CEO SUMMIT 2017: Roadmap for enhancing local value addition in electronics manufacturing Originally presented at the India Electronics Week's CEO Summit by Elcina and EFY. Index: 1. Introduction to Syrma Technology 2. Industrial Revolution 4.0 3. Road Map for Enhancing Value Addition 4. Indian IoT Space 5. Where Are We? 6. World Towards the Transformation 7. Connecting Global Ecosystem 8. Undergo Transformation

1. CEO SUMMIT 2017
Roadmap for enhancing local value
addition in electronics manufacturing

2. INDEX
CONTENT1. Introduction to Syrma Technology
2. Industrial Revolution
3. Road Map for Enhancing Value
Addition
4. Indian IoT Space
5. Where Are We?
6. World Towards the Transformation
7. Connecting Global Ecosystem
8. Undergo Transformation

3. Based in Silicon Valley and
Chennai, India, Syrma
Technology specializes in high
mix, flexible volume, precision
OEM manufacturing with a rich
supply eco-system which serve
as a catalyst for growth in the
electronics manufacturing
industry.
ABOUT US
Creative & cost efficient design,
engineering & electronic
manufacturing solutions
1. INTRODUCTION

4. A Tandon Group Company
• Manufactured first floppy drive for IBM
PC and invented first double sided
floppy drive head
• Largest manufacturer of disk drives for
PCs and word processors
• Developed innovative technology to
improve quality & widespread use of
memory and flash drives
• Launched Celetronix, first world-class
EMS in India
• Launched Syrma Technology to design
and manufacture RFID tags, magnetics
and electronics
• Launched MEPL to manufacture
defense electronic equipment
Leader in innovation and entrepreneurial
manufacturing for over 38 years
1. INTRODUCTION

5. India Expertise
• Understands and navigates
regulatory and selling
environments across markets
• Supports growth opportunities in
the India market through
technology incubation ecosystem
• Assists global OEMs that want to
enter the India market
• Leverages local supply chain and
low-cost operating environments
for cost reductions
• Efficiently takes products to
market in India
Syrma Technology, a Tandon Group Company
1. INTRODUCTION

6. Our Facilities
• Site began operations in 2005 in
the Chennai Special Economic
Zone (SEZ) for manufacturing
• 90 minutes to Chennai seaport and
20 minutes to international airport
• Easy import and export with rail,
road and air connectivity with rest
of India
• Infrastructure advantages with
faster import and export
clearances
• Adequate labor force availability,
both skilled and unskilled, enabling
to meet upswing in the demand
Chennai and Bargur, India
1. INTRODUCTION

7. 1.0
Industrial
Age
Steam
Engine
2.0
Machine
Age
Mass
Production
3.0
Information
Age
Automation
4.0
Intelligence
Age
• Storage to go from 4 ZB to 44 ZB
• Printable solar cells anything to be a
power generator
• Unprecedented processing power
• Unlimited access to knowledge
• Data explosion
2. INDUSTRIAL REVOLUTION
Start of Another
Industrial Revolution

8. Global Transformation on Industrial Revolution 4.0
2. INDUSTRIAL REVOLUTION
Home
automation
Connected mobility
Smart
decision
Physical Digital
Biological
Fusion 4.0

9. Opportunity Spaces
2. INDUSTRIAL REVOLUTION
Intelligence Age
Intelligence
of Things
Digital
Revolution
Start-ups
Fusion of
Opportunities
• 1 lakh new employees for IoT
domain
• Remote diagnosis growing at
20% CAGR
• Home automation to cross $5
billion by 2020
• 700 million internet
connections by 2020
• Optic fiber to 2,50,000 villages
by 2020
• 50 million commercial electric
vehicles by 2020
• Auto, industrial, healthcare,
electronics growth
• Startups focusing on $100 billion
education sector
• Electronics development and
start-up funds and other
incentives

10. 2. INDUSTRIAL REVOLUTION
05 04
03
02
01
OIL
Oil wells
Oil production
Refinery
Pump
Transportation
Data is the Next Oil
Mukesh Ambani, 2017

11. Data is the Next Oil
2. INDUSTRIAL REVOLUTION
confidential
Mukesh Ambani, 2017
05 04
03
02
01
DATA
Data sensing
and generation
Data collection
Data analytics
Data center &
storage
IoT intelligence of
things

12. Transformation to 4.0
2. INDUSTRIAL REVOLUTION
Don’t innovate to stay competitive. Innovate to change the rules of the game.
Factory
management
& operations
Design led
manufacturing
Creating
intelligent products
Disruptive
technologies
Make electronics for
non-electronics
• 25% of tech workforce will be contingent
• 50% of business app will be in cloud
• 80% of all process will be eliminated

13. From stethoscope to
augmented reality.
Intensive manual labor to
robots and cobots.
Manual to smart automation.
Technology
Continues to Evolve
confidential

14. Road Map for Enhancing
Value Addition
• Think big, think scale
• Connecting to global ecosystem
• Supply Chain
• Technology
• Mega Trends
• Understand global transformation
Dual challenge for India: grow the electronic
business within the unprecedented global
transformation.
3. THE ROAD MAP
confidential

