Indian PCB scenario

Indian PCB Market size PCB Demand Scenario PCB Usage practices PCB Supply Scenario

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Indian PCB Market Size

FY10 All figures in INR Crores

Imports INR 2650

All figures have been rounded off

Domestic (Excluding Exports) INR 1250

Exports INR 400

Total Indian PCB Market Size = INR 4000 crores

Imports come mainly from China, Taiwan, Hong Kong, Korea and the US. The import prices are almost at par with domestic prices with difference narrowing down to just 5-8%. The imports are largely due to huge demand-supply gap. However, domestic prices in medium volumes are competitive and do not face any threat from imports.

Imports

Exports

India is exporting about 24 percent of its production to the US, Germany, Malaysia, Austria, Belgium, Netherlands, the UK, Italy, Spain, Thailand and New Zealand. India exports single-side, double-side, and multilayer PCBs.

Domestic

PCB manufacturers in India mostly cater across electronics applications in India except motherboards, mobiles and high-end telecom equipment.

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An impressive 17% CAGR growing PCB demand

Domestic Demand S/N Item 1 Consumer Electronics (CE) IndustrialElectronics/ 2 Automation (IE) 3 Computers and periferals 4 Comn.& Broadcast eqpt. (C&B Equip) 5 Strategic Electronics (SE) 6 Automotive Electronics (AE) Total Volume (000) SQM FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 2009-10 2010-11 (E) 2011-12 (E) 2012-13 (E) 2013-14 (E) 2014-15 (E) CAGR 14,470 17724 21800 26800 32500 38350 17.64% 731 533 1,570 177 300 17,780 790 580 1950 185 360 21589 850 630 2440 195 440 26355 950 685 2930 200 530 32095 1050 730 3550 210 625 38665 1150 780 4250 220 720 45470 7.84% 6.55% 18.05% 3.69% 15.71% 17.00%

The market demand is expected to grow to over 45Mn SQM by 2014 from existing 17.7Mn SQM at a CAGR of 17%. The market is fairly large and there is no dependence on single or few suppliers or customers. Linaks will be able to encash this opportunity in the Domestic market.

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PCB Demand
By Volume
C&B equip 8% Computers 3% IE/AUTOMN 4% SE 1% AE 2%

FY10

By Value
Strategic Electronics 8%

Automotive Electronics 3%

FY10

Consumer Electronics 35%

Comn.& Broadcast eqpt. 36% Ind. Elec. / Automation 8%

CE 82%

Computers and periferals 10%

17.7 Mn. SQM

INR 4000 crores

The main demands for PCBs come from consumer, industrial, and automotive electronics markets, as well as from Power & telecommunications. PCB manufacturers in India mostly caters to the small to medium volumes across all sectors. The mobile phone, PC and communication technology sectors which are biggest consumers of PCBs still rely a lot on imports.

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PCB Usage Practices in India

FY10

By Region By Value

By type of Application
Automotive Electronics 3% Consumer Electronics 35%

By Volume

North 20% West 35%

Strategic Electronics 8%

Comn.& Broadcast eqpt. 36%

South 30% East 15%

Computers and periferals 10%

Ind. Elec. / Automation 8%

17.7 Million Sq.m

INR 4000 Crores

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PCB usage across sub-segments (1/2)

Segment Demand in k Sqm Type of PCB used 15% Procurement Key customers Segment Growth

UPS - APC Mobile phones Energy meters Set top boxes LCD monitors Mother boards Inverter UPS - Others ECU

300+ 200+ 140+ 120+ 50+ 40+ 45+ 50+ 30+

43% 14% 5%

85% 100% 85% 68% 86% 100% 100%

APC
0% 0%

18% 28% 20% 18% 30%

Nokia, Motorola HPL. Elymer, Havell Thomson, Humax Samsung, LG, HCL Intel, Asus, Kobian Luminous, Su-kam

10% 32%

81%

0%

3%

0%

20% 13% 20%

97%

40% 100%

17%

Numeric, Emerson
67%

0%

Denso, Bosch, Delphi

ML DS SS

Local Imports % local procurement 21

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PCB usage across sub-segments (2/2)

Segment Demand in k Sqm Type of PCB used 42% 10% 10% 25% 45% 90%
0%

Procurement

Key customers

Segment growth

Microwave LCD TVs Speedometers Combination Switches DC Power Climate control Security system Power window

