BADGE & LANYARDSPONSOR

MEDIA PARTNERASSOCIATE SPONSOR

SILVER SPONSORSGOLD SPONSOR

Supported by

DRDODepartment of Electronics &

Information TechnologyGovernment of India

Electronic IndustriesAssociation of India

Organised by

POST SHOW REPORT

30th and 31st July, 2015

Bangalore International Exhibition Centre, Bengaluru

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

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: info@elcina.com | URL: www.elcina.com

STRATEGIC ELECTRONICS SUMMIT 2015 Post Show Report

30th & 31st July, 2015, Bangalore International Exhibition Centre (BIEC), Bengaluru

______

The 6th Strategic Electronics Summit 2015 (SES 2015) – Defence & Aerospace, was

organised by ELCINA on 30th & 31st July, 2015 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 high technology 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

The last 5 editions of SES from 2010 to 2014 successfully Brought Industry,

Defence Establishment & 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. There were over 250 organisations participated as Exhibitors and / or

Delegates. All the activities like Conference, Exhibition & Technical Sessions witnessed

keen participation with over 400 delegates in the Conference and good footfalls of

business visitors.

This year Dr VK Saraswat Member Niti Aayog graced the occasion as the Chief Guest

and Dr. K. D. Nayak, DG - MED & CoS. & ECS, DRDO was the Guest of Honour on the

opening day with special addresses by Mr. Rahul Chaudhry, CEO, Tata Power SED and

Mr. Philip Jacob, Executive Director D&E, Bharat Electronics Ltd.

On Day 2, Guests of Honour Dr. Ajay Kumar, Additional Secretary, Department of

Electronics & IT, GOI and Mr. J Rama Krishna Rao, Additional Secretary, Ministry of

Defence, GOI inaugurated the Conference and spoke on the Policy and eco-system for

defence electronics. The conference also had Shri Kartikeya Misra, IAS, Director of

Industries, Industries Department, Govt. of Andhra Pradesh as a VIP Guest while the

Industry Address was delivered by Mr. M.V. Appa Rao, Chairman & MD, Centum

Electronics Ltd.

The earlier five editions of the Summit proved to be an excellent forum for sharing of

views with top policy makers and a Special Report on the Strategic Electronics Sector

prepared by ELCINA was released by Dr Saraswat.

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 Participating companies - 85

- 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 Participating companies - 135

- 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

5th Strategic Electronics Summit – 2014

- Date – 30th & 31st July, 2014

- Venue – Bangalore Int’l Exhibition

Centre, Bengaluru

- Number of Participating companies –

Over 150

- Number of Exhibitors – 35 - Number of buyers – 04

6th Strategic Electronics Summit – 2015

- Date – 30th & 31st July, 2015

- Venue – Bangalore Int’l Exhibition Centre,

Bengaluru

- Number of Participating companies – Over 250

- Number of Exhibitors – 48

A Summary of SES 2015

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 Conference : “Make In India– A Reality Check & the Way Forward”

Day -1

Opportunities & Challenges for Electronic Industry – Special Focus on

SME’s

Indian Defence Electronics Market Opportunities – Perspective of Large

Companies & MNCs

Technology Sessions :

Directorate of Indigenisation

Centre for Development of Telematics – (C-DOT)

Day -2

Reinventing the Policy Framework – Creating an Enabling Environment

“A world Class Electronics Manufacturing Cluster is ready to facilitate Make-in-India” – Special Presentation by Sri City (P) Ltd.

Indigenization – The Way to Self-Reliance

Technology Sessions :

Bharat Electronics Ltd. (BEL)

Exhibition to showcase opportunities for buyers and sellers

Special Technology/Business Promotion Sessions

Release of ELCINA Report - “A Study on Opportunities &

Challenges in Strategic Electronics in Aerospace & Defence

Sector with Focus on MSME’s”.

Conference on

Make in India – A Reality Check & the Way Forward

CONFERENCE PROGRAM Day–1 30th July 2015

0900- 0930 Hrs Arrival & Registration

Session – I Inaugural Session

0900 – 1100 Hrs

0915 Hrs Arrival of Guests & Welcome

0930 Hrs Lamp lighting

09:35 am Welcome Address - Mr. Subhash Goyal, President ELCINA

09:45 am Industry Address - Mr. Rahul Chaudhry, CEO, Tata Power SED

10:00 am Guest of Honour - Mr. Philip Jacob, Executive Director D&E, Bharat Electronics

Ltd.

