Intertek Signs Deal With Egypt’s NTRA To Test India Manufactured Telecom Products


Quality testing firm Intertek has bagged a deal from National Regulatory Authority (NTRA), Egypt, for testing wireless and telecom products manufactured by Indian companies for the Egyptian market.  Both the firms have signed an agreement in this regard.

According to the MoU Intertek’s Electrical division will perform tests for the products, while the Government Trade Services division will conduct pre-shipment inspections.

Intertek’s electrical and electronics testing laboratory in Mumbai will now be issuing test reports (Safety and EMC) along with PVOC to customers and the testing will be performed in line with IEC standards.

“We take immense pride in being a trusted partner for NTRA. Our vast experience in testing and certification globally will ensure that our services will fully meet the mandates set by NTRA. Such fast moving emerging markets require experienced organizations to provide these services to ensure compliance with national and international standards on behalf of the industry and the general public,” said Sandeep Vig, Director Intertek India.

The NTRA has a set of rules and specifications for telecom equipment being introduced to the Egyptian market. To ensure that all products meet the required parameter set, NTRA has selected Intertek as one three third-party international companies in India for the testing and accreditation of products to be exported to Egypt.

The London headquartered Intertek also believes that Indian government’s Make In India project, besides local manufacturing, will also boost export of India-made telecom equipments.

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Industry Calls For Incentivizing Mobile Manufacturing Under GST


As mobile phones are becoming the principal device to access digital services and help the society digitally empowered, industry bodies and digital think tanks suggest Indian government should offer more incentives to India based mobile manufacturing companies. They want governnment to include incentivization in the yet-to-be rolled out GST (goods and services tax).

Broadband India Forum (BIF), in association with knowledge partner Ernst & Young LLP (EY) Monday released a research paper which highlights the need to incentivize domestic mobile manufacturing in India under GST regime.

Indian government embarked on one of the world’s most ambitious broadband project with the “Digital India” program. Over the last few year, this program—that seeks to transform India into a digitally empowered society and knowledge economy—has resulted in tremendous online media consumption growth. Among the digital devices, mobile devices have taken over as the preferred medium of consuming online media. The handset manufacturing industry has seen a tremendous growth in past few years driven by Government’s ‘Make in India’ initiative and policy changes such as duty reduction on domestically manufactured handsets. The adoption of smartphone in India will go up to 688 million by 2020 as compared to 238 million in 2015.

Wider deployment of 4G networks along with affordability and indigenisation of smartphones is going to drive mobile broadband to the next level of penetration via handsets. However, India is yet not prepared to meet this penetration demand.

T.V. Ramachandran – President of BIF explained, “While broadband infrastructure is at one end of the issue, Customer Premise equipment (CPE) is at the other. The broadband device today is a smartphone. We need to increase smartphone penetration as India has today less than 30% smartphone penetration. This can only happen through local manufacturing and by further increase of local value addition. Further, Broadband India Forum (BIF) along with E & Y is proposing an innovative way using GST to incentivise mobile manufacturing. This we believe is a win-win formula.”

Broadband India Forum (BIF), in association with knowledge partner Ernst & Young LLP (EY), has come up with a win-win formula for meeting this demand. They think that with the rapidly increasing demand, it is important to incentivize the local manufacturers to meet majority of the demand through domestic production.

Aruna Sundararajan. Secretary, Meity agrees with the suggestion too. He said, “Ease of doing business and stable fiscal regime which the GST will bring to the forefront are likely to make India an overall attractive place for manufacturing. The early momentum that we have achieved actually needs to be sustained and further accelerated.”

With the introduction of GST, most of the current Centre and state taxes/duties will be subsumed under GST. The Excise duty on manufacture which was a single point tax and the basis for all incentives would also be subsumed. Thus, it is expected that the incentives available to domestic manufacturers under the current regime would decrease and there is need to continue the incentives under the GST regime to meet the increasing demand through domestic production.”

While GST alone is not the driver for incentivizing mobile manufacturing in a country , some of absolutely essential factors for a sustained manufacturing environment in the country are infrastructure, a robust manufacturing ecosystem, skilled manpower, technology and R&D facilities etc. For the other factors to develop, it becomes important to grant incentives to the domestic manufacturing in order to set off the local disabilities, the joint study recommends.

