T&M Industry in India in FY14 : Opportunities in newly open sectors!

We discussed about the Government of India in two major Manufacturing initiatives opened up the Electronics Design and Manufacturing Clusters. We have covered them well in Aug-September time last year in this blog.Basically we had two Semiconductor fab plants coming up in Greater Noida and Pratij (Gujarat).Investment envisaged is huge-running into 50000 Cr upwards.It will definitely open lot of opportunities for both bundled ATEs and loose portable but specialised T&M. The other one is related to Design and ESDM clusters for small and medium industries where Plug & Play facility can be provided to the Companies.

As an example, Karnataka and Punjab are attracting lot of entrepreneurs from India and abroad (mainly from Asiapac) to set up these design centers.Hardware hubs as well as the software development centers should get triggered by these policies of manufacturing as well as the cluster formations.One can hope there will not be delay in project implementation.Overall the production of Electronic Components in India should give fillip to local manufacturing and import substitution.

Investments are high here, Subsidies are also organised on the capex for integrated circuit manufacturing.One can hope we see the manufacturing takes off and many local jobs get generated here to the professional Engineering staff.

T&M Industry in India in FY14 : Will we see more Global impact?

Welcome to new year 2014.........

This is rather belated entry at the start of 2014.  Reason is rather very incidental.Lot of traveling to the upcountry locations and enjoying holidays in various locations and catching up with many  people
both in profession and general field of Society.

We had been seeing a very soft start to the year as far as the big deals are concerned.There seems to be tighter control on the major Govt deals through the DGS&D while the channel alignment is going on the feverish pitch.Many scrupulous vendors are being shown the door and ethical behaviour is encouraged.This really will augur well for the Industry (which has been largely clean) and development of India specific cost effective products!

We also find there was good uptick on Korean driven R&D and Manufacturing large deals (particularly in the NCR) even though some of the local units of Chinese or European vendors were
lacking in large purchases.There was no factory automation deals since long time and instrument applications related to manufacturing automation were just not develop.That obviously keeps the T&M business at the lower end of the solution vector.Only big portables number constitutes the volume as well as the value! This is definitely a cause of concern.

That brings us to a logical question.Will India never ever move up the value chain and grow the industry to a sophisticated paradigm.We are not sure as the jury is still out.But one thing is sure.The trend has been that over the last decade or so,new vendors-both International and domestic in T&M have appeared touting specialised equipment and created niches.Which of these neo-vendors will graduate to lot of local value addition by way of software or services is the question we need to answer! Lets keep our focus on this in next few blogs.Wishing you all a happy 2014.