Show Report - SES 2014

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Post Show Report

30th

and 31st

July, 2014

Bangalore International Exhibition Centre, Bengaluru

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-----------------------------------------------------------------------------------------------------------------------

Organized By

ELCINA Electronic Industries Association of India

ELCINA House, 422 Okhla Industrial Estate Phase III, New Delhi – 110020, India

Tel: +91 11 26924597| Fax: +91 11 26923440 | E-mail: [email protected] | URL: www.elcina.com

mailto:[email protected]



http://www.elcina.com/







STRATEGIC ELECTRONICS SUMMIT 2014Post Show Report

30th & 31st July, 2014, Bangalore International Exhibition Centre (BIEC), Bengaluru

The 5th Strategic Electronics Summit 2014 (SES 2014) – Defence & Aerospace, was organisedby ELCINA on 30th & 31st July, 2014 at Bangalore International Exhibition Centre (BIEC),

Bengaluru. The idea of SES was mooted by the ELCINA Executive Committee in 2009. It

recognized the potential of this sector and the Indian industry’s special skills in the hightechnology low volume production.

ELCINA identified the following key factors, which inspired us to focus on strategic electronics-

Rapid and supportive changes in Government thinking regarding Defence Production

as well as Procurement Policies. Encouraging indigenous production and value addition,

as well as participation by SME’s

Large and growing budgets for the Defence & Homeland Security

Greater importance of defence avionics, as well as, an expanding aviation industry

Increasing threat in dependence on imports, for national security equipment

High potential for employment and revenue generation

Capability and keenness of the Indian industry to participate in manufacturing

SES 2010, 2011, 2012 & 2013 – Successfully Brought Industry, DefenceEstablishment & Government Together !

Earlier editions of Strategic Electronic Summits demonstrated great interest and opportunity

that the industry saw in the Strategic Electronics sector and participated wholeheartedly.Deliberations and discussions were intense and passionate between all stakeholders. Therewere over 150 organisations participated as Exhibitors and / or Delegates. All the activities

like Conference, Exhibition, Technical Sessions & Buyer-Seller meetings witnessed keenparticipation with over 300 delegates in the Conference and good footfalls of business visitors.

With Hon’ble Shri MM Pallam Raju, Minister of State for Defence as the Chief Guest in 2010,Air Marshal Jagdish Chandra, DG System, Air Hq. in 2011 & Hon’ble Shri Pallam Raju theChief Guest once again in 2012, Shri MN Vidyashankar, Addl. Chief Secretary, Commerce &Industries, Govt. of Karnataka in 2013 and top officials from Defence and Department of

Electronics & IT as Guests of Honour, the earlier four editions of the Summit proved to be anexcellent forum for sharing of views with top policy makers. Dr. Ajay Kumar, Jt. Secretary,Dept. of Electronics & IT graced SES as the Guest of Honour in 2011 and again in 2013.

Subsequent to SES 2010 and 2011, ELCINA presented the Defence Ministry with itsrecommendations and we believe that some of the key issues have been addressed in thenew Defence Production Policy 2011, which was released in January 2011, specially in favourof SME’s.



Snapshot of Previous SES Events

1st Strategic Electronics Summit – 2010- Date – 2nd July, 2010

- Venue – Indian Institute of Science

Bengaluru

- Number of Participating companies - 62

-

Number of Exhibitors - 32- Number of buyers - 9

2nd Strategic Electronics Summit – 2011

- Date – 29th June, 2011

-

Venue – HAL convention Center, Bengaluru


- Number of Exhibitors - 21

- Number of buyers – 11

3rd Strategic Electronics Summit – 2012- Date – 26th – 27th July, 2012

- Venue – HAL Convention Center

Bengaluru


- Number of Exhibitors - 33

- Number of buyers - 11



4rd Strategic Electronics Summit – 2013- Date – 2nd August, 2013

- Venue – HAL Convention Center, Bengaluru

- Number of Participating companies – Over 120

- Number of Exhibitors – 33

- Number of buyers – 04

A Summary of SES 2014

OBJECTIVES OF THE EVENT Bring all stakeholders on one platform to enable better communication and

understanding of requirements of the defence establishment.

Facilitate in creating indigenous capability to manufacture defence equipment and meet

these requirements.

Create awareness about opportunities in the Strategic Electronics sector.

Involve the Small and Medium Enterprises to meet the requirements of Defence Forces.

Bridging the gap between R&D, Government organizations and businesses.

