In today’s rapid time-to-market world, problems with the supply chain can cause major headaches. Distributors can play an important role in easing, or even preventing, these headaches.
Electronic components distributors everywhere are trying to stay ahead of the curve, anticipating customers’ needs and meeting the next great business challenges head-on.
The challenges facing distribution are varied and growing. How companies – large or small, broadline or specialist – respond will affect the way in which they are perceived by their customers and whether they can grow in a highly competitive market.
Distributors have to confront multiple issues: globalisation; growing product complexity; managing supply and demand effectively; and addressing issues like obsolescence or counterfeit components. The industry’s ‘in-tray’ is certainly full.
We asked Mr. Puneet Shukla, CEO, Saison Components some of the most pressing topics in distribution today.
India’s electronic components market
The Indian electronic components industry is growing at significant rate, but still its major demand is met through imports. It is anticipated to reach US$ 400 billion in 2022 from US& 69.6 billion in 2012. The market is projected to grow at a compound annual rate (CAGR) of 24.4 per cent during 2012-2020. The Government of India ambitiously plan to manufacture as many as 181 products locally along with Make in India campaign. Many Electronics Manufacturing Services (EMS)/Original Design Manufacturers (ODMs) providers are operating in India and further some international players are expected to add production in India in the coming years. With these initiatives the demand of electronic components will increase rapidly. For these demands, Saison Components & Solutions is representing many well reputed vendors from Korea, Taiwan, Germany, US, UK and China.
Sectors fuelling growth of electronics components distribution in India
Because of the “Make in India” initiative manufacturing will be gradually increasing in all sectors. However, the top priority may be given to the Telecom & Defence sector followed by Automotive, Renewable & Consumer Industry.
This will be again a great opportunity for Saison to contribute to the initiative because of our vast range of components & solutions for all sectors & applications.
Electronics components distribution – Exploring opportunity in India
As the customer is our god, we have to always keep in mind their comfort and to give the best support possible.
For their comfort and good services Saison is planning to open more branches in different regions of India like Pune, Chennai, Hyderabad, Kolkata etc. The second initiative will be the stocks. We will be keeping more stock for our customers. We will also keep stock for urgent requirements & samples required at designing level. The biggest support to the customer would be our versatility.
With big investments already being done such as India’s 6th largest, Hyderabad based mobile giant Celkon which has announced the launch of its first manufacturing unit in Telangana with an initial manufacturing capacity of 200,000 phones per month which will be increased to 500,000 phones per month in the succeeding quarter.
The second example is Taiwan based electronics contract manufacturing company Foxconn which is also planning to set up 4 manufacturing facilities in India. Along with that, electronic goods manufacturer Intex said it was planning a Rs. 1000 crore smartphone manufacturing facility in India.
Till date government of India has already received proposals worth Rs. 650 Billion from the electronics manufacturing sector of which approvals have been given to projects worth Rs. 90 Billion.
It would be a great opportunity for people like us to be a part of these opportunities and contribute to it and we are sure of a good contribution in these by supplying our high quality product to the manufacturing giants.
Supply/demand fluctuations in the electronics distribution industry.
India is emerging as one of the most promising markets of the world with high quality manufacturing facilities commencing in near future, so the quality level & quantities of the components will highly effect supply/demand fluctuations.
Supply chain solutions driving productivity
Good supply chains are essential to boost productivity & continuity. Saison Components & Solutions is doing best to meet time-to-market and quality goals, ensures continuity of supply and try to reduce the supply chain risks to accelerate productivity.
Policies and Government incentives
‘Make in India’ drive of honourable Prime Minister Shri Narendra Modi offers a way of improving the country’s manufacturing industry, growing commercial market and rising technology and India may soon turn into a big manufacturing hub.
Some policies for this sector are:
- National Policy on Electronics (NPE): NPE vision is “To create a globally competitive electronics design and manufacturing industry to meet the country’s needs and serve the international market”. The ultimate aim of the policy is for the Indian ESDM sector to develop core competencies in all three arms of the electronics industry i.e. R&D, Manufacturing/ Fabrication and Assembly/ATMP.
- A number of State Governments have also defined polices in Electronics.
- Other important polices – National Telecom Policy, National Manufacturing Policy