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India’s Mobile Manufacturing To Touch Rs 94,000 Cr By 2017

Make In India

Make-In-India-Mobile-ManufacturingResponding enthusiastically to Prime minister Narendra Modi’s clarion call of Make in  India, the market size of the India’s mobile manufacturing is expected to reach Rs 94,000 crore by end of this fiscal.

Electronics minister Ravi Shankar Prasad revealed this while inaugurating the mobile manufacturing plant of Chinese smartphone player LeEco.

Prasad said in value terms the local mobile manufacturing industry has grown by 185%. In 2014-15 India produced locally made mobile phones worth Rs 19,000 crore whereas it jumped to Rs 54,000 crore in 2015-16.

“This is likely to touch Rs 94,000 crore in 2016-17,” Prasad added.

In volume terms also, India has demonstrated significant improvement. In fiscal year 2014-15 India produced a total of 6 crore or 60 million mobile phones which increased to 11 crore or 110 millions by 2015-16 showing a growth of 83%. It is expected that India’s mobile manufacturing units would produce around 220 million phones by fiscal 2016-17.

He also said that in just one year 38 electronics manufacturing plants were set up in various parts of the country and 25 mobile phone manufacturers have started their local production here. This also gave rise to employment opportunity of around 40,000 people.

Prasad said, besides manufacturing, India’s smartphone growth is also among the highest in the world. During the second quarter of 2016-17 India’s smartphone market grew by 15% whereas other developing nations grew at a rate of 9.9% and the developed nations at 4.3%.

LeEco that started its local production in its Greater Noida plant also employs 200 people. The mobile manufacturing plant was set up in partnership with Compal Electronics and is having a total area of 2,00,000 square feet.

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LeEco Opens Manufacturing Plant In India


Chinese technology company and smartphone maker LeEco Tuesday opened up its manufacturinng plant in India. The plant is established in Greater Noida on a 2 lakh squarefeet area and the company is partnering with Compal Electronics for its product manufacturing.

The LeECo manufacturing plant will have one product line that with production capacity of 60,000 a month. However, the company said it will expand the capacity to 2 lakh soon.

“Soon we will increase the production capacity to 2 lakh by December and will set up 2 product lines,” said Atul Jain, India head of LeEco.

The Greater Noida plant of LeECo will also export to other parts of the world besides catering to the domestic market.

“This plant will be our global export hub for us,” said Jain of LeEco.

The LeEco manufacturing plant will also hire 1100 R&D engineers in next few months in its R&D division.


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Apple CEO Tim Cook Calls Narendra Modi; Discusses Manufacturing And Retailing

Apple CEO – Tim Cook
Apple CEO, Tim Cook calls on the prime minister, Narendra Modi in New Delhi on May 21, 2016

Apple CEO, Tim Cook called on the prime minister, Narendra Modi today and spoke on manufacturing and retailing in India.

Cook shared Apple’s future plans for India and spoke of the possibilities of manufacturing and retailing in India. He appreciated the breadth of young talent in India, and said the youth have significant skills which Apple would like to tap.

He mentioned the immense potential for ‘app-development’ that exists in the country. He also elaborated on the Map Development Centre that Apple is setting up in Hyderabad. He appreciated the Prime Minister’s initiatives in ‘ease of doing business.

In particular, he mentioned his visit to the Siddhivinayak Temple in Mumbai, and watching a cricket match. The prime minister, appreciating Cook, said that in India, ‘seeing is believing’ and added that these experiences would definitely steer Cook’s business decisions.

Both Tim Cook and the prime minister Narendra Modi shared some unique stories of entrepreneurship that they had come across in app development and renewable energy.

Tim Cook also appreciated the prime minister’s initiatives for renewable energy. He said Apple runs on 93 percent renewable energy and spoke of plans to move Apple’s entire supply chain to renewable energy.

The prime minister explained Digital India initiative, and identified three key objectives of Digital India as e-education, health and increasing farmers’ incomes. He sought support from Apple in furthering these objectives.