Explain and highlight the new Defence Production and Offset Policies.

Encouraging and enabling investments for developing strategic strengths.

PROGRAM DETAILS

International ConferenceConference Theme : “Make Indian – Dream to Reality” - Transforming the Indian

Strategic Electronics Eco-System

Day -1 Defence & Aerospace Market Potential

Day -2 The Road to Indigenization

Exhibition to showcase opportunities for buyers and sellers

Buyer Seller Meet - Pre-arranged One to One Business Meetings

Special Technology/Business Promotion Sessions



Conference onMake Indian – Dream to Reality

Transforming the Indian Strategic Electronics Eco-System

CONFERENCE PROGRAMME

DAY – 1: 30TH JULY, 2014 (WEDNESDAY)

9:00 – 9:30 am Arrival & Registration9:30 – 11:00 am Welcome Address - Mr. Subhash Goyal, President

ELCINA

Address - Dr. Maheshwara Reddy K, Group Director &Outstanding Scientist, DARE

Special Address - Mr. Ian Felton, Deputy High

Commissioner, UK

Guest of Honour - Mr. M Maheshwar Rao IAS,

Commissioner for Indl. Development & Director ofIndustries & Commerce, Govt of Karnataka

Guest of Honour –Mr. S K Sharma, Chairman & Managing

Director, BEL

Chief Guest – Dr. R K Tyagi, Chairman, HAL

11:00–11:30 am Tea Break; Inauguration & Visit of VIP Guests to Mini Exhibition 11:30 – 1:00 pm Session – II - Defence Electronics – Market Potential and

Opportunities for ESDM Companies

Lt. Gen (Retd.) A K S Chandele, PVSM, AVSM – SessionChairman - “Policies and procedures to promote Self

Reliance and Indigenisation in Defence Electronics”

Cdr K Arun, Sr Systems Manager, WESSEE

Dr. P Sivakumar, Director, CVRDE – Combat Vehicles &Unmanned Ground Vehicles

Mr. N Ramachandran, CMD, MEL Systems & Services &Past President ELCINA

Mr. Sanjay Handu, Director, TE Connectivity

1300 – 1400 HRS Networking Lunch14:00 – 15:00 HRS Session – III - Enabling Policies – DPP & Defence Offsets for Make &

Buy Indian

Col (Retd) K V Kuber, Advisor, NSIC -Defence Offsetsand their Business Potential

Brig (Retd.) S C Sharma, Axis Aerospace &Technologies -Capabilities of Indian Industry in DefenceElectronics

Mr. Vipin Tyagi, Director, Center for Development

of Telematics (C-DOT)- Secure Telecommunications

for Defence Sector

Technology Sessions: :

SESSION –I 1530 – 1630 Hrs Hindustan Aeronautics Ltd. (HAL)

SESSION – II 1630 – 1730 Hrs Directorate of Indigenization,Ministry of Defence



DAY – 2: 31ST JULY, 2014 (THURSDAY)

9:30 – 11:00 HRS Session – I – The Road to Indigenization

Brig Sanjay Prasad, DDG Indigenisation, Dte Gen of

EME

Mr. P Sudhakar, CMD, ECIL – Industry Address

Mr. S P Bhattacharya, General Manager (MCSRDC),

HAL Mr. Ashok Atluri, CMD, Zen Technologies -Industry

Perspective on Indigenization 11:00–11:30 HRS Tea Break; Inauguration & Visit of VIP Guests to Mini Exhibition 11:30 – 13:00 HRS Session – II - Requirements of Homeland Security and Paramilitary

forces

Session Chairman – Mr. T Vasu, Past PresidentELCINA and Director Tandon Group

Shri Ashok Dohare, IPS, Addl. Director General Of

Police, State Cyber Police, M.P.

Dr. A P Maheshwari, IPS, IG (CRPF), Northern Sector

Mr. N. S. Mahesh, Agilent Technologies India Pvt. Ltd.

1300 – 1400 HRS Networking Lunch

Technology Sessions:

SESSION – I 1400 – 1445 Hrs Electronics Corporation of India Ltd.

SESSION – II 1500 - 1600 Hrs Centre for Materials for ElectronicsTechnology (CMET)

Buyer Seller Meetings (Jacaranda Hall)

1430 – 1630 Hrs Bharat Electronics Ltd (BEL) C-DOT Hindustan Aeronautics Ltd. (HAL) Dte of Indigenisation, Army



List of Participating Companies

EXHIBITORS/SPONSORS

Agilent Technologies Amphenol Interconnect Anritsu India

Anvin Technologies Autocal Solutions Bharat Electronics Ltd. C-DOT Centum Electronics Dexcel Design Digital Circuits ECIL EFY Electrosolve ESSCI

Geosensors GMR Growcontrols

HAL Hical Hindustan Aeronautics Ltd.