22+ 20+ 8+ 7+ 5+ 5+ 3+ 1+

58%
0%

LG, Samsung LG, Samsung

1%

20% 50% 25% 25% 15% 25% 30% 20%

89% 75% 55% 100%

Pricol, Siemens VDO

100%

Delphi
100%

Tyco, Amararaja
89%

Visteon, Subros
31%

100%
100%

Autocop, Minda Anand

100%

100% ML DS SS Local

Imports % local procurement 22

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Geographical presence of key suppliers

Competition Manufacturing AT&S Shogini Nanjangud Pune India locations Marketing offices Bangalore Pune, Mumbai. Resident engineers across 6 other locations Doddaballapur Delhi, Mumbai, Bangalore, Chandigarh, Chennai, Hyderabad. Delhi Hyderabad Hosur Mumbai, Pune, Delhi Mumbai Bangalore, Delhi, Hyderabad None Delhi, Chandigarh Delhi Delhi Design/ prototyping Bangalore Pune International locations Marketing offices Across the world None

CIPSA RIC CSIL

Doddaballapur Gandhinagar

None Gandhinagar

None USA

Genus Sulakshana Ascent Epitome Fine-line Micropack Meena Circuits Garg Electronics Sahasra Electronics Precision Electronics

Gandhidham Hyderabad Hosur Ahmednagar Mumbai Bangalore Baroda Panchkula Delhi Delhi NCR

None None None None None Bangalore None None None None

None None None None USA None USA None None None

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Competitive scenario Indicative installed capacities

All figures in ,000 Sq.Mts

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Company CIPSA RIC AT&S Epitome CSIL Meena Circuits Akasaka Shogini Ascent Genus Electrotech Sonic technologies Hi-Q Electronics Sulakshana Circuits Ltd Fine-line, Baroda Fine-line, Mumbai Micropack BLG Others Total

Total Capacity 560 525 240 210 144 180 140 120 100 102 82 70 42 40 25 60 400 2940
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DS 316 150 180 150 108 180 120 96 100 72 34 40 36 28 10 60 400 2080

MLB 144 375 60 60 36 0 20 24 0 30 48 30 6 12 15 0 0 860

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Single side capacities have not been highlighted as thats not our focus Private & Confidential

Competitive scenario Technical capabilities

Capabilities 24
DS, ML upto 24 layers 2-3 Mil 0.2 0.3 0.4 3.2 All types- RoHS compliance

Competition AT&S Micropack Hi-Q

Operations AT&S primarily into exports AT&S the only company having capability and the ability to get good price realizations Hi-Q caters to both; domestic & exports

Fore runner in PCB manufacturing and technology

12
DS, ML upto 12 layers 4 mil <0.3 0.8 3.2

Ascent CSIL Sonic Technlogies

DS, ML upto 6 layers 4 -6 mil < 0.3 0.8 3.2

Sonic concentrates more on exports Ascent, CSIL caters to both domestic & exports Cater primarily to the Indian market with limited or no exports Meena Circuits largely into exports

All types - RoHS compliance

CIPSA RIC Shogini Sulakshana Meena Circuits

HAL, SMOBC, ENiG SS, DS upto 2 layers 8 mil < 0.4 0.8 3.2 HAL, organic coating

Genus Fineline Baroda Garg Electronics Akasaka Epitome 0.4

Cater primarily to the Indian market with limited or no exports

80-100 other players Line width X line spacing Hole diameter Board 25 thickness Surface Finish

0.2

0.3 Drill sizes (mm)

Product type & layer count

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PCB supply scenario

By type of Board FY10 By Value
Others 4%

By type of Board FY10 By Volume

Others 5% Flexible 3%

Flexible 2%

SS 12%

MLB 15% SS 45%

MLB 39%

DS 43%

DS 32%

INR 1650 crores

8 Mn. Sq.m

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Competitive Pricing
INR/Sq.cm
1.4

Average price for the following specifications

1.2

Board thickness: 1.6 mm

1

Line width/ space: 0.15 / 0.15mm

0.8

Surface finish: HAL / ENIG Laminate material: FR 4

0.6

Credit period of 30 - 45 days

0.4

common in the industry

0.2

Lead time for delivery 3 to 4 weeks

4 - 7 days for prototype PCBs

Avg. pricing in Rs./sq.mt DS : 0.40 ML-4 : 0.75 ML-6 : 1.00

DS

ML - 4

ML - 6

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