Exclusive Interview with Sagar Gupta, Director, Ekkaa Electronics
Sagar Gupta’s entrepreneurial journey has seen a remarkable transformation over the years. In 2018, at the age of 26, He founded Ekkaa Electronics with a vision to revolutionize the electronics manufacturing industry in India. Despite youth, he was determined to navigate and overcome the challenges that come with managing a company. His background in finance and consultancy provided a solid foundation for understanding the complexities of business operations and strategic growth.
From the outset, his goal was to establish Ekkaa Electronics as a key player in the market. He focused on innovation, quality, and customer satisfaction, which quickly set us apart from our competitors. He invested heavily in state-of-the-art manufacturing facilities and assembled a team of highly skilled professionals dedicated to excellence.
Today, Ekkaa Electronics oversees a business valued at INR 600 crore. Their rapid growth and success can be attributed to our commitment to high standards and continuous improvement. Within just three years, they achieved the milestone of becoming India’s No.1 Original Design Manufacturer (ODM) for LED TVs. This achievement is a testament to our strategic vision and relentless effort to lead the industry.
Their journey has been marked by significant milestones, especially with an increase in our market share. They have also built strong relationships with major clients and suppliers, further cementing our status as an industry leader. The future is full of exciting prospects as we continue to innovate and expand our offerings to meet the evolving demands of the market.
What strategic measures do Ekkaa Electronics expects from Upcoming Full Union Budget 2024-25 that will boost ESDM sectors growth for global influence?
The upcoming Union Budget 2024-25 holds tremendous potential to stimulate growth in India’s Electronics System Design and Manufacturing (ESDM) sector, further accelerating its global standing. We advocate for the expansion and refinement of the PLI scheme, a cornerstone in enhancing local manufacturing capabilities. Incentives tailored for MSMEs and start-ups within the electronics industry would further encourage innovation and growth.
Given the current global semiconductor shortage, we anticipate supportive measures to strengthen domestic semiconductor manufacturing. This may include increased funding for initiatives such as the India Semiconductor Mission. Additionally, strategic investments in electronics manufacturing infrastructure are critical. Improved infrastructure will optimize production efficiency and resilience against global disruptions.
Furthermore, tax incentives aimed at Research and Development, coupled with robust skill development initiatives, will incentivize businesses to innovate. These measures are crucial in establishing India as a frontrunner in advanced electronics manufacturing on the global stage.
What are your upcoming budget expectations for the PLI Scheme?
We at Ekkaa Electronics anticipate several strategic measures from the upcoming Union Budget 2024-25 that will significantly boost the growth of India’s Electronics System Design and Manufacturing (ESDM) sector, enhancing its global influence.
Firstly, we expect the government to expand and enhance the Production Linked Incentive (PLI) scheme with increased budget allocations. This should encompass specific incentives tailored for Micro, Small, and Medium Enterprises (MSMEs) and startups within the electronics sector. Simplifying the application and approval processes under the PLI scheme will further facilitate easier participation and benefit realization for companies like ours, thereby catalyzing industry growth.
Moreover, the inclusion of emerging technologies such as 5G, IoT, and AI within the PLI scheme is crucial. By incentivizing the production of components and devices related to these technologies, India can solidify its position as a global leader in advanced electronics manufacturing. This strategic move not only supports innovation but also aligns with global technological trends, positioning Indian manufacturers at the forefront of cutting-edge electronics development.
We look forward to the Union Budget 2024-25 introducing comprehensive measures that strengthen the PLI scheme, enhance support for MSMEs and startups, streamline regulatory processes, and prioritize investments in emerging technologies. These measures are essential for fostering a robust ESDM ecosystem, driving economic growth, and enhancing India’s global competitiveness in electronics manufacturing.
What factors have driven India’s shift from electronics import to export?
Over the past five years, the landscape of the Indian electronics market has undergone significant changes, influenced by multiple factors. According to the National Statistical Office (NSO), the manufacturing industry recorded a growth rate of 4.6% in July 2023, signalling a favourable trajectory. Government initiatives such as ‘Make in India’ have played a crucial role in promoting and supporting domestic manufacturing.
Technological advancements have been pivotal, with a notable increase in the integration of advanced technologies such as IoT, AI, ML, big data analytics, and cloud computing. This shift has made the manufacturing sector increasingly reliant on technology, thereby enhancing efficiency and productivity.
India’s transition from being an importer to an exporter of electronics has been bolstered by political stability, a clear government vision, and revised duty structures that diminish the appeal of imports. Competitive labour costs and a skilled engineering workforce have provided India with a competitive edge in the global manufacturing landscape.
Moreover, rising domestic demand in India’s electronics sector is driven by a rapidly expanding consumer base, particularly the burgeoning middle class with increasing disposable incomes. This demographic shift has heightened demand for consumer electronics. Additionally, sectors such as telecommunications, automotive, and healthcare are increasingly reliant on sophisticated electronic products, further stimulating market growth. These trends underscore a robust domestic market for electronics, driving production and innovation within the industry to meet diverse consumer and sector-specific demands.
In terms of market dynamics, the LED TV sector, where Ekkaa Electronics is an emerging leader, has continually evolved. There is now a greater focus on delivering superior picture quality, more features, and enhanced user experiences. Innovations such as MicroLED and MiniLED, AI-powered upscaling, and sustainability measures like eco-friendly designs have gained prominence. Looking ahead, government support through initiatives such as PLI (Production-Linked Incentive) and continued emphasis on technology integration is expected to further propel growth in the Indian electronics market, positioning it as a formidable player globally.
What specific measures are needed in the budget for an impactful outcome on local production and components supply chain?
For achieving a significant impact on local production and strengthening the components supply chain, several specific measures should be prioritized in the upcoming budget.
Firstly, increasing funding for the Production Linked Incentive (PLI) scheme will bolster local manufacturing capabilities, particularly for electronics. Targeted incentives aimed at Micro, Small, and Medium Enterprises (MSMEs) and startups within the sector will foster innovation and competitiveness.
Tax incentives for Research and Development (R&D) and skill development programs will further incentivize innovation, ensuring India’s sustained growth and leadership in the global electronics industry. Additionally, promoting labor-intensive manufacturing sectors such as toys, textiles, apparel, and commercial aircraft through fiscal incentives under the PLI scheme can generate significant employment and enhance local value addition.