Issues regarding cyber security and data encryption also came up for discussion. The prime minister encouraged Tim Cook to help the global community to cope with the challenges of cyber crime. Tim Cook also launched an updated version of the ‘Narendra Modi Mobile App.’

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Bhagwati Products Inaugurates Telangana Mobile Manufacturing Facility For Micromax

Micromax Logo

Bhagwati-Products-Inaugurates-Telangana-Mobile-Manufacturing-Facility-For-MicromaxTaking ahead Make in India campaign, Bhagwati Products inaugurated its second mobile manufacturing facility in Telangana for Micromax.

Bhagwati Products has already invested over 100 crores in the mobile phone manufacturing facility in the first phase.

The plant was inaugurated by KT Rama Rao, minister for IT, panchayati raj and municipal administration & urban development, government of Telangana and P Mahendra Reddy, minister for transport, government of Telangana in the presence of other senior state dignitaries.

The Telangana manufacturing facility has been made operational from scratch in flat six months and will have the capacity to manufacture one million mobile phones per month. The facility currently employs 700 people and will increase the number to 1,000 employees in the next two months, boosting employment opportunities in the state.

KT Rama Rao said, “We are very happy that Micromax who has been a front runner in demonstrating technological prowess by bringing future disruptions at affordable price points and has chosen Telangana as the destination for setting up its manufacturing facility. We believe this partnership will provide new opportunities to youth of the state and develop an electronics manufacturing ecosystem of global standards in Telangana.”

He said this partnership will provide new opportunities to the youth of the state and develeop and electronics manufacturing ecosystem of global standards in Telangana.

Commenting on the inauguration, Rajesh Agarwal, co-founder, Micromax said, “By 2017, we aim to be India’s first and largest indigenous phone manufacturer. We have been the front runners for the ‘Make in India’ initiative, by assembling the products locally and quickly ramping up and building capacity of complete manufacturing in close partnership with the government.”

Bhagwati Products has been promoted by Rajesh Agarwal and his associates. The company has its first plant in Uttrakhand for manufacturing mobile phones, tablets, LED TVs, dongle and their spares and accessories as OEM supply to Micromax Informatics with the capacity to produce 16 lakh mobile phones, 1 lakh LED TV, 1 lakh tablets and 4 lakh dongles per month. The company has already gone for backward integration for manufacturing LED TV panel.

The Hyderabad plant is the second unit of Bhagwati Products and has the capacity of producing one million smartphones a month in the first phase. It also has a provision for expansion and a provision to manufacture LED TV and other electronic equipment in the future.

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Jaypee Consortium Pulls Out Of Semicon Fab Manufacturing Project


Jaypee-Consortium-Pulls-Out-Of-Semicon-Fab-Manufacturing-ProjectThe Jaypee Consortium has pulled out of semiconductor fab manufacturing facility project with a proposed investment of Rs 26,300 crore.

Speaking on the sidelines of Qualcomm event, Dr Aruna Sharma, secretary, department of electronics & information yechnology (DeitY), ministry of communications & information technology, government of India said, “JP Associates has withdrawn its proposal of semiconductor plant. They have said that it is not commercially viable to set up this plant at present.”

The Indian government had approved setting up of two semicon fab manufacturing facilities – Jayprakash Associates and Hindustan Semiconductor Manufacturing (HSMC) in the country worth Rs 51,550 crore on 13 Sepetember 2013.

Jaiprakash Associates and Hindustan Semiconductor Manufacturing were the two consortiums approved by government of India for semicon fab. Both these facilities were expected to provide a big boost to the electronics system design and manufacturing eco-system in the country.

Jaiprakash Associates had tied up with IBM, US and Tower Jazz, Israel for semicon fab. The outlay of the proposed FAB is about Rs 26,300 crore and will manufacture 40,000 wafers per month of 300 mm size, using advanced CMOS technology. In phase I, the fab will focus on 90, 65 and 45 nm node, phase II will focus on 28 nm node and phase III will focus on 22 nm node. The proposed location for Jaiprakash Associates is Greater Noida.

