1. Confidential. Do not distribute to third parties.
CEO SUMMIT 2017
2nd March 2017
Roadmap for Enhancing Local value addition in Electronics Manufacturing
Confidential. Do not distribute to third parties.

3. 4.0 3.0 2.0 1.0 Start of another Industrial Revolution…
Printable Solar Cells
Anything to be a Power Generator
Unprecedented Processing power
The Next Big thing is
A trillion Small things
Courtesy: Ray Bingham Exe Chairman Cypress Semicond
4.0
3.0
2.0
Automation
Mass
Production
Unlimited Access to Knowledge
1.0
Intelligence Age
Steam Engine
Information Age
Machine Age
Storage to go from 4 ZB to 44 ZB
Industrial Age
Data Explosion
Courtesy: the-fourth-industrial-revolution-what-it-means-and-how-to-respond

4. Global transformation on Industrial Revolution 4.0
Connected Mobility
Smart Production
Smart Retail
Physical
Digital
Fusion 4.0
Biologic-al
Home
Automation
Smart Decision
Medtech
Edutech
Smart
Logistics
Courtesy: the-fourth-industrial-revolution-what-it-means-and-how-to-respond

5. Data Sensing and generation Intelligence of Things
Data is the Next Oil
Mukesh Ambani, 2017
Data Sensing and generation
Oil Wells
Oil Production
Data collection
Refinery
Data Analytics
Transportation
Data Centre & Storage
IoT
Intelligence of Things
Pump

6. Creating Intelligent Products
Transformation to 4.0
Factory Mgmt. & Operations
Design led mfg.
Creating Intelligent Products
Disruptive Technologies
Don’t innovate to stay competitive…..
Innovate to change the rules of the game
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
Courtesy: Ray Bingham Exe Chairman Cypress Semicond

7. Technology Continues to Evolve…
Courtesy: Re-imagining Manufacturing, CII, Santhanam MD Saint Gobain India
Technology Continues to Evolve…
… from Stethoscope to Augmented Reality
Intensive Manual labour to Robots and Cobots…
Manual to Smart Automation…

8. Indian Opportunity Spaces
Intelligence Age
(Fusion of Opportunities)
700 Mn Internet connections by 2020
1 Lakh new Employees for IoT Domain
Optic fibre to 2,50,000 Villages by 2020
Remote Diagnosis growing at 20% CAGR
Intelligence
of Things
Digital Revolution
300 Mn mobile phones – 2/3rd Smart phones
Home Automation to cross $5 Bn by 2020
Start-ups
Electronics development and start-up funds and other incentives
Auto, Industrial, Healthcare, electronics growth
Startups Focusing on $100 Bn Education sector

9. Dual Challenge for India Emerging scenario plays into India’s strength
Road Map for Enhancing Value Addition
Think Big, Think Scale
Connecting to global Ecosystem
Supply Chain
Technology
Mega trends
Understand global transformation
Focus on Smart products
Dual Challenge for India
Grow the electronic business within the unprecedented Global transformation
Emerging scenario plays into India’s strength

10. Can India do better in Industrial Revolution 4.0?
Engine
Idli
Industrial Revolution 1.0
Can India do better in Industrial Revolution 4.0?
Courtesy: Comedy in a Tamil Film

11. Thank You

12. Is India heading towards technological colonies
Where are we?
Indian EMS Space
Major electronic market share holders
Export
China – 48%, US – 19%, Japan – 9%, India - 2%
Imports
India imports 65%, USD 300 Billion by 2020
Struggling in Information Age and Government helping with Incentives
Taxation and Finance related issues
Limited manufacturing skillset and infrastructure
Increased design to revenue cycles
Revenue per employee
Global players ~ $90,000
Domestic ~ $15,000 to $20,000
Most of manufacturing in India is of low addition last mile assembly
Is India heading towards technological colonies
for US or China?
Import Dependent
70%
Govt. aims to achieve high value addition by 60% from 30% in 2020

