus dtd. 27 Feb 2010

Notification no. 21/2010-Cus dtd. 27 Feb 2010

Notification no. 22/2010-Cus dtd. 27 Feb 2010

Notification no. 23/2010-Cus dtd. 27 Feb 2010

Notification no. 27/2010-Cus dtd. 27 Feb 2010

Notification no. 28/2010-Cus dtd. 27 Feb 2010

Notification no. 29/2010-Cus dtd. 27 Feb 2010

Notification no. 30/2010-Cus dtd. 27 Feb 2010

Notification no. 31/2010-Cus dtd. 27 Feb 2010

Central Excise

Notification no. 12/2010-CE dtd. 27 Feb 2010

Notification no. 17/2010-CE dtd. 27 Feb 2010

Central Excise Notification No.4/2010-NT dt. 19th Feb, 2010 Amending Central Excise Rules, 2002, to be called the Central Excise (Amendment) Rules, 2010 and to come into force from 1st April, 2010, with the following amendments:
In the Central Excise Rules, 2002 (hereinafter referred to as the said rules), in rule 8, in sub-rule (1) in third proviso, for the words “duty of fifty lakhs rupees or more, other than the amount of duty paid by utilization of CENVAT credit, in the preceding financial year”, the worlds “total duty of rupees ten lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year” shall be substituted.
In the said rules,in rule 12, in sub-rule (1), after the second proviso and before third proviso, the following proviso shall be inserted, namely:-

“Provided also that where an assessee has paid total duty of rupees ten lakh or more including the amount of duty paid by utilization of CENVAT credit in the preceding financial year, he shall file the monthly or quarterly return, as the case may be, electronically”.

back top

Industry Scan

General

Gartner sees $276-bn semiconductor revenue in 2010

According to IT research and advisory firm, Gartner, the worldwide semiconductor revenue is projected at $276 billion in 2010, a 19.9% increase from 2009 revenue of $231 billion.

(FE February 26, 2010)

back top

Saab, Samtel in pact to build HUD

Samtel Display Systems (SDS), India’s leading private sector aerospace company, and the Swedish defence major Saab on 16th Feb, 2010 signed a memorandum of understanding to jointly develop, manufacture and market RIGS head-up display (RIGS HUD) in India. RIGS is a new generation advanced light-weight head up display (HUD) designed by Saab to provide helicopters with a cost-effective display solution. The announcement was made at the sixth edition of the DefExpo 2010 by SDS Executive Director Puneet Kaura and Saab Senior Vice-President & Head (Business area electronic defence systems) Micael Johansson. According to Puneet Kaura, SDS is already in advanced stages of developing HUD for fighter aircraft. Subsequent to this MoU, the company will now also be involved in the development of RIGS HUD with Saab. Both the companies will jointly market RIGS in India to potential Indian customers for the commercial and military airborne market. As per Mr. Kaura, initially, the parts manufactured by SDS will be for the Indian market, with the potential of serving international market in the long run. At a later stage, the company is expected to leverage its relationship with HAL for the joint marketing activities of RIGS.

(FE February 17, 2010)

back top

Inflation at 8.56%, breaches RBI target

Inflation spiked to a 13-month high of 8.56% in January 2010 from 7.31% in December on the back of a broad-based increase in prices. According to economists, this points to a demand revival and could prompt RBI to raise interest rates in its April policy review.

(FE February 16, 2010)

back top

Winter Olympic medals made from recycled e-waste

When Olympic champions are crowned at this year's winter games in Vancouver, these elite athletes will be taking home more than just gold, silver or bronze medals—they will be playing a role in Canada's efforts to reduce electronic waste. That's because each medal was made with a tiny bit of the more than 140,000 tons of e-waste that otherwise would have been sent to Canadian landfills. The more than 1,000 medals to be awarded at the Vancouver 2010 Olympic and Paralympic Winter Games, which kick off today, amount to 2.05 kilograms of gold, 1,950 kilograms of silver (Olympic gold medals are about 92.5 per cent silver, plated with six grams of gold) and 903 kilograms of copper. A little more than 1.5 percent of each gold medal was made with metals harvested from cathode ray tube glass, computer parts, circuit boards and other trashed tech. Each copper medal contains just over one percent e-waste, while the silver medals contain only small traces of recycled electronics. This is the first time that recycled materials have been added to Olympic medals, which historically have been made from mined mineral deposits refined for commercial use. Each Olympic medal is 100 millimeters in diameter, about six millimeters thick and weighs between 500 and 576 grams, depending upon the medal. Teck Resources, the Vancouver-based company that extracted the metals used to make the medals, noted in a press release that it used a number of different recovery processes. The company shredded computers, monitors, printers and glass and then separated out steel, aluminum, copper, glass and other usable substances. The leftover shredded components were fed into a furnace operating at a temperature of 1,200 degrees Celsius in order to remove the metals that could not be recovered simply by shredding the electronic devices.

(www.scientificamerican.com Feb. 12, 2010)

back top

IT & Services

STPI scheme of no use to over 50% IT units

Though the country’s $50-billion IT industry is demanding an extension of the tax holiday under the Software Technology Parks of India (STPI) scheme, which is to expire in March 2011, data available with FE shows that more than half of the industry’s export revenue generated from such units (around $43 billion) will not be eligible for tax benefits even if the scheme gets further extension. Moreover, registration of new units under the scheme is also dwindling with only 572 registrations in 2008-09 compared to 844 and 1,164 in 2007-08 and 2006-07 respectively. Instead, if the government does not extend the scheme, it could earn an additional annual income-tax revenue of upto Rs.20,000 crore.

