Post Show Report Supported By Department of Electronics & Information Technology Government of India Gold Sponsors Silver Sponsors Associate Sponsors Media Partner Organized By Electronic Industries Association of India ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi – 110020, India Tel: +91 11 26924597| Fax: +91 11 26923440 | E-mail: [email protected]| URL: www.elcina.com
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Post Show Report
Supported By
Department of Electronics & Information Technology
Government of India
Gold Sponsors
Silver Sponsors
Associate Sponsors
Media Partner
Organized By
Electronic Industries Association of India ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi – 110020, India
STRATEGIC ELECTRONICS SUMMIT 2016 Post Show Report
7th – 8th July, 2016, Bangalore International Exhibition Centre (BIEC),
Bengaluru ______
The 7th Strategic Electronics Summit 2016 (SES 2016) – Defence & Aerospace, was
organised by ELCINA on July 7th & 8th, 2016 at Bangalore International Exhibition Centre
(BIEC), Bengaluru. The idea of SES was mooted by the ELCINA Executive Committee in
2009. It recognized the potential of this sector and the Indian industry’s special skills in
the high technology low volume production.
ELCINA identified the following key factors, which inspired us to focus on strategic
electronics -
Rapid and supportive changes in Government thinking regarding Defence
Production as well as Procurement Policies. Encouraging indigenous production
and value addition, as well as participation by SME’s
Large and growing budgets for the Defence & Homeland Security
Greater importance of defence avionics, as well as, an expanding aviation
industry
Increasing threat in dependence on imports, for national security equipment
High potential for employment and revenue generation
Capability and keenness of the Indian industry to participate in manufacturing
The last 7 editions of SES from 2010 to 2016 successfully Brought Industry,
Defence Establishment & Government Together !
Earlier editions of Strategic Electronic Summits demonstrated great interest and
opportunity that the industry saw in the Strategic Electronics sector and participated
wholeheartedly. Deliberations and discussions were intense and passionate between all
stakeholders. There were over 200 organisations participated as Exhibitors and / or
Delegates. All the activities like Conference, Exhibition & Technical Sessions witnessed
keen participation with over 300 delegates in the Conference and good footfalls of
business visitors.
This year Shri Manohar Parrikar, Hon’ble Raksha Mantri graced the occasion as the Chief
Guest, Lt. Gen. Subrata Saha, Dy. Chief of Army Staff was the Guest of Honour on the
opening day with special addresses by Guest of Honour Dr. Ajay Kumar, IAS, Addl.
Secretary, DeitY, Dr. Venkatesh Padmanabhan, CEO Rangsons, SVP DLM, Cyient Ltd.,
Mr. M V Appa Rao, MD, Centum Electronics Ltd, Mr. JD Patil, Senior VP, Head Defence &
Aerospace, L&T.
Hon’ble Raksha Mantri asked ELCINA to submit details of the “pain points”
being faced by Defence Sector manufacturers which are hampering “Make in India” in the Defence Sector.
ELCINA greatly enthused by the support of Hon’ble Raksha Mantri to the proposed
Defence Electronics Lab in BEL Ancillary Estate, Bangalore.
ELCINA has released the update 2016 for the Special Report on “Opportunities and
Challenges in the Strategic Electronics Sector, with special focus on MSMEs”.
Two panel discussions and a plenary session were organized on day 2. The topics of the panel discussions were “Role of Academia & Electronic SME Clusters” and
“Strategic Partners for Defence & Aerospace Programs”. The panels were chaired by eminent personalities like Padma Shri Dr. Prahlada Ramarao, Former DS & CC,
R&D,DRDO, Former VC, DIAT and Padma Vibhushan Dr. V. K. Aatre, Former SA to RM & Distinguished Scientist among other notable panelists from the Industry and Academia.
A Summary of SES 2016
OBJECTIVES OF THE EVENT
Bring all stakeholders on one platform to enable better communication and
understanding of requirements of the defence establishment.
Facilitate in creating indigenous capability to manufacture defence equipment and
meet these requirements.
Create awareness about opportunities in the Strategic Electronics sector.
