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Pc bindustryscenarioupdate Pc bindustryscenarioupdate Presentation Transcript

  • The State of the Indian PCB Industry Muniswamy Anilkumar President Indian Printed Circuit Association, Bangalore, India Indian Printed Circuit Association 1
  • Agenda• I t d ti Introduction - India Inc. Balance sheet in brief• Indian PCB Industry - Evolution - Present state - Future prospects• Government Initiatives to boost the Industry Indian Printed Circuit Association 2
  • IntroductionIndia Inc.- a macro economic view Indian Printed Circuit Association 3
  • Indian Printed Circuit Association 4
  • Indian Printed Circuit Association 5
  • Indian Printed Circuit Association 6
  • Indian Printed Circuit Association 7
  • Indian Printed Circuit Association 8
  • India Inc why a macro economic view? Inc.-Understanding India has often beendifficult for those who look forarchetypes in each country India’s country. India ssheer size, variety and apparentcontradictions confound manyobservers. P. Chidambaram Finance Mi i t Fi Minister Govt. of India Indian Printed Circuit Association 9
  • India Inc why a macro economic view? Inc.-The persistence of p p poverty, illiteracy, y, y,malnutrition and the low rank in humandevelopment index makes it likesomewhat similar to other poor anddeveloping countries. Indian Printed Circuit Association 10
  • India Inc why a macro economic view? Inc.-However, its software andengineering skills its exports its skills, exports,human resources and, more recently,itsit ambitious f biti forays i t acquisition of into i iti fbus esses abroad a e everybusinesses ab oad make e e yforeign observer sit up and takenotice of the elephant that has beg n begunto dance. Indian Printed Circuit Association 11
  • India Inc balance scorecard Inc.• F t t Growing Free Market Economy Fastest G i F M k tE• Average growth last 10 years : >6%: last 3 years 8% (>9% March-Sept in 2006)• Goldman Sachs Forecast: – Indian GDP would overtake Italy, France and Germany by y y y 2025 and Japan by 2030• Industrial growth of 9% being maintained; manufacturing sector growing faster. Attempts faster being made to take it to 12-14%. ( (11.4% growth March-Sept in 2006) g p )• 4th Largest Economy by PPP (purchasing power parity) Indian Printed Circuit Association 12
  • Indian Economy – on a swing• GrowingGlobal Engagement; merchandise exports of overUS$105 bn and imports of US$156 bn. Both growing at over20% annually.• Surging Foreign Exchange Reserves > US$165 bn.• Fll investments of US$14 bn and FDI of US$ 8 bn in 2006-06• 70% of the companies with FDI yielding higher profitability p y g g p ythan that of the parent company. 300 6 250 5 .1 5 241 4 .2 200 4 3 .6 3 .879 1 150 3 in U S $ b n 3 .1 3 2 .9 142 2 .7 2 .6 2 .4 114 100 95 95 2 86 73 76 76 50 T ra d e 1 FDI 0 0 Indian Printed Circuit Association 13 7 8 9 0 1 2 3 4 5 6 -9 -9 -9 -0 -0 -0 -0 -0 -0 -0 96 97 98 99 00 01 02 03 04 05 19 19 19 19 20 20 20 20 20 20
  • Indian Economy – on a swing (contd.) Fast improving Infrastructure• Some of the largest infrastructure creation inthe world (Golden Quadrilateral -5,400 kms) 5 400• Planned investment of about USD 300 bnduring the next 10 years for creation ofexpressways and roads p y•Formation of Special Economic zones (SEZ),more th 300 zones planned d i th next 3 than l d during the tyears through public-private partnership
  • Indian Economy – on a swing (contd ) (contd.) Robust frame-work for Global Business World s World’s largest democracy Global Indians: 30 Min English widely spoken Strong judicial system
  • Indian Economy – on a swing (contd.)• Large and growing domestic market – 210 million middleclass, increasing by 15-20 million annually• Huge upwardly mobile young population with highpropensity to spend .• Massive investments planned in infrastructure, both urban& rural- sizable demand for cement, steel, machinery.• Wide spread modernization in Indian industry with p yliberalization and globalization .