Hindustan Semiconductor Manufacturing (HSMC) had tied up with ST Microelectronics, France and Silterra, Malaysia for semicon fab. The outlay of the proposed FAB is about Rs 25,250 crore for the fab facility of 40,000 wafer starts per month of 300 mm size, using advanced CMOS technology. Technology nodes proposed are 90, 65 and 45 nm nodes in Phase I; and 45, 28 and 22 nm nodes in Phase II. The proposed location for HSMC is Prantij, near Gandhinagar, Gujarat.

The government has also approved the package of incentives for the two consortia. This package includes incentives already available under the Modified Special Incentive Package Scheme (M-SIPS) and deduction available for expenditure on R&D under the Income Tax Act.

In addition, Fab facilities will also be eligible for investment linked deduction under Section 35AD of the Income Tax Act. The government will provide Viability Gap Funding (VGF) in the form of an interest free loan for a period of 10 years.

The proposed FABs planned to create direct employment of about 22,000 and indirect employment of about one lakh.

The Indian government has approved setting up of two semicon fab manufacturing facilities in the country worth Rs 51,550 crore. Jaiprakash Associates and Hindustan Semiconductor Manufacturing (HSMC) were the two consortia approved by government of India for semicon fab.

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Make In India: Mobile Phone Manufacturing Reaches Rs 54,000 Crore

Make In India

Make-In-India:-Mobile-Phone-Manufacturing-Grows-186-PercentThanks to Make in India initiative, India has manufactured mobile phone worth Rs 54,000 crore in FY 2015-16, showing a growth rate of 186 percent.

In FY 2015-16, the number of mobile phone units manufactured was 110 million vis-a-vis 60 million in FY 2014-15. Feature phones contributed majority i.e. 60 million and smartphones contributed 50 million. In Rupee term, India manufactured feature phones worth Rs 5,000 crore and Rs 49,000 crore worth smartphones.

In FY 2014-15, India manufactured 17 million feature phones and 43 million smartphones. In Rupee term, India manufactured mobile phone worth Rs 18,900 crore and of this Rs 1,400 crore worth domestic production was from feature phones and Rs 17,500 crore from smartphones.

According to Industry experts, India’s mobile phone manufacturing will reach more than 220 million units in 2015-16 showing a growth rate of 50 percent. Even number of manufacturing units planned is going to increase from present 20 in FY2015-16.

Mobile Phone Manufacturing In India
Company – Location – Manufacturing Capacity (Mn/Month)
Samsung – Noida (UP) – 4
Foxconn – Sri City (AP) – 1
Million Club – Noida (UP) – 1
Lava – Noida (UP) – 1
Intex – Noida (UP) – 3
Intex – Jammu (J&K) – 0.5
Intex – Baddi (HP) – 1
Micromax – Rudrapur (UK) – 1
Celkon – Hyderabad (TG) – 0.5
Dixon – Noida (UP) – 1
GTN – Noida (UP) – 1
Videocon – Aurangabad (MH) – 1
Vivo – Noida (UP) – 0.25
Flextronics – Sriperumbudur (TN) – 1.3
BGM – Noida (UP) – 2.5
Others* – NA – 4
* Around 5 more manufacturing units are operational with a total capacity of 4 million per month
Source: TeleAnalysis

Presently, mobile handset manufacturing in India provides employment to around 40,000 people and this is bound to increase with additional manufacturing units becoming operational and also increase in existing manufacturing capacity.

The recent budget recommendation on duty differentials in three components – battery, charger and headsets will also lead to additional employment generation in mobile handset manufacturing in the country as all these companies are planning to set up manufacturing facilities in India. All these initiatives will give a big boost to Make in India.

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Budget 2016: Big Boost To Make In India


Budget-2016:-Big-Boost-To-Mobile-ManufacturingBudget 2016 has given a big boost to Make in India with respect to manufacturing of mobile phones and tablets in the country.

Both India Electronics & Semiconductor Association (IESA) and Indian Cellular Association (ICA) has welcomed government move to promote local value additions in electronics.

The Indian Cellular Association (ICA) has welcomed the emphasis given to promote manufacturing of mobile phone parts, components and accessories as per budget announcements made by the finance minister Arun Jaitley.