Involve the Small and Medium Enterprises to meet the requirements of Defence
Forces.
Bridging the gap between R&D, Government organizations and businesses.
Explain and highlight the new Defence Production and Offset Policies.
Encouraging and enabling investments for developing strategic strengths.
PROGRAM DETAILS:
Conference on : Strategic Electronics: Accelerating the pace of “Make in India”
Day -1
Opportunities for Defence Industries under “Make in India Program”
Indigenization
Opportunities for Private Industries on Make in India by HAL
Special Technology Sessions:
Opportunities for Private Industries on Make in India by HAL
DPP 2016 Explained by Col. KV Kuber, Indian Army Veteran
Day -2
IRNSS: Game Changer for C4ISR
C-DOT and Indigenization of Communication/Telecom Technologies
Industry Consultation for Electronic Manufacturing Cluster at Sira,Tumkur by
KBITS
Panel Discussion on the Role of Academia & Electronic SME Clusters
Panel Discussion on Strategic Partners for Defence & Aerospace Programs
Special Technology Sessions:
C-DOT and Indigenization of Communication/Telecom Technologies
Industry Consultation for Electronic Manufacturing Cluster at Sira,Tumkur by
KBITS
Outsourcing and Vendor Development by BEL
Exhibition : to showcase opportunities for buyers and sellers
Conference on
Strategic Electronics: Accelerating the pace of “Make in India” CONFERENCE PROGRAM
Cassia, Convention Centre, Bangalore International Exhibition Centre, Tumkur Road, Bengaluru
Day–1 7th July 2016
0900- 0930 Hrs Arrival & Registration
Inaugural Session | 0930 – 1130 Hrs
0915 – 09:30 Hrs Arrival of Guests & Welcome
09:35 - 09:40 Hrs Welcome Address - Mr. Vikram Desai, President ELCINA & MD, Desai Electronics
09:40 - 09:50 Hrs Key Note Address: Dr. Venkatesh Padmanabhan, CEO Rangsons, SVP DLM, Cyient Ltd.
09:50 – 10:00 Hrs Industry Address: Mr. M V Appa Rao, MD, Centum Electronics Ltd
10:05 – 10: 15 Hrs Mr. JD Patil, Senior VP, Head Defence & Aerospace, L&T
Karnataka Biotechnology and Information Technology Services (KBITS)
Kaynes Technology India Pvt Ltd
Keetronics (India) Pvt Ltd
Kristeel Shinwa Industries Ltd
Larsen & Toubro Limited
MathWorks India Pvt Ltd
MEL Systems and Services Ltd
MMI India Pvt Ltd
Pentair Technical Products India Pvt Ltd
PES University
R V College of Engineering
Radel Advanced Technology Pvt Ltd
RMC Electronics Pvt Ltd
Shakthivel Associates
SLN Technologies Pvt Ltd
Spectrum Antenna and Avionics Systems
SVM Private Limited
Syrma Technology Pvt Ltd
Trident Techlabs Pvt Ltd
Delegates
AdTEC Electronic Instruments
Advance Components & Instruments
Aiddition Technologies
Alpha Design Technology
Amara Raja Electronics Ltd
Analog Devices India Pvt Ltd
Ananya Technologies PVTLTD
Ankit Fastners Pvt Ltd
Antherm
Arsha Consulting
AT&S India Pvt Ltd
Attivo Special Economic Zones
BE Analytic Solutions LLP
BEML Limited
Bharat Forge
Caritor Solutions India Pvt Ltd
Champion Electronics Pvt Ltd
CIM Tools Pvt. LTD
Circuit Systems (India) Limited
Convergent Technologies
Crucible of Research and Innovation
CSA India Pvt Ltd
Data Pattern
Datasol Innovative Labs
DCX Cable Assemblies Pvt Ltd
DEAL
Deena Technologies
Deepti Electronics & Electro-Optics
Defense Support Systems
Delta Electronics India Pvt Ltd
Directorate General of Civil Aviation
DSM India Private limited
E2E Interconnect
EDS Technologies Pvt Ltd
Electroform Technologies
Electrolinks Technologies Pvt. Ltd.