15. Digitization is Massive
• 400 million internet connections & estimated to reach 700
million by 2020
• 300 million phones by 2020 with 2/3 ratio flipped to
smartphones
• Optic fiber network connect over 2,50,000 villages by 2018
• 700 railway stations to be 100% solar powered
• Around 50 lakh commercial electric vehicles to be introduced
on Indian roads by 2020 with 1200 charging point
3. THE ROAD MAP
• Over $145.5 million invested in digitization for
education last year and 10,000 e-courses under
AICTE in the next 2 years with registration for online
climbing by over 70% per annum
• Start-ups coming up in past 2 years focuses on
$100 billion Indian education sector
• 200+ digital media start-ups have attracted
$18 million funding with 80+ more start-ups
setting up
Indian Opportunity Spaces
Edtech start-ups revolutionizing education
Digital ad spend in India to reach 25% of
total spend across TV, Print, Internet,
Radio, OOH

16. Indian IoT Space
• BFSI, retail, telecom and healthcare industries
employs 1,00,000+ for this domain
4. INDIAN IOT SPACE
• India to become a world leader in digital health
• M health – 2083 INR crore to 5184 INR crore by 2020
• Remote diagnosis growing at 20% CAGR
• 43% of admission in hospitals could reduce with
developing technology
• Will generate $1.6 trillion business in near
future across globe
• Wearable could surpass 200 million units by
2019 globally
• India ranks highest in readiness to buy
• Indian market is small around $4 million
• Tata sync ancient science with wearable
technology
Propelled by demand of cloud-based solutions
Telemedicine and digital health devices
Smart fashion and wearable

17. India’s Play
• 3 – 5% of sales on R&D
4. INDIAN IOT SPACE
confidential
• Medical electronics
• Flexible electronics
• Security electronics
• Invest in talent people
• Invest in automotive and smart factories
Reduce design to revenue cycle
Utilize centers of excellence
Smart fashion and wearable
Embed digital in products for service
domain
Make investments with digital in mind
Cognitive products and services
increasing focus areas
Digitalize
individual
firms
Foster industry clusters
& associations

18. Where Are We?
CHINA
US
JAPAN
INDIA
Exports
48%
19%
9%
2%
5. WHERE ARE WE?
confidential

19. Is India heading towards
technological colonies for
U.S. or China?
• India imports 65%, USD 300 billion by 2020
• Domestic Dependent, 30%. Import Dependent, 70%
• Made in India, 40%
5. WHERE ARE WE
• Taxation and finance related issues
• Limited manufacturing skillset and infrastructure
• Increased design to revenue cycles
• Global players ~ $90,000
• Domestic ~ $15,000 to $20,000
Imports
Struggling in information age and government helping
with incentives
Revenue per employee
Can we transform to 4.0?
Most of manufacturing in India is of low
addition last mile assembly.
Government aims to achieve high value
addition from 30% to 60% by 2020

20. World Towards the Transformation
• People with mobile phones on 5.4 billion (69% global
population) by 2020
• Artificial intelligence
• Nine tech giants (Microsoft, Google, Uber, Facebook, Apple,
IBM, Skype, Salesforce & Shell) are investing in intelligence
Smart mobile and digitization
6. WORLD TOWARDS THE TRANSFORMATION
confidential
• Consumer applications - $3.9 trillion
• Business and industry - $11.9 trillion
• Machine to machine connections will grow
to 27 billion by 2024
• Analytics market growing at 26% CAGR,
expected to reach $16 billion by 2025
IoT will have economic impact of 11% of world
economy by 2025

21. World Towards the Transformation
6. WORLD TOWARDS THE TRANSFORMATION
confidential
Medical technology
• Digital health industry estimated to
reach $116 billion by 2024
• Global annual revenues for robot
assisted surgery to reach $20 billion by
2025 from $4 billion by 2016
Robotics
• Tsinghua Holdings to fund 1000
business incubators on robotics by
2021 and another 50 in U.S, U.K
and Germany
Mobility
• Connected and autonomous cars
• 250 million connected cars on road
by 2020
• 33 leading corporations working on
autonomous cars R&D

22. Learning to Think Big to Pace with Opportunities
6. WORLD TOWARDS THE TRANSFORMATION
confidential
Disruptive Technology
• New product to address market that
previously has not been served
Reduce design to revenue
cycles period
• Use world-class academic
infrastructure to drive research &
development
• Stimulate GET in-house projects
regularly
E– Clusters
• Bring in academic, technological,
manufacturing sectors for decisive
ideas & concepts

23. Connecting Global Ecosystem
• Utilize entrepreneurial spirit of tier 2/3/4 for component
manufacturing and basic design services
• Combine organizations, EMS strength and tier 2/3/4 for
driving growth
7. CONNECTING GLOBAL ECOSYSTEM
• Support local accelerators and incubators in
formulating mission & marketing plan
• Over 50% of start-ups fails within 5 years and 40%
more thereafter
• Google to empower India’s 51 million
SMBs on digitization
• Digitally empowered SMBs could increase
their contribution to India’s GDP by 10%
by 2020
Drive interactions and collaborations
Building strong start-up ecosystem
Tap potential of MSME base to
evolve their skillset

24. Undergo Transformation
• JVs, tie-ups and technology licensing
partnerships in design & engineering
• Sub-assembly sub-system manufacturing
• 7-10 year program for technology
development with commensurate R&D
spends (3-5% of sales)
8. UNDERGO TRANSFORMATION
confidential

25. CONTACT US
Stay in touch with Syrma
confidential
Plot B, Phase II, Zone B
MEPZ-SEZ, Sanatorium, Tambaram
Chennai, Tamil Nadu, India 600045
Main Manufacturing Facility
SDF I, Unit #9, SEEPZ Blvd. MIDC Road
Andheri East, Mumbai, India 400096
Sales & Sourcing India
www.syrmatech.com
Email: sales@syrmatech.com
Contact