  • The state of Indian PCB Industry y Indian Printed Circuit Association 17
  • Indian PCB Industry-evolution Industry evolution• Some scientists and research institutes started making PCBs in the late 50s g• The first commercial PCB production started for in house requirements by in-house Bharath Electronics in 60s, followed by Indian Telephone industries and many more defense and space research p institutes. Indian Printed Circuit Association 18
  • Indian PCB Industry-evolution Industry evolution• Th first professional grade private companies The fi t f i l d i t i started PCB manufacturing in 70s• The first boom in PCB started between 1985- 1990• The major market drivers Telecom, defense and drivers-Telecom, space research• Boom could not sustain due to problem such as, low domestic demand for hardware components, lack of ecosystem (infrastructure), sudden change in technology (telecom) extremely high (telecom), cost of capital and poor financial muscle. Indian Printed Circuit Association 19
  • Indian PCB Industry-evolution Industry evolution• Th second b The d boom started after 2001 , with th entry of t t d ft ith the t f some MNC and NRI (non resident Indian) companies in to India• New set of homegrown entrepreneurs and young management teams infused fresh lease of life in to the industry i d t• Some companies also changed the strategy from volume to quick turn production• Exports started picking up and quality reached world class standards• M&A helped domestic companies to reach new heights Indian Printed Circuit Association 20
  • India sIndia’s position in the world production Country Revenue (USD Millions) China 10830 North America 4494 Europe 3587 Japan 10059 Taiwan 5869 S. Korea 5020 Other Asia 2584 India 200 Hong kongIndian Printed Circuit Association 154 21
  • Major Rigid single/side Manufacturers j g gSr.Sr No Company Production M2 p.a 1 Epitome Components Ltd 720000 2 Akasaka Electronics Ltd. 480000* 3 Ascent Circuits Pvt. Ltd. 300000 4 Garg Electronics 180000 5 Genus Electrotech Pvt. Ltd. 108000 6 Shogini Technoarts 66000 7 NSP Electronics 60000 Indian Printed Circuit Association 22 *Estimated Figure
  • Major double/side, Multi-layer Manufacturers (in terms of Sq. Meters) SqSr. Company Double Multi- TotalNo Side Sid Layer L Production1 AT&S 75000 150000 2250002 Shogini Technoarts 13500 45000 1800003 Sonic Technology 72000 12000 840004 Circuit Systems India Ltd. Ltd 52260 23400 756605 CIPSA RIC 72000 - 720006 Fineline Circuits Mumbai Circuits, 19740 36660 564007 Meena Circuits 43200 - 432008 Ascent Circuits Pvt Ltd Pvt. Ltd. 36000 5000 410009 Genus Electrotech Pvt. Ltd. 36000 - 3600010 Fineline Circuits, Baroda Circuits 28800 6000 34800 Indian Printed Circuit Association 23
  • Top Ten manufacturers (Turnover) p ( )Rank Company Turnover (USD Millions) 1 AT&S 40.0 40 0 2 Shogini Technoarts 13.3 3 Circuit Systems India Ltd. 12.2 4 Ascent Circuits Pvt. Ltd. 11.55 5 Epitome Components Ltd. E it C t Ltd 11.10 11 10 6 Sonic Technology 9.3 7 CIPSA RIC India Pvt Ltd. 8.0 8 Fineline Circuits, Mumbai 6.6 8 Akasaka Electronics Ltd. 6.6 9 Hi Q Electronics. 5.3 10 Genus Electrotech Pvt. Ltd. Indian Printed Circuit Association 4.0 24
  • Key PCB Exporter’s y pSr. Company Total ExportNo. (Rs. in Millions)1 AT&S 35.52 gy Sonic Technology 9.33 Ascent Circuits Pvt. Ltd. 6.64 Fineline Circuits Mumbai Circuits, 6.4 645 CIPSA RIC India Pvt Ltd 5.66 Circuit Systems India Ltd. 2.87 Hi Q Electronics 2.18 Fineline Circuits, Baroda 2.089 Shogini Technoarts 1.5 15 Indian Printed Circuit Association 25
  • Competitiveness of Indian Labour Indian Printed Circuit Association 26
  • Domestic Market for PCBs (Sector-wise) USD in Millions Sector 2004 2005 2006 Consumer 129 144.31 159.75 Industrial 38.24 43.82 50.22 Computer p 99.64 129.44 167.84 Comm. & 161.95 204.68 258.62 B.cast Strategic 22.48 25.6 29.13 451,31 451 31 547.85 547 85 665.56 665 56 Total Indian Printed Circuit Association 27