(FE February 24, 2010)

back top

Indian PC market export sales touch 19.7 lakh units

According to market research firm, IDC India, the overall India PC market shipment sales touched 19.7 lakh units in the Oct-Dec 2009 quarter, recording a 25.7% year-on-year growth, pointing to a strengthening recovery. Desktop PC sales accounted for nearly two-third of total sales at 12.7 lakh units (14.6% increase). The Notebook PC sales grew at 52.8% year-on-year clocking 6.9 lakh units in Oct-Dec 2009. Total India PC shipments have grown for the last four consecutive quarters of 2009 after dropping sharply from a peak of 22.6 lakh units in July-Sept 2008 to 15.6 lakh units in Oct-Dec 2008. Notably, home PC shipments (both desktops and notebooks) climed a significant 38% year-on year (Oct-Dec 2009) over Oct-Dec 2008. While this was along expected lines from an industry viewpoint, the pleasantly surprising development was the growth of 57.0% year-on-year (Oct-Dec 2009 over Oct-Dec 2008) in notebook PC shipments. In the overall PC (notebooks and Desktops combined) market, HP retained the top spot with a marketsghare of 16.2% in terms of unit shipments, while Dell and Acer closed in with 13.6% and 10.4% respectively.

(ET February 20, 2010)

back top

Computer hardware sector hits narrow window to overcome slump

According to MAIT, while the software sector in India is on a fast track to recovery from the global slowdown, the hardware sector still lags. The reasons for the slow recovery of the sector include undue caution shown in purchase by the enterprise sector, very low consumption in establishment space and slowing down of traction shown by e-governance. However, MAIT perceives this as a temporary phase and expect it to show traction fast. In an effort to promote the hardware sector, the industry has emphasized on maintenance of an 8% excise duty on all IT products and components and removal of 4% SAD. According to industry estimates, China’s consumption of PCs is about 50 million, while India is yet to touch the 10-million mark.

(FE February 19, 2010)

back top

Dell India bullish on small businesses, back-end ops

Taking a cue from global operations, Dell India has restructured its operations and is bullish on small and medium business segment this fiscal as the segment drives the firm’s growth in the country. The company is also expecting a significant impact on its back-end operations in India after its $3.9 billion acquisition of Perot systems. Dell India estimates that there are 7.6 million small and medium businesses in India who spend around $3.25 billion every year on hardware. This segment market in India has grown by 20% during the third quarter of 2009-10, while the industry actually saw de-growth by 11.5% during the period. Dell’s sales in the small and medium business segment have jumped by 76.5% while industry average is around 16.6%. In fact, Dell’s recent launch of the laptop – Vostro V13 – was also aimed at small and medium businesses. Globally, Dell shifted its focus to this segment in December 2008.

(FE February 19, 2010)

back top

Indian IT-BPO mkt to touch $285 bn by 2020

India’s IT-BPO market (including exports) could touch USD 285 billion in 2020 growing at a CAGR of 15 per cent, said a report released by KPMG and ASOCIO. The IT-BPO industry in India has achieved impressive growth rates over the past decade and it stands at USD 71.6 billion in 2009.

(www.ciol.com Feb. 09, 2010)

back top

Media tablets shipments to rise to 5.7crore by 2015

The market segment for media tablet will see 40.00 lakh (four million) units shipped this year and will zoom to about 5.7 crore (57 million) annually by 2015. As per ABI Research, the recent launch by Apple of its long-rumoured iPad tablet computing device will catalyst the real start of a new market segment for media tablets. A number of other tablets were announced at the International CES 2010. Players in this new field fall into two camps: traditional computer vendors such as Lenovo, HP, and Asus; and a number of new, smaller vendors such as ICD and Notion Ink. The vendors in the latter category are often quite small and little known, and they see this market as an entry-point.

(eetinidia.co.in February 08, 2010)

back top

Telecom

Aircel to invest $1.4 bn by June

Telecom service provider Aircel plans to invest $1.4 billion (over Rs.6,474 crore) this year on expanding its operations and become a pan-India GSM operator by June, 2010. According to COO Gurdev singh, the company plans to have operations in all 23 telecom circles in the country by June this year.

(BS February 25, 2010)

back top

Telephone users in Jan up 3.5%

The total number of telephone subscribers in the country reached 581.81 million at the end of January, 2010, an increase of 3.49% over 562.21 million in end-December, 2009. According to figures released by TRAI on 23rd Feb/10, the wireless subscriber base increased from 525.15 million in Dec/09 to 545.05 million in Jan/2010, at a growth rate of 3.79%, with a wireless teledensity of 46.37%. However, the wireline subscriber base continued to decline from 37.06 million in Dec/09 to 36.76 million in Jan/2010. BSNL and MTNL hold 84.96% of the wireline market. The overall teledensity stood at 49.5%. Bharti Airtel remained at the top with a 22.33% share, followed by Reliance Communications with 17.72% and Vodafone Essar with 17.27%. The total broadband subscriber base increased from 7.83 million in Dec to 8.03 million in January, showing a growth of 2.42%.

