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IACC- Building The Aerospace & Security Eco System in India-Role of SMEs
FromELCOM Group
• Bring out contribution made by SMEs to development of the Aerospace Sector
• Highlight related policies• Focus on some major issues related to Global Players, SMEs &
Probable solutions
Aim of the PaperAim of the Paper
Development of Aerospace Manufacturing Sector
Development of Aerospace Manufacturing Sector
SMEs & Their ContributionSMEs & Their Contribution
Role of SMEs Specific to A& D Sector
Role of SMEs Specific to A& D Sector
About ELCOM GroupAbout ELCOM Group
Coverage
SummarySummary
Apprehensions of Global Players, Challenges for SMEs & Probable Solutions
Apprehensions of Global Players, Challenges for SMEs & Probable Solutions
Impact of Government PoliciesImpact of Government Policies
• Aerospace & Defence Production was dominated by PSUs till 2001• Private Industry played a role of Tier Supplier• This limited Growth of Private Industry in this Sector
Development of Defence Manufacturing Sector
Development of Defence Manufacturing Sector
• Policies changed over the years• A&D sector opened for Private Industry in the year 2006• Slow but Steady progress since then
Winds of ChangeWinds of Change
• Offsets Introduced in 2006 to boost A&D Industrial Growth• Min 30% Plough back necessary for Capital Acquisition
programmes costing above Rs. 300 Crores• DPP Policies evolved over the years to enhance Indigenous
capabilities/Production ( Reversal of ratio to 30%+70%)• National Manufacturing Policy , Skill Development Policies are
ushering new era for SMEs
Offsets & Other PoliciesOffsets & Other Policies
• Significant contribution to Industrial sector in general and A&D sector in particular
• SMEs form a large segment of various types of industries ( 80-85%)• SMEs account for:-a) ~50% Industrial Employmentb) ~50% Industrial Productionc) ~40% exportsd) ~ 8% of GDP
Contribution of SMEs to National DevelopmentContribution of SMEs to National Development
• MOD deserves credit for effectual development of Policies• > 6000 SMEs are now engaged in A&D Sector & account for 25%
Output• Boost to integration of SME s in global supply chains• SMEs have created a niche for themselves, especially in A&D
Sector• Global OEMs have started acknowledging prowess of SMEs
Effect of Policy Changes on SMEsEffect of Policy Changes on SMEs
Increasing contribution by SMES in:-a) Design & developmentb) Manufacture of Componentsc) Production of Sub-assembliesd) Ruggedisation of Systems & Integratione) After Sales Support/MRO
Areas of Significant Contribution by SMEs
Areas of Significant Contribution by SMEs
• Significant efforts in encouraging indigenous production in A&D Sector• Main highlights of the DPP-2013 are:-
• Self-reliance: Indigenous development and manufacture to be favored over foreign procurement ( Make Category would get preference)
• Road map: Private industry to be given a Technology Perspective and Capability Road map.
• Tech transfer: Maintenance ToT to be through bidding, not nomination.• Industry in loop: Military to consult industry well before procurement so that acquisition
plans can be translated into “national defence R&D and production plans”.• Simplification: ‘Buy & make (Indian)’ procedure to be simplified to benefit private
industry.• Pending cases: Indigenous cases worth Rs 1,20,000 Crores to be pushed through.• Licensing: ‘Defence items list’ to be finalized to simplify licensing.• Security framework: Draft Security Guidelines finalized.• MSMEs: SIDBI to earmark Rs 500 Crores for defence MSMEs;• Financial powers of Service chiefs: Tripled from Rs 50 Crores to Rs 150 Crores
DPP-2013DPP-2013
• Aerospace Components, Subsystems, GSE, Tooling etc (Dynamatics, CIM Tools/Legend Tech*)
• IT: System Hardware & Software(Tejas Networks,ELCOM)• Electronics/Avionics: PCBAs/Sub-assemblies (Elcom, Rangsons)• Special Processes ( Vijaya Metal Finishers)• Automated/Special Test equipment (Com Avia, Merlin Hawk)• Comprehensive After Sales Support
Note: * Areas & Company names areIndicative.
