Indian Economy: News and Discussion

[Azaad]

I recently bought a 9V battery from Eveready, and surprise, it was made in China. It was made there and imported to their Kolkata office. Same goes for most things in my household, but most of the "Made in China" things are surprisingly smaller items which can be easily made here. The bigger items like TV's, phones, fans, refrigerators,etc are all made in India. I'm not sure how much there smaller items like toys and general electronics account for the trade deficit, but it certainly is an easy leak for the government to fix.

But the government is too far sighted and only goes for bigger things like semiconductors and display fabrications. I'm not saying we shouldn't go for those, but we have to cover everything, large and small. Baning those fly-by night kit assemblers of EV scooters and these small electronics importers is the only way to stop them, nobody is going to build them here when importing is cheaper, no matter the incentives.

This has more to do with our rentier mentality or typically bania mentality which prioritises trading over being a technocrat . Unarguably this is a trait which affects everyone in the industry from the top to the bottom unequivocally & I include the top biz houses in it.

The usual excuse parroted is mfg in India is a huge hassle catering to the demands of various government departments & then there's the labour too. Truth be told this is a genuine grouse & pain point

This is where the GoI can intervene by incentivising production here of these "smaller " industrial / consumer items or knick knacks by penalising trade thru additional customs & imports duty & offering sops vide exemption from GST or a preferential tariff on such items.

The GoI is on the right path by tackling the biggies before they get into the smaller stuff.

 

[Azaad]

Let's speak about AC first
Pls do a Google search and find out the market share of godrej in our AC market
Coming to components first
Evaporator - Receives the liquid refrigerant
Condenser - Facilitates heat transfer
Expansion valve - regulates refrigerant flow into the evaporator
Compressor - A pump that pressurizes refrigerant
Another important thing is copper tube

PLI scheme to reduce cost of manufacturing AC components: Ind-Ra

Mumbai (Maharashtra) [India], April 26 (ANI): The new production-linked incentive (PLI) scheme aimed at encouraging domestic production of white goods will reduce import dependence over medium term, India Ratings and Research (Ind-Ra) said on Monday.

www.aninews.in

From article
Out of total 75 per cent components (by value) being imported, assembling is completely done in India. Also, critical components like compressors, condensers, blower motors and PCB circuits which account for 55 to 60 per cent of total cost of a residential AC are largely imported.

15 Companies Selected for India's PLI Scheme for White Goods

The government has announced 15 selected applicants for India's PLI Scheme 2.0 for White Goods (AC and LED).

www.india-briefing.com

Pls go though grids they have given regarding PLI application and allotment in 2.0
Maturation period is 2023 but let's how much gets daylight

How PLI Scheme For White Goods Is Helping India's Air Conditioning Sector Move Towards Domestic Self-Sufficiency

How the Union government's production linked incentive (PLI) scheme for white goods is driving India's quest for self-sufficiency in India’s air-conditioning sector.

swarajyamag.com

From article
For a long time, India’s air-conditioning sector remained highly reliant on external imports for both critical components and for fully-assembled air conditioners. These fully-assembled air conditioners were imported and directly sold to customers, implying no value-addition in India. However, with the right policy changes, the Indian air-conditioning sector is moving towards self-sufficiency in the sector.
Don't know how much true and old might be recent

Air conditioner Imports in India - Import data with price, buyer, supplier, HSN code

Create profitable strategy to import Air conditioner in India with Top Air conditioner exporting importing countries, Top Air conditioner importers & exporters based on 680,968 import shipment records till Oct - 23 with Ph, Email & Linkedin.

www.volza.com

This is wwhat industry person says
Indian companies depend on China for 10% to 20% of AC components like compressors and controllers. Energy-efficient AC sales would mostly be affected because other products largely use locally made components, Braganza said.
Will post further if I get source
many things are I article do read completely before posting as I have not properly copy pasted all valuable points

This is a well researched & compiled post . As of the pre Wuhan virus era , the statistics were thus : as far as the unitary product segment of the AC market went which includes the residential & light commercial market , practically all the indoor units of split ACs except the Ducted AC were imported.