(BS February 24, 2010)

back top

Tata Comm to pump $200 million into Gulf cable network in 2 years

Tata Communications will invest $200 million in the Tata Global Network (TGN) Gulf cable system over the next two years. The investment will enable the firm to extend its portfolio to services such as global Ethernet, MPLS-based VPN, managed security, infrastructure as service (IAAS) and global telepresence. According to the company, these services are seeing increasing demand from local as well as global enterprises, which are expanding in the emerging market region.

(FE February 24, 2010)

back top

Tata Tele pips Idea to become India’s 5th largest telecom operator

Tata Teleservices Ltd (TTSL) has become the country’s fifth largest telecom operator, pushing Idea Cellular to the sixth slot. This is after the company registered the highest net additions to its subscriber base in January, 2010, taking the total users past 60 million. TTSL added 2.98 million subscribers in January from its CDMA and GSM operations put together, while Bharti Airtel added the second highest additions during the month at 2.85 million, followed by Vodafone-Essar with 2.8 million. In December, TTSL added over 3.3 million new subscribers. According to the available figures, while TTSL has over 60 million subscribers, Idea Cellular recorded close to 59.8 million at January-end.

(FE February 19, 2010)

back top

LG dials villages to up mobile sales

LG Electronics India has chalked out plans to double its share in the mobile handset market. The company is eyeing in rural markets and smaller towns coupled with innovative products customized for Indian users to ramp up its sales. According to Sudhin Mathur, Business Head, Mobile Communications of LG Electronics India, the company plans to sell close to 10 million GSM-based handsets by December-end against 3.5 millions sold in 2009. In India, around 100 million mobile handsets are sold in a year now and the market is expanding by around 6%. Industry analysts attribute handset market in India at around Rs.22,000 crore. LG will substantially ramp up its distribution network that will encompass around 50,000 retailers by 2010-end against 20,000 retailers in 2009. Sale of handsets contributed Rs.1,000 crore (around 10%) to overall revenues for LG Electronics in the country and it is eyeing revenues of around Rs.3,000 crore (15%) during the calendar year 2010. LG also plans to launch 40 new mobile handsets in 2010.

(HT February 19, 2010)

back top

Vodafone releases world's cheapest handsets

Vodafone has recently announced the release of its most affordable ultra low cost handsets to date, Vodafone 150 and Vodafone 250 priced at $15 and $20 respectively. The new devices offer voice and SMS services, as well as support for mobile payment services. The two devices share most specification features, the main differences between them being that the Vodafone 250’s screen is both colour and slightly larger, and it has an FM radio. The new handsets are launched in India and 6 markets in Africa - The Democratic Republic of Congo, Kenya, Mozambique, Qatar, South Africa and Tanzania. In India, it is expected that device availability will reach 60 per cent of the population.

(www.ciol.com Feb. 18, 2010)

back top

Cos bet on services to market handsets

Caught between a market leader busy ramping up its offerings and a bunch of domestic players making long strides in the marketplace, mobile handset makers such as Samsung, LG and Sony Ericsson are betting on services and free apps to boost sales. Samsung Electronics, the world’s largest mobile handset maker after Nokia, will soon roll out smartphones based on a new in-house operating system platform, BADA, that will enable users to download music, maps, games and access interactive features online. LG Electronics and Sony Ericsson too are ramping up applications, music and games available on their online stores as services fast become a key differentiator in the handset market that has of late seen a slew of domestic firms such as Micromax, Karbonn and Intex making large inroads and new established brands like Videocon and Onida entering the field. According to market research firm Synovate India, the integration of mobile handsets with services is really the future of telephony in India. Already about 10% of the 525 million mobile subscribers in the country (December 2009) uses online services provided by handset makers.

(ET February 17, 2010)

back top

APAC emerging markets to drive mobile data growth

Mobile global connections in 2009 were 1.2% lower than previously forecasted, but outlook remains bright for the mobile space from now through 2014, when connections are expected to reach 6.49 billion, bolstered by rapid growth from emerging markets in Asia Pacific, which would account for 63% of global net connections by then. As a result of this increased focus on emerging markets, global prepaid connections will grow from 3.3 billion in 2009 to 4.79 billion in 2014. Conversely, developed market connections have borne the brunt of the recession. Therefore, we have dampened our expectations in most developed markets. There is still growth – a CAGR of 2% from 2009 to 2014 in Western Europe, for example – but operator strategies in mature markets must reflect the shift in emphasis to maintaining profit levels rather than top-line growth

(www.enterpriseinnovation.net Feb. 17, 2010)

back top

Cellphone subscription to cross 5 bn in 2010: UN

Global demand for mobile telephones remains strong, despite the economic crisis, with the number of individual mobile cellular subscriptions likely to top 5 billion this year, according to the UN telecom agency. Advanced services and handsets in affluent countries and increased take-up of mobile banking and mobile health-care services in poorer nations is driving the continued demand, an industry congress in Barcelona was told on Monday. "Even during an economic crisis, we have seen no drop in the demand for communications services," said Dr. Hamadoun Toure, Secretary-General of the International Telecommunication Union (ITU), according to the UN News Centre. The number of mobile cellular subscriptions had already reached 4.6 billion by the end of last year, and the ITU said it expects growth to be strong across all regions. The agency also predicted that, if current growth rates continue, within five years Web access by people on the move - such as from laptop computers and so-called smart mobile devices - will exceed Web access from desktop computers. "Even the simplest, low-end mobile phone can do so much to improve health care in the developing world," said Dr. Toure. In the developing world, the ITU noted, there are also large numbers of people who have a mobile phone subscription but no bank account and use their phones for banking activities.