10:15 am Guest of Honor - Dr. K. D. Nayak, DG - MED & CoS. & ECS , DRDO

10:30 am Address by Chief Guest – Dr. V K Saraswat, Member, NITI Aayog

10:45 am Release of ELCINA Report on Strategic Electronics

10:50 am Vote of Thanks – Mr. Vikram Desai, Vice President ELCINA & Presentation of

Mementos 11:00 am Inauguration of Exhibition & Visit of VIP Guests to Exhibition

Tea Break & Visit to the Exhibition(Jacaranda Hall) : 1100 – 1145 Hrs

Session – II Opportunities & Challenges for Electronic Industry – Special Focus on SME’s

1145 – 1315 HRS

Mr. N Ramachandran, Managing Director, MEL Systems (Session Moderator)

Maj Gen S Bhattacharya, ADG, EME (B), Directorate of Indigenisation -“Scope and

Oppurtunities for MSMEs in the Defence Industry”

Mr. Vipin Tyagi, Executive Director, Localisation of Telecommunication Systems – CDOT

Commander PK Bhattacharya, Officer on Special Duty, Defence Offsets Management Wing

(DOMW), MOD

Cmde Shishir Shrotriya, ADG, WESEE

Mr Parimal Kumar, Scientist ‘F’, DRDO – Transfer of Technology

Lunch Break : 1315 – 1400 Hrs

Session – III Indian Defence Electronics Market Opportunities – Perspective of Large

Companies & MNCs

1400 – 1530 HRS

Lt. Gen. (Retd.) AKS Chandele, PVSM, AVSM (Session Moderator)

AVM P K Srivastava, Larsen &Toubro

Mr. Deepak Talwar, Director Purchase, Thales India Pvt Ltd

Mr. Nikhil Mallavarapu-Director, Centum Electronics Ltd

Mr. David Keynan, Federation of Indo Israel Chamber of Commerce (FIICC) - "Indo Israeli

defense offset relations - a growing success"

Tea Break & Visit to Exhibition 1530 – 1600 Hrs

Special Technology Sessions:

I 1600 – 1645 Hrs Directorate of Indigenisation

II 1700 – 1745 Hrs Centre for Development of Telematics – (C-DOT)

Day – 2 31st July 2015

0930 – 1000 Hrs Arrival & Registration

Session – I Reinventing the Policy Framework – Creating an Enabling Environment

1000 – 1145 Hrs

Mr. Amrit Manwani, CMD, Sahasra Electronics Pvt Ltd.

Col (Retd.) K V Kuber, Indian Defence Veteran, Expert on Offsets & DPP

Mr. M. V. Appa Rao, Chairman & MD, Centum Electronics Ltd.

Shri Kartikeya Misra, IAS, Director of Industries, Industries Department, Govt. of Andhra

Pradesh

Guest of Honour - Mr. J Rama Krishna Rao, Additional Secretary, Ministry of Defence, GOI

Guest of Honour - Dr. Ajay Kumar, Additional Secretary, Department of Electronics & IT, GOI

Tea Break & Visit to the Exhibition(Jacaranda Hall) : 1145 – 1300 Hrs

Special Technology Session I :

I 1215 – 1300 Hrs Bharat Electronics (BEL)

Lunch Break : 1300 – 1400 Hrs

Special Presentation: 14:00 – 14:10 Hrs Cassia (Conference Hall)

“A world Class Electronics Manufacturing Cluster is ready to facilitate Make-in-

India” – Ms. Raghini Peter, Sr. Vice President – Business Development, Sri City (P)

Ltd.

Session – II Indigenization – The Way to Self-Reliance

1410 – 1530 Hrs

Dr. K Maheswara Reddy, Scientist H, Associate Director, DARE

Dr. Mahesh V, Chief Scientist CRL, Bharat Electronics Ltd

Mr. Y V Subbarao, Head, CBDG, ECIL

Dr. C Ranganayakulu, Scientist H, Aeronautical Development Authority (ADA)- “Indigenous

development of Tajas Line Replaceable Units (LRUs) and its challenges - Airworthiness

requirements”

Mr. Sanjeev Sehgal, Managing Director, Samriddhi Automations Pvt Ltd- Growing

Opportunities in Homeland Security

Dr. Vyas Raj, Head Strategic & Electronics for Defence Application, Accord Software &

Systems Pvt Ltd -“Indigenous GPS Receiver Technology and Solutions for Indian Defence and

Aerospace”

Tea Break

Closing of the Event

1700 Hrs onwards

List of Participating Companies EXHIBITORS/SPONSORS

515 Army Base Workshop

Accord Software & Systems

ADD Ind. Park

Aero Euro

Airborn, India

Amphenol

Andhra Electronics

Anritsu

APSIS Solutions

Arihant Electricals

Astra Microwave

Avalon Technologies

BEL

C-DOT

Centum Electronics

Coreel

Deepti Electronics

DeitY

Digital Circuits

Directorate of Indiginesation

DRDO

ECIL

EEMC

EFY Enterprises Pvt. Ltd.

Elcomponix

Electrosolve

ESSCI

Geosensors

GKAY

ITI Ltd

Kaynes Technology

Keetronics

Keysight Tech.

LDRA

MapuSoft Technologies (P) Ltd.

