1. Market Growth and Demand Drivers
“Roadmap for Enhancing Value Addition in Electronics Manufacturing”
Market Growth and Demand Drivers
Vinod S Chippalkatti
Vice President-SEBU, Centum Electronics
02-March-2017

2. The Centum Group
COMPANY
OVERVIEW

3. International markets
Fast Facts
Overview
Established
1994
Employees 2300
Design (730)
Revenues
$150M
Public Listed Company
(BSE, NSE)
>90% Revenue from
International markets
Mfg area:350,000 SFT
Systems and Certifications
ISO 9001:2008
AS 9100 Rev C
ISO 13485: 2003
ISO 14001: 2004
OHSAS 18001
Independently Certified
Reliability Test House
Approved R&D facility
by DST & GOI

4. Industry Segments INDUSTRIAL SPACE DEFENCE & AEROSPACE MEDICAL
COMMUNICATION
TRANSPORTATION

5. Complete Product Realization
Advanced technical capabilities combined with competitive industrialization strengths and a global footprint makes Centum the ideal Product Realization partner
Samples System Test
DFM, DFT, FMEA Design Optimisation
Production Optimisation
Supply Chain
“A” Class Orders
Feasibility Study
Business Case
Detailed Spec.
Sourcing Strategy
Industrial Design
Ramp Up
Volume Production
Production Testing
Global Distribution
Aftermarket/
Life cycle
Support
Concept
Design
Pilot
Production
Mass
Production
Commercialize
Design
Prototype
Requirements Def.
Analyse Need
Create Concept
Detailed Design
Design Reviews
(PDR, CDR)
Testing Strategy
Mock-up’s
Production Process
Pilot Assembly
Supply Chain Prime
Sourcing Model
Repair Warranty Solutions
Out-Of Warranty Sol.
Obsolescence Mgmt
Product Upgrades
Technical Support
On-Going Optimisation
Engineering Services
BTS
BTP

6. Indian Electronics Sector Market Growth and Demand Drivers

7. Electronics Sector Indian Electronics Sector Electronics Components
Consumer Electronics
Industrial Electronics
Strategic Electronics
Computers
Communication Equipment

8. Electronic Components
The electronic components industry in India at US$ 14 billion
Growing at a CAGR of 11% .
Growing domestic demand due to accelerated local manufacturing of electronics products will drive the market for electronics components in India.

9. Consumer Electronics
Introduction of Smart Consumer Electronics
Improved reach of offline and online Retail channels
Set Top Boxes, Flat TVs, Refrigerators
Significant potential to grow
Increased Affordability, better Financing mechanisms
Increased penetrations in semi-urban and rural markets
Forms around 20% of the total electronics product revenues

10. Industrial Electronics
Increased Automation in Industries
IOT Impact
Energy efficient, Environmental friendly technologies (smart Solar Grid, LED bulbs)
Railways modernization
Smart Cities

11. Strategic Electronics
SE Production in India is increased to around 3 B$
Economic Growth and Low cost are likely to provide the push to aerospace market
Nuclear power – Large role in Energy security requirements
Forms around 7-8% of the total electronics product revenues

12. Computers
Fastest growing IT systems and hardware market (3B$) in Asia Pacific
Expansion of Server market into smaller cities and small-medium businesses and also into e-commerce sectors
National e-governance initiatives and Digital India campaign to boost IT hardware procurement
Increased demand for multi-function-printers
Forms around 10% of the total electronics product revenues

13. Communication Equipment
Ever Increasing Broadband base
Expanding mobile user base with increasing rural penetration
Consumer buying power increase resulting in high replacement frequency
Emergence of E-commerce channel

14. Enhanced “Tech-driven-Operations”
Growth Drivers
Growth Drivers
Increased Demand
Govt Support
Enhanced “Tech-driven-Operations”
Investment Increase

15. Enhanced “Tech-driven-Operations”
Increased Demand
Growth Drivers
Increased Demand
Govt Support
Enhanced “Tech-driven-Operations”
Investment Increase
Growing Consumer Base
Increased ability to spend
Prices-falling, Increased affordability
Government and corporate spending – increased demand

16. Enhanced “Tech-driven-Operations”
Government Support
Growth Drivers
Increased Demand
Govt Support
Enhanced “Tech-driven-Operations”
Investment Increase
Electronics Clusters
SEZs, EHTPs
FDI policy, Make in India, EDF
Incentive Schemes (mSIPS)
National Electronics Policy
Widespread Broadband connectivity
E-governance programs
Digital India Campaign
Smart Cities Project
Government Cloud Initiative (Meghraj)
Solar Power Projects
UIDAI project
National Knowledge Network (NKN)

17. Technology Driven Operations - Enhancement
Growth Drivers
Increased Demand
Govt Support
Enhanced “Tech-driven-Operations”
Investment Increase
Expansion of Production facilities
Increased Distribution Centres
Offsets
R&D enhancements
BTS,BTM, BTP Enhancements

18. Enhanced “Tech-driven-Operations”
Growth Drivers
Growth Drivers
Increased Demand
Govt Support
Enhanced “Tech-driven-Operations”
Investment Increase
M&A
Consolidation
Increased FDI inflows
Expansion plans of the companies

19. Increased Investments
Growth Drivers
Increased Demand
Govt Support
Enhanced “Tech-driven-Operations”
Investment Increase
Growing Consumer Base
Increased ability to spend
Prices-falling, Increased affordability
Government and corporate spending – increased demand
M&A
Consolidation
Increased FDI inflows
Expansion plans of the companies
Electronics Clusters
SEZs, EHTPs
FDI policy, Make in India, EDF
Incentive Schemes (mSIPS)
National Electronics Policy
Widespread Broadband connectivity
E-governance programs
Expansion of Production facilities
Increased Distribution Centres
Offsets
R&D enhancements
BTS,BTM, BTP Enhancements

20. Summary
Significant Growth in Demand for Electronic Products in India
Government initiatives will boost domestic consumption of electronics
Current demand is largely met through Imports – since local production is insufficient
To realize the local manufacturing dream, eco-system must be strengthened and move towards increased domestic value addition