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November 2010
ELECTRONICS November 2010
Contents
Advantage India
Market overview
Industry Infrastructure
Investments
Opportunities
Industry associations
2
ADVANTAGE INDIA
Electronics November 2010
Advantage India
India has several research-oriented institutes such as the Indian Institute of Science (IISc) and the Indian Institutes of
Technology (IITs), which focus on creating innovative products.
India has investor-friendly and pro-investment norms for electronics manufacturing such as Export Promotion Capital
Goods Scheme (zero duty to exporters of electronic products) and Duty Exemption and Remission Schemes.
Source: EY research; Ministry of Human Resource Development, GoI 2009–10 annual report; Indian Electronics industry – overview; www.mit.gov.in;
―SEZ Approvals granted under the SEZ Act, 2005‖, SEZ India website, http://sezindia.nic.in, accessed on 03 December 2010
SEZs: Special economic zones
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ELECTRONICS November 2010
Contents
Advantage India
Market overview
Industry Infrastructure
Investments
Opportunities
Industry associations
4
MARKET OVERVIEW
Electronics November 2010
• Consumer electronics
• Industrial electronics
• Computers
• Strategic electronics
• Electronic components
• Electronic hardware production in 2009–10 was US$ 22.90 billion as compared to US$ 20.26 billion in
the previous year.
• Demand in consumer electronics and mobile segment has increased by 5 per cent in 2009–10 . With the
increase in local production in this segment, the import have declined by 26 per cent.
• Increasing demands because of relatively higher growth rate in the Indian economy and increasing
disposable income with middle class has given India a lucrative chance to increase its electronic
hardware production.
Source: Department of Information Technology (DIT) 2009–10 annual report.
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MARKET OVERVIEW
Electronics November 2010
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MARKET OVERVIEW
Electronics November 2010
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
Sources: ―Indian Electronics industry – overview,‖ Electronic Industries Association of India website, www.elcina.com, Indian Electronics
industry – overview; www.mit.gov.in
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MARKET OVERVIEW
Electronics November 2010
15.00 13.75
11.79
10.52
10.00
5.00
-
2004-05 2005-06 2006-07 2007-08 2008-09 2009-2010
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MARKET OVERVIEW
Electronics November 2010
Exports
• Exports from the electronics industry witnessed a CAGR of 31 per cent between 2004–05 and 2009–10.
• Communication and broadcast sector constitute 39 per cent electronics exports, followed by electronic
components.
• Exports in the electronics industry are estimated to grow from US$ 4.4 billion in 2009 to US$ 15 billion
in 2014 and US$ 80 billion in 2020, at a CAGR of 33 per cent.
Electronics industry exports Segment-wise exports (2008–09) (per cent)
31% 14 39
4.00
Control instrumention &
3.00 industrial sector
2.00 1.67 Consumer electronics
1.00
34 Computer industry
0.00
2004-05 2009-10
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MARKET OVERVIEW
Electronics November 2010
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MARKET OVERVIEW
Electronics November 2010
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MARKET OVERVIEW
Electronics November 2010
12
ELECTRONICS November 2010
Contents
Advantage India
Market overview
Industry Infrastructure
Investments
Opportunities
Industry associations
13
INDUSTRY INFRASTRUCTURE
Electronics November 2010
Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC) Electronic hardware 111.00
Stargaze Properties Private Ltd (Andhra Pradesh) Electronic hardware, IT/ITeS 68.96
S2tech.com India Private Ltd (Andhra Pradesh) Electronic hardware, IT/ITeS 10.12
Ireo Investment Holding III Ltd (Haryana) Electronic hardware, IT/ITeS 40.00
GP Realtors Pvt Ltd Phase III (Haryana) Electronic hardware, IT/ITeS 17.18
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INDUSTRY INFRASTRUCTURE
Electronics November 2010
Karnataka State Electronics Development Corporation Ltd(KEONICS) Electronic hardware, IT/ITeS 14.5
Magarpatta Township Development and Construction Co Ltd (Maharashtra) Electronic hardware, IT/ITeS 11.98
Kumar Builders Township Ventures Private Ltd (Maharashtra) Electronic hardware, IT/ITeS 49.10
Siddhivinayak Knowledge City Developers Private Ltd (Maharashtra) Electronic hardware, IT/ITeS 12.14
Pride Infrastructure & SEZ private Ltd (Maharashtra) Electronic hardware, IT/ITeS 12.34
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INDUSTRY INFRASTRUCTURE
Electronics November 2010
Flextronics Technology India Private Ltd (Tamil Nadu) Electronic hardware and related services 101.0
Arun Excello IT SEZ Private Ltd (Tamil Nadu) Electronic hardware, IT/ITeS 10.9
State Industries Promotion Corporation of Tamil Nadu Ltd Electronics hardware 140.7
Coimbatore Hi-tech Infrastructure Private Ltd (Tamil Nadu) Electronic hardware, IT/ITeS 60.7
