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EMS Alliance bets big on India
By Vidya
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Wednesday, 28 February 2007, 18:30 IST
Bangalore: The Electronic Manufacturing Services (EMS) industry is buzzing with activity to meet the mounting demand of electronics in India as the domestic market for electronics goods is expected to reach $363 billion by 2015.
Currently the global electronics industry is the largest manufacturing industry in the world with revenues of $1.3 trillion and EMS has a 10 percent share at $ 103 billion. India's electronic industry is pegged at $25 billion and expected to grow $70 billion by 2009.
It was in this background that EMS Alliance - a consortium of five independent electronics manufacturing companies from across the world-held its Global Alliance Meet in Bangalore to announce its global strategy for the year. The five member companies are SMC (US), Teikon (Brazil), NOTE (Sweden), Radiance (China) and Rangsons Electronics (India). Hosted by India partner Rangsons, the event discussed the EMS growth options for India.
Growing annually at a rate of about 30 percent, Frost & Sullivan studies estimate that the EMS industry in India will grow from $900 million in 2005 to $2.5 billion by 2010. This growth would further propel the country's electronics industry from $11.5 billion in 2004 to $ 40 billion in 2010 according to research done by In-Stat. "We envisage high consolidation and movement towards Asia and particularly India," said Pavan Ranga, CEO Rangsons Electronics.
Instances of this trend can be traced through the telecom sector where many mobile brands have opened or are in the process of opening their manufacturing units in India including Sony Ericsson, Nokia, Samsung and Motorola,as well as top EMS/ODMs like Flextronics, Jabil Circuit, Elcoteq and Solectron. The country has 200 million subscribers and is adding around seven million mobile users on a monthly basis. The low cost factor and knowledge of English are tempting foreign providers to opt for India from China. India also hopes to cash in on the pro manufacturing semicon policy recently announced by the Government.
"This is a very exciting time for India," said Kunt Pogost Chairman, EMS Alliance, adding that the American and European EMS markets were resting on a plateau after reaching a stage of maturity. In this scenario, India is presenting a viable option to expand their market globally.
EMS Alliance has representation from N.America, S.America, Asia and Europe;creating combined market strength while addressing customer needs from concept through to design, production and after market-support. It has 22 facilities across the globe.