SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 81

NET ZERO IMPORTS
11 . For disability on account of the “ high interest rate on
case of local procurement .
financing of working capital ,” receivable and payable
17 . Clearing charges of 0.5 % of the assessable value and local
durations are considered to be the same in India and other
transportation of 0.5 % has been assumed in the case of
low-cost manufacturing destinations ( such as China ). The
imported goods .
assumed interest rate is ~ 14 % in India and ~ 6 % in other low- cost manufacturing destinations ( such as China ).
18 . Local transportation of 0.05 % of the purchase price has been assumed in the case of domestic purchases .
12 . The base cost of BoM is assumed to be the same in India and other low cost manufacturing destinations ( such as
China ).
19 . For the purpose of computation of design expenses per unit , the domestic manufacturer is assumed to be in the first few years of operation with a low scale of operations ,
13 . Margins have been calculated at 5 % of the total cost
to reflect the nascent stage of the industry .
excluding local taxes ( Cenvatable taxes ).
20 . The cost structure represents that for a manufacturer who
14 . The cost of power in low-cost manufacturing destinations
imports components , manufactures the product and sells it
( such as China ) is assumed to be 50 % of the blended cost
to a trader , who issues a form C
of power in India . Real estate costs in low-cost manufacturing destinations ( such as China ) are assumed to be 50 % of that in India . The costs of other factor input are assumed to be the same in both the countries .
15 . In the case of export from other low-cost countries ( such as
China ), the extent of export-related incentives is comparable to taxes payable in the country and the margins of manufacturers .
16 . Freight has been assumed to be 5 % in the case of sea freight for imported products / components and 2.5 % in the
21 . In the case of imported and traded products , the traders will typically import their products to the destination state .
22 . It is assumed that SAD refund is available and made use of by traders of imported products such as notebooks .
23 . For the purpose of computation of design expenses , a design to market cycle of six months has been assumed for the current level of low value addition in India . The assumed interest rate in India is ~ 14 % and ~ 6 % in other low-cost manufacturing destinations ( such as China ).
Annexure C : Bill of Material details for laptops and PCs
S . No .
1 2 3 4 4.1 4.2 4.3 4.4
5 6 7 8
9 10
Component
Laptop
CPU / Processor Memory / RAM Hard Disk / Storage Device Motherboard Chipset- Data processing / ASP Connector Printed Circuit Board
Integrated Peripherals as Disk Controllers , WLAN Half Mini PCIe Module , graphic controllers , Camera , Key Board , Touchpad , Controllers for Audi and video , wireless networking , Trackpad . Peripheral card slots
Display & Touch Screen
Battery & and power conversion , Switched-Mode Power Supply ( SMPS )
Optical Disc Drive CD / DVD-ROM Writer
External Connector-DC Power , Outputs , HDMI , USB , Flash Drive
Casing
Other enclosure / mechanics & final assembly
11 Box Content which included AC adaptor and other accessories
Cost Proportion in Total BOM Cost in %
15 %
4 % 10 %
5 % 2 % 3 % 3 %
3 % 5 % 5 % 2 % 7 % 5 % 2 %
12 Others included software , Warranty , etc 18 %
Desktop
S . No .
Component
Cost Proportion in Total BOM Cost in %
1
CPU / Processor
Cost
2
Memory / RAM
Proportion in
3
Hard Disk / Storage Device
Total BOM
4
Motherboard
Cost in %
4.1
Chipset- Data processing / ASP
4.2
Connector
4.3
Printed Circuit Board
4.4
Integrated Peripherals as Disk Controllers , WLAN Half Mini PCIe Module , graphic controllers , Camera , Key Board , Touchpad , Controllers for Audi and video , wireless networking , Trackpad . Peripheral card slots
3 %
5 6 7
8 9
10
Display / Monitor Optical Disc Drive CD / DVD-ROM Writer
External Connector-DC Power , Outputs , HDMI , USB , Flash Drive
Chasis
Other enclosure / mechanics & final assembly
Others included software , Warranty , etc
3 %
4 %
2 %
12 %
5 %
15 %
Spotlight on Indian Electronics 2016 | 81