In most case the controls , PCBs & compressors were imported as well mostly from China but also a substantial bit from ASEAN nations viz Thailand , Malaysia & increasingly Vietnam apart from Taiwan. Apart from that the outdoor unit or the condensing unit was assembled in India. Window air conditioners by far & large , with the exception of the General Brand by Fujitsu were mfgd in India .

Ironically it was Midea a Chinese air conditioning giant which set up shop here in the NCR nearly a decade ago offering their mfg capacities on contract to other brands apart from mfg under their own brand . Highly another Chinese major , in collaboration with Hitachi set up shop in Gujarat to mfg ac compressors to cater to the unitary market segment. A couple of yrs ago Hitachi AC was taken over by Johnson Controls which also owns the brand York - major players in India & abroad in the central AC segment so I'm not sure of the current status of the compressor mfg unit .

Unfortunately all the Indian brands including the market leader in the unitary market segment Voltas , Blue Star , Onida ( not sure if they're selling anymore ) , Godrej etc import the indoor units . It's the foreign brands who've actually invested in setting up mfg for indoor units be it Daikin or LG . Mitsubishi has plans to do so by 2025 . Samsung has plans as well but no clue when will they go about it .


When GoI announced it's PLI for mfg indoor units , Voltas initially applied for it along with Blue Star IIRC ( though I'm not sure about Blue Star ) & then backed off for reasons not known . Daikin has already commenced with mfg of AC compressors in the unitary market segment IIRC.

Window air conditioners a dying market segment is all done inhouse except for the compressors which is imported . This would be true for those brands which don't patronize Highly though I believe Highly has come up rapidly in capturing market share in this segment for there's literally no competition from either domestic or the international players in this segment as far as mfg locally goes. As an aside , most of the household refrigerator compressors are mfg in India .

There are plans by ancillary suppliers to set up mfg & R&D facilities for PCBs , copper tubes , thermostats etc too & there has been plenty of progress in this field from what I understand but I don't have the particulars off hand .

By far this is the summary of the Indian AC industry in the unitary market segment as of the pre Wuhan virus era. Since the information is slightly dated , you may take it with a pinch of salt .

 

[Sanatani]

Guys ,how do you buy land in the various manufacturing parks ,and what is the benefit of opening a manufacturing unit in them ( like no need to grease the hands of ppl from power dept ,pollution control board ,municipality, police ,local counselors or corporators).

 

[FalconSlayers]

 

[NutCracker]

Voltas initially applied for it along with Blue Star IIRC ( though I'm not sure about Blue Star ) & then backed off for reasons not known .

Not Bluestar. but some chinese JV> these nincompoops thought govt would wave off the condition of no chinese JV for Tata , but it did not happen.

There are plans by ancillary suppliers to set up mfg & R&D facilities for PCBs , copper tubes , thermostats etc too

FOr PCB, Dixon is onto that , a well renowned OEM now days.

 

[iBaaz]

Another chromium fork.

Makes it easier for developers
I use brave comes with ad blockers and trackers blockers but also runs on Chromium and does not eat ram for breakfast, lunch and dinner

 

[Azaad]

Not Bluestar. but some chinese JV> these nincompoops thought govt would wave off the condition of no chinese JV for Tata , but it did not happen.

I meant Blue Star was independently pursuing the PLI like Voltas was . I didn't mean both were doing it in a JV with each other . Besides this bit of news you've linked here is for a compressor mfg unit whereas I was referring to their plans to mfg the indoor units.

FOr PCB, Dixon is onto that , a well renowned OEM now days.

Yes. A couple of other firms are onto this as well though they're not as well known as Dixon . Dixon entering this space is heartening to hear .

 

[jai jaganath]

This is a well researched & compiled post . As of the pre Wuhan virus era , the statistics were thus : as far as the unitary product segment of the AC market went which includes the residential & light commercial market , practically all the indoor units of split ACs except the Ducted AC were imported.

In most case the controls , PCBs & compressors were imported as well mostly from China but also a substantial bit from ASEAN nations viz Thailand , Malaysia & increasingly Vietnam apart from Taiwan. Apart from that the outdoor unit or the condensing unit was assembled in India. Window air conditioners by far & large , with the exception of the General Brand by Fujitsu were mfgd in India .