Electronics & Radar Development Establishment
EMBEDDED SOLUTIONS PVT LTD
EMI Solutions Pvt Ltd
Epitome Components Pvt Ltd
Evercons Technologies Private Limited
EWAS Technologies Pvt Ltd
FASTECH Telecommunications
Federation of Indo-Israel Chamber
of Commerce (South)
FESTO POWER INDUSTRIES
Henjere Enterprises
HR Anexi Pvt Ltd
HSMC India (Edgewood)
IDECK
IEEE
IETE
IIT Kharagpur
IIT Madras
Indian Institute of Technology
IMRB International
Ineda Systems Pvt Ltd
Infineon Technologies India Pvt Ltd
Intech DMLS Pvt Ltd
Integrated Electronics
Interplex Electronics India Pvt
Limited
Isola Asia Pacific (Hong Kong) Ltd
iWave Systems India Pvt Ltd
JCDecaux UK Limited
Kaynes Interconnection Systems
KRAMSKI Stamping & Molding
Kreative Technologies
Lyra Infosystems Pvt Ltd
Magpulse Technologies Pvt Ltd
Manipal University
MapuSoft Technologies Pvt Ltd.
Mesco Aerospace Limited
MFR Electronic Components Pvt Ltd
Micronova Impex Pvt Ltd
Mill Master Machinery Pvt Ltd
Ministry of Defence
Miracle Electronic Devices Pvt. Ltd.
Mitra
Multisphere Power Solutions Pvt Ltd
Nabhaya Electronics
O/E/N India Limited
OSR Consultants
Oxys Technologies Pvt Ltd
Panacea Medical Technologies Pvt
Ltd
Pexa Limited
Powertec Supplies India Pvt Ltd
Progressive Industries
Protectron Electromech Pvt Ltd
Qmax Test Equipments Pvt Ltd
Radiall India Private Ltd
Ray-Q Interconnection
Technologies
RCI
RF Horizon Pvt Ltd
ROSSELL TECHSYS
S M Creative Electronics Ltd
Safeline Engineers
Samyuktha Karnataka
Savitri Telecom Services
Scientific Mes Technik Pvt Ltd
Sekhar Electronics
Semikron Electronics Pvt Ltd
SFO Technologies Pvt Ltd
Sierra Software Design Centre
Silicon Power
Simco Engineering Limited
Simplex Infotek
SriSattva Group of Advisors
Stanesh Semiconductor Pvt Ltd
STMicroelectronics Marketing Pvt Ltd
Sudhir Automotive Industries Pvt
Ltd
Swift Electrocomp Solutions Pvt Ltd
System Controls Technology
Solutions
Systems Aids
Tata Power SED
TE Connectivity India Pvt Ltd
TEKTRONICS POWER
Tessolve Semiconductor Pvt Ltd
The Printers (Mysore) Pvt Ltd
Toradex Systems (India) Pvt. Ltd.
(HQ)
Trasccon Interconnection Systems
Tribhuvan Technologies Private Limited
Trium Manufacturing Company
TÜV Rheinland (India) Pvt Ltd
TÜV SÜD South Asia
UK Trade & Investment
Unified Electro-Tech Ltd
UTL Technologies Ltd
Validus Technologies USA
VB Infrastructure (Proposed Unit)
VEM Technologies Pvt Ltd
Verdant Telemetry & Antenna Systems
Wavelet Group
Zing Technologies
STATUS OF INDUSTRY AND OPPORTUNITIES India is the biggest importer of defence equipment importing thrice as much as China and
Pakistan. Large scale modernisation of defence forces is on the anvil. The nextdecade is likely to see an exponential growth in combat systems as well as non-platform based
defence strategic electronics programs, with the requirement for the 12th plan (2012-2017) being pegged at over Rs.100,000 crores. This report is focussed on production of
electronics in A&D sector and hence also deals with the procurement process and the scenario.
