EFY Times  
Tuesday, September 23, 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: 3700)
 
Share

 
 
Electronics News
   
Bureau Veritas Team-Up With Inspection & Quarantine Technology Centre Of Zhongshan Entry-Exit Inspection And Quarantine Bureau
Casio Projectors Provide The Ultimate Home Theater Experience
Tintag Launches World's First Rechargeable Item Tracking Device And Indiegogo Crowdfunding Campaign
AT&T Announces Preorders For Samsung Galaxy Note 4
 
 
 
     
     
     
     
     
     
Most popular
 

Daily

Lockheed Martin Successfully Mates NOAA GOES-R Satellite Modules
UBM Tech Announces All-New Embedded Systems Conference (ESC) And Expo Event Series For 2015
Smartphone Market In India 2014-2018: Key Vendors Are Karbonn, Lava, Micromax, Nokia And Samsung Electronics
Global 4K TV Market, OLED Display Industry 2018 Forecasts In New Research Reports
‘Spirit Of Wipro Run’ 2014 Held In 110 Cities Globally With Over 63,000 Participants
Global M2M Network Security Market 2014-2018: Key Vendors Are Axeda, Cisco, ILS And Sierra Wireless
Qualcomm Announces Vuforia For Digital Eyewear, Powering The Next Generation Of Augmented Reality Experiences
Global Automotive And Transportation Connector Market 2014-2019: Trends, Profits And Forecast Analysis
Actions Semiconductor Announces Preliminary Results Of Its Tender Offer
Germanium - Global Strategic Business Report 2014
 
   

Weekly

Arrow Inspires Channel Partners At Big Data Symposium
10 Best Alternatives To WordPress Blogging Platform
5 Points You Need To Remember The Most About Diodes
5 Online Tutorials For Ethical Hacking
SanDisk Continues Momentum In Pro Video Industry, Delivering Leading-Edge Capture And Storage Technologies
10 Best Open Source Software For E-Commerce Platforms
Top 10 Books On Computer Network Security
Best 10 Live CDs For Network Security On Linux Distributions
10 Reasons Why You'll Find JavaScript As The Best Language For Web Development
10 Best Free Blogging Platforms For Bloggers!
7 Best User Interfaces For Web Designing
Top 10 Video Tutorials For HTML5 Beginners
7 Best Security Tools For Your Linux System
How To Protect Your Gmail Account?
4G Enabled LG G3 Beat Launched In India
Switching To Linux From Windows? Keep These 10 Facts In Mind
 
   

Overall

Agility Systems Deals in:

Document Management System for law firms
Features
5 Reasons For Not Reviewing Codes and 5 Reasons Why Reviewing Is Important For Coders!
Before convincing your team about the importance of reviewing codes, you need to know why this review process is getting ignored most of the times. ...
10 Best Magento Practices For Web Developers
Here is a list of 10 best Magento practices for any developer, who wants to write better codes to meet client requirements....
25 Best Open Source Projects Of 2014
These open source projects have been newly released which focus on web content management, desktop publishing, IT management, security issues etc....
10 Best Open Source Software For E-Commerce Platforms
Open source is an attractive option as most of the open source shopping cart software include the best features and tools without any major licensing ...
10 Best JavaScript Frameworks For Mobile Developers
Here is a list of top 10 mobile touch JavaScript frameworks, which can help developers to learn which are best suited for them to overcome the challen...
Top 10 Video Tutorials For HTML5 Beginners
HTML 5 has been introduced with some better specifications than its predecessors, and it introduces mark-up and application programming interfaces for...
10 Best Free Blogging Platforms For Bloggers!
We here provide a list here of 10 best free blogging platforms which are packed with exciting features....
Top 10 Drupal Video Tutorials For Beginners
Drupal is quite important for developers and if you are just planning to start with Drupal, then here are some best online tutorials for you....
10 Helpful Must-Know Facts For Git Beginners
It's open source but it offers such features and options which are enough to baffle beginners. Here we provide a list of tips and tricks which will he...
10 Best Alternatives To WordPress Blogging Platform
Though WordPress is a great platform to use by bloggers, there are some great alternatives to it too, which may fulfill your requirements in a much be...
10 Best Programming Fonts For Coders
Sometimes you're happy with the default monopaced font, which is not always best for you. There are several free fonts for programmers and coders arou...
7 Best User Interfaces For Web Designing
The look and feel of a UI is definitely important but the most important factor is its functionability in terms of navigation....
Switching To Linux From Windows? Keep These 10 Facts In Mind
It's true that it's difficult to shift to Linux from Windows. But it's not impossible. You just need to remember 10 basic points while making this swi...
10 Reasons Why You'll Find JavaScript As The Best Language For Web Development
Developers love to use JavaScript and here are the best 10 reasons why you need to learn JavaScript for your web development aspirations....
Top 10 Books On Computer Network Security
To enhance your knowledge about computer security, here we provide a list of best 10 books which will help in your better understanding of the domain....
 
  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