Mel System

Mymo Wireless

Qmax

RCI

Rohde & Schwarz

Saankhya Labs

Sahasra

Samriddhi Automation

SLN Technologies

SM Creative

Sree Vishnu

Sri City

Tata Power SED

TE Connectivity

Trident Techlabs

Videotronix

DELEGATES/SPONSORS

Asteria Aerospace Pvt Ltd

BE Analytic Solutions LLP

Bewo

Bikal UK Technology

British Deputy High Commission

Bydesign India Pvt Ltd

Captronic Systems Pvt Ltd

CRPF

DCX Cable Assemblies Pvt Ltd

Degree Controls, Inc.

Dixon Technologies (India) Pvt Ltd

Easterline - Souriau

Esko Die Cast

Finetuning

Hical

Indira Industries

Kirloskar

KPMG India

Kramski

Larsen & Toubro

LRDE

Manipal Technologies

Napino Auto

Ray-Q Interconnection Technologies India Pvt Ltd

RF Wave Technologies Pvt Ltd

Spectross

Stanesh Semiconductor

System Control

Vishay Components India Pvt Ltd

DARE

Desai Electronics

Industries Dept., Govt. of AP

Aeronautical Development Authority

WESEE

Thales India

FIICC

BEL

C-DOT

Centum Electronics

DeitY

DRDO

Sri City

Tata Power SED

Aarjay International

Accenture

Ace Micrometic

Advance Components & Instruments

Alcatel-Lucent India

Alstom

Ambtech

AMC Engineering

American Technical Ceramics

Amsis Consulting

Analog Semiconducters

Ananya Cabletech

Ananya Technologies

Anil Gears

Applied Realtech

Aristos Electronic

ARM Embedded Technologies

Arrina Education Services

Ascent Circuits

Astute Sattva Electronics

AT&S India

Axiscades Aerospace

BDO India LLP

Bhima Soft

Bosch

Cable Crafts

Caliban Software

Champion

Chokdi Designs

Chrystec Machine Tools

Comavia Systems

Comnet Publishers

Conet Technologies

Copebit Technologies

Cosel Asia Ltd.

CSA India

Defence Standardisation Cell

Deitel Technologies

Delco Electronics

Delta Power Solutions

Deutsch

Dexcel Electronics

E & E E

East India Technologies

Ekadantha Automation

Electromech India

ELIN Electronics

Elite Electronics

ELKAY Electromech

Ellsworth Adhesives

EMC-RF Technology

EMI Solutions

EMST Marketing

Enterprise Software

EOS Power

EPC World Media

EPT Global Logistics

ESSL

Esterline Avionics

FCI OEN

FTD Infocom

Geo Systems

Gowrishankar & Co.

HAL

Hanuman Automation

Hyva India Pvt. Ltd.

IACC

IBM India

IMRB

IN VECAS

Indian Airforce

Infosree Technologies

International Electronics &

Communication

IPCA

ITT Corporation India

J. J. Glastronics

Jabil

Josh Tech Services

K P Rao & Co.

Kemsys Technologies

Kilick Engineering

Kingsly Instumentation &

Communication

Kritikal Solutions

Magna Tech India

Magnum Technologies

Mahindra Telephonics

Mark Fleming

Mayflower Lanugage Services

Messe Munchen International

Micrologix Integrated Electronic

MOOG

Motorola

Nadi Electronic

NAGARJUNA ENG COLLEGE

Nav8 Pvt. Ltd.

Navika Electronics

Nettur Technical Trg.

Nicomatic India Electronics

Nispana

Nolato Silikonte

NSIC

Ok International

Orbit 9 Electronics

Padmavathi Securitech

Park Electrochemical Corp.

Pentagon Rugged Systems

Pentair Electronics

PME Power Solutions

Powertec Supplies

Printwires Solutions

PRO Innovative Technologies

PWC Pvt. Ltd.

RBP Technology

Reinshaw Metrology Systems

Relay Solutions

Religare

RMC Electronics

Romarsh Elcomponics Technologies

S R Electronics

Sanyu Rec Co. Ltd.

Saru Smelting

Schneider Electric

SDR Electric Pvt. Ltd.

Seerams Informatics

Segnius India

Sensata Technologies

SGS India Pvt. Ltd.

Shavo Technologies

Shobha Engineering

Shree Technologies

SIATI

Siddalingappa & Associates

Sienna ECAD Technologies

Sierra Software Design

SM Electronic Technologies

Spectra Innovations

Square Circle

ST Microelectronics

Static Systems

Steinmetz Technologies

Sulakshna Circuits

Sustainable Power Developer

Synthesis Winding Technologies

System Aids

T&V S

Talentedge

Tamura Elcomponics

Team Technology

Technocomm Instruments

Teknic Electromeconics

Tessolve Semiconductor

Test & Verification Solutions

Titan Timeproducts

Tomen Electronics

Total Strategic Solutions India

Trident Techlabs

TTI Electronics

TUV Rheinland

TUV SUD

Unicodes

Unicontrols

Unisem Electronics

Universal Automation

UTL Technologies Ltd.