Intron Kaynes Technology MEL Systems Miracle Electronics Navika Electronics Nihon Communications Pentair Rohde & Schwarz Saankhya Lab SLN Technologies Structural Solution

TUV Rheinland UKTI Weiss Technik

DELEGATES/SPONSORS

3G Wireless 515 Army Base Workshop Aarjay International Pvt Ltd ADS Group Limited

Aeronautical DevelopmentAgency (ADA) Aeronics eMaRoh Pvt Ltd Aerospace Engineers Amara Raja Electronics

Limited Applied RealTech Systems

Pvt Ltd Ashok Leyland Astra Microwave Astute Sattva Electronics Pvt

Ltd Atotech India Avurva Infotech Axis Aerospace BAeHAL BE Analytic Bharat Dynamics Ltd. Border Security Force - BSF Brahmos Aerospace

Bureau of Police (R&D) -Min. of Home Affairs

C&S Electric Ltd CAIR

Captronic Systems Pvt Ltd Champion Electronics CII Guardian International

Limited C-MET Communication Trg. Inst. -

IAF Cosel Asia Ltd, India Liaison

Office Crompton Trading Company CRPF

CVRDE Deepti Electronics Defence Avionics Research

Establishment (DARE) Diagnosys Electronics (I) Pvt

Ltd Directorate of Indeginisation DRDO Dynalog India EADS DS India Pvt Ltd



Ealone Electrical & Instrument Trg.

Inst.-IAF Elico Ltd. Elin Electronics Ltd Elkay Electromech India Pvt.

Ltd Ellsworth Adhesives India

Pvt Ltd EMI Solutions Pvt Ltd Entec Engineering ENTEST Technologies Private

Limited Entuple Technologies Pvt Ltd EXPANDYS Ltd Federation of Indo Israeli

Chamber of Commerce Flextronics

GAD Aerospace PrivateLimited

Gati-KWE Global SMT Packaging Gyanjes Electrotek Hitech Magnetics &

Electronics Pvt Ltd IETE, Bangalore Indo American Chamber of

Commerce

Indus Teqsite PrivateLimited Infineon Technologies Invineon Technologies

Private Limited JAGRUTI ELECTRONIC

TECHNOLOGIES Latitude Edutech Leo Circuit Board MACOM Technology

Solutions (Bangalore) Pvt

Ltd MAK Controls & Systems MAP Electronics Mark TechPro & Consultants Market Research Reports Mathwork Millennium Power & Security

Solutions MP State Cyber Police Multek

Multisphere Power Solutions Naabhya Interconnect LLP. Naval Science &

Technological Laboratory(NSTL)

Nicomatic India Electronics NSIC NSTL OSR Consultants Perfect Controls R Tips Technologies Rajdeep Automation Pvt Ltd Rangsons Electronics RBP Technology (India) RIICO Ritz Shipping & Logistics Co. RMC Electronics Sahasra Electronics

SGS Tekniks Mfg. Sika Interplant Systems

Limited Smartlink Network SN Industrial Consultants

(SNIC INDIA) Sri City Stanesh Semiconductor STMicroelectronics Asia

Pacific Pte Ltd

Syratron Technologies Systems Aids Tandon Group Tata Power SED TE Connectivity Tech Mahindra Ltd Teknic Electromeconics Test and Verification

Solutions India Pvt Ltd Titanium Industries Toshikcon

TRIBI Systems Pvt. Ltd Trigya Exim Pvt. Ltd Vantage Technologies Vectron Veer-O-Metals Pvt Ltd WESEE Xtraaedge Yeshshree Press Comps Zen Technologies



STATUS OF INDUSTRY AND OPPORTUNITIES

The Strategic Electronics sector presents an unprecedented opportunity as well as

challenge for our country. This is equally so for the domestic industry which needs toplay a much greater role in this sector. The strategic electronics segment encompassesCommunication systems, Radars & Sonars, Network Centric systems, Electronic Warfaresystems, Weapon systems, Satellite based Communication, Navigation and Surveillancesystems, Navigational aids, underwater electronic systems, infra-red based detection

and ranging system, disaster management system, internal security systems ..… the listis long. All modern weapon systems, military, aerospace, naval or for internal securitydepend heavily on electronics.