“The differential duty regime available for promoting domestic mobile handset manufacturing in India has now been enhanced and extended for mobile handset adapters/chargers, batteries and headsets/speakers of mobile handsets for supply to mobile manufacturers. The domestic manufacture will attract only 2% excise duty while imports will face 29.44% duty, giving a 27.44% protection to domestic manufacturing vis-a-vis importers,” said Pankaj Mohindroo, national president, ICA.

“Imports of assembled sub-systems like charger/adapter, battery and wired headsets/speakers for manufacture of mobile phone will cost 16.5% more due to withdrawal of Basic Customs Duty and Special Additional Duty. On the other hand, inputs, parts and components, subparts for manufacturing these and other electronics sub-systems have been reduced to 0%. Further, imports of populated printed circuit boards will cost 2-4% more. Both these reflect a strong commitment to promote local value additions in electronics,” said Vinay Shenoy, chairman, India Electronics & Semiconductor Association.

“Expressed thanks for implementation of industry suggestions to streamline excise procedures for manufacturing with the excise approvals have been and rightly substituted by self declaration. The industry is unhappy on the imposition of 2 percent SAD on populated PCBs used in manufacture of mobile phones and tablet computers. As much as half of production cost of a mobile phone consists of populated PCBs and this imposition of 2 percent SAD will mean that the duty differential between complete mobile phones and its parts/components for manufacturing will be significantly diminished. India has not yet developed the eco-system for the complexity involved in populating a mobile phone bare PCB,” said Hari Om Rai, CMD, Lava International.

“We are happy that the budget has walked the talk for Make in India by proposing changes in the customs and excise duty structure in components and sub-components to give fillip to the creation of domestic mobile component ecosystem. The skill development push is another positive as the market demanded and industries have been desperately searching for,” commented Keshav Bansal, director, Intex Technologies.

“The budget 2016 clearly depicts that the government is in full support of start ups and Make In India initiatives. The finance minister has proposed changes in the customs and excise duty rates to boost Make In India, however it is yet to be seen how it would affect the smartphone industry. In my opinion this will surely act as an impetus for the sector and will go on to make the industry more competitive. Government’s initiative towards the R&D sector to accelerate depreciation limit to 150% from FY2018 is also a welcome boost for the manufacturing sector. Overall I feel it is a futuristic budget with the intention of showing the light at the end of the tunnel for boosting entrepreneurship in India” said Arvind Vohra, country CEO & MD, Gionee India.

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Twinstar Display Technologies To Set Up India’s 1st LCD Panel Fab

Make In India

Twinstar-Display-Technologies-To-Set-Up-India’s-1st-LCD-Panel-FabTwinstar Display Technologies, promoted by Volcan Investments will sign a Memorandum of Understanding (MoU) with the government of Maharashtra, to set up India’s first LCD Manufacturing Unit, known as Panel Fab.

Volcan Investments, whose other investments include Vedanta Resources and Sterlite Technologies, will sign a MoU with the government of Maharashtra during ‘Make in India’ Week.

Under the agreement, Twinstar Display Technologies will invest $10 billion over 5 phases in setting up India’s first and one of the world’s largest LCD fab units.

“We have made good of the promise we made to the nation during the Digital India Summit in July 2015. We are happy to participate in two of the government’s key initiatives – the ‘Make in India’ campaign as well as ‘Net Zero Electronics import by 2020’. We will endeavor to make India a significant export hub of display units with the setting up of Panel FAB,” said Anil Agarwal, chairman, Vedanta Group.

Panel FAB is expected to begin production by 2018, with full production over next 10 years subjected to external environment. Upon completion, the project will provide direct and indirect employment to over 30,000 people, and contribute 7 – 10 percent to Maharashtra’s industrial gross domestic product. The project requires about 300 acres of land and two locations have been shortlisted so far.

India’s is one of the fastest growing markets for LCD Panel based products such as TV, smartphones, tablets, desktops and laptops. At present, all LCD panels are imported. By 2020, India’s LCD Panel import bill is expected touch $10 billion. Panel Fab will not only significantly reduce this, but also earn foreign exchange through exports.

Fab unit can only be successful if the whole ecosystem around it develops and Twinstar Display Technologies is confident of bringing many ancillary partners to the country and make India a leading Electronic System Design and Manufacturing (EDSM) destination.

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