V2i Global Services

V5 Semiconductors

Vectron

Velpa Tech

Venkatesh Electronics

Venus Technologies

Verdant Telemetry & Antenna

Versabyte Data System Pvt Ltd

Vizayle Steel Plant

Wittur Components

STATUS OF INDUSTRY AND OPPORTUNITIES

India is the biggest importer of defence equipment importing thrice as much as China

and Pakistan. Large scale modernisation of defence forces is on the anvil. The next

decade is likely to see an exponential growth in combat systems as well as non-platform

based defence strategic electronics programs, with the requirement for the 12th plan

(2012-2017) being pegged at over Rs.100,000 crores. This report is focussed on

production of electronics in A&D sector and hence also deals with the procurement

process and the scenario.

The production of strategic electronics in India has been growing steadily from Rs. 5700

crores in 2007-08 to Rs.9000 crores during 2010-11. As per projected growth rates and

industry estimates, electronics production in Defence Sector in India reached Rs.12,000

crores during 2012-13 and exceeded Rs. 13,800 Crores during 2013-14 recording a

growth of over 15%. This growth is fuelled by the expanding budgetary allocation for

Defence Sector which jumped from Rs. 164,415 crores in 2011-2012 to Rs. 193,407

crores in 2012-13 and further allocation has been increased by 5% to Rs. 2,03,672 crore

for 2013-14 with provision for further funding depending on actual requirements.

Present year budget for Defence Sector is INR 2.46, 727 Crs.

Government initiatives such as Defence Offsets and Defence Procurement Policy (DPP)

have opened a host of opportunities which the domestic industry must seize. This brings

opportunity for all industry players who are keen to gain from and also contribute to the

growth of the Strategic Electronics industry in India and enable greater domestic value

addition and indigenization. Offsets have the flexibility in fostering partnerships with

foreign majors. Aim is to actively involve indigenous industry in this sector, enable

greater value addition and indigenization, and reduce the country’s heavy dependence

on imports.

Post-independence, Defence Industry in India, was classified under the strategic sector

and placed under the reserved list and we created the large pool of 09 DPSUs, 39 OFs

and 50 plus DRDO labs. The sector was opened for the first time to private sector in

2001, when the Defence Sector was removed from the Reserved category and placed in

the Licenced Category with 100 % private participation and a restrictive 26% FDI cap.

The FDI policy has however now further liberalised FDI cap to 49% in 2014.

A Technology Perspective & Capability Roadmap (TPCR) based on the LTIPP has been

issued to the industry to help plan its R&D and infrastructure creation. Based on the

approved Long Term Integrated Perspective Plan (LTIPP), equipment/ weapon systems/

platforms required in 10 years and further down the line will by and large be developed/

integrated/ made within the country.

Provisions have been made in the DPP 2013 as well as DPM 2009 to support participation

of MSME in the procurement process, particularly multiplier norms which provides a

steady business to them.

‘Report of Working Group on Defence Equipment’1, estimates Defence Electronics of the

size of INR 25700 Crores. This amounts to about 25% of the capital expenditure

projections of the working group by 2016-17. Thus, looking form the Offset perspective,

the opportunity for Indian Electronics manufacturing is huge. At the same time,

government agencies will have to create enough interventions to make this happen.

Through the SES 2015 and a Report on the sector released during SES, ELCINA took

stock of the known requirements of the defence platforms under procurement for the

Armed Forces and estimated the future requirement based on the Technology

Perspective and Capability Roadmap (TPCR-April 2013) developed by Headquarters-

Integrated Defence Staff, Ministry of Defence and identify contribution made by strategic

electronics in these procurements.

On the other side, ELCINA planned to identify the existing indigenous manufacturing

capability and supporting eco-system in the Strategic Electronics sector including Micro

Small and Medium Enterprises (MSMEs), including Defence Public Sector Units (DPSUs),

Ordnance Factories (OFs), Private Sector companies to understand possibilities to bridge

the gap between existing capability and desired requirement

Homeland Security in India

In 2014-15, the cumulative annual budget allocation for all States and Union Territories

under the specific expenditure head of ‘Police’ has reached to over INR 50,000 Crores

approximately, still amounts to a meager 6.7 per cent of the total budgeted expenditure

of all States and Union Territories in 2009-10 . Of this amount, more than 80 percent is

spent on salary 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 Home Affairs released INR 1,230 crores as central funds for the modernization of

India’s police forces in 2009-10 . Also, in order to enhance the Homeland Security of the

country through a specific focus on certain identified cities, the Ministry of Home Affairs

allocated over INR 450 crores for city surveillance projects. The Indian homeland

security budget reached US$10.1 bn in 2012and will surpass US$ 17.03 bn by 2016

providing a huge opportunity to domestic as well as foreign vendors.

