EFY Times  
Friday, October 24, 2014

 
GO
 
 

How To Venture Into Electronics Export Business
 
Home >> Electronics >> Features
 
How To Venture Into Electronics Export Business  
 
Export of electronics is a lucrative business to venture into. Here are some guidelines for first timers to help them get to know the export market and understand the dos and don’ts of this business.   
Rate this news:  (0 Votes)
Saturday, May 19, 2012 India’s trade has grown significantly. According to Electronics and Computer Software Export Promotion Council (ESC), India’s ICT exports is expected to grow by 15 per cent to US$ 75 billion in FY 2012, while software and services exports are projected to grow to US$ 64 billion. Electronics hardware exports are also expected to reach over US$ 10 billion during the current fiscal.

There are various advantages of exporting electronic products and components, apart from earning foreign currency. More exports help in improving the production process. Since domestic demand for electronics is still limited, it is a must to find good export markets. The other benefit is that since most of the raw materials are imported, more exports can reduce the effect of the strengthening dollar.

exports, electronics, guide, Electronics Bazaar




Potential markets to explore and products to be exported

In 2009-10, India exported electronics products to 220 countries, with USA, UK and the Netherlands being the top three destinations, in that order. Major electronics products that are being exported are bare and populated PCBs, PCB assemblies, cable assemblies, LED lighting products, solar cells, medical instruments, rectifiers, transformers, capacitors, etc. According to Anup Sachdev, managing director and chairman, Alcon Electronics, “The export market for capacitors is very large. According to our estimates, even if we grow 10 times, our total production would be considered negligible with respect to the demand in the world market for capacitors. Countries where the demand is now large and will grow are China, Germany, Finland, France and South Korea.”

Criteria for entering into exports

Exports cover a very vast number of functions and a lot of preparations are required before starting an export business. A key success factor in starting any export company is a clear understanding, along with indepth knowledge of the products to be exported. In order to be successful in exporting, one must also thoroughly research the foreign markets.

QCD approach: The thumb rule for any business is to understand consumer requirements. However, while entering into exports, this factor becomes even more critical as one not only needs to understand the market and the changing trends, but also has to take care of the quality, cost and delivery (QCD) time. QCD becomes very important while entering into trade with any other country. One not only needs to follow the export guidelines of a particular region but also offer the best quality, optimum cost and prompt delivery, which forms the basis of any business.

Complying with standards: To enter into successful trade with another country, one must also meet the quality standards of a particular region and of individual countries. Apart from export/import requirements, the statutory policies of every country have to be kept in mind. While most companies in India are ISO 9000 certified, if one is planning to enter the US and Canadian markets, all electronics products entering these regions need to be UL approved as well.

The European market offers immense opportunities for Indian electronics. If one wants to export electronic or electrical products to the EU, one has to make sure that the products do not contain substances that are banned by EU legislation. The EU has adopted the Restriction of Hazardous Substances (RoHS) directive and the Waste Electronics and Electrical Equipment (WEE) directive. Complying with these is of vital importance, so manufacturers have to ensure that their products have been suitably certified.

The Registration, Evaluation and Authorisation of Chemicals (REACH) is yet another significant directive that the EU has initiated. It requires manufacturers and importers to generate data on the substances they manufacture, and this data is used to assess the risks related to these substances and to develop and recommend appropriate risk management measures. Shares Dr KR Suresh Nair, chief technology officer, SFO Technologies, “Companies that wish to export have to be ISO 9000 certified and many other quality certifications become a must to generate interest in customers. India is always compared with China, and only through the demonstration of our quality as well as guaranteeing importers the safe custody of their intellectual property can we do well in export markets.”

Legislation: There are various legal requirements that one has to follow in order to enter into trading terms with other countries. Functions that fall under the ambit of legislation are safety standards, social, labour and environmental requirements. These requirements are necessary as they guarantee product safety, consumer protection, minimise environmental pollution and waste, and provide proof of the exporters’ social responsibility.

A Bali, vice president, Deki Electronics Ltd, advises, “Commitment is the key and communication is a must in order to enter into trade with firms from overseas. Once you understand your customers’ requirements and ensure that your products meet all the standards of that region, get your samples approved. If possible, try and be at the customer’s place when samples are being processed. Never compromise on quality and ensure your manufacturing process is stable before accepting bulk orders. Also, ensure that all three parameters of QCD are met.”

Apart from the above mentioned criteria, Varun Manwani, director, Sahasra Electronics Pvt Ltd suggests the companies to have a local presence. “In our experience it is best to work, in export market through a local office, contact or JV partner. We have two offices in US, one each in Canada and Belgium serving all of Europe. This has given us an edge over our competitors as the local offices with local talent is able to understand the cultural and social issues and deal with clients in the local language.”

Regulations, surcharges or other restrictions

As the Government of India places great importance in the country’s exports, most items to be exported must meet certain minimal requirements and criteria. However, the items that do come under strict scrutiny, and which are subject to significant regulations, are under government control only to prevent shortages in the domestic market, safeguard natural resources and protect the environment. Thus, the export of some specified goods may be restricted or prohibited under laws such as the Environment Protection Act, Wildlife Act, Indian Trade and Merchandise Marks Act, Arms Act, etc.