The production of strategic electronics in India has been growing steadily from Rs. 5700 crores in 2007-08 to Rs.9000 crores during 2010-11. As per projected growth rates and
industry estimates, electronics production in Defence Sector in India reached Rs.12,000 crores during 2012-13 and exceeded Rs. 13,800 Crores during 2013-14 recording a growth of over 15%. This growth is fuelled by the expanding budgetary allocation for Defence
Sector which jumped from Rs. 164,415 crores in 2011-2012 to Rs. 193,407 crores in 2012-13 and further allocation has been increased by 5% to Rs. 2,03,672 crore for 2013-14 with
provision for further funding depending on actual requirements. Present year budget for Defence Sector is INR 2.46, 727 Crs. Government initiatives such as Defence Offsets and Defence Procurement Policy (DPP) have opened a host of opportunities which the domestic
industry must seize. This brings opportunity for all industry players who are keen to gain from and also contribute to the growth of the Strategic Electronics industry in India and
enable greater domestic value addition and indigenization. Offsets have the flexibility in fostering partnerships with foreign majors. Aim is to actively involve indigenous industry in this sector, enable greater value addition and indigenization, and reduce the country’s
heavy dependence on imports. Post-independence, Defence Industry in India, was classified under the strategic sector and placed under the reserved list and we created the
large pool of 09 DPSUs, 39 OFs and 50 plus DRDO labs. The sector was opened for the first time to private sector in 2001, when the Defence Sector was removed from the Reserved category and placed in the Licenced Category with 100 % private participation and a
restrictive 26% FDI cap. The FDI policy has however now further liberalised FDI cap to 49% in 2014. A Technology Perspective & Capability Roadmap (TPCR) based on the LTIPP
has been issued to the industry to help plan its R&D and infrastructure creation. Based on the approved Long Term Integrated Perspective Plan (LTIPP), equipment/ weapon systems/ platforms required in 10 years and further down the line will by and large be
developed/ integrated/ made within the country.
Provisions have been made in the DPP 2013 as well as DPM 2009 to support participation of MSME in the procurement process, particularly multiplier norms which provides a steady business to them. ‘Report of Working Group on Defence Equipment’1, estimates Defence
Electronics of the size of INR 25700 Crores. This amounts to about 25% of the capital expenditure projections of the working group by 2016-17. Thus, looking form the Offset
perspective, the opportunity for Indian Electronics manufacturing is huge. At the same time, government agencies will have to create enough interventions to make this happen.
Through the SES 2015 and a Report on the sector released during SES, ELCINA took stock of the known requirements of the defence platforms under procurement for the Armed
Forces and estimated the future requirement based on the Technology Perspective and Capability Roadmap (TPCR-April 2013) developed by Headquarters- Integrated Defence
Staff, Ministry of Defence and identify contribution made by strategic electronics in these procurements. On the other side, ELCINA planned to identify the existing indigenous manufacturing
capability and supporting eco-system in the Strategic Electronics sector including Micro
Small and Medium Enterprises (MSMEs), including Defence Public Sector Units (DPSUs), Ordnance Factories (OFs), Private Sector companies to understand possibilities to bridge the gap between existing capability and desired requirement.
INDUSTRY RECOMMENDATIONS
SUMMARY OF PROCEEDINGS
The 7th edition of Strategic Electronic Summit was inaugurated by Shri Manohar Parrikar,
Hon’ble Minister for Defence, Govt. of India on 7th July, 2016 at Bangalore International
Exhibition Centre (BIEC), Bengaluru.
Day 1 – 7th July, 2016 – “Inaugural Session”
Chief Guest : Shri Manohar Parrikar, Hon’ble Minister for Defence, GOI
Dr. Ajay Kumar, IAS, Addl. Secretary, DeitY Mr. JD Patil, Senior VP, Head Defence & Aerospace, L&T
Mr. M V Appa Rao, MD, Centum Electronics Ltd Dr. Venkatesh Padmanabhan, CEO Rangsons,
SVP DLM, Cyient Ltd.
Shri Manohar Parrikar, Hon’ble Minister for Defence, Govt. of India:
The Minister most graciously mentioned that he could not participate last year and
had promised that he would do so next year and thus he was happy to be here.