Electronic 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 Vessel Detection, Identification & Classification system, Perimetric control

including Boom Barrier, Bollards, Turnstiles, Door, Frame Metal Detectors, Scanners :

Hand-held, Body Scanners, 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)

Establishment of “Centre of excellence on internal security” (CEIS) at IIT-Bombay by

Indian Government in association with private industry is a step forward. CEIS with its

state of the art facilities is expected to function as a resource centre that will pursue

research and development (R&D) into cost effective electronic equipment that can then

be mass produced by Indian industry for India's security agencies.

Setting up a Multi-Agency Centre (MAC)

Ministry of Home Affairs has proposed to create a Multi-Agency Centre (MAC) that will

work at both the Centre and State level to compile and disperse intelligence to the police

and paramilitary forces. India is expected to spend `4,500 crore on domestic security

before 2016.

National Counterterrorism Centre (NCTC)

Government has also set up a National Counterterrorism Centre (NCTC) which would be

the nodal point for handling all aspects related to terrorism In India. There is

approximately `324 crore allocated for this

endeavor. A further amount of Rs. 10.50 crore

has been released to establish seven counter

insurgency and anti-terrorism schools.

Homeland Security is increasingly perceived as

being critical to the overall security of the

country. Indian security market is growing at

35% against 7% globally.

Source: http://www.indiastrategic.in

India’s share in global expenditure in the sector is also expected to rise to 6 per cent by

2020 from 3.6%. And this is a positive trend for the manufacturers/suppliers of

Homeland security equipment.

Though no comprehensive study has been done to determine the size of the Indian

homeland security market, estimates peg the market to be between $20 and 50 billion)

over the next decade with about $10 billion in the next three years alone. Over half of

the market growth is expected to come from a demand in new equipment – especially

for electronic surveillance, mine detection and early warning systems. In addition, an

estimated 10-20 per cent of additional funds are expected to be spent on the

strengthening of internal security network.

SUMMARY OF PROCEEDINGS

The 6th edition of Strategic Electronic Summit was inaugurated by Dr. V K Saraswat,

Member, NITI Aayog on 30th & 31st July, 2015 at Bangalore International Exhibition

Centre (BIEC), Bengaluru.

Day 1 – 30th July, 2015 - Inaugural Session

Dr. V. K. Saraswat, Member, NITI Aayog:

Dr. Saraswat, the Chief Guest, spoke of the great potential of the Defence Sector for

growing the Indian Manufacturing sector and the potential for encouraging domestic

value addition and R&D. He emphasized the role played by DRDO and how domestic

manufacturers should avail the benefits of the Indian technology and IP created by

DRDO.

He commended the new National Policy on Electronics and how it was supporting the

growth of ESDM Sector in India. Dr Saraswat spoke passionately about the need for local

value addition which was possible only if domestic electronics industry invested in R&D

and this required support from Government and transfer of technology to MSME’s and

domestic companies investing in manufacturing in India.

Dr. K. D. Nayak, DG - MED & CoS. & ECS , DRDO :

Dr. Nayak was the Guest of Honour for the event. Dr Nayak shared information about

DRDO and its achievements in designing and manufacturing strategic items worth INR

1,17,000 thousand Crores. He appealed to the industry to focus on “Design in India”

rather than producing only with foreign IPR and claiming it to be “Make in India”.

He quoted an example of iPhone wherein 55% of the revenue goes to the company as a

cost of IPR and the production cost which is only 10% reaches to the manufacturer. He

accepted the responsibility of DRDO as a trigger to “Design in India” and appeals the

private industry to follow and sustain with the research initiatives. He gave the concept

of “Create in India” by “Designing in India” along with “Make in India” and finally earning

the IPR share of the business.

Mr. Rahul Chaudhry, CEO, Tata Power SED

Mr. Chaudhary delivered the Industry Address and cautioned the industry and policy

makers about the perception and effectiveness of “Make in India”. He mentioned that

rather than establishing merely assembly lines/units and putting a tag of Made in India

with a value addition of a mere 30%, the industry needs to think and do beyond this. He

mentioned that Strategic Independence and Sustainable and Self Reliance may be

achieved only through team work by PSU’s, DPSU’s, Large private Enterprises along

with the SME’s. He also cautioned about the high life cycle cost of defense equipment

which gets paid to foreign vendors and advised that Team India should take the

responsibility to manage it indigenously and establish capabilities for Maintenance &

Repair.

Mr. Philip Jacob, Executive Director D&E, Bharat Electronics Ltd.

Mr. Jacob informed the participants that BEL has been fulfilling the vision of “Make in

India” since inception and this is evident from its revenue which is 80% from local sales.

He also mentioned that BEL is in continuous touch with private players and

manufacturing many items with the help of indigenous ToT (Transfer of Technology). Mr.

Jacob also highlighted the importance of R&D and informed that BEL consistently invests

around 8% of its turnover in research and advised the private industry to maintain this

ratio. He also discussed that BEL purchases from MSME’s have grown to 8% during

2014-15 from 4.7% in 2013-14 and mentioned that the share of indigenous players

would certainly increase in future.