True Developers Private Ltd (Tamil Nadu) Electronic hardware, IT/ITeS 11.6
Best and Crompton Engineering Ltd (Tamil Nadu) Electronic hardware, IT/ITeS 10.8
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INDUSTRY INFRASTRUCTURE
Electronics November 2010
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ELECTRONICS November 2010
Contents
Advantage India
Market overview
Industry Infrastructure
Investments
Opportunities
Industry associations
18
INVESTMENTS
Electronics November 2010
Investment … (1/2)
Source: ―Fact Sheet – August 2010 on Foreign Direct Investment (FDI),‖ Department of Industrial Policy and Promotion website, www.dipp.nic.in,
accessed on 28 November 2010
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INVESTMENTS
Electronics November 2010
Investment … (2/2)
Key deals (2010)
Deal value (US$
Deal date Target name Acquirer
million)
September 28, 2010 Tyco Electronics Ltd-Energy Business Raychem RPG Ltd NA
September 21, 2010 Citigroup Inc-Datacenter Buederich Wipro Technologies NA
August 26, 2010 Venture Infotek Global Pvt Ltd Atos Origin SA NA
September 20, 2010 Micromax Informatics Ltd Investor Group 43.8
October 14, 2010 A Little World Pvt Ltd SBI 18.1
July 9, 2010 In2Soft GmbH KPIT Cummins Infosystems Ltd 3.8
October 18, 2010 El Corp Ltd Yam Keong Chee 1.0
June 30, 2010 MMG India Pvt Ltd Delta Magnets Ltd NA
April 12, 2010 Dynamic Test Solutions Inc Tessolve Services Pvt Ltd NA
March 5, 2010 Undisclosed Electronic Security Co Schneider Electric India Pvt Ltd NA
Zicom Electronic Security Systems Ltd-
March 1, 2010 Schneider Electric SA 48.89
Electronic Security System
Home Solutions Retail(India) Ltd-
February 24, 2010 Pantaloon Retail(India)Ltd NA
Consumer Durable,Furniture Business
February 24, 2010 Wavetel Mobiles Sangeetha Mobiles Pvt Ltd 2.81
February 22, 2010 TexTech International Pvt Ltd Jouve 5.41
February 17, 2010 SEI Cable Accessories(India)P vt Ltd Sumitomo Electric Industries Ltd 0.13
January 21, 2010 MIC Electronics Ltd Investor Group NA
January 21, 2010 Global Access Spice Retail Ltd NA
January 13, 2010 BA Systems India Private Ltd OneAccess Networks SA NA
January 12, 2010 Micromax Informatics Ltd TA Associates Inc 45.00
Contents
Advantage India
Market overview
Industry Infrastructure
Investments
Opportunities
Industry associations
21
POLICY AND REGULATORY FRAMEWORK
Electronics November 2010
• Excise duty on computers has been removed. Microprocessors, hard disc drives, floppy disc drives and
CD ROM drives are exempt from excise duty.
• The GoI has decided to set up Information Technology Investment Regions (ITIRs) to provide
superior infrastructure support.
• Units undertaking the export of their complete range of goods and services may be set up under the
EHTP scheme.
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ELECTRONICS November 2010
Contents
Advantage India
Market overview
Industry Infrastructure
Investments
Opportunities
Industry associations
23
OPPORTUNITIES
Electronics November 2010
Opportunities … (1/2)
• Domestic consumption is expected to grow at a CAGR of 22 per cent for the period 2009–2020.
Projected growth in On the other hand, domestic production comprises less than 45 per cent of the total consumption.
domestic Thus, domestic manufacturing companies have the opportunity to expand the production to US$
consumption 100 billion by 2014 and US$ 400 billion by 2020, and in return significantly increase the contribution
to GDP by 2020.
• The GoI has proposed a minimum investment of US$ 555 million for semiconductor manufacturing
plants and US$ 222 million for ecosystem units. This is considered a major step toward attracting
GoI investments foreign companies to set up manufacturing facilities in India. The policy covers wafer fabs and
ecosystem units such as LCDs, storage devices, plasmas, photovoltaics, solar cells and
nanotechnology products, and also includes the assembly and testing of such products.
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OPPORTUNITIES
Electronics November 2010
Opportunities … (2/2)
Electronic • With growth engines such as strong demand, availability of skilled labor and increase in GoI spending
components in related verticals, electronic component segment production is expected to reach US$ 2.6 billion
in 2014 and US$ 3.4 billion in 2020.
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ELECTRONICS November 2010
Contents
Advantage India
Market overview
Industry Infrastructure
Investments
Opportunities
Industry associations
26
INDUSTRY ASSOCIATIONS
Electronics November 2010
Industry associations
Electronics Industries Association of India (ELCINA)
ELCINA House, 422 Okhla Industrial Estate, New Delhi – 110 020, India
Phone: 91 11 26924597,26928053
Fax: 91 11 26923440
E-mail: elcina@vsnl.com
Website: www.elcina.com/
Note
Wherever applicable, numbers in the report have been rounded off to the nearest whole number.
Conversion rate used: US$ 1= INR 48.
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ELECTRONICS November 2010
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