Moser Baer India Ltd has announced that its in-house R&D center has been granted recognition by the Ministry of Science and Technology (MoST), Government of India. The Company is now amongst a select few in India to have its R&D centre approved by the Department of Scientific and Industrial Research (DSIR), MoST.

According to Nyati Giriraj, VP, R&D, "It is a great achievement for Moser Baer and validates our belief of the high and cutting edge technology being developed in our labs."

The approval of MBI's R&D centre by the Ministry reflects the high quality of basic and applied research carried out at one of the top R&D labs in the optical media industry around the world.

This recognition follows significant landmarks achieved by the R&D team giving the Company a significant competitive edge. The efforts of the R&D center has helped the Company to become the first Company in the world to ship out the HD DVD-R format and extended the technology leadership position in the Blu-ray media with patented technology developed considered as one of the four standard media to be included in the Blu-ray disc specifications by the Blu-ray Disc Association.

The R&D centre is current working on multiple cutting edge technologies including areas of nano-science, nano-materials, thin film technology, phase-change materials, organic dye based research programme, future optical data storage device technology, polymer science, solar cells and many more. Apart from extensive focus both from the point of view of academic and commercial research, several futuristic technologies are under in-depth exploration.

According to Ratul Puri, Executive Director, of the Company, "The recognition is a step forward and fits in our strategy to transform Moser Baer into a technology developer and innovator from a technology recipient."

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Bangalore, Nov 2. (PTI): Mobile handset manufacturer Nokia on Wednesday said, it has expanded its Research and Development facility in Bangalore and set up a 2.10 lakh sq ft development centre at the Prestige Tech Park here.

The Bangalore R and D centre, the largest Nokia site of its kind in India, focuses on development work for software platforms, chipsets and high-end Nokia mobile devices.

Due to its large talent pool of skilled researchers, India has become a global hub for innovation and research and development, and a leader in developing cutting edge solutions on both 2G and 3G platforms for mobile devices, a Nokia statement said.

The centre would provide Indian developers the opportunity to work on telecommunications technologies, it said.

Nokia's R and D centre in Bangalore was established in 2001 with the acquisition of Amber Networks. Over the last five years, the centre has played a key role in development of new applications and software platforms for product development, it said.

The software platform group develops parts of the base services for it, application frameworks, user interfaces and test tools, the statement said.

Work done in India on chipsets is mainly in the area of ASIC and hardware design, integration and verification, protocol software design and integration, speech and video codec design and integration.

Nokia also has two R and D centres at Hyderabad and Mumbai and these are focused on next-generation packet-switched mobile technologies and communications solutions to enhance corporate productivity, it said.

http://www.hindu.com/thehindu/holnus/006200611020313.htm

On his eighth visit to India, Intel Chairman Craig Barrett put a little-known small town in the western state of Maharashtra on the map of the digitally connected world.

As part of its World Ahead Program, Intel is conducting a pilot program at the government hospital in Baramati, equipping it with computers, telemedicine equipment, and electronic medical records. The company has enlisted a local technical institute to help people in nearby villages to access doctors.

Intel plans to put WiMAX on trial in several Indian cities and towns. The company is spending about $1 billion to promote the technology, Mr. Barrett told reporters Thursday. Proponents of WiMAX say it is a cost-effective, efficient way to deliver broadband Internet access to remote communities.

Intel is also donating personal computers to community centers and public kiosks. Some of these are specifically engineered for extreme environments in India. These "community PCs" have dust filters and auto-restore facilities, and can connect to car batteries to get electricity in power-scarce India.

Mr. Barrett also said that Intel would help the government equip 100 mobile computer labs in vans throughout the country. Five of them are already on the roads, serving village schools within a 25-kilometer radius of Baramati.

"Education is vital in developing a skilled workforce," Mr. Barrett said during his visit to a local school, the Vidya Pratishthan Marathi Medium School. "Putting the right tools and training in place now will help Baramati's next generation of citizens realize the potential of their ideas."