Bodies that can assist you

The Ministry of Commerce, in order to increase international trade, helps in setting up trade promotion programmes and schemes. Another body that helps in facilitating trade is the National Small Industries Corporation (NSIC). Its marketing intelligence cell collects and disseminates both domestic and international marketing information in coordination with other relevant departments/agencies. ESC is yet another electronics and IT trade promotion organisation, which helps foreign companies interested in establishing business linkages in India ESC’s Market Access Initiative (MAl) scheme acts as a catalyst to promote exports. Also, associations like ELCINA, an apex body for electronics manufacturers, have been networking with national and international technical institutions and business promotion bodies to help facilitate trade.

A Checklist
• The various government incentive schemes and tax exemption programmes, like duty drawback and DEPB
• Import regulation in overseas markets, especially tariff and non-tariff barriers. Though major non-tariff barriers have been abolished, there are still other tariff and non-tariff barriers
• If your product attracts higher duty in the target country, demand obviously falls
• Know the government policies and procedures of the country you are exporting to
• Keep in mind special packaging and labeling requirements
• Special measures are required for the transportation of certain products, which may be bulky, fragile or hazardous
• The foreign customer may ask for product samples before placing a confirmed order. So, it is essential that the samples are made from good quality raw materials and after getting an order, the subsequent goods match the same quality standard
• Determine export pricing and costing; evaluate credit risk

---Richa Chakravarty




Print Email Post Comment 
(Total Views: 3828)
 
Share

 
 
Electronics News
   
XPRIZE Announces Finalists For $2.25 Million Nokia Sensing XCHALLENGE
Planar Expands Clarity Matrix Video Wall Line With Two New Ultra-Narrow Bezel Models
Molex Displayed Coiled Assemblies At MILCOM 2014, Highlighted ResilientFlex Solutions
Research And Markets: World Machine-To-Machine Market Report 2013-2017
Patton Opens SmartNode VoIP CPE To VoIP & UC Appliance Developers
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

MongoDB Recognized As The Only “Challenger” In The Gartner 2014 Magic Quadrant For Operational Database Management Systems
Axiros Emerges As An IoT Powerhouse With Product Line Extensions, Global Expansion At Broadband World Forum 2014
Zycus Launches ‘Customer Connect Series’, A Platform To Discuss & Share Procurement Practices
Most Businesses Use Third-Party Hosting And Maintenance To Manage Virtualization, According To Kaspersky Lab Survey
CRMIT Solutions Announces Mobile ADF Development Services For A More Engaging Customer Experience
Axiomtek Introduced Hardened Fanless Embedded Box System With Intel AtomTM Processor And Full Feature I/O – eBOX639-830-FL
Data Security Is A Prerequisite For Succesful “Industrie 4.0” Implementation: Infineon & Deutsche Telekom Demonstrate Security Technology
Oxagile Named To CIO Review’s 20 Most Promising Education Tech Service Providers For 2014
vCentric Successfully Completes Participation At The SAP’s - Multi City Roadshow ‘Innovation Express’
Enhanced OTT Video Monitoring: Witbe Moves Another Step Forward
 
   

Weekly

Android 5.0 Lollipop: 10 Most Exciting Features
Drupal Fixes SQL Injection Flaw In Version 7.32
20 Open Source Alternatives To Video And Audio Apps
Cloudera And Red Hat Forge Big Data Alliance
5 Ways In Which NFC Can Transform Your World!
10 Exciting New Open Source Projects!
Top 10 Flaws Of Hadoop That Are Seriously Annoying!
GPS Technology: Know The Basic Facts
Top 8 Books On Hadoop Technology
AIC SB122-TO Offers 8Bay NVMe PCIe SSD Server Solution In 1U
Intex Aqua Style X And WIIO Wi5 Exclusively Available On ebay.in
Top 10 Big Data Technologies Of Present Times
Here Are The Devices Poised To Get Google Android 5.0 Lollipop
HTC Launches Desire 516C In India @ Rs 12,990
Get Notified Instantly Of Important Changes Happening On Your WordPress
OFS CEO Rich Napoli Wins NJTC CEO Of The Year Award
 
   

Overall

Agility Systems Deals in:

Document Management System for law firms
Features
Top 8 Books On Hadoop Technology
Let's discuss 8 best books to learn Hadoop and how to get started with it....
20 Tools And Resources For Building And Testing Regular Expressions
Here we'll provide a list of 20 best tools and resources which will help you in writing regular expressions in a more streamlined way....
10 Scariest Hacking Incidents In The World!
A detailed report about the scariest side of hacking was recently released by WebHostingBuzz which gives us a list 10 scariest hacks and also possibi...
8 Best SVG Tools For Web Developers
There are some useful SVG tools which will of great help for any aspiring SVG developer. Take a look at the 8 best ones....
Top 8 Resources To Get Started With Go Programming Language
Go is a very well-structured language which has a syntax like the C language and it's very easy to learn....
Top 10 Big Data Technologies Of Present Times
Over last few years Big Data technologies are getting due attention and there are several trends and innovations in this space in recent times....
Top 10 Unexplored Areas In Java Programming Language
Here we will give you a list of 10 most unexplored areas of Java....
10 Best Practices An Independent Developer Should Follow!
Being an independent developer means you have to think beyond coding, about all partnerships and business prospective too....
10 Necessities For Modern Cloud Storage System
Here we will present a list of 10 requirements in the new generation cloud storage system of the 21st century....
10 Technologies Transforming Developers' World!
Here we'll discuss top ten technologies which are changing the nature of programming....
Ubuntu Turns 10! Here's All You Should Know!
On the occasion of 10th anniversary of Ubuntu, let's take a look at brief history of this renowned desktop distribution....
Android 5.0 Lollipop: 10 Most Exciting Features
Since the preview, Google has added lots of new features to the final release of the latest Android version. Here we will discuss top 10 features of m...
GPS Technology: Know The Basic Facts
Let's take a look how this GPS technology is operated in our daily uses....
10 Best Open Source Web Application Security Scanning Tools
Here we'll provide you with a list of 10 open source tools which are used to detect security vulnerabilities in web applications....
5 Ways In Which NFC Can Transform Your World!
Let’s have a look at 10 ways how NFC can actually rock your world in the near future....
 
  View All
Dialogue
 
10 Questions That Google Never Asks While Hiring!
Here is a list of 10 questions that Google just banned from their interviews....
For Enjay, Open Source Technology Is A Way Of Life
An entirely open source-based company, Enjay IT Solutions, has built itself a reputation in the OSS domain....
Switching To Tizen Doesn’t Mean We Are Abandoning Android: Samsung
The company has worked to build Tizen up from scratch and has now introduced it to developers and the general public with its latest range of wearable...
Venturing Into The Cloud? Develop A Customised Cloud Strategy First!
Diksha P Gupta speaks to Rushikesh Jadhav, cloud evangelist, ESDS Software Solution Pvt Ltd, on how the cloud has changed the way compan...
HTC Is Strong And There Are No Plans Of Sale Now Or In Future, Says HTC's Senior Director-Marketing
Atithya Amaresh from EFYTimes had an exclusive chat with Sirpa H. Ikola, senior director, Marketing, South Asia, HTC about its devices and its plans w...
   
  View All
Videos
 
First Look: LG Optimus G
The phone sports a high-end display and comes powered by a powerful processor. ...
Create QR-Codes For Free
TEC-IT releases the freeware QR-Code Studio to provide a quick and convenient way of QR code creation for every application scenario....
DoT Secretary Shares Plans For Growth Of Telecom Sector
M.F. Farooqui has recently taken charge as secretary, Department of Telecom....
Hands-On: Sony Xperia Z
Xperia Z is Sony's first entrant model in the big-screen smartphone category. ...
Hands On: Videocon A30 Smartphone
Videocon, the consumer electronics company which is known for its refrigerators, washing machine and air-conditioner has unveiled its Android-based sm...
   
View All
   
 
IFA 2014
 
IFA 2014: LG Launches 34-Inches Curved Monitor
The company is yet to confirm price and availability of the device....
IFA 2014: Intel Launches First Core M Range Of Processors
This range of processors is tailor-made for 2-in-1 devices which include a tablet and a laptop....
MWC 2014: Tablet Lets People Feel Textures On Its Screen
Now feel what you see on your tablet, by way of ultrasonic waves....
MWC 2014: 4K Android Tablet Games To Kill Consoles, iPad
Tablet makers like Samsung want to beat the iPad by making 4K tabs. ...
MWC 2014: This Vodafone Backpack Helps Get Network In Disaster Situations
Two engineers of Vodafone New Zealand displayed the "mini" mobile network by Vodafone substructure in a backpack. ...
MWC 2014: Wilocity Chipset To Bring 'Lightening' Speed To Mobile Phones
Wilocity has developed a WiGig chipset for mobile phones that will bring lightning-fast wireless capability ...
MWC 2014: Samsung Introduces Octacore, Hexacore Chipsets
The Korean giant, Samsung unveiled two new octacore and hexacore chipsets at MWC 2014, in Barcelona. The company previously used Exynos 5 Octa 5410 ch...
   
View All
   
 
Events
 
19th Consumer Electronic Imaging Fair To Be Held On ...

View All
   
   
 
 

home archives contact us advertise with us
           
Magazines Portals Directories Events News Verticals Educational Institute  
Electronics for You
Open Source for You
Electronics Bazaar
electronicsforu.com
efytimes.com
opensourceforu.com
electronicsb2b.com
Electronics Annual Guide
EFY EXPO INDIA
EFY EXPO WEST
ELECTRONICS ROCKS
EFY Awards
OSIDAYS Expo
Electronics
Infotech
Linux & Open Source
Consumer Electronics
Science & Technology
BPO
EFY Techcenter

Educational Kits
Kitsnspares.com  
 
 
© Copyright 2014 EFY Enterprises Pvt. Ltd.
All rights reserved. Reproduction in whole or in part in any form or medium without written permission is prohibited.
Usage of the content from the web site is subject to Terms and Conditions