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

Ltd.:

Delivering the Welcome Address during the Inaugural Session, Mr. Goyal elucidated the

objectives of Strategic Electronics Summit and its avowed mission to strengthen

domestic manufacturing, Value Addition and involve the MSME sector in the value chain.

He spoke about the National Policy for Electronics and the role of Clusters in providing

an efficient eco-system for cost effective manufacturing.

Mr. Vikram Desai, Vice President ELCINA:

Mr. Desai gave the vote of thanks.

Session II – Opportunities & Challenges for Electronic Industry

Special Focus on SME’s

Mr. N Ramachandran, Managing Director, MEL Systems chaired the 2nd session.

Opening the discussion, Mr Ramachandran shared his experience and policy issues which

needed to be reviewed for successful induction of MSME’s in the Defence Electronics

value chain. He stressed the need for genuine efforts by Ministry of Defence, DPSU’s as

well as Large Private Players to support MSME’s who lacked resources and the capacity

to sustain research and development efforts and investments which most Defence

Procurement programs required.

He spoke extensively about issues such as NCNC, losses due to unexpected Cancellation

of Tenders after sample development, inordinate delays in releasing of orders, low

volumes and uncertainty about repeat orders resulting in very high initial investment

burden.

Major General S Bhattacharya, ADG, EME (B), Directorate of Indigenisation

Major General Bhattacharya explained the opportunity available with the Corps of EME

which was maintaining and upgrading a vast variety of defence equipment. He explained

the process and way by which domestic companies; specially SME’s could play a major

role in this business opportunity and also save valuable foreign exchange for the

country. In most cases Defence forces had to pay exorbitant prices for maintenance and

spares and SME’s with their flexible structure and capability to adapt to needs of

developing spares in low volumes, could play a major role.

Mr. Vipin Tyagi, Executive Director – CDOT:

Mr. Tyagi gave a presentation about the new products and technologies that C-DOT was

developing to strengthen and indigenize Communications for the Defence Sector.

Communications he said was a critical link and component of Strategic Electronics

because robust and secure communications was the backbone for successful Defence

operations in hostile environments.

Mr. Tyagi presented details of Global Landline Access Technologies for Broadband, the

technologies Driving High Speed Broadband through landlines as well as wireless means.

Mr. Tyagi also shared details of the trends in Broad connectivity, the drivers for growing

Mobile Broadband Traffic, need for high security of the networks Telecom technologies

for Indian Networks and role of communications in the Vision of Digital India.

Commander PK Bhattacharya, Officer on Special Duty, Defence Offsets

Management Wing (DOMW), MOD :-

Cdr Bhattacharya gave a detailed presentation about Defence Offsets and the process by

which these were being administered by Defence Offsets Management Wing.

He shared details of the Scope of Offsets, Offset Policy highlights, method for

determination of value addition and the pre and post contractual stages of the Offset

process and its successful implementation.

Cmde Shishir Shrotriya, ADG, WESEE :-

Representing the Naval sector in the Summit, Cmde Shrotriya gave a presentation on

his views about adaptation and management of technology. His presentation included

details on Introduction to Technology Management, Strategic Technology Assessment,

success factors for Make in India in the Strategic Electronics Sector and challenges faced

in this process.

Session III – Indian Defence Electronics Market Opportunities Perspective of Large Companies & MNCs

Lt. Gen. (Retd.) AKS Chandele, PVSM, AVSM coordinated the 3rd Session.

Gen Chandele introduced the speakers and shared details of the Long Term Integrated

Perspective Plan (LTIPP) and the Technology Perspective & Capability Roadmap (TPCR)

prepared on the basis of the LTIPP. Large players needed to plan their future plans for

developing Defence Platforms with a vision for the next decade and beyond. The TOCR

and LTIPP were meant to help industry to plan its R&D and infrastructure creation. Based

on the approved LTIPP, equipment/ weapon systems/ platforms required coming years

are expected to be developed, integrated and made within the country. While Sub-

systems, equipment and components may be imported, ensuring their availability at all

times but design and integration of the platform/ TPCR system should be undertaken

within the country.

DRDO has issued a list of critical technologies to be developed or to be acquired. There

may be few Indian companies that could potentially be able to pick up few of these, Gen

Chandele informed. These opportunities would come to Indian companies in the shape of

offsets and DRDO had also come out with guidelines for ToT to Indian industry which

would be available for the industry at a small fee.

AVM P K Srivastava, Larsen & Toubro :-

Mr. Srivastava shared his views about the role and perception gaps between PSU’s and

private players and mentioned that while the order books of PSU’s were full for many

years, private players face numerous challenges and pressures with respect to sales,

EBIT, Net Working Capital etc. This gap and insecurities of private players should be

addressed in the policy framework so that full support of the industry may be attained.

He also advised that India must learn from other countries and the way they are

achieving self-reliance with public-private partnership. He highlighted the immense

opportunities emerging out of increased defence spending by the government.

