WIXLIB

400CAGR: 24.4%One of the largest growingelectronics market in the world69.62012By 2020, the electronics marketin India is expected to increasewith a CAGR of 24.4 per cent toUSD400 billion from USD69.6billion in 20122020E20122020E35CAGR: 108%Promotion of LED products toboost demand0.120122020E20122020ECAGR: 26.9%Digitisation to drive growth inDTH market20060.72013*2018E2013*By 2020, the LED market inIndia is expected to expand toUSD35 billion from USD0.1billion in 2012By 2018, the number of DTHsubscribers in India is expectedto rise to 200 million from 60.7million in 2013*2018ESource: Department of Electronics & Information Technology; KPMG, TRAINotes: DTH - Direct-to-Home (satellite television broadcasting); CAGR - Compound Annual Growth Rate, LED - Light Emitting Diode, *As on September 2013

CAGR: 25.3%Rising demand and availabilityof talent to boost growth in thesemiconductor design market9.920122020E20122020ECAGR: 18.1%World‟s third-largest TV market6017.7By 2017, the television industryin India is expected to expandto USD17.7 billion from USD7.7billion in 20127.72012By 2020, the semiconductordesign market in India isexpected to increase with aCAGR of 25.3 per cent toUSD60 billion from USD9.9billion in 20122017E20122017E34CAGR: 15.9%Rising teledensity in thecountry is leading to higherdemand for telecom equipmentBy 2020, demand for telecomequipment in India is expectedto rise to USD34 billion fromUSD13.9 billion in 2012–13*14201320132020E2020ESource: Department of Electronics & Information Technology; Indian Semiconductor Association; KPMG; Aranca ResearchNotes: CAGR – Compound Annual Growth Rate, *- Estimate

GrowingdemandGrowing demand2012 Market size– USD69.6billion Attractive opportunitiesDemand from households is set toaccelerate given rising disposableincomes, changing lifestyles, andeasier access to creditGovernment and corporatespending will also contribute togrowth in demandThe electronics market is expectedto expand at a CAGR of 24.4 percent during 2012–20Intended reduction in government‟simport bill is likely to boost domesticelectronics manufacturers 2020EMarket size– USD400billionAdvantageIndiaHigher investments Sector has attracted stronginvestments in the form of M&Asand other FDI inflowsCompanies are set to augmentinvestments in production,distribution and R&D in the next fewyearsDemand for competitive technologyaccelerated more investments frombig companiesPolicy support 100 per cent FDI allowed in theelectronics hardware manufacturingsector under the automatic routeDuty relaxation and schemes suchas EPCG, EHTP and SEZs toprovide tax sops; duty exemption forequipment required for setting upsemiconductor plantsNational Policy on Electronics (2012)and setting up of NationalElectronics MissionSource: Corporate Catalyst India; 2020E – Estimate for calendar year 2020 by Department of Information Technology; Aranca ResearchNotes: FDI – Foreign Direct Investment; FY – Indian Financial Year (April–March); USD – US dollar, EPCG – Export Promotion Capital Goods Scheme;EHTP – Electronic Hardware Technology Park; SEZ – Special Economic Zone; CAGR – Compound Annual Growth Rate, E - Estimated

sComputersCommunicationand ccomponentsMobile phonesUPS systemsNotebooksDirect-ToHome (DTH)RadarsSemiconductordevicesTVsSCADADesktopsSet Top Box(STB)Satellite basedcommunicationCathode raytubesMusicsystemsPLCServersInternal cture tubesAC drivesystemsSource: Department of Information Technology (2010–11 Annual Report); Corporate Catalyst India; Aranca ResearchNotes: SCADA – Supervisory Control and Data Acquisition; PLC – Programmable Logic Controller

Late 2000s1991- 20051984-1990Growth eraLiberalisationera1965 to early1980s Sharp decline incustom tariffs Signing of WTO-FTA Continuous and rapidagreement in 1997,industry growthIntroductorywherein India Developments in colourstagecommitted to completeTVselimination of all Closed market Advent of computerscustom duties on ITand telephone Development inexchanges in 1985,transistor radios,followed by digitalblack and white TVs,exchanges in 1988calculators etcGolden period Increasing investments byforeign players in IndiaIncreasing penetration of highend electronics products suchas High Definition TVs (HDTVs),LCDs, LEDs, and tabletApproval of National Policy onElectronics (2012) and settingup of National ElectronicsMissionMandatory digitisation of cableTVs by 2014Public-Private partnership forElectronic System and Designand Manufacturing (ESDM)ecosystem in aerospace anddefence, 2014Source: India Electronics and Semiconductors Association, Corporate Catalyst India; Aranca Research

Total production of electronics hardware goods in India isestimated to reach at USD32.7 billion in FY13* and USD104billion by 2020Value of electronics hardware production in India(USD billion)32.7Production expanded at a CAGR of 9.2 per cent duringFY08–13*29.928.3High production is majorly contributed by acceleratingdemand for advanced TVs, Mobile phones, Computers anddefence related electronic equipments during FY08 to FY13CAGR: 9.2%23.421.021.2FY08FY09FY10FY11FY12FY13*Source: Department of Information Technology(2012–13 Annual Report); Aranca ResearchNote: FY13* - Estimates