He stated that Defence procurement had practically been converted to Buy Global
when he took over the reins of the Ministry. No modifications could be allowed in
RFPs and this was illogical and counterproductive. RFPs for items still under
development were likely to need change and there should be a way to allow and do
the same. One achievement which the Minister shared was that he had managed to
have reasonable success in changing the mindset of officers in Defence Ministry so
that they do not suspect everyone and everything making business with industry
impossible. This approach was resulting in good suppliers staying away from
Defence contracts and new sources not developing. Minister said that he is asking
DPSU’s and Defence Establishments to become lead integrators instead of trying to
manufacture everything and setting up new factories. They must increase
outsourcing to industry. Sourcing from industry in Public Sector has increased from
Rs 42,000 crores to Rs 52,000 crores currently and this is an increase of 18%.
Sourcing from SME’s also stood at 9% and the target for this year was 15%, the
Minister informed.
Some industry people are confused between Make in India and Make projects. Make
in India is for creating capability to manufacture indigenously by local
manufacturers, while Make projects are for development of a particular item for any
defence project and this could be an electronic part or equipment. The Government
bears 90% of the design, development and manufacturing cost of such items in
Make 1 and there is assurance that the developer will get order for the same. If the
order is not given for some reason, the remaining 10% is also paid by the
Government. Make projects are independent of Make in India Projects and once a
Make project is successful, it becomes a Make in India project. Tejas, Advanced
Light Helicopter and all Offset projects are Make in India projects.
Policies, Shri Parrikar informed are being being streamlined to make a level playing
field for all with HAL, OFBs paying Excise Duty, Imports are subject to Customs Duty
and FE Variation will be covered in Defence Purchases to obviate losses or profits
due to the same.
The Minister gave full support to the Defence Lab project proposed by ELCINA with
BEL and wanted to be apprised about its progress on weekly basis. He said that the
details should be finalized within 2-3 months and by the time the 8th SES is
organized next year, the project should be getting established.
He also emphasized the need for industry to apprise him about the pain points and
issues being faced in crisp brief format and discouraged submission of large
documents. He would ask for details on any specific issues when required.
Dr. Venkatesh Padmanabhan, CEO Rangsons, SVP DLM of Cyient Ltd.
delivered the Key Note Address : He spoke on Design Led Manufacturing.
Sophisticated products we can design we should be able to manufacture as well and
that is why Cyient had into manufacturing acquiring Rangsons.
Dr. Ajay Kumar, IAS, Addl. Secretary, DeitY: Dr. Kumar welcomed the Hon’ble
Minister Shri Manohar Parrikar on behalf of DeitY and the industry. Specially
acknowledged the support being provided by Shri Parrikar for “Make in India” in
Defence where the opportunity was growing. Changes in the DPP are laudable as
they are simplifying the process and allowing domestic industry to participate in the
Defence manufacturing space, for domestic market as well as for exports. This
support has encouraged and enthused the industry which has survived through thick
and thin and is now committed to play a bigger role.
Dr. Kumar mentioned about Centum Electronics as an example where a medium
scale industry has acquired a company in France to strengthen its manufacturing
capability and reach. This is most encouraging as such examples were restricted
largely to service sector till date. Another significant development is that DeitY has
received its 200th proposal for investment in electronics manufacturing and this is a
great achievement and indication of the way things are progressing. Few years ago
before the National Policy for Electronics was announced there were almost no
proposals for investments and many companies had shut down. Now many of the
large business houses such as Tata’s, Hero Group and JK Group are venturing into
this sector.
Another aspect which is vital is Innovation as it is the only way in which the desired
level of value addition can be captured. After the announcement of Policy for Start
Ups and DeitY’s Electronic Development Fund to support R&D, there has been a
surge in innovation led activity, especially in and around Bangalore. A National
Centre for Security in IT has been set up in IIT, Powai for developing special
technologies for defence sector.
