SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 93

STATE POLICY- ODISHA
states in India.
c.
Unemployment rate among the highest( among 15
major states) – rural – 32 %; urban – 42 %.
d.
Highest( among 16 major states) in BPL population %.
e.
One of the highest infant mortality.
f.
Life expectancy among the lowest in 15 major states.
6) Some issues with infrastructure still exist: Though Odisha fares well on the cost of infrastructure, there are some issues with quality and availability of such infrastructure.
Telecommunications connectivity( Broadband for enterprises) is relatively poor in Odisha.
Power: Though production capacity and supply scenario are better, the quality of power needs to be improved.
Strategic roadmap for ESDM sector development in Odisha
Vision: The National Electronics Policy( 2011) sets a target to
The table below summarizes the investments needed to be made phase-wise.
generate turnover of US $ 400 bn from the ESDM industry by 2020, of which US $ 80 bn would be through exports. It aims to attract an investment of US $ 100 bn and build a strong supply chain of raw materials, parts and components. It also sets
( INR Cr)
Investment for product verticals
Investment for Horizontals
Total Investment required
Phase 1
330
240
570
Phase 2
1510
1110
2620
Phase 3
2870
1280
4150
All Phases
4710
2630
7340
‘ enhancing the availability of skilled manpower’ as one of its objectives. In order to achieve these objectives the
Government of India has announced a slew of policy measures in the last three years.
In view of the enhanced focus on ESDM sector at a national level, Odisha can contribute to this national target by promoting and developing the ESDM sector within Odisha and establishing itself as a preferred destination for investment in this sector.
Targets: Based on analysis of various factors like demand for electronic products and manufacturing services within India,
East India & Odisha, current status of ESDM industry in Odisha,
Anchor investors: Anchor investors are large global / domestic companies that are major players in the specific product vertical or horizontal or large corporates that have the ability to make huge investments. The investment brought in by such players is generally upwards of INR 200 Cr.
Medium investors: These are global or domestic companies / groups that bring in investments above INR 10 Cr and less than 200 Cr. These constitute established players in the ESDM space or new investors willing to invest in ESDM sector.
Small investors: Small investors can be any interested entity willing to make an investment less than INR 10Cr.
strengths and challenges of Odisha in ESDM industry etc., the
The following parameters have been used to identify whether
following projections have been made for Odisha in the ESDM
the product / horizontal requires anchor investors, medium
sector:
investors or small investors or a mix of the three.
1.
As the current share of revenue from Odisha in ESDM
a.
Level of investment required per manufacturing unit.
sector is negligible unlike some other states like
b.
Complexity of the product / manufacturing process.
2.
Karnataka, the revenue of INR 18,800 Cr is planned to be achieved over the next 10 years in this sector in
Odisha.
An employment generation of around 60000 jobs is estimated in the ESDM sector during the same time period.
c.
Brand consciousness of consumers for the product. d.
Target volume for Odisha.
The table below summarizes the mode of investment and the amount of investment required for various product verticals / horizontals for all the three phases:
3. Odisha to become a significant player in the segments of Consumer, Industrial, IT / OA, Telecom / Mobile and Strategic Electronics.
4. Odisha to focus on development of the ESDM sector across the value chain and not just the end products.
5. SMEs and domestic manufacturers to be encouraged equally with multinational and large investors.
A detailed study has been undertaken to identify segments within the ESDM sector to be targeted by Odisha to achieve this vision and to provide a roadmap for the state to reach the set targets. The following sections provide a detailed description of the segments / products identified, Investments required, phase-wise approach, mode of investments, resources required, locations to be focused on and Govt. initiatives to bridge the gaps.
Investment required: The overall investment that is required, in order to achieve the expected revenues is estimated to be INR 7340 Cr.
The source of investment varies from large anchor investors to medium investors to small investors, depending on various parameters as explained below.
Product vertical
Total investment
required( INR Cr)
Mobile Devices
110
Telecommunication & Accessories
135
IT / OA
535
Consumer Electronics
515
Industrial Electronics
2575
Strategic Electronics
700
Medical Electronics
150
All Products
4720
Horizontal
Details
Total investment
required( INR Cr)
EMS EMS
Components
PCB manufacturing
Connectors Plastic / Sheet metal Passive components Active components ATMP
ATMP
Design
VLSI Design
Hardware / Board Design Embedded software development All Horizontals
170 1870
400 190
2630
Category of investors *
Medium Medium & Small Anchor, Medium & Small Anchor, Medium & Small Anchor, Medium & Small Anchor Medium
Category of investor *
Medium Anchor, Medium, Small
Anchor Medium, Small
Spotlight on Indian Electronics 2016 | 93