Renesas Electronics Establishes a Subsidiary in India – a part of global expansion to provide customers with market-specific and innovative semiconductor solutions. Vaishali of Electronics Maker interviewed Mr. Sunil Dhar, Managing Director, Renesas Electronics India Pvt. Ltd. More about this expansion and discusses important strategies for products growth in India. Excerpts from Interview:
1. Please start with describing the history of Renesas Electronics Operation in India?
Renesas Electronics Singapore established its branch office in India in February 2011. The blueprint for expansion of our presence in India was laid out in 2011. Following the milestones that were set in our India business strategy, it was already decided in 2011 that Renesas will establish a subsidiary company in India in 2014. We are glad to announce the establishment of Renesas Electronics India Pvt Ltd in April 2014, a fully owned subsidiary of Renesas Electronics Singapore.
2. How did you see Renesas products growth in this market?
The needs of emerging markets are usually different in both specifications as well as price points. India is important for Renesas from following two perspectives:
India Electronics demand is projected to grow at over 25% CAGR until 2020 by DEITY. The growing middle class offers a tremendous opportunity for electronics growth. Renesas surely wants to be a part of this growth story.
India’s reputation as a design hub is another draw. Many of our multinational customers have design centres in India to design systems not only for India but also global markets. Following our commitment to these customers to support them globally, we need to expand our support near to their locations in India.
3. Renesas, World’s No.1 MCU provider, can we know about the specific markets in India describing Renesas leadership in this product segment?
Renesas focuses on mainly three business segments – Automotive, Industrial and home, OA and ICT. We are glad to share that Renesas holds more than 40% global market share for automotive MCU business (Source – HIS Q1 2013). Our target applications for automotive segment are automotive control and automotive infotainment and network. We have dedication applications solutions for integrated cockpit through system on chip, R-car ecosystem collaboration solution for e-mobility and automotive analog and power devices for driving, steering and braking.
In home and industrial applications, we provide general purpose and application specific microcontrollers for industrial automation and network, motor control, smart meters, power supplies and white goods applications like air-con and refrigerators.
Our third focus area is OA an ICT which is basically Internet of things including target solutions like printer solutions, image stabilization, mobile display, communication infrastructure and many more.
4. In April, you announced Renesas Electronics India Pvt. Ltd., a full India subsidiary, what is the aim of this important conversion?
For a close interactions with our customers and to be able to provide wider services like reference software, hardware, reference solutions which would be developed in India, it would require us to have a permanent establishment here.Through this new company we aim to expand business by providing the best solution offerings and technical support as well as a regional systems solution development expertise to the Indian market.
5. What are the important benefits it offers to your India customers?
By providing dedicated local support via the new company, and with a focus on Industrial and Automotive applications for both two wheelers and four wheelers, Renesas aims to increase its MCU share in India and expand its solution offerings with rich lineup of kit solutions (MCU+ SOC +Power Devices) and platform reference boards (Boards with complete ecosystem including devices and software) to provide customers a shorter time-to-market. To begin with the team will focus on Automotive and particularly two-wheeler solutions. The intention is also to expand the scope of the application engineering team’s activity to Industrial and consumer appliances in near term.
6. How it will enhance your footprints in India? What are your strategies to achieve your plans?
As our corporate vision states – ‘We will be first to respond to customer needs worldwide with our creative power and technology innovations to become a strong, growing semiconductor manufacturer and a trustworthy partner.’ With establishment of new offices, increase in support team and infra-structure, we will be able to enhance our footprints in India.
7. What growth will you expect in your MCU market through this expansion?
We are expecting a high double digit growth for Renesas India through all our target segments –Automotive & Industrial & Consumer segments.
8. Do you have any other comments to put to our readers?
As a new family in India, Renesas Electronics India team is focussed on its commitment to be the most trusted solution provider for our customers. Our strategies and expansion plans are to benefit to the customer to make it a mutually beneficial endeavour.
