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PCBindustryscenarioupdate PDF
PCBindustryscenarioupdate PDF
Muniswamy Anilkumar
President
Indian Printed Circuit Association,
Bangalore, India
Agenda
IIntroduction
t d ti
- India Inc. Balance sheet in brief
Indian PCB Industry
- Evolution
- Present state
- Future prospects
Government Initiatives to boost the
Industry
Indian Printed Circuit Association
Introduction
India Inc
Inc.- why a macro economic view?
India Inc
Inc.- why a macro economic view?
The p
persistence of p
poverty,
y, illiteracy,
y,
malnutrition and the low rank in human
development index makes it like
somewhat similar to other poor and
developing countries.
10
India Inc
Inc.- why a macro economic view?
11
India Inc
Inc. balance scorecard
F
Fastest
t t Growing
G
i Free
F
Market
M k t Economy
E
Average growth last 10 years : >6%: last 3 years 8%
(>9% March-Sept in 2006)
Goldman Sachs Forecast:
Indian GDP would overtake Italy,
y France and Germany
y by
y
2025 and Japan by 2030
12
250
5 .1 5
241
4 .2
200
150
in U S $ b n
3
2 .7
3 .1
2 .9
76
114
95
86
76
142
2 .6
2 .4
100
73
31 .879
3 .6
95
50
T ra d e
FDI
0
5
05
20
04
20
-0
-0
4
03
20
02
20
13
-0
3
-0
2
20
01
-0
00
20
99
19
-0
0
-0
9
-9
98
19
97
19
19
96
-9
-9
17
18
19
20
Indias
India
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
j Rigid
g single/side
g
Manufacturers
Sr No
Sr.
Company
Production
M2 p.a
720000
480000*
300000
Garg Electronics
180000
108000
Shogini Technoarts
66000
NSP Electronics
60000
*Estimated Figure
22
Company
Double
Sid
Side
MultiL
Layer
Total
Production
AT&S
75000
150000
225000
Shogini Technoarts
13500
45000
180000
Sonic Technology
72000
12000
84000
52260
23400
75660
CIPSA RIC
72000
72000
Fineline Circuits
Circuits, Mumbai
19740
36660
56400
Meena Circuits
43200
43200
36000
5000
41000
36000
36000
28800
6000
34800
10 Fineline Circuits,
Circuits Baroda
23
Top
p Ten manufacturers (Turnover)
(
)
Rank
Company
Turnover
(USD Millions)
AT&S
40 0
40.0
Shogini Technoarts
13.3
12.2
11.55
E it
Epitome
Components
C
t Ltd.
Ltd
11 10
11.10
Sonic Technology
9.3
8.0
6.6
6.6
Hi Q Electronics.
5.3
10
Genus Electrotech
Pvt. Ltd.
Indian Printed Circuit Association
4.0
24
Key
y PCB Exporters
p
Sr.
No.
Company
Total Export
(Rs. in Millions)
AT&S
35.5
gy
Sonic Technology
9.3
6.6
Fineline Circuits
Circuits, Mumbai
64
6.4
5.6
2.8
Hi Q Electronics
2.1
2.08
Shogini Technoarts
15
1.5
25
26
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. &
B.cast
161.95
204.68
258.62
Strategic
22.48
25.6
29.13
451 31
451,31
547 85
547.85
665 56
665.56
Total
27
28
IT Market
A
Annual
lS
Sale
l :
PCs: 5.1 million
TVs: 10 million
I t ll d Base:
Installed
B
PCs: 18 million
Penetration :
PCs: 18 per
1,000
,
Access:
Internet Users: 35 Broadband : 0.50
Telephone subscribers (Fixed+Mobile)
(Fixed Mobile) :
milliion
million
140 million
India is a Twenty Billion Dollar
domestic
ICTAssociation
(including CE) market today !
Indian Printed Circuit
29
IT Market
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
38
33
12
11
13
45
51
54
5% of ICT demand
Chennai
5% of ICT demand
7
06
-0
04
Hyderabad
Bangalore
-0
43
20
35
Top 4
-0
30
-0
02
20
01
-0
1 % of ICT demand
3% of ICT demand
20
Pune
14
12
Mumbai
53
20
20
13
56
-0
68
03
Kolkata
100%
80%
60%
40%
20%
0%
20
4% of ICT demand
N ext 4
R e s t o f In d ia
05
Delhi
D lhi
20
18 % of ICT demand
IT Market
PC Market in India : 2005-06
7000000
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
P ro je c te d G ro w th in s u b s c rib e r
Base
250
210
M illio n
U n its
200
130
150
80
100
50
48
0
2004
2005
2006
2007
YEAR
33
IT Manufacturing
34
New Electronic
Hardware
Manufacturers
35
IT Market
2007
Worldwide
: 160 Million
: 234 Million
India-Volume
: 4 Million
: 9 Million
India Share
:2
2.5
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
W ld id
Worldwide
: 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%
36
Future Potential
37
2 7 .4
2 2 .7
1 3 .2
6 .9
1 6 .9
7 .1
2 1 .1
1 1 .4
5 .2
2 9 .2
2 1 .5
1 82.71 .4
1 4 .8 1 4 .7
1 2 .3
8 .3
50
100 150
200 250
Texas Instruments
2000
2 0 2 5 ( p r o je c t e d )
N o rth
A m e ric a
E u ro p e
In d ia
T h a ila n d
K o re a
C h in a
Intel
2 0 5 0 ( p r o je c t e d )
Oracle
Cisco system
GE
IBM
ICI
PhD -12,000
12,000 p.a
Engineers- 600,000 p.a
U S
W .A sia
L .A m e ric a
S E A sia
C h in a
A fr i c a
In d ia
In mn
13
20
38
41
56
73
3500
Motorola
2100
Texas Instrument
3450
Samsung
2100
Sanyo
HP
3500
Cisco system
2100
950
83
IBM
Source: World Economic Forum
700
3750
39
40
Investment Policy
FDI
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) regime
by 2010 to replace central, state and local taxation on goods.
