EFY Times  
Monday, July 06, 2015

 
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:  (6 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: 5036)
 
Share

 
 
Electronics News
   
Undo Software Signs FTD Infocom As Indian Distribution Partner
Gartner Says Worldwide IT Spending To Decline 5.5 Per Cent In 2015
Leading Japanese Electronics Publication Semiconductor Industry News Names Cypress's USB Type-C Controller Semiconductor Of The Year
Marvell's Internet Of Things Platform Selected By iHome
ViaSat Broadens Government Security Portfolio; Adds New Cybersecurity Services And Products
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Weekly

Microsoft Launches iPad Version Of Sway
Independent Research Firm Cites hybris As A Leader In B2B Commerce Suites Report
Microsoft Launches iPad Version Of Sway
iPhone 4S Gets A major Price Cut; Available For Rs 9999
6 Top Selling Smartphones You Can Buy At Discount Price!
Introducing Gello: An Open Source Chromium Browser For Android By CyanogenMod
iBall Introduces India's Cheapest Phone With Rotating Camera
Indians Spend 47% Of Time On Communication Applications
Indian Software Market Back On Growth Track; Shows Consistent Growth
Your Next iPhone Could Be Buttonless!
SpiceJet Mobile App Arrives For Android And iOS!
Now, Recharge Airtel Night Packs Through Airtel Portal
Introducing The Pride Study; An App To Address LGBT Health Issues
New Ink For Electronic Apparel Invented
Xiaomi Redmi Note 4G Gets Heavy Discount; Now Available For Rs 7999
Huawei MediaPad M2 Official; Comes With Octa-Core CPU!
5 Highest-Paying IT Security Jobs
 
   

Overall

Features
5 Highest-Paying IT Security Jobs
Security plays a key role in a company's success, there is a high demand for professionals with security skills!...
Top 8 Free Adobe Photoshop Extensions
Photoshop extensions add even more useful features to the software....
6 Top Selling Smartphones You Can Buy At Discount Price!
E-commerce stores are running attractive discounts and exchange offers on top selling smartphones in India!...
6 Google Apps Features That You Probably Didn't Know
Google apps has plenty of useful features to ease your business communication....
5 Tricks For Effective Email Marketing Campaign
Email marketing has been very effective in the growth of e-commerce business....
Top 10 Free Bootstrap Templates
You can use readily available Bootstrap HTML templates to quickly develop your website...
Top 4 Latest News Apps
The news app launched in last month changed everything for readers!...
7 Awesome Yet, Free Tools For Your Startup
Building a start-up can be hard but, you can use free tools to simplify the starting...
Top 5 Powerful Mini PCs That You Can Buy Today!
Pocket size Mini PCs save lot of space and power...
5 Things Successful People Practice Everyday
Success doesn't come overnight, you have to change your habits and style of work to get success....
Top 7 Smartphones Recently Launched !
Chinese manufacturer, Gionee launched two flagship devices this week...
4 Examples That Prove Technology Has Gone Too Far
Today, we are facing greater and terrifying implications of rapidly advancing technology than ever before.We must know when to draw the line...
7 iOS 9 Features That Apple Copied From Android
Some of the new features in iOS 9 are actually quite old to Android users...
How Much Will Windows 10 Cost?
Find out how much Microsoft will charge users who are not qualified for the free upgrade...
5 Barriers To Overcome While Learning to Code
You can get ample of benefits once you overcome these common learning barriers...
 
  View All
Dialogue
 
“One Day The End User Can Open Up A Used Battery, And Use What’s Inside As Barbecue Sauce”
Of course that is not something currently possible, but what B&B Batteries does have are some secret recipes for their very specialised battery design...
We Wish To Procure All The LED Components Within India: Avni Energy
G. Gururaja, director, Avni Energy Solutions Pvt Ltd, shares his views about the expanding LED industry in the Indian market and the company's plans i...
We Have Registered 50 Per Cent Growth In The Last Two Years: Arihant Lighting
Apart from LEDs, Arihant is associated with the promotion of renewable energy in India and therefore, manufactures various energy saving products....
“Elcom Plans To Build A New State Of The Art R&D And Manufacturing Unit In Maharashtra", Reveals MD Girish V Vaze
Starting out as a small business to cater to the industry’s need for import substitutes, Elcom International has grown to be a leader in the field of ...
Delta Magnets Ltd To Enter Into JV With Chinese Company!
The company had partnered with TDK Japan for technology transfer to manufacture magnets in India....
   
  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 2015 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