VOL XXIV, ISSUE 12

30 June 2023

Industry Scan

Tamil Nadu emerges as India’s top electronics exporter, triples exports to $5.37 bn in FY23

Tamil Nadu’s electronics exports nearly tripled in one year to $5.37 billion in FY23 from $1.86 billion in the previous year. From the fourth spot in FY22, Tamil Nadu moved to the top spot in FY23. Companies like Tata Electronics and Pegatron starting production have helped Tamil Nadu overtake three states - Uttar Pradesh, Karnataka and Maharashtra - to become India’s top exporter of electronic goods in FY23. Tamil Nadu retained the top spot in the first two months of the current fiscal year. In 2020-21, of India’s total electronics goods export of $15.59 billion, Tamil Nadu’s share was 11.98 per cent. However, this zoomed to 22.83 per cent, out of a total value of $23.57 billion, according to Central government data.

Source: https://www.thehindubusinessline.com/, June 29, 2023

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        POLICY SCAN                                                                                    

Soon, Goa will have renewable energy policy: CM

The state government will soon roll out a new solar and renewable energy policy. Chief minister Pramod Sawant said on Sunday that by 2030 the state will switch to renewable energy for most of its needs. Government has approved the policy and it will be sent to the central government for its approval. It includes solar and hydro energy among others. The collaborative efforts have resulted in the launch of subsidies for solar panel installations.

Source: https://timesofindia.indiatimes.com/, June 19, 2023

Returns dip, rooftop solar power scheme in Karnataka trips

When the rooftop solar programme was implemented in 2015, poultry farmers and other industrialists invested crores of rupees hoping to supplement their incomes. Now, seven years later, due to rigid policy guidelines, frequent grid power interruptions and maintenance issues, they are bleeding tens of lakhs of rupees. According to Bescom data accessed by DH, 6,419 people have opted for grid-connected solar rooftop photo-voltaic plants under the Karnataka Solar Policy 2014-21. Poor supply to grids has meant that 15-20 per cent of the power generated is lost, they say.

Source: https://www.deccanherald.com/, June 30, 2023

MSME Policy Next Highlights: MSMEs have advantage of speed over large companies, says Meesho CFO

MSME Policy Next Highlights: Dhiresh Bansal, CFO of Meesho, said that small and medium enterprises (MSMEs) have an appetite to bring in new products or technologies and to make that happen, they have the advantage of speed. Their ability to work with lesser overheads help them in this regard, he added. To elaborate, Meesho CFO Dhiresh Bansal explained how in e-commerce, we see that whenever there is a new trend that is catching on, typically, the fashion MSMEs are the first ones to get on that trend quickly and produce relevant items, even if not in large quantities.

Source: https://www.moneycontrol.com/, June 28, 2023

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   INDUSTRY  SCAN                                                                           

General

Gujarat, Micron sign MoU for semiconductor plant at Sanand

US-based Micron Technology Inc Wednesday signed a Memorandum of Understanding (MoU) with the Gujarat government to set up a Rs 22,500-crore semiconductor unit at Sanand near Ahmedabad. Union Minister for Electronics and Information Technology Ashwini Vaishnaw termed the project a “huge step” towards India becoming self-reliant in manufacturing memory-chips. The Assembly, Test, Marking and Packaging (ATMP) facility, to be set up on 93 acres in Sanand GIDC -II industrial estate, looks to create 5,000 direct jobs and is expected to be commissioned within 18 months. The facility will focus on transforming wafers into Ball Grid Array (BGA)-integrated circuit packages, memory modules and solid-state drives.

Source: By Avinash Nair, https://indianexpress.com/, June 29, 2023

Stellantis, Foxconn form 50-50 JV on semiconductors for auto industry

Carmaker Stellantis and iPhone assembler Foxconn have created a 50-50 joint venture to design and sell semiconductors for the automotive industry from 2026. The joint venture, called SiliconAuto, will supply Stellantis, including its new 'STLA Brain' electronic and software architecture, Foxconn and other customers, the two companies said in a statement. SiliconAuto will provide customers an auto industry-centric source of semiconductors for the growing number of computer-controlled features and modules, particularly those needed for electric vehicles. The deal, for which no financial details were provided, follows a preliminary agreement that Stellantis and Foxconn signed in December 2021 to partner in semiconductors for the automotive industry.