  • Where is the Big Picture? Indian Printed Circuit Association 28
  • IT Market Indian IT Industry – Year 2005-06 : An Overview IT Industry in India : USD 37.5 Bn + Hardware Hardware Software Software & Services Domestic : USD 7 E Exports : USD 1 25 Domestic : USD t 1.25 Exports : USD 23 4 E t 23.4 Bn Bn 6.1 Bn Bn Annual S l : A l Sale PCs: 5.1 million TVs: 10 million Mobile Phones : 38 million Installed B I t ll d Base: PCs: 18 million TVs : 110 million Telephone (fixed ) : 50 million Penetration : PCs: 18 per TVs : 45 per 100 Mobile : 75.8 per 1,000 1,000 , household Access: Internet Users: 35 Broadband : 0.50 Telephone subscribers (Fixed+Mobile) : (Fixed Mobile) milliion million 140 million India is a Twenty Billion Dollar domestic ICT (including CE) market today ! Indian Printed Circuit Association 29
  • IT Market Market demand by major cities 18 % of ICT demand D e s k to p S a le s b y T o w n -C la s s : 2 0 0 5 -0 6 • D lhi Delhi R e s t o f In d ia N ext 4 Top 4 4% of ICT demand 100% 80% 43 38 33 56 53 • Kolkata 60% 68 11 13 12 40% 14 12 20 45 51 54 20% 30 35 13 0%21% of ICT demand Mumbai 2 3 4 5 6 7 -0 -0 -0 -0 -0 -0 01 02 03 04 05 06 • Pune 3% of ICT demand 20 20 20 20 20 201 % of ICT demand • Hyderabad • Bangalore 5% of ICT demand Consumption in smaller towns improving rapidly •Chennai 5% of ICT demand
  • IT Market PC Market in India : 2005-06 7000000 PC (Desktops + Notebook) Sales 6000000 5000000 4000000 3000000 2000000 1000000 0 2 0 0 1 -0 2 2 0 0 2 -0 3 2 0 0 3 -0 4 2 0 0 4 -0 5 2 0 0 5 -0 6 2 0 0 6 -0 7 • Desktop sales crossed 4.6 million units in 2005-06; expected growth in 2006-07:21% • Notebook sales crossed 431 K units in 2005-06; expected growth in 2006-07 : 100% +
  • IT Market The growing Domestic Mobile Phone Market P ro je c te d G ro w th in s u b s c rib e r Base 250 210 200 150 130 M illio n U n its 100 80 48 50 0 2004 2005 2006 2007 YEAR Target 2007 : 200 + million subscribers
  • Booming mobile phone businessSize f theSi of th market k t• 2001 – $ 43.47 million• 2006 - $ 4.34 Billion• 2010 $ 50 Billion? 2010-• India expected to be the second largest market f Nokia in terms of value by 2010 for f• Nokia has committed to invest $150 million $ at its India facility and already shipped 20th million mobile phone in Oct. 2006 p Indian Printed Circuit Association 33
  • IT Manufacturing India is now ready for IT manufacturing Standard & Poor upgrades its outlook on India to ‘positive’ from ‘stable’ (April 2006) Surge in confidence in IT manufacturing Most leading mobile brands have invested in g handset and related equipment manufacturing in India- Nokia, Motorola, Samsung, LG, Ericsson . Strengthening presence of EMS companies – Flextronics, Solectron, Celestica, Jabil Circuits and the latest- Foxconn All leading PC Brands- Lenovo, Acer , HP have g , assembly plants and are aiming at expansion; Dell is the latest entry with a combined investment of $300 million ( ith suppliers) illi (with li ) Indian Printed Circuit Association 34
  • Nokia, Finland - Mobile Phones: USD 150 Mn Flextronics, USA - Electronic Hardware: USD 100 MnNew ElectronicHardware Hon Hai / Foxconn, Taiwan: Electronic Hardware: USD 110 MnManufacturers ASPOCOMP, ASPOCOMP Finland: Electronic Hardware: USD 80 Mn Motorola, USA - Mobile handsets: USD 30 Mn (I Phase) Spelmech Semi-conductors: USD 45 Mn Salcomp (USD 40 Mn), Perlos (USD 45 Mn) and many more component manufacturers Indian Printed Circuit Association 35
