Indian Manufacturing Sector

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Indian Manufacturing Sector

Postby Rakesh » 20 May 2007 22:24


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Postby Kakkaji » 23 May 2007 21:26

X-Posting from 'Nation on a March' thread:

In India, Nokia makes manufacturing a success

While the government dithers about how to solve a crisis that has developed over India’s controversial Special Economic Zones (SEZs), a few companies are showing how small zones can spread development and attract foreign direct investment (FDI), without falling into the clutches of politicians, bureaucrats, and protestors.

In southern India, Nokia (NOK), the Finnish mobile handset company, is leading the development of an electronics hardware zone where, along with eight of its suppliers, it will mop up more than $200 million investment and employ some 20,000 people within two years. Located an hour’s drive outside the Tamil Nadu state capital of Chennai on the highway to Bangalore, one factory is already being run by Nokia, and Foxconn of Taiwan, one of its suppliers, has another one nearby. Both have shown in less than a year that India is capable of manufacturing precision goods economically and to international standards 8) .

While its factory is being built, Foxconn started production a year ago nearby in a former Panasonic building. This is in a sort of semi-SEZ, called an export-oriented unit, where 50% of output has to be sent abroad (or into an SEZ). Foxconn has 23,000 employees making components and mobile phones, mostly for Nokia, plus networks. Proud of its virtual anonymity as a supplier to internationally known brands, Foxconn has found the transition from Taiwan to India far less difficult that one might expect for a company from that super-efficient high-tech country. It has found that its Taiwanese-style uniformed employees perform both manual and highly automated tasks well once they have been trained, consistently maintaining international standards that were rare in India’s manufacturing industry a few years ago.

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Postby Singha » 24 May 2007 07:04

Equity Bulls:

Moser Baer develops high speed 8x Blu-ray disc

Moser Baer India Ltd on May 23, 2007 has announced a major breakthrough in technology development in next generation optical media formats. The Company, along with recently acquired OM&T, the former R&D subsidiary of Philips, has developed the world's first high speed 8x Blu-ray disc (BDR). The Company was also the first Company in the world to ship the blue laser based HD DVD-R product to its global OEM customers.

According to Ratul Puri, Executive Director, of the Company, "This is a major achievement for the Company and it gives us a significant advantage in the fast growing next generation optical format market. Moreover, this vindicates our strategy of acquiring OM&T and adding their capabilities to the strong in-house R&D team to lead the technology development curve in the optical and photovoltaic space. The pioneering work in the Blu-ray format will further enhance our global leadership position."

While the BDR market is witnessing development in the 1x-4x recording speeds discs, the Company with its innovative technology has already demonstrated new benchmarks in 1x-8x discs. End users can now have a faster media that can record a 2 hour transmission equivalent of HD (High Definition) quality data in less than 15 minutes. The next generation formats have a capacity ranging from 15 GB to 50 GB and offer more than five to ten times the data storage capacity of standard DVD media. These next generation formats offer an ideal solution for reliable business backup, including medical and government imaging, photography, videography, as well as high definition video recording.

Giriraj Nyati, VP R&D and Engineering, of the Company comments, "This is a significant landmark for us. We are very proud that an Indian Company has once again set global benchmarks in the optical media market. Our intensive in-house R&D focus coupled with the capabilities of OM&T will ensure that we continue to set new global benchmarks for the industry. This is inline with our strategy of transforming Moser Baer from a technology recipient into a technology developer and innovator."

The breakthrough in the technology development of high speed Blu ray disc format was recently presented at the 14th Blu-ray Disc Association (BDA) meeting held in Fukuoka in Japan.

The Company has successfully demonstrated to the BDA global standards body that its new media has proven feasibility at 1X-8X and power margins are comparable with BDR 2X media. The Company's 8X BDR discs are compatible with Version 1.2 book specifications and can also be recorded at low speed. The discs are meeting most of the critical parameters including leading and trailing jitter.

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Postby Suraj » 24 May 2007 08:18


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Postby mandrake » 24 May 2007 16:09

Is Moser Baer an Indian company?

