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India Electronics Industry Report - 2016

India Electronics Industry Report - 2016

This report profiles India’s electronics industry, discussing market trends through 2015 and outlook for 2016 and beyond. The report also highlights leading players in the sector including Bharat Electronics Ltd, D-Link India Ltd and Paper Ltd and Sterlite Technologies Ltd.

Over the last few years, the Indian electronics industry saw a period of high growth with rapid surge in domestic consumption. The country has become one of the world’s largest markets for mobile phones, computer hardware and other consumer appliances in the last five years. However, around 65% of the country’s market demand was met through imports. The government is trying to reduce this high import dependency in the sector by focusing on production of value-added electronic products domestically. It has launched various policies and schemes in recent years including National Policy on Electronics (NPE-2012), Electronic Manufacturing Cluster (EMC) Scheme, Modified Special Incentive Package Scheme (M-SIPS) and the recently launched ‘Make in India’ campaign to stimulate electronics manufacturing.

Electronics was one of the sectors which were not much affected by the country’s industrial slowdown during FY13-14 as far as demand is concerned. The credit goes to the consumer electronics segment which has recorded double digit growth during this period and has compensated for the decline witnessed in other segments. Flat panel display TV, smartphones and tablets are leading the way for the consumer electronics segment. But majority of the demand for these products are being met through imports which is straining the country’s trade balance. Global players dominate the Indian electronics market, while domestic companies have not been able to reap the benefits of the huge demand growth.

Going forward, we expect further growth and development in the Indian electronics manufacturing sector and a reduction in excessive dependence on imports. The demand, however, is not expected to fall anytime soon. The ever growing love of Indian consumers for devices like smartphones, tablets and LED TVs and their rising incomes bode well for this sector.

Key Points:

 Indian total electronic hardware production grew at a CAGR of 14% during the last seven years. Around 20% of the total production was exported to other countries.

 The largest contribution to the electronics production in FY15 came from consumer electronics segment, accounting for 29% of the total. It was followed by electronic components with 21%. Together, these two segments accounted for around half of the industry’s entire production turnover. 

Majority of domestic demand for electronic products are being met through imports which is straining the country’s trade balance. Electronic imports grew at a CAGR of 11% during 2007-15. As a result, electronics has emerged as one of the largest trade deficit creating sectors after oil and gas.

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Consumer electronics
2.2.1 Color TV
2.2.2. Set Top Boxes (STB)
2.2.3 Mobile phones
2.2.4 Tablets
2.3 IT hardware and peripherals
2.4 Communication and broadcasting equipment
2.5 Electronic components
2.6 Strategic and industrial electronics
2.7 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Bharat Electronics Ltd. (BEL)
3.1.2 D-Link India Ltd. (D-Link)
3.1.3 Sterlite Technologies Ltd. (STL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts
Table 1: Key objectives of the NPE
Table 2: Main features of EMC Cluster scheme
Table 3: Main features of M-SIPS
Table 4: Make in India highlights
Table 5: Key financial ratios of leading players (FY15)
Table 6: Latest quarterly results of the leading players (FY16)

Chart 1: Size of Indian electronics market and forecast
Chart 2: India's share in World electronic equipment production
Chart 3: Share of different segments in World electronics production
Chart 4: Production turnover in Indian electronics industry
Chart 5: Exports turnover in Indian electronics industry
Chart 6: Breakup of electronic hardware production by segments
Chart 7: Breakup of electronic exports by segments
Chart 8: Contribution of different segments to total demand
Chart 9: Demand supply gap in different segments of electronics industry
Chart 10: Cumulative FDI in electronics sector
Chart 11: Changing demographics of India
Chart 12: Quarterly GDP growth rate-India
Chart 13: Average monthly USD to INR exchange rate
Chart 14: Inflation-India
Chart 15: Repo rate
Chart 16: Consumer electronics production by value
Chart 17: Annual sale of flat panel display TV units in India
Chart 18: LED TV market share
Chart 19: Share in the overall mobile phone market
Chart 20: Share in the smartphone market
Chart 21: Number of tablets sold
Chart 22: Tablet market share by unit sales
Chart 23: Computer hardware production by value
Chart 24: Breakup of computer hardware market by product category
Chart 25: Number of PC units sold
Chart 26: Personal computer market share by unit sales
Chart 27: Communication and broadcasting equipment production by value
Chart 28: Communication and broadcasting equipment exports by value
Chart 29: Mobile cellular subscribers in India
Chart 30: Telecom equipment market size forecast
Chart 31: Electronic components production by value
Chart 32: Electronic components exports by value
Chart 33: Distribution of electronic components market by segment
Chart 34: Demand for electronic components by sectors
Chart 35: Strategic electronics production by value
Chart 36: Industrial electronics production by value
Chart 37: Imports in the electronic goods sector
Chart 38: Trade deficit in the electronic goods sector
Chart 39: Breakup of annual revenue by segments
Chart 40: Total revenue of BEL
Chart 41: Profit margin of BEL
Chart 42: Shareholding of D-Link
Chart 43: Total revenue of D-Link
Chart 44: Profit margin of D-Link
Chart 45: Segment wise revenue breakup of STL
Chart 46: Total revenue of STL
Chart 47: Profit margin of STL

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