(www.ciol.com February 16, 2010)

back top

Nokia launches its most affordable 3G device in India - Nokia 2730 classic

Nokia brings the Internet closer to reality with its most affordable 3G device, Nokia 2730 classic in India. The sleek and compact Nokia 2730 classic is one of the industry’s most affordable 3G devices priced at Rs 4,499/-. The device provides an ultimate Internet experience and is competitively equipped with Nokia’s range of emerging market services such as Ovi Mail, Nokia Messaging, Nokia Life Tools, and browsing, making it easy for consumers to share and manage life. Nokia 2730 classic is available in black and dark magenta colors, with various features. The overall measurements of the handset are 109.6 mm x 46.9 mm x 14.4 mm and it weighs 87.7 g. The battery life offers maximum of 7.4 hours talktime and 16.5 days standby time. It supports 3G for faster search and browsing and an integrated Opera mini browser. The Nokia 2730 classic is Nokia Life Tools compatible.

(telecomyatra.afaqs.com Feb 10, 2010)

back top

Consumer Electronics

Samsung launches 3D Television

Samsung Electronics Co Ltd, the world’s No.1 TV brand, launched 3D TV sales in South Korea on 25th Feb/10, with an aggressive target as it seeks to defend flat-panel margins and gain an early lead in the emerging market. TV brands are aggressively promoting 3D TVs in search of ways to raise blended selling prices and improve their product mix after millions of household over the past years bought flat-screen TVs for households’ living room, bedroom and even kitchen and bathroom.

(FTE February 26, 2010)

back top

GE launches mini scanner for doctors

GE Healthcare, the $17-billion healthcare division of General Electric Company, on 15th Feb, 2010 launched an iPod-like device that can be handy for doctors who want to see what’s wrong inside a patient’s body. Terming it as a revolutionary pocket-sized visualization tool, ‘Vscan’, GE said the product, roughly the size of a smart phone, houses powerful, ultrasmart, ultrasound technology, that provides clinicians with an immediate, non-invasive method to help secure visual information about what is happening inside the body. Vscan costs between Rs.5.5 lakh and Rs.6 lakh per unit, is portable, battery-operated and can easily be taken from room to room to be used in many clinical, hospital or primary care settings.

(BS February 16, 2010)

back top

2009 STB market see-saws in Asia, Europe

According to In-Stat's latest market estimates, the STB market in Asia is estimated to have seen over 40 per cent growth in shipments in 2009,while, the European market saw unit shipments slip 11 per cent in 2009. The North American market was up 2.5 per cent, primarily due to a temporary surge in Digital Terrestrial (DTT) STB shipments. Across all regions, except Asia, high-definition (HD) boxes are growing, while standard definition boxes decline. The rapid growth in Asia is being driven by a surge in satellite STB shipments, in conjunction with strong IPTV STB growth. Europe is seeing shipment declines across all box types, including IPTV, satellite, cable and terrestrial. Recent research also found that worldwide digital STB product revenue was Rs.20,317.88 crore ($4.4 billion) in Q3 09, on track to hit Rs.87,736.30 crore ($19 billion) for the year. IP STB shipments to telco TV service providers are slowing down as telco TV subscriber growth matures and moderates. In-Stat estimates 2009 North American cable STB shipments will decline by over 30.00 lakh (3 million) units.

(eetinidia.co.in February 11, 2010)

back top

Broadband and wireless TV to grow to $8 bn in APAC

USA-based ABI Research predicts that telco TV service revenue in the Asia Pacific (APAC) region will reach $8 billion by the end of 2014, representing a 45 per cent growth from 2009 to 2014. Telco TV (optic fiber-enabled TV service) includes television content, such as digital TV video on demand, web TV, Internet services, interactive TV, wireless services, IPTV etc offered by telecom service providers. The firm also says that in the APAC region, Japan, South Korea and India saw significant increases in telco TV ARPU and service revenue and it forecasts that the Japanese telco TV market will approach $3 billion in service revenue by the end of 2014. According to the research company, Western Europe generates the largest share of global revenue in telco TV, which will continue to grow from about $6 billion in 2009 to $18 billion in 2014, a 22 per cent growth.

(telecomyatra.afaqs.com Feb 12, 2010)

back top

LCD TV market to stage comeback in 2010

The global market for LCD TVs is finally showing an upturn by making a comeback in the 2H 09 after three consecutive quarters of red ink, according to iSuppli Corp. The road to recovery indicates resumption of revenue growth in 2010. Global revenue from shipments of large-sized LCD panels used in TVs is set to rise to Rs.227,190.84 crore ($49.2 billion) in 2010, up 40 per cent from Rs.162,543.04 crore ($35.2 billion) in 2009. The projected revenue increase for this year follows a 5.2 per cent decline from 2008 to 2009. Coming in concert with the rise in revenue is a resumption of profitability for the LCD TV panel market. Overall, the industry bounced back to a 10 per cent profit margin in Q3 09 after successive quarters of negative performance. Suppliers had their first setback in Q3 08 when sales of 32-inch panels, the most popular LCD TV size, yielded zero profitability. This was followed by a loss of 23 per cent in Q4 08, and then succeeded by negative margins of 31 per cent and 12 per cent, respectively, in Q1 and Q2 of 2009. That tide of decline has reversed, and profitability for 32-inch LCD TV panels is now expected to continue to rise throughout 2010, reaching 25 per cent in Q4.

