Indian Electronics Manufacturing: Where are the Start-Up Opportunities?

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UK and India based consultancy, Plan B Manufacturing Ltd believes that India offers tremendous opportunities in Electronics Manufacturing, and Plan B team members have prepared a free report -- "Indian Electronics Sector Opportunities for Beginners" -- with the aim of alerting entrepreneurs and corporate strategists to the opportunities in the field.

Plan B Manufacturing, a UK/India based manufacturing consultancy with a strong India practice, has made available a report entitled "Indian Electronics Sector Opportunities for Beginners", aimed at bringing entrepreneurs and corporate strategists up-to-speed on the business opportunities available in the rapidly growing Indian Electronics manufacturing sector. This can be downloaded free -- without registration -- from their website, http://www.planbmanufacturing.com/Electronics.htm

"Over the next ten years, the demand for Electronics in India is expected to be huge," says Radha Mocherla, a Director of Plan B. The figure most widely quoted is that estimated by Frost & Sullivan and the Indian Semiconductor Association, who put the demand at around $360bn in 2015. "If this happens, then it is likely to be bigger than the IT services, BPO and Automotive sectors put together. It is an amazing opportunity for a new set of entrepreneurs to make their mark"

"To see who will succeed in creating new businesses in Electronics, you can forget the established players in the Indian industrial scene. Even those who have made their money from relatively high-tech offerings are now too busy chasing opportunities in low-tech sectors such as retailing. Bharti -- the cellular operator that now has a JV with Walmart -- is one example. It doesn't help that Electronics in general is seen as a highly volatile sector requiring lots of expenditure on manufacturing facilities and R&D."

Dr Sree Kamineni, a former McKinsey consultant and Plan B's Director of Corporate Development & Restructuring services, believes that that this has led early entrepreneurs to set up design services companies first, mimicking the players in IT services and KPO. "Design services are important to develop, but they won't on their own stimulate the creation of the manufacturing sector, without intervention. This needs a concerted effort at the national level as well as visionary entrepreneurs to take the inevitable risks."

"Fortunately, Electronics is a vast field and there is a wide variation in capital and knowledge intensity, depending on where you look," he says. "Our report looks at the sector through entrepreneurial eyes. Entrepreneurs like to work with minimum upfront capital, but are prepared to build organizational skills over a period of time. So we asked ourselves, if we were to start a business in this sector tomorrow, what would it be? Where are the immediate low-capital opportunities? What are the long-term opportunities? And we came up with a generic strategy for entry with the aim of stimulating discussion and ideas"

"We also tried to put some perspective on a couple of commonly held beliefs," says Radha Mocherla. "One of them is that China is so far ahead that it would be difficult to catch up with it. China may have the volume manufacturing but the technology is imported and the domestic companies have not had a hand in the creation of it. What's to stop all this the manufacturing moving elsewhere? Given India's well-regarded technical capabilities, local companies stand a good chance of becoming innovative global players -- but they must start now."

Download a copy of the report, Indian Electronics Sector opportunities for Beginners -- free and without registration -- from http://www.planbmanufacturing.com/Electronics.htm

About Plan B: Plan B Manufacturing is a unique organization consisting of board level executives from leading companies, blue-chip consultants and experienced entrepreneurs focussed on advising manufacturing companies around the world on growth and survival options.

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