Ironically it was Midea a Chinese air conditioning giant which set up shop here in the NCR nearly a decade ago offering their mfg capacities on contract to other brands apart from mfg under their own brand . Highly another Chinese major , in collaboration with Hitachi set up shop in Gujarat to mfg ac compressors to cater to the unitary market segment. A couple of yrs ago Hitachi AC was taken over by Johnson Controls which also owns the brand York - major players in India & abroad in the central AC segment so I'm not sure of the current status of the compressor mfg unit .

Unfortunately all the Indian brands including the market leader in the unitary market segment Voltas , Blue Star , Onida ( not sure if they're selling anymore ) , Godrej etc import the indoor units . It's the foreign brands who've actually invested in setting up mfg for indoor units be it Daikin or LG . Mitsubishi has plans to do so by 2025 . Samsung has plans as well but no clue when will they go about it .


When GoI announced it's PLI for mfg indoor units , Voltas initially applied for it along with Blue Star IIRC ( though I'm not sure about Blue Star ) & then backed off for reasons not known . Daikin has already commenced with mfg of AC compressors in the unitary market segment IIRC.

Window air conditioners a dying market segment is all done inhouse except for the compressors which is imported . This would be true for those brands which don't patronize Highly though I believe Highly has come up rapidly in capturing market share in this segment for there's literally no competition from either domestic or the international players in this segment as far as mfg locally goes. As an aside , most of the household refrigerator compressors are mfg in India .

There are plans by ancillary suppliers to set up mfg & R&D facilities for PCBs , copper tubes , thermostats etc too & there has been plenty of progress in this field from what I understand but I don't have the particulars off hand .

By far this is the summary of the Indian AC industry in the unitary market segment as of the pre Wuhan virus era. Since the information is slightly dated , you may take it with a pinch of salt .

Even u look at PLI they have given their maturation period or their operation to start as 2023
So let's see what happen in this segment after this fy
Lets see bro how many of them actually abide and successfully manufacture

 

[SKC]

No, that is not true.
Generally, small products are not complex, the structure is simple and the production procedure is also very simple. Once you turn on the production line, you can produce a big chunk of them in few hours as long as the raw materials and workers are there. And these products are not based high-end technology or market fashion, you don't need to re-design them every year. You are not dealing with individual customers, you are partnering with a few big companies. We will tell you minimum number we need for next year, you don't need to forecast. You simply setup your production line based on the supply contracts for next year with certain level buffer.

You don't even need to plan your next generation products, we will tell you what we need. Since your products are very simple, all you need to do is: buying a new mould or new material, upgrade your equipment, re-train your workers, get ready.

I am have grown around manufacturing Industry. Going to Dad's factory since Childhood.
Doesn't Need lecture from you on this topic.

Reality is far different from your theory.

 

[FalconSlayers]

Mega Office Building Project by RMZ and Canadian CPPIB Joint Venture
> 8 Office towers
> 4.9 million square feet builtup area

CPP Investments, RMZ Plan office project on Kamalistan Studio land

Founded by filmmaker Kamal Arohi in 1958, Kamalistan Studio is known for blockbuster Bollywood movies including Pakeezah, Razia Sultan and Amar Akbar Anthony. It is located in Mumbai's western suburb Jogeshwari. In March 2022, Bengaluru-based RMZ and CPP Investments had announced that they have...

economictimes.indiatimes.com

@Haldilal

 

[Haldilal]

Mega Office Building Project by RMZ and Canadian CPPIB Joint Venture
> 8 Office towers
> 4.9 million square feet builtup area

CPP Investments, RMZ Plan office project on Kamalistan Studio land

Founded by filmmaker Kamal Arohi in 1958, Kamalistan Studio is known for blockbuster Bollywood movies including Pakeezah, Razia Sultan and Amar Akbar Anthony. It is located in Mumbai's western suburb Jogeshwari. In March 2022, Bengaluru-based RMZ and CPP Investments had announced that they have...

economictimes.indiatimes.com

@Haldilal

Ya'll Nibbiars in planning since the 2016.