Boom for LED backlighting :After a rocky start, sales of panels using LED backlights are now rising and helping to drive improved profitability for the large-sized LCD panel business. In the early phase of the adoption of LED-backlit LCDs in Q1 09, suppliers sold these panels at prices below their manufacturing costs because of the general oversupply in the market. While this helped drive adoption of LED-backlighting technology, it also exacerbated losses among suppliers. However, higher demand combined with supply constraints will lead to panel price increases and improved revenue growth opportunities for panel suppliers. Global shipments of LCD TV panels using LED backlights are set to rise to 2.54 crore (25.4 million) units in 2010, up by more than a factor of five from 48.00 lakh (4.8 million) in 2009. By Q4 10, 25 per cent of shipped LCD TV panels are expected to have LED backlights.

(eetinidia.co.in February 10, 2010)

back top

Slight recovery on the cards for CE market in 2010

iSuppli Corp. sees a mild recovery in the global consumer electronics market in 2010. It expects the revenues to expand by 1.6 per cent after a 6.7 per cent drop in 2009, reports iSuppli Corp. This slight but welcome increase is coming from improving sales of LCD TVs, digital STBs and appliances. Worldwide CE OEM revenue will rise to Rs.1,485,669.36 crore ($317.3 billion) in 2010, up from Rs.1,462,258.24 crore ($312.3 billion) in 2009. While a less than 2 per cent increase represents only marginal revenue growth, it marks a welcome turnaround after a dismal 2009. The 6.7 per cent fall in CE OEM revenue in 2009 represented the market's first annual decline since the 1.6 decrease during the dot-com bust year of 2001. "Sales of CE rebounded in 2H 09, setting the stage for renewed growth in 2010 and beyond," observed Jordan Selburn, principal analyst, iSuppli. "One major bright spot for CE in 2009 was the LCD TV segment, which achieved 4.2 per cent revenue growth due to incentives in China and the increasing sales of LED-backlit sets. The LCD TV market is set to extend its winning streak in 2010 as stabilisation in the global economy and declining prices prompt consumers to keep buying." Global LCD TV OEM revenue in 2010 will rise to Rs.353,507.84 crore ($75.5 billion), up 5 per cent or Rs.16,856.00 crore ($3.6 billion), from Rs.336,885.94 crore ($71.95 billion) in 2009, the largest dollar increase of any CE segment for the year.

The next biggest growth area in terms of dollars will be digital STBs, which will see OEM revenue rise to Rs.85,216.46 crore ($18.2 billion) in 2010, up Rs.8,896.22 crore ($1.9 billion)—or 11.6 per cent—from Rs.76,320.23 crore ($16.3 billion) in 2009. Sales are particularly strong in Asia Pacific due to the continued expansion of digital infrastructure, giving increasingly wide swathes of the population access to pay-TV content over cable, satellite and the internet.

Global OEM revenue from appliances such as washing machines, ovens and refrigerators is expected to rise to Rs.360,484.35 crore ($76.99 billion) in 2010, up 2.1 per cent or Rs.8,896.22 crore ($1.9 billion), from Rs.353,039.61 crore ($75.4 billion) in 2009, making it the third largest dollar growth area for the year.. "Increases in sales are being driven by emerging economies, where more households are buying basic appliances, such as washing machines," Selburn noted. "After a 4.6 per cent decline in 2009, this area will rebound in 2010 as global governments continue their stimulus efforts."

Other areas expected to experience revenue growth in 2010 include DVD video players, PMP/MP3 players, digital photo frames and handheld video games. In stark contrast to the LCD TV market, global OEM revenue from plasma TV is set to contract by Rs.14,046.67 crore ($3 billion) in 2010. Plasma TV revenue is set to decline to Rs.43,076.45 crore ($9.2 billion) in 2010, down 24.9 per cent from Rs.57,123.12 crore ($12.2 billion) in 2009. Meanwhile, CRT TV revenue is set drop by Rs.11,705.56 crore ($2.5 billion) for the year as consumers continue to favour FPDs.

(eetinidia.co.in February 01, 2010)

back top

Business Opportunities/ Enquiries/ Meetings

back top

Coming Event & General Information

TAIWAN INTERNATIONAL LIGHT SHOW (TILS) 2010 TWTC Exhibition Hall, Taipei - March 12-15, 2010

This Event is being organized at TWTC Exhibition Hall, Taipei, March 12-15, 2010. TILS 2010 brings together a suprising broad selection of hi tech, eco friendly lighting styles and designs. The exhibitors includes Avertronics Inc,China Electric Mfg Corporation,Cindi Enterprise Co. Ltd,Fu-Jou Industrial Corporation,Philips Electronins Industries (Taiwan) amongst various others. Exhibitor profile includes Lighting & Lamps, LEDs, Materials & Components For Luminaires / Lighting. For more details, please visit http://www.TILS.com.tw. or contact Sherlynn D'costa, Trade promotion Specialist, Taiwan World Trade Center, Mumbai (Tel - 022-22163074-77, Email : mumbai2@taitra.org.tw)

back top

18th CONVERGENCE INDIA 2010

Pragati Maidan, New Delhi - March 23-25, 2010

The 18th Convergence India 2010 International Exhibition & Conference will be held at Pragati Maidan, New Delhi, during March 23-25, 2010. For more details, contact: Exhibitions India Pvt Ltd, 217-B (2nd Floor), Okhla Industrial Estate, Phase-III, New Delhi 110 020 (Tel: +91-11-42795000, Fax: +91-11-42795098/99, E-Mail: exhibitionsindia@vsnl.com, Website www.convergenceindia.org, www.exhibitionsindia.com

