Epic Foundation aims to create Indian electronics giants in coming yrs

The Indian electronics market is currently worth $180 billion. However, most the market is dominated by global brands with very few Indian companies having any significant presence. This is despite the fact that the country's domestic production in electronics has increased from $29 billion in 2014-15 to $67 billion in 2020-21. Meanwhile, India has critical dependency on China with huge imports of these products from the country. Against this backdrop, HCL co-founders-- Ajai Chowdhry, Arjun Malhotra & veteran of semiconductor industry Dr Satya Gupta-- have launched Epic Foundation with an aim to promote Indian brands in the electronics industry. In a conversation with the Bizz Buzz, Dr Satya Gupta, President of VLSI Society of India & advisor to India Electronics & Semiconductor Association (IESA), said that the Foundation eyes 25 per cent market worth $180 billion electronics industry for the domestic companies. He said this will not only create many jobs, but it will also ensure critical infrastructure and information security for the country

What is the motive behind the formation of Epic Foundation? Can you throw some light on this aspect?

Over the last two-third decades, all Indian brands have disappeared. Now, we can't recall five Indian electronics brands. That is a very unfortunate situation. Also, India has done pretty well in terms of manufacturing. We need to bring this thing to manufacturing for making it sustainable over a long-term. Today, the electronics market is pegged at around $180 billion. If we get around 20-25 per cent of the market, it will be worth $45 billion. If that happens, there will be a huge economic opportunity that will be created for the country. It will also be required for infrastructure and information security. Today, power grid can be compromised if the electronics products will not be Indian ones. This will also ensure that that people in the hinterland can democratise the access of most electronic products that are available to people in metro areas. We want to build that kind of electronics products with more durability. So, we are working with all the stakeholders in this ecosystem that can produce these products. We are in talks with partners which can help us on the realising this objective.

Can you throw some light on the aspect of which are the partners you are currently working with? Are all these partners domestic companies?

EPIC foundation has showcased two products recently. One is a 10.1 inch Tablet with features of repairability, upgradability and AI/ML based inter-lingual translation. Another one is a LED driver chip was launched. If you see, we are targeting one of the high-volume products in the electronics industry. These products have a lot of commercial opportunities. We are in touch with companies like VVDN Technologies which is a leading company in product engineering & manufacturing electronic solutions. We have also tied up with Redington that will help us in sales and service. We are also in talks with Dixon Technologies which is a manufacturing major in the electronics space. As we grow, we will innovate into new products. At this point of time, we will engage with the startup ecosystem.

Will we see revival of old Indian electronics industry? What is your opinion on this aspect?

It is very much part of our plan and that is part of our charter. We have a plan of reviving the old Indian brands. As I have said earlier that we are targeting to have a share of 25 per cent of Indian electronics manufacturing industry. And that will be huge- around $45 billion of market size. In five years, this will grow to be $100 billion. We can create huge giants as the market grows to $100 billion.

What is the level of engagement with various state governments and academia?

We are in talks with various state governments to promote electronic manufacturing of Indian brands. For instance, Delhi government has come up with a plan to focus on electronics design, manufacturing, repair and other related domains. Towards this goal, we are working together. As per their budgetary announcement, the state government will create a electronics city in Delhi. We have signed a memorandum of understanding in which we are working together to create a strategy that will help in boosting this ecosystem. As per the plan, Delhi government is aiming to create 80,000 new jobs. Around 40 manufacturing units are likely to come up as per the plan.

Will Epic Foundation also look at other emerging areas like defence technology or healthy technology among others?

We will look at many emerging areas. But, we have focused on electronics space for now, as it will benefit a large mass of people. For instance, our focus on creating a tablet will benefit the education sector or people who are differently-abled. That is the reason that we have chosen the tablet. Similarly, we are focusing on LED product as it will help in kickstarting India's semiconductor ecosystem. We are thinking of other products like smart security camera, epassport chips in the next phase. So, as we grow, we will look at large volume products which are procured by the government. Wi-fi router is another product, we will look at it.

Despite the PLI (production-linked incentive scheme) and other government incentives, India's trade deficit with China is growing. When can we expect to see any meaningful reduction in imports from China, especially in the electronics space?

If we create an export ecosystem, which is significantly relying on imports from products from China, that will not lead to reduction in trade deficit with China. For this to happen, we have to develop our own product ecosystem. Currently, as most of the brands in the electronics space are from China, the import bill is high from that country. So, what we are trying to do, will also help in reducing the trade deficit from China.