 

[Porkislayer]

No more rupee trade between India and Russia apparently

Exclusive: India, Russia suspend negotiations to settle trade in rupees

India and Russia have suspended efforts to settle bilateral trade in rupees, after months of negotiations failed to convince Moscow to keep rupees in its coffers, two Indian government officials and a source with direct knowledge of the matter said.

www.reuters.com

 

[Concard]

No, that is not true.
Generally, small products are not complex, the structure is simple and the production procedure is also very simple. Once you turn on the production line, you can produce a big chunk of them in few hours as long as the raw materials and workers are there. And these products are not based high-end technology or market fashion, you don't need to re-design them every year. You are not dealing with individual customers, you are partnering with a few big companies. We will tell you minimum number we need for next year, you don't need to forecast. You simply setup your production line based on the supply contracts for next year with certain level buffer.

You don't even need to plan your next generation products, we will tell you what we need. Since your products are very simple, all you need to do is: buying a new mould or new material, upgrade your equipment, re-train your workers, get ready.

You are talking about factory as a service model. But we are talking about OEM i.e Original equipment manufacturer model wherein you not only design the product but also manufacture the product in house which is risky when you have no demand for the product continuously all through out the year. This means you have to keep your employees on the payroll even when you have no orders. That is when manufacturing these low end, low margin products becomes tricky. Unless the factory is scaled up to produce a portfolio of other products in addition to the one you built it for, it will be difficult to keep the lights on.

 

[shade]

Is it feasible for industrialists to have lines for production of items like USB toys, binoculars, microscopes, electronic parts for TVs/refrigerators etc etc in a massive way only for local consumption? Is the local market big enough? Unless there is scope for exports of these items to richer counters (EU/US etc), is this even possible?

This will be assembly shop only, that is for TVs and other white goods, and this is done using import duties.
Assembly shop model is followed in Brazil( Brazil + LatAm market ), Mexico( for export to US ), Polund, Hungary, Czechia( for export to EU ) and maybe in South Africa.

microscopes and binoculars aren't high volume enough.

To bring the parts manufacturing for TV and whitegoods you need to build economies of scale via domestic market + exports, and certain parts like those OLED etc screens are a preserve of less than 5 companies from a handful of countries, which have taken years of manpower and years to develop.

View attachment 202768
What to do?

You cannot resolve this directly, we neither produce the high tech products that Chinese market imports like integrated circuits, jet engines, machines etc and for the low-tech agricultural commodities exports we have mighty competitors like Brazil, Argentina and maybe some gora countries also.
Minerals and Oils forget about it, we don't have enough for domestic consumption

Solution is to make more money from exports to US, EU and other countries/blocs.
Eventually with such large scale exports we can indigenize atleast a portion of the supply chain which will reduce future imports from China.

Also somehow imports of small goods needs to be curtailed from china, which are imported because they are far cheaper than domestically produced items
Since we are all chindis who love the cheapest maal

 

[Haldilal]

No more rupee trade between India and Russia apparently

Exclusive: India, Russia suspend negotiations to settle trade in rupees

India and Russia have suspended efforts to settle bilateral trade in rupees, after months of negotiations failed to convince Moscow to keep rupees in its coffers, two Indian government officials and a source with direct knowledge of the matter said.

www.reuters.com

Ya'll Nibbiars Accourding to the both MEA's the talks are not suspended.

 

[Porkislayer]

Ya'll Nibbiars Accourding to the both MEA's the talks are not suspended.

Yes hopefully that’s the case.

 

[shade]

Tata Electronics to become a key Apple player after Wistron's iPhone plant acquisition - ET Retail

As Apple doubles down on local manufacturing in India, Taiwan-based iPhone manufacturer Wistron is reportedly winding up its operations in the country and Tata Electronics is set to take over Wistron's Karnataka factory and manufacture new Apple products.

retail.economictimes.indiatimes.com

Roche Diabetes Care starts making blood glucose meters in India

Roche Diabetes Care India has started manufacturing its blood glucose monitoring device ‘Accu-Chek Active’ in India. The company has collaborated with Sanmina-SCI India and Parekh Integrated Services for manufacturing and distribution of the product, respectively.

www.thehindubusinessline.com

 

[Haldilal]

Ya'll Nibbiars The Ease of Flying through your bags.

Is this for cabin baggage?

Ya'll Nibbiars The Everything's.

 

[iBaaz]

Anyone here knows about Elest Displat Fab they announced in 2022?

 

[another_armchair]

Ya'll Nibbiars The Ease of Flying through your bags.

View attachment 203113

Is this for cabin baggage?