The key subjects presented by AVM Srivastava included Market Segmentation as the key

to further growth of defence electronics within the country, role of defense electronics

industry to fulfill the vision of MAKE IN INDIA, major programs driving growth of defence

electronics sector, Strengths in Strategic electronics of Private Sector, Gap Analysis,

Government Policy and others.

Mr. Deepak Talwar, Director Purchase, Thales India Pvt Ltd

Mr. Talwar pointed out the deficiency of qualified human resource in the manufacturing

sector and also in the research and design area. He largely discussed about the need of

incentivizing these sectors for attracting qualified and talented manpower. He also

focused on the alarming rate of attrition in the industry and appealed for a solution for

the same. Mr. Talwar also elaborated on the key role of good materials management

system and supply chain in enabling expansion of Strategic Electronics manufacturing

specially as this sector depended on a global supply chain with long gestation periods.

Mr. Nikhil Mallavarapu-Director, Centum Electronics Ltd

Mr. Nikhil mentioned the fact that whole world is now recognizing the potential in Indian

Market and also in its Manufacturing Sector. He also discussed various Policy initiatives

by present Indian regime to encourage manufacturing of strategic electronic products in

India like increasing FDI limit etc. Mr. Nikhil drew attention to the immense opportunities

for private manufacturers emerging out of Defence Offset policy and Indigenization

initiatives of upcoming Defence Procurement Policy. He emphasized on the essentiality of

team spirit among DPSU’s and private manufacturers rather than considering the latter

one as only a vendor. He also mentioned that the private players have also emerged as a

potential support for DRDO in the designing and manufacturing of Akash Missile and are

capable of supporting such large and critical upcoming projects.

Technology Sessions: Day – 1

Session – II - Directorate of

Indigenization, Ministry of Defence

Col. Ashutosh Verma

Centre for Development of Telematics – (C-

DOT)

Day 2 – 31st July, 2015 - ‘The Road to Indigenization’

Guest of Honour - Dr. Ajay Kumar, Additional Secretary, Department of

Electronics & IT, GOI

Guest of Honour, Dr Ajay Kumar discussed the challenges which manufacturers are

facing in India and appreciated the courage displayed by the Manufacturers’ fraternity

and positive spirit in which they are carrying their businesses and growing consistently.

He also informed about the success of various initiatives of DeitY like MSIPS, EDF, and

GITA etc. to support electronics manufacturing in India. Dr. Kumar briefed about the

added advantages in the new MSIPS scheme and the vehement response it is getting

from the Industry. He put great importance on the need for “Design in India” to

complement the success of “Make in India” through setting up Technology Incubators

across the country.

Guest of Honour - Mr. J Rama Krishna Rao, Additional Secretary, Ministry of Defence, GOI

Mr. Rao appreciated the endeavors of DeitY in strategic electronics and setting up

incubators for Designs. He also emphasised the need for growth of strategic electronic

industry, which should be targeted at minimum 25% annually to meet the requirements

of the defence forces and reduce dependence on imports. He mentioned that there is

large scope for private players and also for DPSU’s in the Defense Procurement Policy

which is largely unutilized and this demand supply gap is being serviced by global

suppliers. He advised that it’s the time to rewrite the rules of the game and increase the

overall growth of the Strategic Electronic Industry by 25-30%.

Mr. Rao also recommended the establishment of a world class Test Lab for Defence

Electronics with special facilities and affordable costs for MSME’s who are presently

constrained by lack of such facilities.

Mr. Amrit Manwani, CMD, Sahasra Electronics Pvt Ltd.

Mr. Manwani appreciated the endeavors of DeitY and specially of Dr. Ajay Kumar in

formulating and implementing NPE-2012. Dr Kumar’s efforts over last four years and the

time and energy he had put in for timely implementation of all schemes under NPE-2012

like MSIPS, EDF, EMC, etc. has yielded rich dividends for the country and encouraged

the Electronics Manufacturing sector tremendously. Mr. Manwani mentioned that results

of NPE-2012 are now clearly evident and also appreciated the new revised MSIPS Policy

which would further accelerate the growth of ESDM sector by extending the time period

of the scheme by another 5 years and adding 15 more verticals along with the 27 earlier

ones. He advised and requested the Government to address the procedural issues which

are acting as Speed resistors in the growth of ESDM sector.

Shri Kartikeya Misra, IAS, Director of Industries, Industries Department, Govt.

of Andhra Pradesh

Mr. Kartikeya captivated the industry delegates by presenting figures on the scope for

private players in Defense and Aerospace Market. He highlighted the huge opportunity

for private parties presented by Defence offset obligations and defence expenditure of

45 bn USD over next 12 years. Mr. Kartikeya mentioned that while Indian private

players are rapidly climbing the aerospace industry value chain including Design,

Engineering and IT Solutions, Simulations, Testing services etc., the substantial Capital

equipment requirement is still being met by imports.