The production of strategic electronics in India has been growing steadily from Rs. 5700crores in 2007-08 to Rs.9000 crores during 2010-11. As per projected growth rates,electronics production in Defence Sector in India is likely to reach Rs.12,000 croresduring 2012-13 and exceed Rs 13,800 Crores during 2013-14 recording a growth of over15%. This growth is fuelled by the expanding budgetary allocation for Defence Sectorwhich jumped from Rs. 164,415 crores in 2011-2012 to Rs. 193,407 crores in 2012-13and further allocation has been increased by 5% to Rs 2,03,672 crore for 2013-14 withprovision for further funding depending on actual requirements.

Of this, Capital expenditure, which mostly caters for modernisation requirements,accounted for Rs 79,579 crores in 2012-13 and was increased by 9% to Rs 86,741Crores in 2013-14.

The Defence Procurement Procedure 2011 for capital equipment has come into effectfrom January 2011 and incorporates simplifying the purchase mechanism. The scope ofthe offset policy guidelines have been expanded to include civil aerospace, internalsecurity and training within the ambit of eligible products and services for dischargingoffset obligations offering an immense growth opportunity for domestic electronicsmanufacturers serving Defence segment.

For the first time in India, a Defence Production Policy was announced and became

effective from 1” January, 2011. The objectives of the Policy are to achieve substantiveself-reliance in the design, development and production of entire range of Defenceequipments and encourage SMEs to play an active role in this endeavor.

SES brings this opportunity to domestic players and endeavors to bring about partnerships with global players who are vital for meeting the strategic needs of thecountry.

Offset Policy - a new beginning for domestic playersIndia's defence offset policy is being seen as a key driver for growth and modernizationof the defence industry base. Modified in 2009 & 2013, it is expected to providemanufacturing and business opportunities of Rs.40,000 crores over the next five yearsand has opened doors for private players, mainly domestic players.

Following are the highlights of the amendments to the DPP-2011 which have beenbrought into effect from 1st June 2013:

1. Prioritisation of Various Categories for Capital Acquisitions under DefenceProcurement Procedure

Preference for indigenous procurement in the Defence Production Policy 2011 has nowbeen made a part of DPP through an amendment that provides for a preferred order ofcategorization, with global cases being a choice of last resort.



2. Release of Public Version of Long Term Integrated Perspective Plan (LTIPP) The DAC has approved the release of a public version of its 15-year perspectivedocument (LTIPP), outlining the “Technology Perspective and Capability Roadmap”(TPCR) against LTIPP 2012-2027. s and directing its R&D and technology investments.3. Maintenance ToT (MToT) no longer through Nomination MToT has been hitherto reserved largely for OFB and DPSUs through the nominationprocess. The DPP does away with nomination by Department of Defence Production andfacilitates selection of MToT partners by Indian bidders.

4. Advance Consultations for “Make” Procedure The DAC has approved an amendment mandating consultations to begin sufficiently in

advance of actual procurement by Service Head Quarters (SHQs), so that capitalacquisition plans can be translated into national defence R&D and production plans.5. Simplification of “Buy & Make (Indian)” Procedure The DAC has approved an amendment further simplifying this complex category.6. Clear Definition of Indigenous Content To enhance indigenization, indigenous content has now been defined in an unambiguousmanner, providing requisite clarity and a common understanding.7. Ensuring faster progress in “Make” and “Buy & Make (Indian)” cases The Ministry has a limited number of acquisition cases under “Make” and “Buy & Make

(Indian)” categories, with an estimated value of Rs. 1,20,000 crore. Instructions havebeen issued for speedier conclusion of these cases.8. Defence Items List The Defence Items List has been finalised by the Ministry and sent to DIPP fornotification, which will bring required clarity in the licensing process.9. Licensing for Dual Use ItemsThe Ministry has categorically clarified to DIPP that dual-use items will not requirelicensing, thereby bringing added clarity to the licensing process.10. Consultations on Security Guidelines for Indian Defence Industry It is expected that a complete security framework with guidelines for Indian privateindustries participating in defence cases will be in place in the near future.11. Resolution of Tax-related Issues