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Postby Singha » 24 May 2007 16:16

Yes. based in NOIDA. its listed on NSE/BSE.

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Postby rgsrini » 24 May 2007 16:55

Moser Baer, even though it has a swedish name, is an Indian company. It commands about 18% of world CD market and Imation sources its CD 100% from them.

They are well positioned to take a lead in the Blu-Ray HD-DVD market as they do their R&D inhouse and are not dependent on someone to handover any technology.

They are diversifying into Solar panels now and I believe they are investing over $300 million on this.

The latest FORBES magazine has a well-written article about this company.

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Postby Vipul » 24 May 2007 19:23

Another company to watch out for innovation in Hi-Tech Mfg is Samtel.It has developed its own process for mfg Plasma panel TV's.

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Postby Yerna » 24 May 2007 22:59

Singha wrote:Yes. based in NOIDA. its listed on NSE/BSE.


IIRC, they were a business family from Kolkatta whose factory got burnt down by their own workers who were on strike, not once but twice! Then they moved to Noida and started making 5.5" floppy disks.


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Postby gashish » 15 Jun 2007 23:39

Labour shortage at textile hub

In the past two years sales from Tirupur have almost doubled to Rs 11,000 crore a year :eek: . Now Tirupur's own success has led to problems.

When quotas were abolished in 2005 Tirupur's garment exporters went on a huge expansion spree. But they've now realised that there is a shortage of about 1,00,000 labrourers in the city.

Labour scarcity has forced many units in Tirupur to run at 60 percent capacity. "We have started 25 training centers and we want to start 25 more to train people and bring skilled labour into the fold," says A Sakthivel, president of Tirupur Exporters Association

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Postby shyamd » 15 Jun 2007 23:46

labour shortage and high cotton prices(due to the chinese buying loads of cotton) are affecting the industry big time. In all the textile areas, these are the main complaints.

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Postby Rishirishi » 16 Jun 2007 13:43

labour shortage and high cotton prices(due to the chinese buying loads of cotton) are affecting the industry big time. In all the textile areas, these are the main complaints.


The chinease response to such a problem would be to ban cloth exports. Such a move would add more value to the garments.

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Postby Sanjay M » 17 Jun 2007 05:03

I'm putting this here under manufacturing rather than under IT:

Indian Silicon Chip Industry Ramping Up

I'm glad we're entering into a key industry where we'll be competing head-to-head with the East Asians. They are much more lively competitors than the West.


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Postby Singha » 20 Jun 2007 09:10

http://circuitsassembly.com/cms/content/view/5024/95/

Sanmina-SCI to Build 100-Acre Campus in India Print E-mail
By Chelsey Drysdale
Tuesday, 19 June 2007
SAN JOSE, CA – Sanmina-SCI will build its first manufacturing technology campus in India, a 100-acre site in Oragadam inside a special economic zone.

The site will build assemblies for medical, defense, aerospace, communications, automotive, and consumer products.

The company did not specify its total investment in the site.

Sanmina-SCI will relocate its engineering, supply chain management and IT services in Chennai to the new campus.

In a statement, managing director of Sanmina-SCI India Kumaran Subramaniam called India “a source of skilled, technical talent and an attractive market that is expected to become one of the major global players of the 21st Century.â€

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Postby Singha » 20 Jun 2007 09:13

mangalorean.com

Chennai, June 20 (IANS) Leading electronics manufacturing services (EMS) company Sanmina SCI Tuesday announced investments worth $50 million in India to establish its first state-of-art manufacturing facility.

It signed a memorandum of understanding (MoU) with the government of Tamil Nadu for a 100-acre plant to be developed in the newly sanctioned Special Economic Zone (SEZ) in Oragadam on Chennai's outskirts.

Sanmina, having an annual turnover of $11 billion, will be the first occupant of the 350-acre Oragadam SEZ complex, said Shaktikanta Das, the state industry secretary.

Set up in 1980, Sanmina SCI manufactures a host of electronic products like circuit boards, precision machinery and memory modules for the defence, aerospace and medical industry.

It also provides post-manufacturing services to all these sectors and to the multimedia, automotive and communication industries.