He was equally upbeat about the effect of technology on healthcare.

"The standard use of technology will increase quality of care while lowering healthcare costs for Baramati Tehsil hospital patients," said Mr. Barrett. "With computers, real-time video capabilities, and electronic medical records, critically ill patients can be diagnosed by medical specialists hundreds of kilometers away."

By 2008, Intel plans to donate 10,000 full-featured PCs to state governments and teacher-training institutions, as well as train 1 million teachers on the application of technology to improve classroom learning. Nearly 600,000 educators have completed the Intel Teach training program since 2000.

Shares of Intel fell $0.17 to $20.41 in recent trading.

On Friday, Mr. Barrett met with government and business leaders in India to discuss how the Santa Clara, California-based chip maker could participate in advancing efforts to empower unemployed youth and farmers with the help of information technology.

The digital divide, while making billionaires of India's tech czars, is widening the gap between rural and urban India, between the uneducated and the educated.

Over two-thirds of Indians live in villages, with little access to quality education, electricity, or connectivity. The government is realizing that economic growth at a steady 8 percent rate may do wonders for the national kitty but does precious little for those depending on agriculture for their livelihood.

With companies like Intel getting into the act, there's hope that it will trigger a wave of connectivity, linking rural communities with their more successful urban counterparts.

"The beauty of WiMAX is it is relatively inexpensive and relatively simple," said Mr. Barrett. "It is ideal for a rural environment where there is limited infrastructure in place."

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=19548&hed=Intel+Brings+WiMAX+to+India&sector=Regions&subsector=Asia

RUDRAPUR: HCL Infosystems Ltd, an information enabling and integration company, has launched its second manufacturing facility in India at Rudrapur, Uttranchal. Spread over 10 acres of land area in the SIDCUL Industrial Estate at Pantnagar in Rudrapur, this facility would enhance the overall capacity of HCL to two million PCs per annum. The company has an existing capacity of one million systems per year.

Beginning with production of desktops computers and LCD monitors, the plant has the capability to manufacture an entire spectrum of ICT products - including notebooks, servers as well as thin clients.

Inaugurating the facility, chief minister of Uttaranchal ND Tiwari said, "As Indian IT industry is growing at a rapid pace and is working extensively to bridge the digital divide, we in Uttaranchal would like to welcome HCL to the state. We are sure that this new facility of HCL will further enable them to take computing and ICT, right till the most remote corner of the country and will also prominently display Uttaranchal on the Indian IT map. We are happy to welcome them and would like to extend our cooperation and support, by providing a comprehensive blend of progressive industrial policies and infrastructure."

HCL Infosystem marketing executive VP George Paul said, "To be set up with a total investment of Rs 75 crore over the next 3-5 years, this facility is the largest vertically integrated ICT manufacturing facility in India. This facility will also act as a strong catalyst for the development of regional economy.

While we have already recruited more than 200 local employees, we plan to up this number to around 500 people in various capabilities as it commissions to its full capacity."

The Uttaranchal facility will cater to the additional volumes of HCL servicing the northern markets.

Talking on advanced capabilities and projected future plans, chairman & CEO of HCL Infosystems Ajai Chowdhry said, "This facility will complement our existing manufacturing base at Pondicherry - taking our overall annual capacity to two million PCs per annum. Besides enabling us to manufacture a wide spectrum of ICT products, this facility will also allow us to offer more enhanced value to our customers through better logistic efficiency, lower time to market as well as de-risk our complete manufacturing portfolio - with strong facility base in both southern and northern India. Moreover it makes us future-ready to take on expected strong growth potential, being expected in Indian PC market."

Completed in eight months time after commissioning, the new HCL manufacturing base has already received its ISO 14001, ISO 9001:2000 certifications. The new HCL facility has installed several processes as well as advanced testing techniques. Some of these initiatives include components especially sourced and tested for their tolerance towards temperature, humidity & heat, special wireless LAN-based Reliability tests, extreme temperature tests, 5-feet drop tests and other tests like which (electro static discharge) ESD test, Earth Leakage test and etc.