Areas for Significant Contribution by SMEs*Areas for Significant Contribution by SMEs*
12
Sl
No.
Concern Solution
1. Availability of Technology & expertise:-
a)Reluctance of OEMs to share Technology
b)IP Issues
c)Legal Issues
Leveraging provisions of:-
a)DPP- Mandatory Indigestion process
b)Initiatives by National Tech Committee/DST
c)Encouragement to Tech Transfers
2. Integration in Global Supply Chains due to Stringent
QA/Acceptance Criteria/Need for sustained QA
Training of SMEs in modern manufacturing processes/QA
processes/Creation of 3rd Party QA agencies & QA
Clusters
3. Infrastructure availability :
(a)High cost of land
(b)Power/Water situation
(c)Multiple agencies involved in granting various
clearances
a) Development of tech parks.
b) Measures to Improve availability of Power/Water
by up gradation of infrastructure and minimizing
pilferage/wastages.
c) Facilitating single window clearances.
4. High cost of Capital Effective utilization of special corpus && banking sector
to make funds available at affordable rates/Leverage
EEN/Raising FDI Limits
BASA- Challenges & Mitigation
Global Players- Apprehensions & Solutions
13
Sl
No.
Concern Solution
5. Impact on costs due to currency fluctuations Requisite safeguards being considered.
6. Skilled manpower (a) NSIC is looking into this aspect
(b) Tailoring curriculum to meet industry
requirements. To its credit govt. has
constituted Skill Development Council, which
hopefully would meet these requirements.
7. Fluctuating demands leading to inconsistencies Support to MSMEs through developmental
schemes/NSIC/SIDBI
8. Inadequate Industry Awareness Govt. may initiate measures to spread awareness
on a wider scale. Institution like SIATI/Industry
Associations /NSIC are making significant
contributions. FICCI has released MSME
Compendium
Global Players: Apprehensions & SolutionsGlobal Players: Apprehensions & Solutions
14
Sl
No.
Concern Solution
9. Stringent Security requirements Policy document linking Safeguard with sensitivity
of Project/capabilities of SMEs being promulgated
10. Cost Pressures /Productivity NSIC help for SMEs through exposure to modern
techniques and encouraging ToT to SMEs
11. Taxation Policies a) Refund of Taxes & Duties on actuals
b) Accord of appropriate Tax concessions
12. Limited R&D Capabilities, Need for encouraging
Application R&D ( which could be utilized by
OEMs/Indian large companies/Core research
organizations)
Govt. may initiate measures to encourage R&D
efforts through:-
DST Policies/Enhancing R&D expenditure through
incentives/Soft Loans/Integrating academic
Institutions-DRDO set up to assist SMEs
Global Players Concerns & SolutionsGlobal Players Concerns & Solutions
Sl
No.
Concern Solution
1. ITAR Restrictions These need to be proactively addressed by US
Companies
2. Long Gestation Periods (a) Global companies need to look into long term
relationships
(b) Multi product relationship
3. Difficulties in establishing connects with
OEMs/SMEs
a) Priority areas for engagement be
promulgated annually by IACC
b) Forum for B2B exchange ( especially between
SMEs) be created
4. Market Size Relationship need to be based on domestic
demand & exports combination
SMEs Concerns & SolutionsSMEs Concerns & Solutions
Note: IACC/Global OEMs could play a major role in addressing such issues.
