BPL INDUSTRY PROFILE

INDUSTRY PROFILE

The worldwide electrical and electronic industry is the most flourishing and extremely diversified sector consisting of manufacturers, suppliers, dealers, retailers, Electrical engineers, electricians, electronic equipment manufacturers and trade unions. This sector has been growing at a rapid pace with the invention of innovative technologies and an ever increasing customer inclination.

Key segments of electrical and electronic industry:

The global electrical and electronics sector is highly fragmented comprising of various auxiliary sectors namely:

Electronic components

Computer and office equipment

Telecommunications

Consumer appliances

Industrial electronics.

Major production and export centers

The world wide electrical and electronics industry is experiencing phenomenal and remarkable changes these days. The worldwide electronics industry is distinguished by fast technological advances and has grown rapidly than most other industries over the past thirty years.

Asia pacific region, Japan, Korea, china, Taiwan, India and Singapore are the principal manufacturing hubs for electrical and electronics product.

In USA, New York, Atlanta, Colorado, Detroit, Florida, New England, Santiago, San Francisco, and Texas are the major industrial hubs of electronic industry.

Presently, the electronic products manufacturing is expanding on an unprecedented scale in Asian region and deflating in the America and Europe. In the year 2002, Asia occupied 41% of total electronics market share which has now risen to 49% in 2009.

Factors governing the growth of this industry

Rising and continuous investments in research and development

Increased foreign investments

Extended support to several global industries namely medical, telecommunications, industrial and automotive sectors

Rising income and living standards

Asia pacific region is emerging as the most spinning place for the consumers electronics industries as the market remains unreached

Rapid pace of innovation in electronics technology is resulting in a consistent demand

Indian overview:

The electronic industry in India constitutes just 0.7% of the global electronic industry. Hence it is miniscule by international comparison. However the demand in Indian market is growing rapidly and investments are flowing into augment manufacturing capacity. India however remains a major importer of electronic materials, components and finished equipment amounting to over US$12 billion in 2005.

The electronic industry in India took off around 1965 with an orientation towards space and defense technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistor radios, black and white TV, calculator and other audio products color televisions soon followed

In 1982-a significant year in the history of television in India – The government allowed thousands of colors TV sets to be imported into country to coincide with the broadcast of Asian games in New Delhi.

1985 saw the advent of computers and telephone exchanges, which were succeeded by digital exchanges in 1988. The period between 1984 and 1990 was the golden period for electronics during which the industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by Gulf War which was followed by political and economical uncertainties within the country. Pressure on the electronics industry remained though growth and developments have continued with digitalization in all sectors.

After the software boom in mid 1990s India’s focus shifted to software. While, the hardware sector was treated with indifference by successive government. Moreover the steep fall in custom tariffs made the hardware sector suddenly vulnerable to international competition.

The output of the electronic hardware industry in India is worth $ 11.6 billion at present.

India is also an exporter of a vast range of electronics components and products for the following segments-

Display technologies

Entertainment electronics

Optical storage device

Passive components

Electromechanical components

Telecom equipment

Transmission & signalling equipment

Semiconductor designing

Electronic manufacturing Service (EMS)

After holding up well in 2001 whilst most other countries experienced a serious downturn, electronics output increased by 15%, 17%, 7.8%, 7.4%, and 22.4% in 2002, 2003, 2004, 2005, and 2006, respectively. Growth can be observed. More importantly the country is setting itself for a period of rapid growth driven by a large, fast growing domestic market, significant foreign investment and an improving regulatory environment.