  • IT Market The Four Tigers of IT growth 2004 2007 Worldwide : 160 Million : 234 Million India-Volume : 4 Million : 9 Million India Share :25% 2.5 : 4% India Growth : 32% : 30% 2004 2007 Worldwide : 650 Million : 1040 Million India-Volume : 22 Million : 90 Million India Share :3% :9% India Growth : 58% : 24 % 2004 2007 Worldwide W ld id : 136 Milli Million : 261 Milli Million India-Volume : 1 Million : 10 Million India Share : 0.4% : 4% Worldwide : 51 Million : 80 Million India-Volume : 1 Million : 5 Million India Share :2% : 6% Indian Printed Circuit Association 36
  • Future PotentialIndia can be your ideal business partner Domestic electronics hardware equipment market slated to US $ 126.6 billion in 2010 and USD 363 billion in 2015 , (Source: ISA-Frost & Sullivan, January, 2006) Domestic electronics manufacturing to grow to USD 58 billion by 2010 and USD 155 billion by 2015. ( Source: ISA-Frost & Sullivan, January, 2006) National goal- PC penetration 65 p 1,000 by end 2009; Targeted PC sales g p per y g for terminal yar: 28 million (Source: Ministry of Communications & IT, April 2005 ) Semiconductor and embedded design market size expected to cross USD g p 14.4 billion in 2010 and USD 43 billion in 2015 ( Source: ISA-Frost & Sullivan, January, 2006) p p y Software and Services exports expected to cross US $ 60 Billion by 2010 ( Source : NASSCOM , February 2006) Indian IT Industry offers great Business Opportunities! Have you partnered with it as yet? Indian Printed Circuit Association 37
  • India is young and talented Percentage of population aged 65 and older India leads in R & D 2 9 .2 2 2 .7 2 7 .4 2 1 .5 Current patents by Indian Entity 1 6 .9 2 1 .1 1 82.7 .4 1 1 3 .2 1 4 .8 1 4 .7 1 2 .3 0 50 100 150 200 250 1 1 .4 6 .9 7 .1 8 .3 5 .2 5 Texas Instruments Intel C h in a T h a ila n d K o re a E u ro p e In d ia A m e ric a Oracle N o rth Cisco system GE 2000 2 0 2 5 ( p r o je c t e d ) 2 0 5 0 ( p r o je c t e d ) IBM Source : UN world Population Prospectus; the 2000 ICI Revision and Taipei; China: council for Economic Planning and Development, Official Communication 2002. 2002 PhD -12,000 p.a 12,000 Engineers- 600,000 p.a Additional working age population by 2010 Graduates -8.5 Mn p.a Intel 3500 Motorola 2100 Texas Instrument 3450 U SIn mn W .A sia L .A m e ric a Samsung 2100 S E A sia C h in a A fr i c a Sanyo 700 In d ia HP 3500 13 20 Cisco system 2100 38 41 56 National Semi conductor 950 73 83 IBM 3750 Source: World Economic Forum
  • Government Incentives for Investors Indian Printed Circuit Association 39
  • The Policy Structure: Reforming to Globalize IT Agreement of WTO from March 01, 2005 Customs duty on 217 hardware items are ZERO Excise Duty (Domestic Levy): 12% on Computers; 16% on Peripherals One integrated seamless market State VAT introduced on April 01, 2005; most IT products attract 4% National GST of 16% by 2010 –a single rate encompassing all local levies e g Excise e.g. duty, State VAT, Octroi etc. Aggressive Telecom reforms Broadband Policy 2004; steep fall in prices of international and domestic bandwidth Special Economic Zones (SEZs) 100% foreign equity permitted. Income Tax exemptions for 15 years. Banking system & Currency Transaction- Seamless with any global market operations Policy for Fab and other high capital intensive products such as LCD, storage devices etc.on the anvil SEZ Act & Rules- Incentives made permanent and not subject to politicalPrinted Circuit Association Indian or administrative discretion 40
  • Investment Policy• FDI up to 100% allowed on ‘ Automatic route’ inmanufacturing activities g• Ceilings on FDI limits only in 13 sectors and prohibited in 4.• FDI without permission allowed in most activities activities.• Foreign collaborations on liberal terms- royalty upto 5% ondomestic sales/ 8% on exports plus lumpsum payment ofUS$ 2 million on automatic route and beyond withpermission .• Investments made by Foreign investors receive NationalTreatment .• Industrial license needed only in five sectors