Custom
Duty
Excise
Duty/Counter
Vailing
g Duty
y
Additiona
l Duty*
Computer
Nil
12%
4%
Peripherals-Motherboard,
Monitor Printer,
Monitor,
Printer Key Board
Board,
Mouse etc.
Nil
16%
4%
Microprocessor
Nil
Nil
4%
HDD/FDD/CD-Rom Drive/DVD
Drive / Flash Drive
Nil
Nil
4%
Nil
16%
4%
Mobile Phones
Nil
Nil
4%
p
of
Parts and Components
Mobile Phones
Nil
Nil
4%
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.
Printedand
Circuit
Association
Convergence of ServiceIndian
Tax (12%)
Excise
Duty- these can be offset
agianst each other
43
Policy
Duty free Zones
The Policy
y Structure: SEZ-the new vehicle for investments
Minimum Area for T hardware/Software :
10 hectares (10,000 sq. mtrs)
Customs and Excise :
Allowed to source duty free all capital goods,
goods raw materials,
materials consumabels,
consumabels
spares, packing materials, office equipment, DG sets etc. without any license
or specific approval .
Domestic
D
ti sales
l b
by SEZ units
it are exemptt ffrom Addit
Additonall Duty
D t ( 4% )
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
46
Conclusion
India Advantage
A very rapidly growing domestic
market:
CAGR 30% +
Local Market
Global
Gl b l recognition
iti ffor b
back-end
k d
services:
A proven case for IP,
embedded
e
bedded systems
syste s a
and
d IC
C
design
Profit from
Local Sales
Advantage
India
Improve Costs & quality
for Europe & Others
Manufacture for
Exports
49
Chi
na
Indi
a
Bra
zil
36
44
India -00
Foxconn/Honhai s Experience
Foxconn/Honhais
Conceputalised India plan- Apr05,
First visit to India by CEO Oct 05
MOW with Tamil Nadu government- Mar 05
Launching production Jun 06
1 0 .3
7 .3
89
9 .9
China
15 2
Brazil
8 .4
50
First
51
Acknowledgements
Data sources
1. IPCA , India
2. WECC report
3. ELCINA, India
4. MAIT, India
5. Economic Times
6. Business line
52
THANK YOU
A questions
Any
ti
please?
l
?
Contact details
M Anil Kumar
President
Indian Printed Circuit Association (IPCA)
839A, 100 feet Main Road, Indiranagar 1Stage,
Bangalore-560038
Bangalore
560038, INDIA
Phone: +91-80-25250118, 25651772
Fax : +91-80-25213212
Mobile:+91 98450 23625
Mobile:+91-98450-23625
www.ipcaindia.org
E-mail : anil@slntechnologies.com
anil@ipcaindia.org
il@i
i di
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.
BPO
WiproSpectramind
IBM-Daksh
WNS Global
Services
E-Funds
EXL Services
3i Infotech
Telecom
Motorola
Ericsson
Nokia
Alcatel
Samsung
Siemens
HFCL
Bh ti
Bharti
Benq
ITI
R&D
TI
Intel
IBM
Motorola
Wipro
GE
Philips
ST
ISPs
Satyam
VSNL
MTNL
BSNL
Bharti
Training
NIIT
Aptech
Solectron
Celestica
S
i
Sanmina
55
Whatt makes
Wh
k Indian
I di companies
i unique
i
iis
their ability to operate in the presence of
the several constraints like lack of
adequate infrastructure and a set of
demanding value conscious customers
customers.
These constraints have forced our
companies to innovate on the products,
processes and distribution which in turn
has created companies
p
which are able to
offer superior products and services at a
much competitive prices as compared to
anywhere
h
else
l iin th
the world.
ld
Indian Printed Circuit Association
56
SEZ
The Special Economic Zone (SEZ) policy
g to ensure that India
has been envisaged
enhances its competitive strengths in
international business.
business The SEZ act of
2005, aims to help businesses reduce
costs improve efficiency and facilitate the
costs,
development of core sectors
57
Why NOKIA
chose Chennai
58
TAMILNADU
Chennai
Automobile Map
The accelerated de
development
elopment of o
ourr project in Tamil
Nadu is largely due to the enthusiastic efforts of the
Government of Tamil Nadu.
Chennai is choice due to the efforts of a transparent
and pro-active state machinery
Mr. Y.S. Kim
CEO, Hyundai Motors India
59
60
61