Elcom Group Elcom Group
Assets of PUNWIRE acquired in 2006 Expertise in:
RF (HF/VHF/UHF Radios) Tactical Communication (RTS/RLS)
Customers: MoD/DPSU PMF BSNL/Private Sector
Facility: Centrally Air-conditioned Carpet area of 48000 sq ft in a plot
area of 1.25 acres Power Back up with 1740 KW
captive power generation in addition to 1000 KW of sanctioned load
Elcom Group Elcom Group
100% Indian Technology &
Manufacturing Company
100% Indian Technology &
Manufacturing Company
MSME Advantage - Multiplier 1.5
MSME Advantage - Multiplier 1.5
Reverse Technology transfer to
Europe
Reverse Technology transfer to
Europe
ISO 9001-2008*AS 9100CIndustrial
License
ISO 9001-2008*AS 9100CIndustrial
License
R&D – Noida I Manufacturing – Mohali I Corporate Office – N DelhiR&D – Noida I Manufacturing – Mohali I Corporate Office – N Delhi
20years of experience inEmbedded Systems, Strategic Electronics,
Communication and
A&D Systems
20years of experience inEmbedded Systems, Strategic Electronics,
Communication and
A&D Systems
Elcom Group Elcom Group
Networking Telecom Communication for Railways
Aerospace & Defence
Command & Control Security & Surveillance Instrumentation
Sectors of OperationSectors of Operation
Internal Security
EMS Capabilities
Surface Mount Assembly BGA & µ BGA Assembly
Through Hole Assembly Cable Assembly/ Harness
Functional & In Circuit Test
Box Builds OR System Assembly
Software Design
Test Jigs and Fixtures
RuggedizationPrototype/Volume Production
Component Kit & Turnkey Mfg
Circuit Design
Integration
PCB Design
Conformal Coating, Epoxy Potting
Racks & Cabinets
Our CapabilitiesOur Capabilities
Elcom Contribution to Value Chain
Elcom Contribution to Value Chain
Valu
e
Complexity
PCBDesigning
PCBAssembly
PCB/PCBA Verification
Circuit Designing
UserRequirement
Software Engineering
Product Engineering
User Trials/Product Support/MRO
Env & Other Tests
Customer Satisfaction
Ruggedization
Mil Standards
Equipment
Each case is unique, distinct and extremely challenging in terms of requirements and user expectation
Our Credentials……
Challenges•Design a ruggedized switching system to meet stringent environmental and EMI/EMC conditions •Capability to understand LF/VLF communication requirements
Switching System for Charlie+ class Submarine for Indian Navy
VoIP Communication System for SAM Project
Challenges
• VoIP Switching System at Command post• Development of Touch Input Device at Command post• IP based voice logging• Built in, ruggedized PA system at command and launcher sites• Ruggedization of all units
Success StoriesSuccess Stories
Challenges•Compliance to Water Immersion test up to 1 meter•User Interfaces as per NATO standard• Ruggedization as per MIL STD 810F STD
•EMI / EMC Compliance as per MIL STD 461 D/E•Documentation as per European MIL standards
Ruggedized Tactical Communication Switch for an European Defence Co
ULSB MK III – Unit Level Switch Board for the Indian Army
Challenges
• State of the art Ruggedized switch with JSS 55555, E1 Mapping and EMI/EMC compliance
• Selectable battery operating voltage of 48/24/12VDC• Extensive field trials & Para-drop test• MIL STD 461 E
Success StoriesSuccess Stories
Advanced Interoperability Communication System for Indian Air Force
Challenges• Provide highly advanced interoperability solution, capable of
cross-connecting any type of radio to PSTN, PABX, SATCOM, VoIP and Cellular networks
• Should be able to work as unmanned gateway
• EMI / EMC as per JSS 55555
CNR Interface & Data Txn on Conventional Voice Channels on a Converged Platform
Challenges
Provide a ruggedized system which should be able to provide radio interfaces, operate at different frequencies like UHF, VHF, HF along with data transportation
Success StoriesSuccess Stories
Data & Voice connectivity between HQ & 18 Remote Locations - HLS Project
Challenges• Data connectivity between HQ and remote locations over 2
MB link spread across the country• V.35 interface for video conferencing•Remote deployment of VoIP extensions
Voice and Data Communication Between HQ & 62 Stations of Konkan Railway
Challenges• Voice connectivity between HQ and remote offices over 2 MB
link, spread over 768 km• Alternate route during link failure•Provision of links for engineering, emergency & PA system control through 2MB MUX•Uniform numbering plan across the network
Success StoriesSuccess Stories
We are committed to play out part in development of A&D Sector and that of SMES
Our CommitmentOur Commitment
• SMEs have played a significant role in development of Indian Industry in general & A&D Sector in particular
• With effectual changes being brought in by the government and DPP, SMES can play a constructive & meaningful role in A&D sector subject to focus on issues mentioned earlier
• Trust & Openness from Global Players will help in creating mutually beneficial relationships.
SummarySummary