Sanmina's president for global EMS operations, Hari Pillai said the company hopes to provide employment to 1,300 people in Tamil Nadu in a year's time and have its facility ready for operations by July 2008.

In the next five years, the company plans to scale up operations for 10,000 people directly and "the impact of the spin off of our presence will provide indirect employment to about 20,000 more people," said Pillai. He also promised employment for the physically challenged.

The company has 80 plants in 20 countries, and its Mexico manufacturing facility is at present its largest. "We hope the Oragadam facility will soon become Sanmina's largest production unit worldwide," Das said, welcoming the company to India.

"We hope to manufacture low volume high-end electronic equipment for the medical industry like advanced CT scanners, electronic communications tools for the defence industry and control systems for the auto and aerospace industry", Pillai said.

The worldwide EMS market will be worth $2.5 billion by 2010.

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Postby Singha » 22 Jun 2007 14:38

this is the 2nd major leg of the 'hammer blow' over the Volga :twisted: - Operation Uranus

Yahoo finance.

India approves Taiwan Hon Hai's plan to set up unit

NEW DELHI (Reuters) - India approved plans by Foxconn International Holdings, an arm of Taiwan's top electronic parts maker, Hon Hai Precision Industry Co., to set up a special economic zone in southern India, a trade official said on Friday.

The official said the firm would invest more $1.5 billion in India over 3-5 years.


---

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Postby bala » 23 Jun 2007 04:47

Intel continues to disappoint and pay lip service to the Fab plant in India. Platitudes are great , where is the meat/beef. The last Intel announcement of a facility in China was in June. Meanwhile INTEL India design centre continues to deliver worldwide product innovation. Not to mention that HQ has overwhelming India origin people contributing massive Intellectual Property.

No Intel fab in India

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Postby gashish » 23 Jun 2007 06:18

bala wrote:Intel continues to disappoint and pay lip service to the Fab plant in India. Platitudes are great , where is the meat/beef. The last Intel announcement of a facility in China was in June. Meanwhile INTEL India design centre continues to deliver worldwide product innovation. Not to mention that HQ has overwhelming India origin people contributing massive Intellectual Property.

No Intel fab in India


Intel will repent this big time later....

Maran spent lot of energy and time in attracting semiconductor industry's Cindrella's attention..but she decided to hug the panda (in all likelihood she was armtwisted into the hug)...now buss time to move on..there are other babes in the market..:)......anyways one day Intel will come back to India with broken arm and heart...everybody does..:)

...India should woo companies from Asian countries, who have had experience in putting up manufacturing plants in India. Korea(Samsung, Hynix(Hyundai)) and S'pore (Chartered Semi) will be better bets....less nakhra and easier to "pataofy"..

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Postby Laks » 23 Jun 2007 10:29

link
Videocon plans plasma TV plant near Chennai
Press Trust of India / Chennai June 22, 2007
Consumer electronics major Videocon is planning to set up a Plasma TV manufacturing plant near Chennai at an estimated investment of about Rs 1,000 crore.

"We are speaking to the Tamil Nadu government regarding this. We will set up the project if the government gives us suitable concessions," Venugopal N Dhoot, chairman, Videocon Group told reporters on the sidelines of a seminar here today.

The company has estimated the investment in the project to be about Rs 1,000 crore, he said.
[/url]

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Postby Singha » 23 Jun 2007 14:05

Darth Sidius: It is all going as I had Predicted....

all that remains is to connect the Pearl River Delta (chennai) to Zhongguancun (BLR) via a expway and industrial/tech townships. the road via vellor and krishnagiri is already 4 laned and in excellent shape ofcourse.

synergies have to attained, hinterlands have to be opened and worlds have to be conquered.

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Postby bala » 24 Jun 2007 03:38

Electronics Corporation of Tamil Nadu to set up six zones. 339 SEZs get approval so far, of which 126 have so far been notified.

SEZs get the go-ahead

The Centre on Friday cleared 36 new special economic zones (SEZs), including six zones by the Electronics Corporation of Tamil Nadu, three by Mukesh Ambani’s Reliance group and one each by Anil Ambani’s Reliance Infocom and the DLF group. Besides, in-principle approval was given to nine SEZs.