13. Digitization is Massive
Indian Opportunity Spaces…
400 Mn Internet connections & estimated to reach 700 Mn by 2020
300 Mn phones by 2020 with 2/3 ratio flipped to Smartphones.
Optic fibre network to 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
Edtech start-ups revolutionising the Education
Over $145.5 Mn invested in Digitization for Education last year & 10,000 e-courses under AICTE in next 2 years with registration for online climbing by over 70% per annum
Start-ups coming up in past 2 years focuses on $100 Bn Indian Education sector.
Digital ad spend in India to reach 25% of total ad spend across TV, Print, Internet, Radio, OOH
200+ digital media start-ups have attracted $18 Mn funding with 80+ more start-ups setting up

14. Indian IoT Space… Smart fashion and wearable
Propelled by demand of Cloud – Based solutions
BFSI, Retail, telecom and healthcare industries employees 1,00,000+ for this domain.
Telemedicine and digital health devices.
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
Smart fashion and wearable
Will generate $1.6 trillion business in near future across globe
Wearable Could surpass 200 Mn units by 2019 globally
India ranks highest in readiness to buy
Indian market is small around $4 Mn
Tata sync ancient science with wearable Tech
Commerce adopting transport and logistics with Connected vehicle system
Home automation to cross 30,000 crores by 2022
Tata Motors & Microsoft join forces for connected vehicles platform

15. India’s Play Cognitive products and Services
Increasing focus areas
Reduce design to revenue cycle
3 – 5% of sales on R & D
Utilise centres of Excellence
Medical Electronics
Flexible Electronics
Security Electronics
Local Digital Innovation centres
Embed digital in products for service domain
Make investment with Digital in Mind
Invest in talent people
Invest in Automotive and Smart Factories
Digitalize
individual
Firms
Foster Industry Clusters
& Associations

16. Where are we? Indian EMS Space
Imports
60%
Where are we?
Indian EMS Space
INDIA’S MARKET USD 400 Billion in 2022
Major electronic market share holders
Export
China – 48%, US – 19%, Japan – 9%, India - 2%
Imports
India imports 65%, USD 300 Billion by 2020
Struggling in Information Age and Government helping with Incentives
Taxation and Finance related issues
Limited manufacturing skillset and infrastructure
Increased design to revenue cycles
Revenue per employee
Global players ~ $90,000
Domestic ~ $15,000 to $20,000
Most of manufacturing in India is of low addition last mile assembly
Can we transform to 4.0?
Make In India
40%
Raw Materials
Is India heading towards technological colonies
for US or China?
Domestic
Dependent
30%
Import Dependent
70%
Govt. aims to achieve high value addition by 60% from 30% in 2020

17. World towards the transformation…
Smart Mobile and Digitization
People with mobile phones of 5.4 Bn (69% global population) by 2020
Artificial Intelligence
Nine tech giants like Microsoft, Google, Uber, Facebook, Apple, IBM, Skype, Salesforce, Shell investing in Artificial Intelligence
IoT - economic impact of 11% of world economy by 2025
Consumer applications - $3.9 Tn
Business and Industry – $11.9 Tn
Machine 2 Machine connections will grow to 27 Bn by 2024
Analytics market growing at 26% CAGR, expected to reach $16Bn by 2025.

18. World towards the transformation…
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 Mn connected cars on road by 2020
33 leading Corporations working on Autonomous cars R & D

19. Learning to think big to pace with opportunities
Disruptive Technology
New product to addresses market that previously hasn't 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

20. Connecting global Ecosystem…
Drive interactions and collaborations
Utilise 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
Building strong start-up ecosystem
Support local accelerators and incubators in formulating mission & marketing plan
Over 50% of start-ups fails within 5 years and 40% more thereafter
Tap potential of MSME base to evolve their skillset
Google to empower India's 51 Mn SMBs on digitization
Digitally empowered SMBs could increase their contribution to India’s GDP by 10% by 2020

21. 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)