Resolution of deemed exports status for certain defence projects and rationalisation oftax and duty structures impinging on the Indian defence industry has been taken up by

the MoD with the Ministry of Finance.12. Funds for MSMEs in the Defence Sector The Defence Production Policy 2011 requires the setting-up of a fund to providenecessary resources for development of defence equipment. In order to ensure regularsupply of funds to MSMEs involved in manufacturing of defence products, SIDBI hasdecided to earmark an amount of Rs. 500 crore for providing loans, and further, a fundof Rs. 50 crore for equity support out of “India Opportunities Fund” managed by itssubsidiary, namely, SIDBI Venture Capital Ltd.13. Efficiency and Transparency in Defence Procurement

A stipulation to freeze the SQRs before the “Acceptance of Necessity” (AoN) stage hasbeen accorded, and the validity of AoN has also been reduced from two years to oneyear.14. Enhanced Delegation of Financial Powers The financial powers of Service Chiefs/ DG Coast Guard have been enhanced from Rs.50 crore to Rs. 150 crore for capital acquisition cases.15. Powers to DACApproval for all deviations from the Defence Procurement Procedure will henceforth besought from the Defence Acquisition Council instead of the Defence Minister.



The Offset opportunity is expected to bring in large volumes of business – the size ofthis opportunity is estimated at USD 10-15 Billion over the next 4-7 years.The current global defence expenditure was over US$ 1.465 Trillion with US being thelargest with 40% share while India’s share was 2.1% (~US$30 Bn+). India is currentlyamong the top 10 spenders worldwide with its defence expenditure growth at about9.3%. India’s defence Expenditure was distributed as follows - 46% on the army, 30%on air force, 19% on navy & balance 6% others. A larger share of capital expenditurewent to the Air Force at 40%, the Army got 28%, Navy 25% and 7% to others.

Recent Developments:

Categorisation of Products Changed

Through an Office Memorandum dated August 25, 2014, Defence Product Listcategorisation has been updated wherein Category C has been removed and productsare classified as ‘A’ and ‘B’ only. Category A products involve highly classified andsensitive items from the security angle and the manufacturing of these items wouldrequire the highest level of security. Category B include semi-finished products, sub-assemblies, sub-systems of main weapons/ equipments/ platforms and some finishedproducts of lesser degree of sensitivity.

Security Manual for Licensed Defence Industries issued in June 2014

Department of Defence Production issued Security Manual provides the securityarchitecture that needs to be put in place by the Indian defence companies in the privatesector before undertaking the manufacturing of Defence products for which they havebeen issued industrial licence under IDR Act. The level of security will depend upon thecategory of the product, the company intends to manufacture. Under all circumstances,the companies with whom any classified information is shared by the Government as a

part of the procurement contract or otherwise would come under the purview of OfficialSecrets Act, 1923.

Requirement of Industrial Licence for Maintenance, Repair and Overhaul (MRO)

activities

The issue of grant of Industrial License for Maintenance, Repair and Overhaul(MRO)activities in Defence Sector was under consideration in this Department and it has nowbeen decided (OM dated 26, June, 2014) with the approval of Competent authority, thatMRO activities in Defence sector may be treated as services and should not be subjectedto the Industrial License under IDR Act unless it actually involves manufacturing of anycomponents/ sub-assemblies which are licensable and that product should remain theproperty of the same customer after MRO operation.

Facilitation Cell for Defence Offset

Defence Offset Monitoring Wing (DOMW) has established a facilitation cell for foreign

vendors and Indian Offset partners to interact and clarify issues related to offset (OMdated 14/02/2014).



Homeland Security in India

Presently, the cumulative annual budget allocation for all States and Union Territoriesunder the specific expenditure head of ‘Police’ is approximately INR 44,354 crores,which, despite a 21.7 per cent increase over the 2008-09 amount of INR 36,434 crores,still amounts to a meager 4.3 per cent of the total budgeted expenditure of all Statesand Union Territories in 2009-10 . Of this amount, more than 80 percent is spent onsalary and maintenance of the forces and only about 20 percent is available for training

and other capability building activities. In addition to this amount, the Ministry of HomeAffairs released INR 1,230 crores as central funds for the modernization of India’s policeforces in 2009-10 . Also, in order to enhance the Homeland Security of the countrythrough a specific focus on certain identified cities, the Ministry of Home Affairs allocatedover INR 450 crores for city surveillance projects. The Indian homeland security budgetreached US$10.1 bn in 2012and will surpass US$ 15 bn by 2015 providing a hugeopportunity to domestic as well as foreign vendors.