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Postby Laks » 27 Jun 2007 19:37

Indeed Singhaji. There is lots to be achieved, pooling in synergies between close by cities to form industrial clusters is the way to go. Meanwhile, another one in SriP.

http://www.hindu.com/2007/06/27/stories ... 261600.htm
Momentive plans unit near Chennai
Staff Correspondent

CHENNAI: Momentive Performance Materials Inc. (formerly GE Bayer Silicones), a leading producer of specialty materials, plans a greenfield investment of $20 million to set up a state-of-the-art manufacturing facility and a world-class technology centre for application development in Chennai.

The facility that will be located at SIPCOT Oragadam Industrial Growth Centre in Sriperumbudur near Chennai will triple the silicone production capacity of the company.

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Postby Singha » 30 Jun 2007 14:20

Taiwanese Cal Comp to make handsets in India for Reliance Com

ET:

NEW DELHI: Finally, Reliance Communications (RCOM) is set to make handsets in India. After years of speculation, India’s second-largest mobile telecom operator and the largest player in the CDMA space is getting into a joint venture with Taiwan’s Cal-Comp Electronics to manufacture CDMA handsets in the country. The manufacturing plant is slated to be operational during the first half of 2008. RCOM is also learnt to have placed an order of nine million additional handsets with Cal-Comp.

“Due to the fast-growing handset market in India, Cal-Comp plans to set up a joint venture with the client to manufacture handsets in India, with the planned investment project likely to be carried out in the first half of 2008,â€

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Postby Singha » 30 Jun 2007 14:25

Cant find the article online yet but print edition of ET has this today:-

Delta Electronics thailand based maker of switching power supplies and power components (subsidiary of Taiwan parent) co has signed a deal to
setup a factory in Chennai SEZ entailing minimum $10 mil and max $60mil
investment.

Delta is the worlds largest supplier of switched power supplies.

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Postby Kartman » 02 Jul 2007 14:08

Singha wrote:Taiwanese Cal Comp to make handsets in India for Reliance Com

<snip>

With the proposed JV, Cal-Comp, which has manufacturing plants in China and Thailand, will join Nokia, Sony Ericsson, Motorola, LG and Samsung to add to the 51 million handsets likely to be made in India this year. India produced nearly 31 million mobile phones in 2006 worth about $5 billion.



$ 5 billion for 31 million phones ~ $ 161/phone

Isn't this unit cost per phone slightly on the higher side, w.r.t the Indian market ? Or are most of the locally-mfd phones meant for export ?

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Postby neel » 02 Jul 2007 20:11

Kartman wrote:
Singha wrote:Taiwanese Cal Comp to make handsets in India for Reliance Com

<snip>

With the proposed JV, Cal-Comp, which has manufacturing plants in China and Thailand, will join Nokia, Sony Ericsson, Motorola, LG and Samsung to add to the 51 million handsets likely to be made in India this year. India produced nearly 31 million mobile phones in 2006 worth about $5 billion.



$ 5 billion for 31 million phones ~ $ 161/phone

Isn't this unit cost per phone slightly on the higher side, w.r.t the Indian market ? Or are most of the locally-mfd phones meant for export ?


Obviously some are going to be for export, but now that subsidies for phone purchase by mobile providers in exchange for service contracts, i.e. the Western business model, has begun to come to India, the value of the average new handset in India will begin to rise.

E.G., a $100 handset in the US is generally free with a 2yr contract, while a $300 handset might run ~$75 with 2yr commitment.

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Postby Omar » 13 Jul 2007 06:26

Samsung plans to make India an export hub

[quote]A new 80-acre plant is being set up near the company’s present plant in Chennai, 30 acres of which will be in a special economic zone (SEZ), at an investment of $100 million. Initial annual capacities include 1.5 million colour TV sets, 2,00,000 LCD TVs, and 3,00,000 LCD monitors and an undisclosed home appliances capacity. Samsung has also set up a new plant at Manesar near Delhi to initially manufacture 1.5 million phones annually...Lee said the main issue currently is to get international quality material supplies – and the company is already working with Indian vendors in this connection.