Source: https://www.reuters.com/, June 20, 2023

Samsung Lays Out Roadmap Of Expanding Chip Manufacturing Business To Defeat TSMC

Back on Wednesday, the South Korean global giant Samsung Electronics has highlighted its roadmap of expanding chip manufacturing business. According to media reports, Samsung has laid out this strategy in an effort to compete with the Taiwan based semiconductor firm TSMC. Although Samsung is mostly popular for its smartphones and consumer electronics products, its main revenue driver is the semiconductor business. The company manufactures top-notch memory chips that are utilized in laptops and data centers. On the other hand, the company also has a foundry in the semiconductor business, which manufactures chips for other fabless firms such as Qualcomm.

Source: https://circuitdigest.com/, June 29, 2023

How Foxconn Is Aiming To Build Its EV Manufacturing Ecosystem in India

Foxconn, the Taiwan based contract manufacturer of the tech giant Apple’s iPhone is now willing to foray into the electric vehicle manufacturing ecosystem in India, according to some unnamed officials familiar with this matter. The anonymous spokesperson also added that in order to mee the same, Foxconn is already having various discussions with the state governments in the country. Back on May 31, 2023Foxcoon in its yearly report added that the government of India would assist them in beginning the production line towards the end of this year to offer two-wheeler EV manufacturing services, which would meet the demand of the EV market in Southeast Asia. This is the first time where Foxconn specifically highlighted its ambitions to boost its EV manufacturing cluster in the nation.

Source: https://circuitdigest.com/, June 16, 2023

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Information Technology

Security Chief Take on IT Roles As More Infrastructure Moves Online

Stay-at-home orders during the Covid-19 pandemic spurred new cloud computing and remote-technology setups, increasing company exposure to hackers. As a result, some corporate cybersecurity chiefs are also taking on the leadership role for all of information technology. Oversight of both groups isn’t an easy line to walk.

Source: https://www.livemint.com/, June 29, 2023

Google set to launch Perspectives search, a feed that offers information from people across platforms

 In the age of information technology, everything revolves around search engines and the ways we search for information. Google, which is one of the search engine leaders in the world, is known for constantly innovating its services to offer the most tailored experiences to its vast user base. Last month Google announced that it was making numerous updates to Search to help users explore diverse perspectives for experts to ordinary people. On Saturday, the search giant in a tweet said that the feature is now available for users to try. The new feature shows different outlooks, mostly human in search results. These perspectives will be displayed in a tab named Perspectives.

Source: https://indianexpress.com/, June 24, 2023

Draft Digital India Act to open for public consultation soon; concerns raised over Digital Competition bill

 When India’s Information Technology Act came into being in October 2000, Facebook was four years away from its inception, the first iPhone wouldn't be launched for the next seven years, and the Nasdaq was experiencing an unprecedented implosion of the dotcom bubble. Now, to replace the IT Act of 2000, the government is bringing the Digital India Act. This and more in today’s ETtech Morning Dispatch. The draft Digital India Act (DIA), the much-awaited replacement of the 23-year-old Information Technology Act, 2000, will likely be opened for public consultation within the next two weeks, senior officials have told ET.

Source: https://economictimes.indiatimes.com/, June 27, 2023

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Telecom

Indian government meets Foxconn, Samsung, Reliance to improve PLI scheme

The Indian government met large global firms such as Foxconn (2354.TW), Samsung Electronics (005930.KS) and Reliance Industries (RELI.NS) to find ways to boost manufacturing in the country with its production-linked incentive (PLI) scheme. The meeting, addressed by India's Trade Minister Piyush Goyal on Tuesday, comes amid concerns that some of the businesses were facing delays in availing the incentives from New Delhi amid complicated procedures. The discussions included ways to improve local manufacturing at competitive costs, higher domestic value-adds in production, and quick grievance redressal, the government said in a statement on Wednesday.