  • Taxation in India• Taxes being rationalised and procedures simplified• Major Central Taxes Corporate tax 30% Import duty: max 12.5% except on agricultural and certain specified items Excise duty – 0- 16% Service Tax Double Taxation Avoidance Agreements with 65 countries – with Taiwan under negotiation.• Major State Taxes Value Added Tax-Basic Rates 4 / 12.5 %• Move towards a comprehensive Goods and Services Tax (GST) regimeby 2010 to replace central, state and local taxation on goods.
  • Policy & Infrastructure The Policy Structure: Duties & Taxes Item Custom Excise Additiona Duty Duty/Counter l Duty* Vailing Duty g y Computer Nil 12% 4% Peripherals-Motherboard, Nil 16% 4% Monitor, Printer Monitor Printer, Key Board Board, Mouse etc. Microprocessor Nil Nil 4% HDD/FDD/CD-Rom Drive/DVD Nil Nil 4% Drive / Flash Drive All other Storage Devices Nil 16% 4% Mobile Phones Nil Nil 4% Parts and Components of p Nil Nil 4% Mobile Phones Excise duty and Additional dutyo on input components and sub-assemblies can be offset (CENVATed) against the Excise duty of the locally manufactured Finished product. Convergence of ServiceIndian(12%) and Excise Duty- these can be offset Tax Printed Circuit Association 43 agianst each other
  • Policy Initiatives: Special Economic Zones Law on SEZ provides policy• Policy stability Duty free Zones IT/ Biotech SEZs -10 ha, single- product SEZs – 100 ha and multi-product- 1000 ha. Units to be net foreign exchange earner within 5 years. No export commitments. t it t FDI up to 100% permitted in development of SEZ Transfer of goods from DTA to SEZ treated as exports, No Limits on DTA Sales Can be set up in the public, private or joint sector. Single Window Clearance 150 SEZs approved and 18 already operational
  • Policy & InfrastructureThe Policy Structure: SEZ-the new vehicle for investments y Minimum Area for T hardware/Software : • 10 hectares (10,000 sq. mtrs) Customs and Excise : • Allowed to source duty free all capital goods, raw materials, consumabels, goods materials consumabels spares, packing materials, office equipment, DG sets etc. without any license or specific approval . •D Domestic sales b SEZ units are exempt f ti l by it t from Addit Additonal Duty ( 4% ) lD t • Domestic sale of finished products, by-products to the DTA on payment of applicable Custom duty. Income tax • 100% IT exemption (10A) for first 5 years and 50% for 5 years thereafter. • Reinvestment allowance to the extend of 50% of ploughed back profits. •Carry forward of losses Indian Printed Circuit Association 45
  • Policy & Infrastructure The Policy Structure: SEZ-the new vehicle for investments Foreign Direct Investment • 100% foreign direct investment is under the automatic route is allowed in manufacturing in SEZ units. Banking / Insurance/ External Commercial Borrowings • External commercial borrowings by units up to $ 500 million a year allowed without any maturity restrictions. • Freedom to bring in export proceeds without any time limit limit. • Flexibility to keep 100% of export proceeds in EEFC account. Freedom to make overseas investment from it. • Exemption from interest rate surcharge on import finance . • SEZ units allowed to ‘write-off’ unrealized export bills. Central Sales Tax Act: • Exemption to sales made from Domestic Tariff Area to SEZ units. Service Tax: • Exemption from Service tax Printed Circuit Association Indian to SEZ units. 46
  • Policy Initiatives: Special Economic ZonesTAX Incentives for SEZ companies For Developer : Income Tax exemption for a blockof 10 years in 15 years y y For units: 100% Income Tax exemption for first 5years,years 50% for next 5 years and 50% of the ploughedback export profits for next 5 years Exemption from indirect taxes; excise, sales excise sales,services tax etc. Freedom to raise ECB with out any maturity F d i ih irestrictions