Key equipment with supply potential for industry players:. Explosive detection

and containment, EO-IR sensors including Night vision devices, Intelligent Airfield &Runway Surveillance & Fallen Object & Debris Detection System, Automatic VesselDetection, Identification & Classification system, Perimetric control including Boom

Barrier, Bollards, Turnstiles, Door, Frame Metal Detectors, Scanners : Hand-held, BodyScanners, Baggage Scanners, Access Control System including Biometrics & RFID Cards,Surveillance including Intelligent Surveillance System, Mobile Video, Surveillance, CCTV& PTZ Cameras, DVR's, UAVs, UUVs, UGVs.

Establishment of “Centre of excellence on internal security” (CEIS) at IIT-Bombay by Indian Government in association with private industry. CEIS with its stateof the art facilities is expected to function as a resource centre that will pursue researchand development (R&D) into cost effective electronic equipment that can then be massproduced by Indian industry for India's security agencies.



SUMMARY OF PROCEEDINGS

The 5th edition of Strategic Electronic Summit was inaugurated by Shri R. K. Tyagi,Chairman, Hindustan Aeronautical Ltd. on 30th & 31st July, 2014 at BangaloreInternational Exhibition Center HAL Convention Centre (BIEC), Bengaluru.

Day 1 – 30th July, 2014 - Inaugural Session

Shri R. K. Tyagi, Chairman, Hindustan Aeronautical Ltd.:Dr. Tyagi, the Chief Guest, he drew attention to the fact that imports of electronic itemsis going to surpass petroleum import bills and in near future it will become a heavyburden on foreign exchequer. He reminded about the government’s commitment toovercome this problem with the help of new Electronics Policy. He apprised the audienceabout the Skill Council initiative of HAL to overcome the demand-supply gap of skilledmanpower in the segment of aerospace.

Dr. Maheshwara Reddy K, Group Director & Outstanding Scientist, Defence

Avionics Research Establishment (DARE) :According to Dr. Reddy India needs to expedite its efforts for technology up-gradationthrough rigorous research and development initiatives. He also mentioned variousgovernment policies for technology transfer to private manufacturers.

Mr. Ian Felton, Deputy High Commissioner, UK :Mr. Felton the Special VIP Guest, informed participants about the distinct status that UKis enjoying in the electronics and semiconductors market. He drew attention towards thepotential of an alliance of Indian firms with their UK counterparts. Mr. Felton emphasizedthe importance of quality that UK firms adapt in their designing and productionprocesses. He also invited domestic players to come and have alliances with UK firms inIndia.



Mr. Maheshwara Rao, IAS, Commissioner for Industrial Development & Directorof Industries & Commerce, Govt. of Karnataka :Mr. Rao was the ‘Guest of Honor’ for the event. He apprised the audience aboutKarnataka Government’s intensions to support and promote domestic manufacturesinvolved in Aerospace and defense productions. Mr. Rao informed about government’sinitiative of establishment of dedicated Aerospace Park near Bengaluru airport. He alsoinvited industry players for any support that his office can offer.

Mr. S K Sharma, Chairman & Managing Director, Bharat Electronics Ltd. (BEL) :Mr. Sharma was the ‘Guest of Honor’ for the event. He mentioned that buying fromsmall domestic manufacturers is a win-win situation for both the parties, and it is notobligatory in nature. He wished domestic industry to achieve greater heights in thetimes to come and invited them to work for and with BEL. Mr. Sharma explained the keyrole that BEL was playing in strengthening the domestic value chain and special effortsthey were making in engaging with SME’s to promote domestic manufacturing inStrategic Electronics.

Mr. Subhash Goyal, President ELCINA & Managing Director, Digital Circuits Pvt.

Ltd.:In his opening remarks, Mr. Goyal welcomed all the guests and speakers in SES, 2014.He highlighted the growing importance of Defense and homeland securities to counterexternal and internal threats. He also mentioned the fact that India is among the top tenin terms of defense expenditures and growing importance of electronics in this sector.

Session II – Defence Electronics – Market Potential and Opportunities

Enabling Policies – DPP & Defence Offsets for Make & Buy Indian

Lt. Gen. (Retd.) A K S Chandele, PVSM, AVSM chaired the 2nd session on “Defense

Electronics- Market Potential and Opportunities for ESDM”. His topic of discussionfor the session was “Policies and procedures to promote Self Reliance and Indigenizationin Defense Electronics”. He began by giving an overview of the modernisation plan of thearmed forces listing the major equipment requirements, analyzed the strategic electroniccomponent of these requirements and discussed the strengths and weaknesses of theindigenous industry in meeting these requirements. Apart from procurement of newequipment, he discussed the issue of life time sustenance of existing importedequipment through indigenization of spare parts and establishing MRO facilities. Heemphasized the importance of creation of a conducive policy environment for the privatesector, particularly the MSMEs.