Source: https://www.reuters.com/, June 28, 2023

UN telecom body ITU accepts India's inputs on 6G technology framework

UN body International Telecom Union has accepted India's inputs on the 6G technology framework, indicating the country's crucial role in the development of next-generation high-speed technology, an official statement said on Thursday. According to the ITU-APT Foundation of India (IAFI), the Indian administration has played a critical role in getting ubiquitous connectivity accepted as a key usage scenario. Modi released India's 6G Vision "Bharat 6G Vision" document in March 2023, envisaging India to be a front-line contributor in the design, development and deployment of 6G technology by 2030.

Source: https://economictimes.indiatimes.com/, June 29, 2023

ZTE receives government security clearance to supply gear to Vodafone Idea

The government has allowed Chinese gearmaker ZTE to provide optical transmission equipment worth over ₹200 crore to Vodafone Idea (Vi) for a network upgradation project. ZTE as well as Chinese peer Huawei have also submitted additional documents to the National Security Council Secretariat (NSCS) for getting approval as a 'trusted source', a pre-condition for being eligible to supply telecom network gear under fresh contracts. The approval for Vi's deal with ZTE from NSCS came after the Indian telco submitted documents and specified that it's an expansion/upgradation of the existing network, and not a fresh contract, a government official told ET.

Source: Source: https://economictimes.indiatimes.com/, June 30, 2023

Reliance jio continue its hold with 30.4 lakh new subscribers in April; Vodafone losses widens

Reliance Jio continued its dominance over the Indian telecom space as in April 2023 as it added 30.4 lakh subscribers close to 30.5 lakh in March 2023, the Telecom Regulatory Authority of India (TRAI) revealed on Wednesday. Bharti Airtel saw an addition of 76,328 users in April compared with 10.4 lakh in March, while the loss of subscribers for Vodafone widened to 29.9 lakh in April from 12.1 lakh in March. Reliance Jio continued its dominance over the Indian telecom space as in April 2023 as it added 30.4 lakh subscribers close to 30.5 lakh in March 2023, the Telecom Regulatory Authority of India (TRAI) revealed on Wednesday. Bharti Airtel saw an addition of 76,328 users in April compared with 10.4 lakh in March, while the loss of subscribers for Vodafone widened to 29.9 lakh in April from 12.1 lakh in March.

Source: https://www.livemint.com/, June 28, 2023

Airtel April user addition lowest in five years

India’s second largest telecom operator Bharti Airtel in April added 76,328 mobile users—its lowest monthly addition in five years—according to data by the Telecom Regulatory Authority of India. Meanwhile, Reliance Jio added over three million wireless users in the month, largely due to subscriber loss by Vodafone Idea. The reason for the lowest addition of users by Airtel can be attributed to SIM consolidation by subscribers at lower level, owing to an increase in base level tariff hikes by the company, according to analysts. After increasing the base level tariffs in two circles by 57% to Rs 155 from Rs 99, the company extended the tariff hikes to all 22 circles in March.

Source: https://www.financialexpress.com/, June 29, 2023

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EV’s & Auto Electronics

EV industry in India: How India accelerates towards becoming next powerhouse in EV production?

India, a rapidly growing economy, is on the verge of becoming a manufacturing hub for various sectors including the electric vehicles industry. The Government of India aims to achieve 100% local production of EVs under its ‘Make in India’ initiative. However, the Indian EV industry is still in the early stages with a quick growth plan. Some media reports stated that the electric vehicles market in India is expected to reach 17 million units by 2030, but the EVs sale was able to cross only the one-million-mark last year.

Source: By Alka Jain, https://www.livemint.com/, June 29, 2023

Advertising watchdog bans Hyundai and Toyota electric car ads

The UK advertising watchdog has banned campaigns by Toyota and Hyundai for exaggerating the speed at which electric cars can be charged and misleading consumers about the availability of rapid-charging points across the UK and Ireland. The Japanese car firm Toyota ran a marketing campaign on its website for its bZ4X model with the text “making electric easy”. The site claimed the vehicle could be charged to 80% in about 30 minutes using a 150kW fast-charging system. The Japanese car firm Toyota ran a marketing campaign on its website for its bZ4X model with the text “making electric easy”. The site claimed the vehicle could be charged to 80% in about 30 minutes using a 150kW fast-charging system.

