Monday, September 16, 2013

T&M Industry in India : Fy14 triggering creation of Product Startups galore!



Local Design & Manufacturing push through the central scheme of Incubators
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Hardware or Hardware/Software startups were a term almost forgotten in a country so submerged with IT/ITES  companies.There seems to be a fresh lease of life for extincting hardware industry and Product
creating organisation.Usually the cycle of Product-Service-Integrated Product and then the Hardware Product again is the norm. We are seriously lacking that evolution because of no incentive to innovate or
feeding designs to the local manufacturing industry.This is one of the major reason why Indias components
and assemblies industry is highly import intensive.It could top Oil imports in another twelve years!

Incubating these budding startups through a deliberate policy and backing them up with infrastructure and academia environment of  Delhi University and BIIIT  is a master stroke played by the Department of Electronics and IT.The aim is to create 200 successful product companies and 50 Semiconductor Companies.It envisages Rs 3-10 Cr funding into a typical design/manufacturing firm employing modest 15 employees.Some sort of Public-Private partnership will happen where the designs will be created and technology for mass manufacture will be created with local IP. For a smart T&M company this represents a
huge opportunity over this decade.

These investing companies can spend Capex related to the design, verification, software validation,microprocessor development and  target integration activity. The T&M companies can spread their wing proactively by Educating them on Con-Current Engg, Embedded Engg Tools, Project Management and Shared Services related to Rapid Prototyping etc with Testing and Calibration infrastructure. A generalised  "Unsolicited Proposal"  can be created,and shared with the Chief Product Architects of these companies well ahead. Some kind of influence can be exercised by sharing the design data bases available commercially as well. A Global hookup with small pure Design-Only small companies can help as well.The applications will be in areas where the India Demands are high for Active and Passive Assemblies. Examples can be Telecom ,Industrial, Process Control and the Integrated Assemblies for Defense and Utilities.

It is expected that we will have potential of Rs 500 Cr of  T&M hardware and associated app software and services over the decade.Besides there will be annuity market for T&M and Engineering Services needed by these companies.Additionally these companies will help create big manufacturing companies producing their designs leading to more T&M Portables and ATEs in their production lines. Go T&M...Go.

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