back top

COMMUNICATIONS INDIA 2010

Nimhans Convention Centre, Bangalore - May 20-22, 2010

Infinite Exhibitions is organizing ‘Communication India 2010’ at Bangalore during May 20-22, 2010. It is the country's largest and most influential telecommunication event in the region, integrated under one roof solutions event comprising an Expo and an technical seminar presenting a communication platform to all the entrepreneurs involved in the creative and productive innovations of the Telecommunications industry. A trade show designed to provide an overview of the latest trends on Telecommunications by showcasing the Communication Industry advances,
Communication India 2010 is a communication arena to bring together the world's leading industry experts from both the public and the private sectors, attracting regulators and CEOs. The concurrent technical seminar for two days will surely provide the visitors an opportunity to find out the latest tendencies of Telecommunications market with a broad spectrum of marketing tools. Exhibitor profile includes latest Telecommunications Technologies, Optical Fibre Networking, Cable and Cable & Cable lying, Data Network Services & Management, Internet Services, Telecommunications Softwares, Mobile Technology, Microwave, Satellite Services, and Radio Frequency Technology, For more details and registration, please visit www.biztradeshows.com/communications-india/ or contact the organizers – Mr. George Johnson, Infinite Expositions, # 309, R. K. Apartments, Block 12, Hoysala Nagar 3rd Main, 6 Th Cross, R. M. Nagar,, Bengaluru - 560 016. (Tel: +(91)-(80)-65605052, Fax: +(91)-(80)-41670282, Mob : 09243195424, E-mail : infinite.expo@gmail.com)

back top

LIGHTING SOUTH ASIA (LSA) 2010

Mumbai Exhibition Centre, Mumbai - May 27-29, 2010

This Show is being organized by Expomedia Events India Pvt. Ltd. at Mumbai Exhibition Centre, Mumbai, during May 27-29, 2010. Full details are available at www. lightingsouthasia.com. For Space and other queries RASHEED ANWAAR +91 11 66619435, +91 9990101000, E-maiI : lightingsa@eme-india.com

back top

ELECTRONICA INDIA & PRODUCTRONICA INDIA 2010 Bangalore International Exhibition Centre (BIEC), Bangalore – Sept. 7-10, 2010

Electronica & Productronica India 2010 is being organized at BIEC, Bangalore during Sept. 7-10, 2010. This is the 11th International exhibition and conference for electronic components, assemblies, materials and production technologies. Exhibitor profile includes : Semiconductors, Sensors, Relays, switches and interconnection technology, Passive components, Motors/drives, Cables, Assemblies and subsystems, ED/EDA and test and measurement technology, Displays, Power supplies, Packaging, Materials processing, Manufacturing equipment and logistics for PCBs and other circuit carriers, Technologies in cable processing, Soldering technology, Manufacturing equipment and logistics for assemblies, modules and hybrids, General operation aids and production subsystems, Production-related services. For more information, please contact the organizers - MMI India Pvt.Ltd, 23, Deccan Court, S.V Road, Bandra (W), Mumbai. 400 050, info@mmi-india.in, Tel: +91 22 26452101/ 02/ 03, Telefax: +91 22 26516372, or visit www.electronica-india.com www.productronica-india.com

back top

GLOBALTRONICS 2010

SUNTEC Singapore – Sept. 15-17, 2010

Reed Exhibitions is organizing ‘GlobalTRONICS 2010’ at SUNTEC Singapure during September 15-17, 2010. GlobalTRONICS is a key regional Electronics Manufacturing Industry event, bringing together international suppliers and electronics manufacturers from all over Asia. This biennial event, actively features six specific electronics industry segments namely, PCB Assembly & SMT Equipment, Testing & Measurement Equipment, Active & Passive Components, Contract Manufacturing, Plastic Molding, Metal Stamping & Precision Engineering, Embedded Systems Solutions & Technology, Optics & Optical Components. In addition, 2 new feature pavilions namely, Photovoltaics and Printed Electronics will be introduced at GlobalTRONICS 2010. ELCINA is supporting this Event. For more information and participation, please visit www.globaltronics.com.sg and/or contact Reed Exhibitions, Singapore (Tel: (65) 6780 4613, Fax: (65) 6588 3798, Email: kiamin.boon@reedexpo.com.sg)

back top

TAITRONICS AUTUMN 2010

TWTC, Taipei - October 11-14, 2010

TAITRONICS AUTUMN 2010 will be held at TWTC, Taipei, during October 11-14, 2010. Over the past 35 editions, TAITRONICS has grown into a world leading trade show that offers the best venue for electronics professions to exhibit their best. TAITRONICS further underscores this role as a B2B trading platform for specialized Electronics Components & Equipments, Meters & Instruments, LED & Lighting, Electronic Manufacturing Equipments, Consumer Electronics, Securities Systems & Products. For more details, please log on to http://www.taitronics.org/taipei/index.shtml.