Lt. Gen. Subrata Saha, UYSM, YSM, VSM, DCOAS (P&S) was the Guest of Honour for the event:
Mr. Vikram Desai, President ELCINA
Delivering the Welcome Address during the Inaugural Session,
Mr. Rajoo Goel, Secretary General, ELCINA gave the Vote of Thanks:
Session II – “Opportunities for Defence Industries under Make in India Program”
Lt. Gen. Subrata Saha, UYSM, YSM, VSM DCOAS (P&S), Indian Army
Mr. Vipin Tyagi Executive Director
CDOT
Maj. Gen. Atul Mehra (Retd.) ED
ECIL
AVM PK Srivastava, VSM (Retd.) VP
Larsen & Toubro
Dr. Sandip Chatterjee, Director & Scientist 'F' DeitY
Government of India
Lt. Gen Subrata Saha, UYSM, YSM, VSM, DCOAS (P&S) chaired the 2nd Session.
Opening the discussion Lt. Gen Saha emphasized that along with economic and
policy of manufacturing, the stakeholders should also focus on the requirement
perspectives of armed forces. He also mentioned that in his pursuit to achieve long
term strategic he tried to come up with a trilateral dialogue among armed forces,
Academia and the industry. He unless Industry and academia do not know
battle ground realities and exposure, the process of design and manufacturing
cannot go full circle.
Mr. Vipin Tyagi, Executive Director, CDOT : Mr. Tyagi focused on the essentiality
of own platforms, which should be secured, rugged and reliable in nature. He also
discussed crucial parameters of a strong communication system such as better
coverage, super, high bandwidth and low latency. He also suggested developing a
Whatsapp like Indian communication platform for armed forces which should be
absolutely a secured Close User Group and should work communication services for
common people are suspended. This platform should be to various interfaces like
mobile phones, wireless devices, landlines etc. He also emphasized on the
manufacturing of communication hardware in the country.
emphasized the importance of a secured communication system which cater the
requirements of joint operation by Indian armed Forces such as army, navy and
airforce. He mentioned that future battles will be fought through intelligent warfare
systems and countries with secured and well integrated communication system will
have better prospects of winning. He stressed that until the core of manufacturing
which is Chip Designing and Embedded software is achieved, it will hard to win any
future battle. He also discussed the importance of aggregation of capacities which
are there with various defence establishments and academia.
Maj. Gen. Atul Mehra, ED, ECIL (Retd.) : Maj. Gen. Mehra discussed the previous
challenges turning as opportunities with suitable amendments in DPP-2016. He
emphasized on the evaluation of policies till it gets implemented.
Dr. Sandip Chatterjee, Director & Scientist 'F', DeitY, Govt. of India :
Dr. Chatterjee highlighted the initiatives taken by Ministry of Electronics and IT for supporting electronics manufacturing, IT development and their convergence.
Session III – “Indigenization”
Lt. Gen. AKS Chandele, PVSM, AVSM (Retd.)
Mr. N. Ramachandran, MD Mel Systems & Services
Col. Selva Kumar, Director Directorate of Indigenisation
Dr. KVB Vasantha Rayudu, RCI
Mr. B Ramani, Executive Director, C-DAC
Lt. Gen. (Retd.) AKS Chandele, PVSM, AVSM coordinated the 3rd Session:
Gen Chandele introduced the speakers and focused on the approach of self-reliance.
He mentioned that overdependence on foreign vendors is not preferable in long run
especially during the times of war. Gen. Chandele urged the need of gradual
indigenization of weaponry and electronic sub systems. He mentioned that life cycle
maintenance is an important aspect should be considered while tendering for
defence equipment’s from global vendors. Gen. Chandele urged that industry should
come up with a plan for gradual indigenization, starting from SKD to CKD to minor
assemblies and finally major assemblies to manufacture completely indigenous
equipment.
Mr. N. Ramachandran, MD, Mel Systems & Services: Mr. Ramachandran
emphasized the importance of components manufacturing in the country, he
cautioned about the threats of using foreign components in the manufacture of
defense equipment’s and assemblies. Mr. Ramachandran urged that government
should take note of this scenario and make policy and incentivizing measures to
encourage component and chip components manufacturing in the country. He also
appreciated the efforts of DRDO and appealed them to focus on the manufacturing
defence grade components.
Mr. B Ramani, Executive Director, C-DAC, Thiruvananthapuram: Mr. Ramani
discussed about the achievements of C-DAC in developing technologies such as tetra