Source: By Mark Sweney, https://www.theguardian.com/, June 28, 2023

Second-largest US electric vehicle fast-charging network to add Tesla connectors

The second-largest electric vehicle fast-charging network in the U.S. says it will add Tesla's connector to its charging stations, another step toward adopting Tesla's plug as the industry standard. Electrify America, with 800 direct-current fast-charging stations and more than 3,600 plugs nationwide, said Thursday it will work to add Tesla's connector to existing and future chargers by 2025. The Volkswagen subsidiary, formed as part of the settlement to the company's diesel emissions-cheating scandal, is second only to Tesla in number of fast-charging plugs in the U.S.T.

Source: https://economictimes.indiatimes.com/, June 29, 2023

Start-up Street: PE investments in electric vehicles power ahead

With state governments picking up the baton from the Centre in promoting Electric Vehicle (EV) adoption, the sector is among the bright spots when it comes to private equity- venture capital (PE-VC) investments. Despite the overall funding slowdown, the electric vehicle (EV) sector had attracted 23 PE-VC investments until mid-June - almost half of that struck in all of 2022 (which saw 49 deals).   Interestingly, the centre of investment action in recent months has moved away from original equipment manufacturers.

Source: https://www.moneycontrol.com/, June 30, 2023

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Defence & Solar

Average cost offered by us for mq-9b drones 27 per cent less for india, negotiations yet to begin: sources

Sixteen of these drones purchased by the US cost it USD 69 each but it was only a "green aircraft" without sensors, weapons and certification. Features like censors, weapons and payloads make up for 60-70 per cent of the total cost, he said, adding that even the US acquired five of them at USD 119 million each. A senior government functionary claimed on Thursday that the average estimated cost of MQ-9B long endurance drones for India would be 27 per cent lower than the price incurred by other countries which have bought it from the US, asserting that it will most likely go further down during negotiations unless India seeks additional features.  The indicative cost of the drones made by the US government is USD 3,072 million.

Source: https://www.indiandefensenews.in/, June 29, 2023

Nsa Ajit Doval, russian security council secretary nikolai patrushev discuss issues of cooperation

Secretary of the Russian Security Council Nikolai Patrushev on Wednesday held a telephonic conversation with National Security Advisor Ajit Doval and discussed current issues of cooperation between India and Russia in the security sector, according to the official statement released by Security Council of Russia. Patrushev also briefed Doval about the latest events in Russia. The two sides discussed prospects for deepening the cooperation between the two nations within the framework of bilateral and multilateral formats. The two sides agreed to continue the dialogue.

Source: https://www.indiandefensenews.in/, June 29, 2023

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Consumer Electronics

India’s Smart Home Security Camera Shipments Up 48% YoY in Q1 2023

India’s smart home security camera shipments grew 48% YoY in Q1 2023 (January-March), according to the latest research from Counterpoint’s Smart Home IoT Service. During the period, there was a strong increase in demand for home surveillance products as offices began reopening for working professionals. In Q1 2023, the average selling price of smart security cameras declined considerably YoY, with the INR1,500-INR 2,000 price range emerging as the most popular. CP Plus by Aditya Infotech cemented its leadership position with 3x YoY growth in shipments in Q1 2023, which helped it capture a 45% market share. It launched several cameras in Q1 2023, particularly in 3MP and 4MP sizes. CP Plus was the top domestic manufacturer of smart security cameras with a 71% share. It has focused on making its products more affordable to consumers mostly via the offline retail market.

Source: https://www.counterpointresearch.com/, June 14, 2023

China’s <$150 Smartphone Market Posts Surprising Surge in Q1 2023

China’s smartphone market is witnessing a surprising shift in the landscape. In Q1 2023, China’s overall smartphone market fell 5% YoY. However, going against the grain, the entry-level segment (<$150 wholesale price) increased significantly by 22% YoY during the quarter, according to Counterpoint’s China Quarterly Smartphone Report. Over the years, Chinese OEMs have been mostly targeting the premium segment. Android smartphones have actively pushed the trend of premiumization in China, hoping to capture more market share from established players like Apple in the ultra-premium (>$800) segment. Nevertheless, Apple’s market share has continued to grow, reaching its highest in recent years.

