EFY Times  
Saturday, November 01, 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: 3871)
 
Share

 
 
Electronics News
   
Haier India Teams Up With North East United Football Club (NEUFC) For Indian Super League 2014
Research And Markets: Solar PV Power In India, Market Outlook To 2025, Update 2014
MNRE Appoints EKI Energy Services Ltd As Advisor For First Phase Of ISO 9001:2008 Implementation
Solar Lighting Laboratory By TERI Receives First NABL Recognition In India
9th Edition Engineering Expo Pune Inaugurated
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Weekly

Canonical Releases Ubuntu 14.10!
Canonical Releases Ubuntu 14.10!
Wipro To Hire 10,000 People For Open Source Program! Apply Here...
Top 10 Programmers Of All Time!
Open Source India 2014: 9 Tracks, 40+ Speakers And 7 Workshops
Ebola Virus Reaches Internet World In Form Of Cyber Attacks!
Android KitKat Vs Lollipop: Here's The Difference!
Innovation Direct At Forefront Of Marketing Efforts For Ferris Emergency App Invention
India's Cheapest Portable Washing Machine Is Here, For Just Rs 2,700!
Samsung Launches Galaxy Mega 2 Smartphone In India
TCS Focusing On Softskills Development Of Employees
Must-Follow Tips While Buying Online!
Diwali Disocunt Offer On 10 Smartphones From Top Brands
10 Hottest Skills An IT Professional Requires In This Demanding Market
Know The 10 Possibilities In The Future Programming World
Bangalore City Is India's First Wi-Fi Connected Railway Station!
Google's New Inbox Enriches Email Experience
 
   

Overall

Agility Systems Deals in:

Document Management System for law firms
Features
10 Most Powerful Apache Directives And Modules
There are lots of modules for an Apache Web server but you must know which are the best ones. Here is a list of the best 10 flexible modules for Apach...
7 Steps To Follow While Detecting Memory Leaks In Java
Detecting a memory leak, verifying it and debugging the same require some certain steps which you need to follow....
10 Things You Need To Do After Installing Ubuntu 14.10
Here we'll talk about the most important 10 things which you can't miss out, after installing the latest Ubuntu version....
10 Best JavaScript Libraries For Data Visualisations
Here is a list of top 10 JavaScript libraries for web projects....
9 Excellent Free Code Editors For Android
There are tons of code editors available in the market for Android programmers but it's not always easy to choose the right one. So here we have liste...
10 Useful Bootstrap Editors To Build Responsive Websites
Each editor is different but all of them feature some drag and drop facility through a huge library of components. ...
10 Tips For Developers To Speed Up Websites
The easiest way is to reduce HTTP requests, which can be done through front-end development....
Top 10 Free Rich Text Editors For Developers
There are tons of rich text editors available on Internet but you need to find out the best ones to improve your development skills....
10 Best Tools For Creating And Prototyping Mobile Apps
Here we'll provide a list of 10 best available resources to help you in creating websites, web apps and mobile apps which can be used for prototyping ...
10 Hottest Skills An IT Professional Requires In This Demanding Market
With the fastest growing IT industry, required IT skills are also growing at the fastest possible way. Take a look at the top 10 list here....
8 Best Markdown Editors With Support To Google Drive, Dropbox
The likes of Google Drive always don't support Markdown documents which causes huge pain for the users but thanks to those tools which come in to fill...
Boost Security Of Your WiFi Network With Kali Linux: Learn Three Major Steps
Its toolkit allows you to crack Wi-Fi passwords, create false networks and detect vulnerabilities. ...
10 Best Mobile App Analytics Platforms
These tools will tell you how to measure the basics like installs, rankings, revenues, purchases and competitor rankings and how to deal with issues ...
Know The 10 Possibilities In The Future Programming World
The coming years of programming hold several predictions and you should be well aware about how the world of technology is likely to evolve in next fi...
Top 10 Programmers Of All Time!
Here we will recall 10 greatest programmers of all time and their immense contribution....
 
  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