“For instance, we need international quality steel, and our policy is to develop local vendors rather than getting them from Korea.â€

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Postby Laks » 20 Jul 2007 05:52

link
Chennai footwear park attracts Rs 150 cr
ndia’s first exclusive footwear component park, coming up near Chennai, is estimated to have attracted an investment of over Rs 150 crore so far.

Besides attracting a number of Indian footwear component manufacturers, the 28-acre component park at Irrungattukottai near Chennai has attracted leading footwear component manufacturers from Italy and Brazil, according to sources in the Council for Leather Exports (CLE).

The park, which is nearing completion, is coming up with about Rs 10-crore grant from the Centre, which sanctioned two parks for the footwear component industry in Agra and Chennai in a bid to support the growth of the footwear industry.

While the plan to set up the park near Agra was withdrawn due to non-availability of land and other issues :roll:, the government sanctioned about Rs 10 crore for creating common facilities such as a design centre, testing laboratories and a warehouse to cater to the units in the park.

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Postby bala » 21 Jul 2007 02:12

While the SEZ concept is taking of in India, Nokia is forming an exclusive suppliers club within the SEZ..

Nokia forms SEZ Park Society

Mobile phone maker Nokia has decided to rope in component vendors who are setting up production facilities as co-developers of the telecom special economic zone (SEZ) it is setting up at Sriperumbudur near here. The Nokia Telecom Park has already signed up seven suppliers. They are Salcomp, Aspocomp, Foxconn, Perlos, Jabil, Laird and Wintek. Inducting a co-developer was aimed at helping the components vendors who set up shop at the SEZ to enjoy the development benefits such as income-tax exemption.

Nokia had also initiated parleys with some well-known builders from within the country and also from abroad to develop the non-processing area (around 15-20 acres) inside the SEZ by putting up club, medical centre, crèche and a dormitory.

Nokia had taken 800 apprentices as part of a one-year vocational training programme. They have the freedom to go anywhere after that.

The mobile phone facility of Nokia works 24 by 7 and employs close to 4,100 people. Seventy per cent are women.

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Postby bala » 26 Jul 2007 22:26

New contender for manufacturing hub - Pune. Seems to be a pattern. IT and then manufacturing. Way to go.

Pune to be manufacturing hub for JCB in Asia

Earth moving and construction equipment company JCB India Ltd commenced the manufacture of three new heavy machines at its facility in Talegaon near Pune to meet the growing demands for the domestic market and the export market.

"Pune will be the export manufacturing hub for Indonesia and Malaysia, and eventually even WEst Asia," said Vipin Sondhi, managing director, JCB India Ltd.

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Postby gashish » 30 Jul 2007 22:47

Indian bicycle industry to lose huge market shares to China
The Ludhiana bicycle industry, more than sixty years old and exporting bicycles and cycle parts across the globe, is likely to lose out up to 50 per cent domestic market share and Rs 100 crore worth exports to Chinese bicycles this year, in view of sharp difference between input prices in the two countries.

In India, prices of raw material such as MS round, CRCA sheet and tube hover around Rs 29,000, Rs 36,000 and Rs 43,000 per tonne, respectively, while in China their prices stand at about Rs 14,400, Rs 21,000 and Rs 25,000 per tonne, respectively.



[quote]Varinder Kapoor, general secretary, United Cycle Parts and Manufacturers Association (UCPMA), Asia’s largest cycle manufacturers body having more than 1800 members from Ludhiana alone, said Chinese cycle parts, especially those produced on automated machines, are very cheap as compared to our products.

“The margin in any of these products is between 15 - 25 per cent even after paying the import duty, freight, haulage, etc. Due to this, a large amount of small-scale industry in the city is dying.â€

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Postby gashish » 30 Jul 2007 22:48

=duplicate post deleted=
Last edited by gashish on 31 Jul 2007 01:10, edited 1 time in total.

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Postby Laks » 30 Jul 2007 23:20

link
Dell gives 1st Made in India system to Infosys
Dell today handed out its first Made in India desktop computer system to Infosys.