According to government estimates, communication andbroadcasting equipment constituted 31 per cent (the highestshare) of total production of electronic goods in India inFY13; consumer electronics had the next highest share of23 per centShares in total production of electronic goods(FY13*)Consumer Electronics15%Not surprisingly, computers are a key component of totalelectronics output in India (14 per cent in FY13*); thesegment‟s share is likely to go up over this decade, givengreater policy focus on encouraging computer hardwaremanufacturingIndustrial electronics contributed 12 per cent of the totaloutput of electronics goods industry in FY13. Industrialelectronics is expected to growth at a considerable pacewith the new plans and schemes by govt.23%Industrial Electronics5%Computers12%C & B equipmentStrategic Electronics31%14%ComponentsSource: Department of Information Technology(2012–13 Annual Report); Aranca ResearchNotes: C&B – Communication and Broadcasting; * – Estimates

Comparison in production trends of C&Bequipment and the overall electronics hardwaresector in India (USD billion)Production (by value) of C&B equipment in India isexpected to expand at a CAGR of 17.5 per cent over FY08–13 (production in the segment is likely to reach USD10.1billion in FY13 from USD8.5 billion in FY12)Growth in the segment is expected to far outpace the overallgrowth of electronics goods production in the country(CAGR of 9.2 per cent over the same period); given C&Bequipment‟s large share in the electronics sector, itemerged as the key growth driver for the overall sector3528.3302532.7CAGR**: .510.1FY12FY13*0FY08HardwareLinear (Hardware)C&BLinear (C&B)Source: Department of Information Technology (2012–13 Annual Report);Aranca ResearchNotes: C&B – Communication and Broadcasting;FY13* – Estimates, CAGR** - is for total hardware electronics

Share of C&B equipment in electronicsproduction over FY07–13*Production value of all other segments in the electronicssector (other than C&B equipment) grew at a rate of 12.7per cent over FY07-12With growth in C&B equipment far outpacing those in othersegments, the former‟s share in total electronics productionhas doubled over FY07–12 to 28.3 per cent and isestimated to reach 31 per cent in %FY08FY09FY10FY11FY12FY13*Other ElectronicsC & B equipmentSource: Department of Information Technology (2012–13 Annual Report);Aranca ResearchNotes: C&B – Communication and Broadcasting; FY13* – Estimates

Electronic exports from India is expected to reach USD8.3billion in FY13*, over FY07–12, exports from the sector(CAGR: 27.9 per cent)Electronics exports from India (USD billion)CAGR: 27.9%Yet again, as in total production, growth in exports was ledby C&B equipment; electronic components was the otherkey sub-segmentTechnological improvements and competitively costeffectiveness are main drivers for demand of Indianelectronics products 09FY10Source: Department of Information Technology (2012–13 Annual Report);Electronics and Computer Software Export Promotion Council; Aranca ResearchNotes: C&B – Communication and Broadcasting; FY13* – Estimates

Exports of C&B equipment and Strategic Electronicstogether account for around 80 per cent of total electronicsexports in FY12Exports of C&B equipment increased at a CAGR of 132.3per cent during FY08–12 (highest among all segments),followed by Strategic Electronics at a CAGR of 26.3 percent during the same periodShares in electronics exports from India (FY12)2.9%4.9%C & B equipment13.1%42.7%Strategic ElectronicsIndustrial ElectronicsComputers36.4%Consumer ElectronicsSource: Department of Information Technology(2011–12 Annual Report); Aranca ResearchNote: C&B – Communication and Broadcasting

CompanyBusiness description Established to meet specialised needs of Indian defence services Focuses on contract manufacturing, design and manufacturing services, software development and qualityassurance, has got plans to venture into solar energy Third largest consumer durables manufacturer in India after LG and Samsung, holds one fourth of theconsumer durables market in India Manufactures and markets TVs, DVD players, microwave ovens, refrigerators, washing machines, ACs andpower backup solutions Second largest leader in consumer durables after Samsung Manufactures TVs, audio-visual solutions, computers, mobile phones, refrigerators, washing machines,microwave ovens, vacuum cleaners and Ac‟s Largest player in the consumer durables market, provides employment to around 8000 people Manufactures TVs, home theatre systems, DVD players, mobile phones, digital cameras and camcorders,refrigerators, ACs, washing machines, microwave ovens and computers, leads smart phone segment Leading IT hardware and software provider, extensive global offshore infrastructure and offices in 31 countries Manufactures and markets PCs, PC servers, storage solutions, display products and other electronic productsSource: Company websites; Dataquest; Corporate Catalyst India; Aranca ResearchNotes: DVD – Digital Video Disc; AC – Air Conditioner; TV – Television; PC – Personal Computer

CompanyBusiness description World's second-largest company in the optical storage media segment Supplies products to a number of branded players such as Sony, Verbatim, TDK, Maxell, Imation andSamsung, Also has a presence in the photovoltaic and is the largest home entertainment company Offers high-value, high-margin design services for mobile phones and telecom/networking software Manufactures TV tuners, set top boxes, energy meters, networking cards, drug delivery devices, diagnosticequipment Offers state-of-the-art solutions for Frequency Control Products (FCP), Electronic Manufacturing Service (EMS)and Hybrid Micro Circuits (HMC), also has presence in Defence & Aerospace, Space industry Acquired Celetronix, one of the largest electronic equipment manufacturers in India, in 2006 Offers printed circuit boards, enclosure integration, and distribution and repair services with in-region designservices support Largest Indian integrated manufacturer of a wide range of display devices such as TV picture tubes, CRT guns,heaters and cathodes, and deflection yokes Operates a facility in Germany to manufacture high-tech, high-resolution CRTs for demanding applicationssuch as aircraft avionics and medical monitorsSource: Company websites; Dataquest; Corporate Catalyst India; Aranca ResearchNotes: CRT – Cathode Ray Tube; * – This list is indicative