  • India : Comparative Advantages•Low wage costs unskilled labor at US$ 50-70 / month and costs- 50 70semiskilled between US $ 90-120/month cheaper than in China, Vietnam Indonesia and p , Thailand. Wage level expected to be maintained because of g p demographic profile.• Substitution of many capital intensive p y p processes by labor is yfeasible – initial capital cost lower by 20-40% .• High Capacity to produce items requiring designcapabilities and embedded software- high availability of ITSkills.• Huge infrastructure of technical and scientific institutions-annually 600,000 engineers/ technical manpower added.
  • Conclusion India Advantage A very rapidly growing domestic Local Market market: CAGR 30% + Global Gl b l recognition f b k d iti for back-end services: A proven case for IP, embedded syste s and C e bedded systems a d IC Profit from design Local Sales Attractive for Manufacturing Investments Skilled employee base Advantage Use India for IP Fast and upcoming modern India and ITeS Services infrastructure (SEZs) Improve Costs & quality -New Product development for Europe & Others - Engineering services Proximity to EU and MEA markets - BPO Freight Cost; 20% cheaper than China – Faster delivery Manufacture for Back end Services and l d lesser pipeline i i li inventory t Exports India is a great Opportunity Indian Triple Advantage - Printed Circuit Association 49
  • Setting up and doing business in India is improving fast ……….Days to get clearance to start business Time taken to clear good at the customs, January 2004 y y in days Rus sian 36 India -00 1 0 .3 Fed Foxconn/Honhai s Foxconn/Honhai’s Experience • Conceputalised India plan- Apr’05, Chi 44 • First visit to India by CEO – Oct ’05 7 .3 na • MOW with Tamil Nadu government- Mar ‘’05 • Launching production – Jun ‘ 06 Indi 89 a 9 .9 China Bra 15 2 zil Brazil 8 .4 Source: World Bank Investment climate Survey With States competing with each other, many investors find setting up businessPrinted Circuit Association process Indian in India quite a quick 50
  • IPCA : Your window to Hardware investments in IndiaFirst stop for first hand and complete information on IT products market and opportunities in India Policies that are conducive for IT manufacturing • G t information already available else sponsor syndicate study Get i f ti l d il bl l di t t dGuidance on how to go about investing in India Appointments with Key Government officials & Chambers Chambers. Appointment with industry leaders for first-hand insights. Networking opportunities for integrating into the IT value chain in India from manufacturing to distribution . • IPCA can help you identify the right business partner Come explore the great Indian IT opportunity with MAIT! Indian Printed Circuit Association 51
  • AcknowledgementsData sources1. IPCA , India2. WECC report3. ELCINA, India4. MAIT, India5. Economic Times6. Business line Indian Printed Circuit Association 52
  • THANK YOU Any A questions please? ti l ?Contact detailsM Anil KumarPresidentIndian Printed Circuit Association (IPCA)839A, 100 feet Main Road, Indiranagar 1Stage,Bangalore 560038,Bangalore-560038 INDIAPhone: +91-80-25250118, 25651772Fax : +91-80-25213212Mobile:+91-98450-23625Mobile:+91 98450 23625www.ipcaindia.orgE-mail : anil@slntechnologies.com anil@ipcaindia.org il@i i di Indian Printed Circuit Association 53
  • …..Infrastructure• Urban infrastructure : 31 cities of over 1 million population and 393 over 100,000 population. Elected city governments manage all cities with population over 10,000 persons. Civic Amenities and infrastructure being modernized under the Jawahar Lal Nehru Urban Renewal Mission US $ 22 bn in 61 cities Suburban rail networks: being in 5 million plus metros.