back top

HONG KONG ELECTRONICS FAIR (Autumn Edition)/Electronic Asia 2010

Hong Kong Convention & Exhibition Centre - October 13-16, 2010

Organised by HKTDC, Hong Kong Electronics Fair 2010 & Electronic Asia will be held at Hong Kong Convention & Exhibition Centre during October 13-16 2010. For more details, contact Exhibitions Department, Hong Kong Trade Development Council, Unit 13, Expo Galleria, Hong Kong Convention and Exhibition Centre, Wanchai, Hong Kong (Tel : (852) 1830 668, Fax : (852) 2824-0249, E-Mail : exhibitions@hktdc.org, Website : http://hkelectronicsfairae.hktdc.com). (For Electronic Asia, log in : http://electronicasia.hktdc.com)

back top

KOREA ELECTRONICS SHOW (KES) 2010

KINTEX, Seoul - October 13-16, 2010

KES 2010 will be held at KINTEX, Seoul, during October 13-16, 2010. For more details, contact Korea Electronic Association (KEA), Rm. 1202,Electronics Building,648,Yeogsam-Dong, Kangnam-Ku, Seoul 135-080 ,Korea. (Tel : 82-2-5530941, Fax : 82-2-5556195, Website – www.kes.org)

back top

ELECTRONICA Munich 2010 Munich, Germany - November 9-12, 2010

Electronica Munich will be held during November 9-12, 2010. For more details, please log in www.electronica.de/en or contact Messe Munchen GmbH, Messegelande, 81823 Munchen, Germany (E-Mail – info@electronica.de)

back top

ELCINA Events, Activities & Services

ELCINA’s Post Budget EC Meeting and CEHA’s Budget Interactive Session on 4th March, 2010 at New Delhi

ELCINA analysed the Union Budget for 2010-11 presented by the Finance Minister on 26th Feb, 2010 and circulated the Highlights to all Members on the same day itself. To discuss the implications of the Budget Proposals, a meeting of the Executive Committee of ELCINA has been scheduled at 12 Noon on Thursday, 4th March, 2010 at India Habitat Centre, New Delhi, which will be followed by CEHA’s Meeting, Lunch & Post Budget Interactive Session. Mr. R. Chandrashekhar, Secretary, Department of Information Technology, has kindly agreed to chair the CEHA’s Post Budget Session, which will be joined by Office Bearers & Members of CEHA – ISA, ELCINA, MAIT, CEAMA & TEMA. Officials from the Finance Ministry have also been invited and are likely to join Formal Notice & Agenda for EC meeting and circular to all Members inviting them to the CEHA Interactive Session have been issued on 23rd February, 2010.

back top

New ELCINA Directory for 2010 released on 25th February, 2010

ELCINA released the 23rd edition of its Directory of Indian Electronics Industry for 2010 on 25th February, 2010 by the hands of the DIT Secretary, Shri R. Chandrashekhar, during ELECTRONICS NEXT India Exhibition at Pragati Maidan, New Delhi. Like our past editions, the new Directory includes the usual updates and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. Along with the printed version of the Directory, electronic version is available on a CD.

Price of the new Directory (Print + CD Version):

	Directory Price	Packing & Forwarding Charges
Domestic Sales	Rs.700/-	Rs.100/- per copy (by courier)
Foreign Sales	US $75^*	*includes air mail charges

For obtaining copies, please send a Demand Draft/at par Cheque favouring “ELCINA Electronic Industries Association of India” to Mr. V.K. Vadhwa, ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi-110020, Tel: +91-11-26924597, 26928053, 41615985 Fax: +91-11-26923440 Email: vijay@elcina.com

back top

ELCINA’s association with Electronics Next 2010 Exhibition & Conference

Suoported by ELCINA, Electronics Next 2010 Exhibition was organized by Images Exhibition in Pragati Maidan, New Delhi, during Feb.24-26, 2010. Concurrently with the Exhibition, a 2-day International Conference with the theme “Vision for the Future – Opportunities for India in the Gobal Electronics Industry” was co-organized by ELCINA on Feb.25-26, 2010. Shri R. Chandrashekhar, DIT Secretary, who was the Chief Guest , inaugurated the Conference on 25th Feb. Apart from the inaugural session, there were two Sessions on ‘EMS’ and ‘Test & Instrument” and Panel Discussion on the first day of the Conference, while the 2nd day on 26th Feb, was focused on Green Electronics – Managing the Environment.

back top

New Conference Facility at ELCINA House

Along with a meeting of ELCINA’s Northern Region Members, a new Conference Facility created after renovation of the basement area of ELCINA House was inaugurated on 19th February, 2010. The new Conference Hall with all modern facilities can accommodate about 40-45 people. In addition to the new Conference Hall at the basement area, an Auditorium (1st Floor) with a seating capacity of 60 people and Board Room (Ground Floor) with a seating capacity of 20 people are available for holding conferences/workshops/meetings etc. For booking these Conference Facilities, please contact Mr. V.K. Vadhwa in ELCINA House (Tel – 011-26928050, 26924597, email – vijay@elcina.com)

back top

ELCINA Programmes organized during Feb, 2010

ELCINA organised the following Programmes during February, 2010:-

Date	Programme	Venue
5th Feb, 2010	ELCINA’s Executive Committee Meeting Western Region Members Meeting (Followed by Dinner)	Hotel Studio Estique/Central Park Pune
6th Feb, 2010	Training Workshop on “Eco Design & Requirements for Safety, EMC & Environmental Standards” (In association with MCCIA)	MCCIA Trade Tower Pune
9-10 Feb 2010	ELCINA-CBI Workshop on “Effective Trade Fair Participation”	ELCINA House New Delhi
19th Feb 2010	Northern Region Members meeting. Inauguration of the new Conference Facility at the ELCINA House Basement Area.	ELCINA House New Delhi
25th Feb, 2009	Release of new ELCINA Directory 2010 during ELECTRONICS NEXT 2010 Exhibition	Pragati Maidan New Delhi