Mr. Kartikeya also appealed to the entrepreneurs present to invest in Andhra Pradesh

and presented a set of Policy and Procedural initiatives taken by AP government to

create a Defence and Aerospace manufacturing hub in the state. He also informed about

the AP Government’s initiatives to offer dedicated land infrastructure for this industry

and promised to offer an international experience to the intending investors.

Mr. M. V. Appa Rao, Chairman & MD, Centum Electronics Ltd.

Mr. Apparao discussed the importance of an enabling environment and framing of

requisite policy framework. He appreciated the endeavours of Department of Electronics

and IT, Govt of India and also congratulated Dr. Ajay Kumar for his recent elevation to

the rank of Additional Secretary. One of his key suggestions was to incentivize “Import

Substitution” exactly on the lines of “export incentives” under MEIS. Mr. Rao stressed on

the need for strong Research base for the development of Indian ESDM sector and

advised that government and private players should join hands for this mission. He

stated that private companies should not shy away from R&D spending and put great

stress for the government support in R&D which was a high risk proposition for industry.

He focused on the importance of ownership of intellectual property by developing or/and

acquiring it and exploiting it for manufacturing hi-tech products and exports.

Col (Retd.) K V Kuber, Indian Defence Veteran, Expert on Offsets & DPP

Mr. Kuber presented his views on Indiginization and the criticality of time as India as a

country had to progress at great speed and make up for lost time bt enhancing its

manufacturing capability and value addition in Strategic Electronics Sector. He advised

that now is the time for redefining the policy and perceptions for the overall growth of

strategic sector. He informed that now government intends to and is committed to seek

and provide support to private players and consider them as potential stakeholders for

empowering our Defence Forces. He mentioned that private players/manufacturers are

not mere vendors of PSU’s but have a potential to become equal partners in the mission

of growth and self-reliance.

Session – II Indigenization – The Way to Self-Reliance

Dr. K Maheswara Reddy, Scientist H, Associate Director, DARE

Dr Reddy chaired the session and gave a perspective of DRDO towards R&D and its key

role in ensuring security of Defence equipment. He highlighted the role of the high

security nature of Strategic Electronics equipment which was prone to Software related

bugs and cyber-attacks.

Dr. Mahesh V, Chief Scientist CRL, Bharat Electronics Ltd

Dr. Mahesh spoke about the role of Indigenization for achieving self-reliance and how

Bharat Electronics Ltd has pursued that objective since inception through intense

indigenous research. He elaborated on the initiatives of Defence Ministry for enhancing

Indigenization and how this was critical in exploiting the major opportunities offered by

the Defence Electronics sector.

Dr Mahesh also apprised the delegates about key Technology requirements of Indian

Armed forces and BEL’s roadmap for indigenization.

Mr. Y V Subba Rao, Head, CBDG, ECIL :- spoke only about ECIL

Mr. Subba Rao made a presentation about the role ECIL had played over the years to

achieve Self Reliance and Indigenization of numerous super critical equipments used in

Atomic Energy and Nuclear Reactors.

ECIL had also participated on behalf of the country in International Mega Science

Projects and contributed to the Development and execution of Defence and Aerospace

projects, Homeland Security, Instrumentation and also in Telecom and e-Governance.

Dr. C Ranganayakulu, Scientist H, Aeronautical Development Authority (ADA)-

Dr. Ranganayakulu made a presentation on “Indigenous development of Tejas Line

Replaceable Units (LRUs) and its challenges - Airworthiness requirements”. This he

informed was a super critical and important project for Indian Air Force and Defence

Ministry as it was meant to establish the capability of DRDO and India as a nation to

develop aircrafts with domestic technology and research.

His presentation included details of the Light Combat Aircraft “Tejas”, its thrust on

Indigenous Development and significant participation by Private Industries.

Dr. Ranganayakulu explained in detail about the scope of Work (SOW) in developing

Tejas LRUs, challenges in indigenization of General System and Avionics LRU’s and the

success achieved in Indigenization of Mechanical LRUs for the LCA. He also apprised

delegates about the available Test Facilities, Test and Integration Facilities and the

Airworthiness Aspects as well as Qualification Tests required for the LRU’s.

Mr. Sanjeev Sehgal, Managing Director, Samriddhi Automations Pvt Ltd &

President, SPGI- Growing Opportunities in Homeland Security

Mr. Sehgal spoke about the vast opportunities and rapid growth of market opportunities

in the Homeland Security sector. He informed that the growth of CCTV Cameras and

Access Control systems itself was in excess of 35% per annum and this sector required

urgent infusion of investments and R&D to meet the domestic requirements.

Dr. Vyas Raj, Head Strategic & Electronics for Defence Application, Accord

Software & Systems Pvt Ltd –

Dr. Vyas Raj made a detailed presentation on “Indigenous GPS Receiver Technology and

Solutions for Indian Defence and Aerospace”

Technology Sessions: Day – 2

Session – I – Bharat Electronics Limited

(BEL)

SNAPSHOTS OF THE EVENT