Further still, HCL also demonstrated the 'Build-to-order' (BTO) capabilities of the manufacturing plant. This enables HCL to manufacture and design ICT products with specific configurations - customized to suit the needs of particular customers, in a matter of few hours. SAP is used right from the entry point till the shipment, while the order entry is also done through automated configurator, which ensures technical compatibility and correctness.

The plant is networked and online with HCL branch and head offices. State of the art IT systems in MRP, ERP, Online configurators are also in place to leverage the power of IT in delivering optimum efficiency.

http://www.voicendata.com/content/vndtoday/106110203.asp

Given the pace of growth the Indian electronic industry, which is currently worth $11 Billion, has the potential to reach $40-42 billion by 2010. The largest segment is the consumer electronics segment.

India has been experiencing a strong growth in the demand of consumer products and durables in recent years, driven by consumer demographic trends. This has facilitated growth in the electronics sector both directly and indirectly.

According to a study by Consumer Electronics and TV Manufacturers Association (CETMA), the consumer electronics and IT hardware industry in India will touch a whopping $156 billion in revenues by 2015 from $21.3 billion in 2005.

This overall picture (that includes the electronics sector) is on account of the high economic growth, large base of young consuming population, rising disposable incomes and explosion in retail format. The contribution of electronics hardware to GDP is expected to rise from 1.8 per cent in 2005 to 12 per cent by the year 2015.

CETMA's vice-president (North) Ravindra Zutshi pegged the annual market growth rate at 22 per cent, but said the industry's contribution in India was far lower compared to other countries. "The share of electronics hardware industry to GDP is 10 per cent in China and as much as 15 per cent in Thailand. This makes India a big opportunity for companies," Zutshi, who is also Deputy Managing Director of Samsung India, said.

Long way to go

India's electronics industry is nascent by global standards. Despite a population of over one billion, India has a relatively small electronics market. It is ranked twenty-sixth worldwide in terms of sales and twenty-ninth in terms of production.

The total size of the industry in 2004-05 was US$11 billion. The Indian electronic industry is divided into six segments: Consumer electronics, Industrial electronics, Computers, Strategic electronics, Communication and Broadcasting equipment and Electronic components. The consumer electronics sector dominates the industry with 33.8 per cent share and has benefited from a large and expanding market. The industrial electronics and computer sector each has a share of over 15 per cent

India has low penetration levels of most consumer durables. For example, in 2002, only 66 per cent of middle-income households had a TV set, only 28 per cent of the urban households possessed a refrigerator, while just a little over 15 per cent owned an air cooler. Despite a population of more than 1 billion people, only 16 million computers were used in India in March 2005.

The Indian electronic sector faces stiff challenges in the international market, as it has to overcome infrastructural constraints leading to high operational costs. There is also a need for forward and backward integration of hardware and software sectors to take advantage of India's burgeoning software sector, the minister stressed, adding that India had been meeting more than half of its electronics hardware requirements through imports.

In view of the special characteristics of electronics/IT hardware sector, the challenge posed by the WTO stipulation for elimination of duties in this segment and India entering into FTAs/PTAs with a number of countries/trading blocks, this sector needs a special sectoral treatment rather than being governed by general policy framework. As a result of the efforts taken by the department, India has become a major destination for FDI investments in information communication technology sector.

Policy to boost

A new semiconductor fabrication policy is been approved by both the Planning Commission and the finance ministry. Only the approval from the Cabinet is awaited.

The proposal, which will make the policy attractive to foreign companies, has been pending for a few months now. The loss carry forward facility is being given after studying the information technology ministry's proposal to allow 100 per cent depreciation upfront.

The finance ministry has also supported the IT ministry's proposal to extend the net foreign exchange positivity clause by 10 years in case of information technology SEZs. For multi-product SEZs, it said the net foreign positivity would be given for five years.