Source: https://www.counterpointresearch.com/, June 13, 2023

Chinese consumer electronics firm TCL forms JV for unit in Telangana

Hong Kong stock exchange-listed consumer electronics major TCL Electronics Holding plans to establish a washing machine manufacturing unit in joint venture with home-grown Resojet in Telangana. For TCL, which is based out of Hefei, China, this would be its first overseas manufacturing facility for washing machines and over time likely to be expanded to make other consumer appliances, including refrigerators and dishwashers. As a step towards the manufacturing joint venture, Resojet and TCL have entered into a memorandum of understanding. The proposed facility will be set up in E-City, Raviryal, near Hyderabad and entail an investment of ₹225 crore. In the first phase, it is expected to generate jobs for over 500 people, Industries and IT Minister K.T.Rama Rao’s office said in a release on Wednesday. The Minister participated virtually in the MoU programme.

Source: https://www.thehindu.com/, June 28, 2023

Shiprocket integrates it's app with ONDC to ease seller onboarding

Shiprocket, an e-commerce enablement platform, on Friday announced the integration of the Shiprocket seller app with Open Network for Digital Commerce (ONDC). According to the company, the app will facilitate the onboarding of sellers on the ONDC network. With the help of Shiprocket’s seller app, the Shopify-powered stores of merchants will be discoverable on the network. Shiprocket plans to enable five categories on ONDC including beauty and personal care, fashion, electronics and appliances, health and wellness and home and kitchen, said the company in a press release. Shiprocket was one of the initial players to integrate into the ONDC network and the first one to enable intercity logistics in India.

Source: https://www.business-standard.com/, June 28, 2023

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EMSIF

(Special section of the MSME related news under ELCINA Micro & Small Industry Forum)

World MSME Day 2023: Understanding Impact And Importance Of Micro, Small, And Medium-Sized Enterprises

 The United Nations designated June 27 as Micro, Small, and Medium-Sized Enterprises (MSME) Day in 2017 to honor the crucial role played by the MSMEs in achieving the Sustainable Development Goals (SDGs) and their contribution to the global economy. MSMEs foster creativity, innovation, and provide decent employment opportunities. The commemoration of World MSME Day aims to bring attention to the noteworthy contributions of MSMEs and acknowledge their potential as drivers of economic growth, job creation, and poverty reduction. It serves as a platform to increase awareness regarding the challenges encountered by MSMEs, including limited access to finance, technology, skill development, and market opportunities.

Source: https://news.abplive.com/, June 28, 2023

7.5 lakh youths to get jobs via PM-CM internship programmes says UP CM Yogi Adityanath

Emphasising the significance of micro, small, and medium enterprises (MSMEs) as a means of livelihood for millions of people in Uttar Pradesh, Chief Minister Yogi Adityanath announced the provision of jobs for 750,000 youths through the PM and CM Internship Programs in the state. During the loan distribution program organised by banks at Lok Bhavan in Lucknow on International MSME Day 2023, the Chief Minister urged the MSME department to establish MSME clusters along the Purvanchal, Bundelkhand, and Ganga Expressways by identifying suitable land. The state government's statement outlined these developments.

Source: https://www.cnbctv18.com/, June 28, 2023

MSME Ministry Launches CHAMPIONS 2.0 Portal & App, Signs MoUs to Boost Sector's Growth

On the occasion of International MSME Day, the Ministry of Micro, Small and Medium Enterprises celebrated ‘Udyami Bharat-MSME Day’ with the launch of the CHAMPIONS 2.0 portal, a mobile app and signing of several agreements. Currently, India has over 6 crore MSMEs, and as per the officials, Udyam Registration, also known as the MSME Registration portal, has achieved record 2 crore registrations since its launch on July 1, 2020. Through this portal, it becomes easier to receive government approval, Udyam Recognition Certificate and a unique number. This certification is required for legal and operational accreditation for small or medium-sized firms.

