1. Consumer Electronics
February 2010
- Rajeshwar A.
Process Engineer-SMT
www.scribd.com/smtguy

2. Electronics
February 2010
Overview – Electronics Industry
 The Electronics Industry in India took off around 1965 with an orientation towards
space and defense technologies.
 In 1982-a significant year in the history of television in India - the government allowed
thousands of colour TV sets to be imported into the country to coincide with the
broadcast of Asian Games in New Delhi.
 The period between 1984 and 1990 was the golden period for electronics during
which the industry witnessed continuous and rapid growth.
 In 1997 the ITA agreement was signed at the WTO where India committed itself to
total elimination of all customs duties on IT hardware by 2005.
Source : IBEF

3. Electronics
February 2010
Components
$ 2.8 Bn
Consumer Electronics
$ 6.4 Bn
Comm. &
Broadcasting Equip.
$ 4.4 Bn Industrial + Other
$ 3.5 Bn
Computers
$ 4.2 Bn
Components has fallen behind from 3rd place to 5th place in last 5 years !
Source :ASSOCHAM

4. Electronics
February 2010
Indian Electronics Industry - Highlights
 Industry size – US$ 23 billion
- Ranked 26th in the world in sales, 29th in production.
 Growing at over 25 % CAGR expected to reach US$ 158 billion by 2015.
 Low penetration levels
The industry is one of the fastest growing in India ,driven by growth in key
sectors such as IT, Consumer Electronics and Telecom.
Source : IBEF

5. Electronics
February 2010
Key policy initiatives include:
 Customs duty on ITA-1 items (217 items) has been abolished from March 2005.
 Excise duty on computers has been removed.
 100 % foreign equity participation is permissible.
 Robust IP act to facilitate innovation, growth as well as development in the sector
As a result of market forces and policy support, all segments of the
industry have been growing

6. Electronics
February 2010
Forecasted growth of Indian Consumer Electronics
Source: Data monitor

7. Electronics
February 2010
Major Key Players
 Samsung - As per a recent statement by Mr. Ravinder Zutshi, Dy. MD of Samsung India Electronics,
the company is aiming to become the number one player in the consumer electronics industry in India
overtaking the industry leader LG Electronics from the top slot, as it aims over $3-billion (around
Rs.14,000 crore) revenue in 2010.
 : The Indian unit of South Korean’s LG Electronics is planning to spend Rs.1,400 crore
over three years to hike capacity and build a third factory, possibly in Chennai.
 Videocon A Rs.1,600-crore plant for colour television sets and other electronic consumer durables
will be set up by Videocon at Manamadurai in Sivaganga district.
 - Nokia targets to have 115 m active users by first half of 2010. -- ET 15 Feb 2010.

8. Electronics
February 2010
Market Drivers
 LCD TV – LCD is likely to grow by more than 100 % in 2010. Sales will pick up
from March with the scheduling of IPL & with Football World Cup & continue with
the onset of the Commonwealth games.
 DTH - The Indian DTH industry players look forward to a seven times multiplication of
its market, about 40 million subscribers by 2015, from a total of 165 million pay TV
households.
 CELL PHONES - Indian mobile handset sales accounted for around 37% of Indian
consumer electronics spending in 2009. Total Indian market handset sales are expected to
grow at a CAGR of 10% to 340mn units in 2014.
 COMPUTERS - Computers accounted for around 30% of Indian consumer electronics
spending in 2009. BMI forecasts Indian domestic market PC sales (including notebooks
and accessories) of US$6.8bn in 2010, up from US$5.9bn in 2009.

9. Electronics
February 2010
Forecasted Growth of Consumer Electronics Market Drivers
As per our new research report “Indian DTH Market Forecast to 2012”, the
number of DTH subscribers is projected to grow at a CAGR of around 28%
The report also found that in 2007, the leading India LCD TV during 2010-2012. Presently, the DTH subscribers constitute only a small
brands were Samsung, with more than 30 percent share, followed proportion of the total TV household in the country, representing a vast future
by Sony (19 percent), and LG (16 percent). The leading PDP TV growth potential.
brands are LGE, Samsung and Panasonic. LGE also leads the CRT TV
market in India with more than 25 percent market share, followed
by Samsung and Videocon.-EETASIA
iSuppli estimates India's total wireless subscriber base will grow at a
Compound Annual Growth Rate (CAGR) of 25.1 percent for the period 2007 to
2012 to reach 715 million by the end of 2012.

10. Electronics
February 2010
 Market at 9 Lac Cr (US$190Bn)
 Production growth from Rs 1 Lac (22Bn) to Rs 6 Lac Cr (130 Bn)
 Export growth from Rs. 19,000 Cr (4 Bn) to Rs 100,000 Cr (23 bn)
 Foreign Exchange outgo Rs. 2.6 Lac Cr {$55Bn} (against 7 Lac Cr {148 Bn}
with current priorities)
• Market (900,000) – Production (600,000) + Export (100,000) – Import of
Components (60,000)
 Employment Growth Direct + Indirect – from 20 to 100 Lacs (Ratio 1:3) –
based on growth of production
Source : ELCINA

11. Electronics
February 2010