"Relaxing the positivity clause will be an additional benefit for units in export processing zones. It will also be helpful if zero excise duty is levied on imported raw materials," said MJ Zarabi, former chairman and managing director, state-owned semi-conductor complex, Chandigarh.

Kamal Nath, union minister of commerce and industry, Government of India said that the Electronics Hardware Technology Parks (EHTP) and the Special Economic Zones (SEZs) were tailored to boost manufacturing in the country. "SEZ policy provides appropriate environment for setting up of IT-ITeS SEZs, including SEZs for electronics hardware manufacturing," he added.

Growth Indicators

Buoyancy in the economy, growing consumerism (consumer spending has been growing at a pace of 6% per year over the past decade) coupled with the industry's efforts to create demand by launching innovative technology products and enhance availability in semi urban markets, have all contributed to the growth this year.

Thirty per cent of the new mobile subscribers added by operators worldwide will come from India in three years time, according to a paper released by the Associated Chambers of Commerce and Industry of India.

The paper on promoting telecom equipment manufacturing in India has also pointed out that 10 per cent of the third generation (3G) subscribers will be from India by 2011. Highlighting the huge potential for local manufacture of telecom equipments in the country, Assocham said that the Indian handset segment could be between $13 billion and $15 billion in the next 10 years time, offering great opportunity for equipment vendors to make India a manufacturing hub.

The industry body has also made suggestions to make the environment conducive for boosting local manufacturing. The industry would like the support of the government to help the industry grow by bringing down the total level of taxes, which currently range over 30%. In comparison, the composite VAT in the countries like Thailand and China are 7% and 17% respectively.

The industry needs a level-playing field, especially in view of the free trade agreements (FTAs) that have come into place, an official from industry body, CETMA said.

Given the low penetration levels for most of the key product categories, there is tremendous potential for growth. While the penetration level for color televisions in India stands at around 32%, the penetration level for microwave ovens and camcorders is less than 1%. The challenge is to grow the market for these products and increase penetration levels.

According to industry experts "In the first 10 months of the year, consumer electronics products grew by 8-10%, but categories that are leading growth are the high end categories like flat panel TVs, frost free refrigerators, fully automatic washing machines and split air-conditioners. While the LCD TV segment has grown by over 400% in the first 9 months, the plasma TV segment has grown by over 200% so far."

In short

• Electronics Hardware is the largest and fastest growing Industry globally (+7%pa) - rapidly growing domestic market (22-25% pa) due to low current penetration levels
  
• India's GDP growing at 7% and Electronics Market at 22% will be $1325 billion and $159 billion respectively by 2015. Electronics Market will be 12% of GDP.
  
• Electronics manufacturing of US$ 159 billion has potential for Employment of 21 million and Revenue of US$ 22 Billion
  
• The consumer electronics industry in India aims a 20% growth per annum to reach $160 billion from the existing $ 22 billion in 2005.
  

Favorable markets

A section of analysts believe that the growing Indian market for electronic products (total size including imports) is over US$25 billion and is growing at about 30% per annum At this rate it is projected to exceed US$ 70 billion by 2010 and US$158 billion by 2015.

Growth in demand of consumer durables such as CTVs, VCD / MP3 players and PCs directly benefits the sector. Also the demand for products such as automobiles, white goods, air-conditioners, textiles, etc, leads to growth in the electronics sector as these products contain a significant number of electronic components. At the same time, consumer demand has boosted growth in India's overall manufacturing sector as well, which, in turn, has a positive impact on industrial electronics.

This growth has attracted global players to India and leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large investments to access the Indian market. In consumer electronics Korean companies such as LG and Samsung have made commitments by establishing large manufacturing facilities and now enjoy a significant share in the growing market for products such as Televisions, CD/DVD Players, Audio equipment and other entertainment products.

And the 31.2 per cent of India's population was below 14 years and 63.9 per cent between 15-64 years. This large base of consuming population was a big catalyst to the growth story. On the whole the domestic market in India is very attractive from the point of view of the electronics sector, and current trends indicate high growth potential for the sector in the future.

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