Cdr. K Arun, Sr. Systems Manager, WESSEE:Cdr. Arun suggested a proactive interface of industry with Indian Navy regarding supplyof indigenous goods. He advised industry to visit the portal of Directorate ofIndigenization of Navy on which Navy has posted its 15 years requirements. Cdr. Arunalso emphasized the need to reduce time between inception and delivery to make thedeals feasible.

Mr. N Ramachandran, Past President ELCINA & CMD, Mel Systems & Services :

Mr. Ramachandran spoke about the overall dynamics and problems faced by domesticentrepreneurs in the production of Strategic Electronics. His emphasis was on the

mismatch between fast changing technology and the speed of its adoption, particularlythrough manufacturing in the country leading to slow growth rate towards self-reliance.He also stressed on the need for establishing hi-tech testing facilities for electronicequipment’ s in the country. Mr. Ramachandran also presented an action plan for speedytechnology transfer from government research bodies like DRDO to domesticmanufacturing establishments.

Dr. P Sivakumar, Director, Combat Vehicles Research & DevelopmentEstablishment (CVRDE):

Dr. Sivakumar appreciated the concerns of Mr. N Ramachandran and assured that mostof the concerns may be addressed within a year’s time. He also emphasized thatdomestic players should struggle hard to acquire and develop indigenous technology sothat defense industry may consider them empanelling in their list of vendors. Dr.Sivakumar mentioned certain strategic requirements of the defense industry on whichprivate domestic players can work upon since most of these requirements are fulfilled byimports only.

Mr. Sanjay Handu, Director, TE Connectivity:Mr. Handu appreciated the intention of government to strengthen the domesticelectronic industry which is evident through catalytic policies like National Policy onElectronics and National manufacturing policy. He highlighted that the Indian defense

electronics industry is currently poised on a similar inflexion point as was observed inpast history for industry segments like automotive and telecom that went throughsimilar challenges and then sudden explosive growth. Mr. Handu also drew attention tothe demand supply between indigenous production and imports in the defense sector,which should be perceived as an opportunity for growth & domestic players. Heemphasized the need for a calibrated approach to indigenization and synergybetween government and related private industry for timely opportunity realization.



Session III – Enabling Policies – DPP & Defence Offsets for Make & BuyIndian

Col. (Retd.) K. V. Kuber, Advisor, NSIC coordinated the 3rd Session on ‘EnablingPolicies – DPP & Defence Offsets for Make & Buy Indian’. Col. Kuber spoke

extensively about challenges that MSME’s face in the Defence Electronics sector and notprovided a fair and equal opportunity. He made various recommendations such asGovernment must pay for withdrawal of RPF’s under the NCNC Policy. He alsorecommended that there should be special preference for purchasing from MSMEs under

BUY Indian policy. He advised MSMEs to keep focusing on exports also since theprevious year’s export figures are quiet encouraging.

Brig. (Retd.) S C Sharma, Axis Aerospace & Technologies :Brig. Sharma suggested various ways to bridge the gaps between MoD and MSMEs inIndia. He presented his vision of India being a Global force in the production of strategicelectronics through policy modifications.

Mr. Vipin Tyagi, Director, Center for Development of Telematics (C-DOT):According to Mr. Tyagi, R & D should be the focal point of government as well as privateplayers to achieve sustainable self-reliance. He suggested that Government of Indiashould increase its budget on R&D to compete with China and other tech savvy

countries. One of his most valuable suggestions was to focus on “CommunicationInfrastructure” in the country and its sustainable benefits in defense and commerce. He discussed the importance of faster communication and mentioned that if a messageleads by nano second, it may earn billions of Dollars and can save several lives.

Technology Sessions: Day – 1

Session – I – Hindustan AeronauticalLimited (HAL)

Mr. S P Bhattacharya, General Manager(MCSRDC-HAL), HAL

Session – II - Directorate ofIndigenization, Ministry of Defence

Col. Ashutosh Verma



Day 2 – 31st July, 2014 - ‘The Road to Indigenization’

Brig. Sanjay Prasad, DDG Indigenisation, Dte Gen of EME

Brig. Prasad drew attention to the fact that process of phase-wise indigenization is onfull swing within the defense forces and invited private players to be a party to it. Heinformed that defense forces are ready for technology sharing on selective basis andproviding testing facilities to domestic manufacturers.