back top

Forthcoming ELCINA-CKM Programmes during March, 2010

In order to establish an extensive source of knowledge to serve Indian Engineering and Electronics Industry and cultivate a manufacturing culture in the country, ELCINA formally launched its Center for Knowledge Management (CKM) on 21st June, 2008. CKM seeks to guide and empower industry to focus on the right management and quality tools enabling it to produce environmentally friendly high quality products at the lowest cost using relevant technology for competitiveness. Since the launch in June 2008, ELCINA-CKM has successfully conducted various programmes on different topics of interest. In-house training programmes are also being organized as per requirement of companies.

Forthcoming programmers:

Workshop on “Union Budget 2010 – GST (Structure, Implementation & Impact Analysis)” on 12th March, 2010 at ELCINA House, New Delhi.

For more details, please log on to - http://www.elcina.com/ckm/services-ckm.htm - and/or contact ELCINA Secretariat, New Delhi – tandra@elcina.com, training@ckm-elcina.com, ckm@elcina.com

back top

OSRAM PRODUCT DISPLAY CENTRE at ELCINA HOUSE

'OSRAM DISPLAY CENTRE' in ELCINA House was inaugurated by Shri Jainder Singh, Secretary, Department of Information Technology, on 13th August, 2007. The Display Centre has 12 Full Stalls and 10 Half/Mini Stalls, presently occupied by the following Member-companies:-

Full Stalls

Bharat Electronics Ltd, Bangalore
EPCOS India Pvt Ltd, Bangalore
Vishay Components India Pvt Ltd, Pune
Teknik Electromeconic Pvt Ltd, Bangalore
Circuit System (India) Ltd, Gandhinagar,
Samtel Group, New Delhi
Deki Electronics Ltd, Noida
Victor Component Systems Pvt Ltd, New Delhi
Osram India, Bangalore
Elin Electronics Ltd, New Delhi
SLN Technologies Pvt Ltd, Bangalore
Bhagyashree Industries, Secunderabad

Half/Mini Stalls

GSP Electronics Pvt Ltd, NOIDA
Cosonic Components Pvt Ltd, Chennai
Servel (India) Pvt Ltd, New Delhi
CTR Manufacturing Industries Ltd, Aurangabad
Shiva Analyticals (I) Ltd, Bangalore
Tadiran Batteries, Israel

Four Half/Mini Stalls are vacant now and members interested may kindly contact ELCINA office for booking the same.

Terms and conditions for booking of stalls:-

Manufacturing & Service Member-companies of ELCINA are eligible to display their products
Flexible shelves are provided inside the stalls. Modification in fixtures of the basic structure will not be possible as it runs counter to uniformity.
Lockable Storage space will be provided below the stall for brochures/publicity materials etc.
Audio Visual clip/Power Point presentation will be displayed for the visitors on LCD Panel installed in the Display Area.
The rental charges for the FULL Stalls will be Rs.20,000/- for two years.
Exhibits can consist of product samples, demo kits, brochures, posters etc.
Each stall has got one power supply point of 15 Amps.
Renewal will be for a minimum period of two years or multiples thereof

back top

Un Subscribe

ELCINAPublication

ELCINA Directory of Indian Electronics Industry - 2010
with interactive CD version

The price for the hard copy +CD is INR 800/ USD 75

(including taxes)*

ELCINA Electronics Outlook

more.....

ADVERTISEMENT

Elcina Services

ELCINA Display Center

ELCINA has recently renovated its Display Center to meet the changing environment of the Industry. Small size Display booths are made to accommodate more and more companies

ELCINA Conference Facility

(a) Auditorium

Hotline Mukesh Aggarwal Auditorium is ideal for holding Conferences / Seminars / Workshops or any Corporate programs

(b) Board Room

ELCINA Board Room is suitable for for senior executive and board meetings. The Board Room can accommodate 15 persons on the main table with a supplementary seating for 10 persons

(c) Committee Room

B.S.M. Deepak Bansal Committee Room can accommodate 25 persons. It is ideal for training sessions & corporate meetings. An additional meeting roomn is available adjacent to the main Committee Room, with similar capacity.

ELCINA Membership

Companies committed to electronic hardware manufacturing with substantial value addition through production of components, subassemblies, parts, capital goods/machinery for manufacturing of electronics hardware, EMS providers, service providers such as quality/product testing as well as companies designing components and subassemblies are eligible for membership. Equipment companies from all segments of electronics (i.e., Consumer, Telecom, IT, Defence, Industrial, Medical and Automobiles) are welcome to join ELCINA membership once they commence manufacturing, assembling or designing activities in the country.

more.......

All Payments through local Cheque/Draft favoring

'ELCINA Electronic Industries Association of India'

payable in New Delhi.
For enquiries, call Mr. V.K. Vadhwa,
ELCINA HOUSE, 422 Okhla Indl. Estate, New Delhi - 110 020.
Tel: +91 (011) 26924597, 26928053; Fax: +91 (011) 2692 3440;
Email: elcina@vsnl.com

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.

M.V. Kesavan

Manager (Coordination)

ELCINA Electronic Industries Association of India

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

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