The PCs have been manufactured at Dell’s new manufacturing facility at Sriperumbudur near Chennai. Located on a 50-acre site with a planned five-year investment of about $30 million (about Rs 120 crore), Dell expects initial capacity for the Chennai operation of 4,00,000 desktop computers per annum.

Rajan Anandan, vice president and GM, Dell India said: "The Chennai operation reaffirms the strategic importance of India to Dell providing significant impetus to our growth plans and prospects here where we are already among the fastest growing computer systems suppliers."

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Postby neel » 01 Aug 2007 07:05

gashish wrote:Indian bicycle industry to lose huge market shares to China
The Ludhiana bicycle industry, more than sixty years old and exporting bicycles and cycle parts across the globe, is likely to lose out up to 50 per cent domestic market share and Rs 100 crore worth exports to Chinese bicycles this year, in view of sharp difference between input prices in the two countries.

In India, prices of raw material such as MS round, CRCA sheet and tube hover around Rs 29,000, Rs 36,000 and Rs 43,000 per tonne, respectively, while in China their prices stand at about Rs 14,400, Rs 21,000 and Rs 25,000 per tonne, respectively.



[quote]Varinder Kapoor, general secretary, United Cycle Parts and Manufacturers Association (UCPMA), Asia’s largest cycle manufacturers body having more than 1800 members from Ludhiana alone, said Chinese cycle parts, especially those produced on automated machines, are very cheap as compared to our products.

“The margin in any of these products is between 15 - 25 per cent even after paying the import duty, freight, haulage, etc. Due to this, a large amount of small-scale industry in the city is dying.â€

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Postby Rishirishi » 01 Aug 2007 15:10

cheaper --> economies of scale. In India, there is a penalty for increasing scale of production to the Chinese level, namely the loss of the right to retrench workers, which is especially vital in such industries as parts manufacturing where demand varies in response to changes in demand for downstream products.


1 Input from tawanease tech.
2 Largescale manufacturing allowed, in economic zones. relaxed taxation and beaurocracy.
3 Cheaper steel

Indian smallscale industry is not able to compete with chinease largescale production. Indian largescale manufacrurars are hesitant to invest, because of labour laws, government interferance. The story is same in a huge number of Indian industies. Sanitry ware, tiles, furniture, hardware etc etc. Indian companies cant compete becase of their government.

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Postby Surya » 01 Aug 2007 16:40

Guys

Cheaper energy costs are also part of the reason

Just was talking to a friend who deals in a product requiring 8 or 10 rounds of the blasting furnace.

- he invested in a plant in China and is still able to make money with all the freight etc.


Cheaper energy is the main reason in this case.

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Postby vsudhir » 01 Aug 2007 16:42

India may set up 25K T polysilicon complex (ET)
BANGALORE: India may set up a 2,500 tonne polysilicon complex, estimated to cost more than Rs 1,000 crore, to give an impetus to the solar energy sector, a key Government official said.

Bangalore-headquartered Bharat Electronics Limited is expected to be the major player in promoting the facility, Principal Scientific Adviser to Government of India, Dr R Chidambaram said.

"India needs solar cells in a big way. But unfortunately polysilicons are not made in significant quantity in India. Polysilicon is a starting material for all solar cells and also for electronics," he told reporters here last night after attending a function.

"Now, silicon is not thought of only as an electronics material. It's also throught of as an energy material...more of an energy material," Chidambaram said. "With more global climate change threat, there is more trend towards solar engergy."

According to officials, polysilicon is an essential raw material in the production of solar cells for panels that convert sunlight to electricity for homes, businesses and farms.

He said the proposal to set up the polysilicon facility is part of the 11th plan (2007-2012), which is yet to be approved.


DDM at work. Headline says 25KT capacity, inline text says 2.5KT capacity. Truth is probably in between, as usual.:)

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Postby rajkumar » 01 Aug 2007 17:55

http://news.bbc.co.uk/1/hi/business/6925792.stm

Nokia Design Studio.... in India



Very Very Good News :D


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