  • The Whose Who IT Hardware IT Leaders in India … and indicative list HCL Software HP INFOSYS Wipro Wipro IBM Telecom TCS TVS-E Motorola HCL R&D D-link Ericsson ISPs Satyam TI ACER Nokia Satyam IBM Intel Training Samsung Alcatel VSNL IBM NIIT LG Samsung MTNL Motorola Aptech Flextronics Siemens BSNL Wipro Solectron BPO HFCL Bharti GE WeP Wipro- Bharti Bh ti Philips Spectramind Benq ST EMS IBM-Daksh ITI Flextronics WNS Global ServicesHonhai/Foxconn E-Funds Jabil Circuits EXL Services Elcoteq 3i Infotech Solectron Celestica S i Sanmina Indian Printed Circuit Association 55
  • WhatWh t makes Indian companies unique i k I di i i istheir ability to operate in the presence ofthe several constraints like lack ofadequate infrastructure and a set ofdemanding value conscious customers customers.These constraints have forced ourcompanies to innovate on the products,processes and distribution which in turnhas created companies which are able to poffer superior products and services at amuch competitive prices as compared toanywhere else i th world. h l in the ld Indian Printed Circuit Association 56
  • SEZ• The Special Economic Zone (SEZ) policy has been envisaged to ensure that India g enhances its competitive strengths in international business. The SEZ act of business 2005, aims to help businesses reduce costs, costs improve efficiency and facilitate the development of core sectors Indian Printed Circuit Association 57
  • “We had visited several locations inWhy NOKIA the country (India) before zeroing in on Chennai. Our decision has beenchose Chennai based on three key factors...the pro- active approach of the state government, overall development of the th area... and th availability of d the il bilit f skilled manpower” Mr. Raimo Puntala Sr VP, Operations & Logistics, Customer & Market Operations, Nokia Courtesy: Tamil Nadu State Government Indian Printed Circuit Association 58
  • “The accelerated de elopment of o r project in Tamil development ourTAMILNADU Nadu is largely due to the enthusiastic efforts of the Government of Tamil Nadu.Chennai Chennai is choice due to the efforts of a transparentAutomobile Map and pro-active state machinery” Mr. Y.S. Kim CEO, Hyundai Motors India “When we looked at locations all over India...not only the existing manufacturing base we looked at the base, availability of services and infrastructure-power, water, logistics...and I think equally most important is availability of good well trained labour force and cost competitiveness...and made an evaluation of all the factors and Tamil N d really came at th t of th f t d T il Nadu ll t the top f the list” Mr. David E. Friedman, MD & President Ford India Limited Indian Printed Circuit Association 59
  • One needs an uncanny acumen to spot opportunities in India Indian Printed Circuit Association 60
  • If you succeed in spotting these opportunities , the rewards are plenty Indian Printed Circuit Association 61