Mr. P Sudhakar, CMD, ECIL – Industry Address

With wide experience of research and implementation of various projects in the defensesector, Mr. Sudhakar discussed the importance of indigenization and the difficultiesinvolved in it. He informed about various achievements of ECIL in the area of nuclear

installations and defense sector.

Mr. S P Bhattacharya, General Manager (MCSRDC-HAL), HAL :

Mr. Bhattacharya invited domestic players to supply their products to HAL and shared

details of his organization’s intensions to prioritize domestic sourcing. He discussedvarious research initiatives of HAL along with the production facilities at Korwa,Hyderabad etc. Mr. Bhattacharya also invited private domestic manufacturers to visittheir research establishments and see how it may serve their cause of modernization. Hediscussed the issues faced by the local players especially related to fast changingtechnology and long production cycles in India. He also urged the Government tostreamline issues related to business environmental factors whether it is roads, power,cost of finance or other factors.

Mr. Ashok Atluri, CMD, Zen Technologies:

Mr. Atluri highlighted the present situation of Government’s buying and paymentprocesses and suggested ways to make it more encouraging for the domestic players.

He expressed his concerns over excessive reliance on foreign vendors since supply ofcrucial equipment’ s and parts may be disturbed during the times of war and hencepromoting domestic manufactures is not a matter of economic importance but also astrategic one. Mr. Atluri also requested and advised single tender system for domesticplayers especially when the defence product is designed in India. A new category withhighest priority - Buy Indian with Indigenous Design category - is a must if we intendedto be self-reliant. Benchmarking based on international pricing was a must. He insistedthat FDI should be allowed only when key technologies are brought into India andindigenized.



The 2nd Session on ‘Requirements of Homeland Security and Paramilitary Forces’ was

coordinated by Mr. T Vasu, Past President ELCINA and Director Tandon Group :-

He welcomed various renowned personalities in the field of homeland securities fromKarnatka, M.P. and CRPF. He discussed various problems and threats with whichparamilitary and police forces are dealing. Mr. Vasu also mentioned the efforts ofgovernment for the modernization of homeland security by allotting adequate budgetprovisions and sanctions in this financial year thereby offering ample opportunities forthe manufacturers also. He was specific in requesting the officials concerned that the

efforts by the entrepreneurs should not go waste thru cancellation of the tenders forwhatever reason be. This factor has demotivated many companies in this sector.

Dr. A P Maheshwari, IPS, IG (CRPF), Northern Sector

Dr. Maheshwari emphasized the synergy between the requirements of security forcesand domestic manufacturing industry. He highlighted that more showcasing of domesticproducts is required and appreciated ELCINA for giving a platform where representativesof defense/ homeland securities can interact with domestic manufacturers. Hementioned certain specific requirements of security forces and invited industry to

respond.

Shri Ashok Dohare, IPS, Addl. Director General Of Police, State Cyber Police, M.P.Mr. Dohare informed about the governments initiative of making a “National Grid forPolice” on which Police forces of all States and Union Territories can share theirinformation and coordinate accordingly. He recommended the concept of “DigitalDocumentation” to replace paper work and the delays involved in the same.

Mr. N. S Mahesh, Agilent Technologies India Pvt. Ltd. gave presentation on the thevarious instrumentation, Test & Measurement solution available today for StrategicElectronics.

Vote of ThanksThe event concluded with a Vote of Thanks by Mr. T Vasu. The industry leaders made astrong recommendation that ELCINA should take up these issues directly with theDefence establishment and officials who are involved in the purchase process. It wasrecommended that recommendations from the Summit would be made to the DefenceMinistry at an early date so that highlighted challenges were addressed urgently.

Technology Sessions: Day – 2



Session – I – Electronics Corporation of

India (ECIL)

Session – II – Centre for Materials for

Electronics Technology (C-MET)



SNAPSHOTS OF THE EVENT



Buyer-Seller Meetings

C-DOT Sourcing TeamBEL Sourcing Team

HAL Sourcing Team Directorate of Indegenization - ARMY



MEDIA COVERAGE

Publication: Business Line

Edition: Bangalore

Date: 30th July, 2014

Publication: Deccan Herald

Edition: Bangalore

Date: 31st July, 2014

Show Report - SES 2014

Documents

Transcript of Show Report - SES 2014