Source: https://www.news18.com/, June 27, 2023

Piyush Goyal asks banks to ensure enhanced, affordable credit to MSMEs

Commerce and industry minister Piyush Goyal has asked banks to ensure enhanced and affordable credit to MSME exporters with a view to boosting the country’s outbound shipments. At a meeting convened by the ministry on June 28, to discuss ways of enhancing the availability of export credit to MSME exporters, Goyal asked the Indian banks to ensure enhanced credit to MSMEs to achieve the target of $1 trillion merchandise exports. The was attended by top officials of 21 banks which included State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Bank of India and Central Bank of India, among others.

Source: https://economictimes.indiatimes.com/, June 29, 2023

Banks’ MSME portfolio quality improves with drop in GNPAs to 6.8% in March from year-ago: RBI report

The asset quality of the MSME portfolio of all scheduled commercial banks (SCBs) improved significantly during the financial year 2022-23 with the gross non-performing assets (GNPA) ratio declining from 9.3 per cent in March 2022 to 6.8 per cent in March 2023, said the Reserve Bank of India’s latest Financial Stability Report. Importantly, the improvement in the MSME asset quality profile coincided with the expiry of regulatory forbearance and restructuring schemes introduced since 2018. Quarter-on-quarter, the GNPA ratio improved from 7.4 per cent in December 2022 and 7.7 per cent in September 2022 and 9.8 per cent in June 2022.

Source: By Sandeep Soni, https://www.financialexpress.com/, June 29, 2023

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ELCINA EVENTS , ACTIVITIES & SERVICES 

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ELCINA Publications

https://elcina.com/roadmap-for-developing-pcb-eco-system-in-india	Roadmap For Developing PCB Eco-System in India Key Findings Indian PCB market and industry size in terms of domestic production, exports, and imports Growth drivers and challenges (needs & gaps) in the Indian PCB industry Growth potential of PCB manufacturing in India and identify enablers for creating & strengthening the domestic value chain Key inputs required viz. investments, technology, and infra eco-system Details of key PCB value chain players – global and domestic, who can be invited to invest to establish a strong PCB industry
https://elcina.com/ems-task-force-report-on-market-industry-analysis-of-ems-sector-in-india	EMS Task Force Report Key Findings Currently EMS Industry (Contract Manufacturing Services) are valued 832 Bn $ and are projected to grow 1055 Bn by 2025. Domestic electronics manufacturing is estimated at USD 75 Bn of which 39 Bn constitutes EMS value. This is divided into 23.5 Bn domestic Mfg. and USD 15.5 Bn PCBS/Sub-Assembly imports. Further USD 53.5 Bn is finished Electronic Goods imports of which USD 17 Bn is EMS value. Thus total EMS opportunity loss is US$ 32.5 Bn (15.5 +17). The report estimates that EMS production can grow realistically from USD 23.5 Bn today to USD 152 Bn by 2025 at CAGR of 45%. This will meet 75% of the countries EMS requirement of US$ 203 Bn by 2025 against a total estimated market of 400 Bn.
https://elcina.com/elcina-task-force-report-on-electronic-components	ELCINA Task Force Report on Electronic Components Key Findings Current status of component manufacturing in India – Areas of competence vs Gaps and inadequacies Components which urgently require investments and growth in domestic manufacturing Emerging technology and new components for upcoming opportunities Constraints and bottlenecks to be addressed Overcoming Policy constraints, WTO (ITA-1) deadlock and Zero Duty issue Strategy for overcoming these constraints Eco-System requirements- Role of Central and State Governments
https://elcina.com/elcina-directory-of-indian-electronics-industry	ELCINA Directory of Indian Electronics Industry 2022-23 Description ELCINA Directory of Indian Electronics Industry – includes the updates on Indian Electronics Industry and a host of additional improved features covering business environment, statistical industry scan, company databases plus various projections. This handy compendium with its easy-to-read format attracts the attention of a growing number of users (within India and abroad) Apart from electronics industry, the users of this Directory range from financial institutions, commercial banks, FIIs, Consultancy organizations as well as industry promotion institutes across the world….

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