India: PCB manufacturers improve technology to remain competitive

Manufacturers in India are producing a wide range of PCBs including single-side, double-side, flexible, rigidflexible, and multilayer. While most can produce up to 12 layer PCBs, with some even planning to produce 16 to 20 layer boards, the eight layer boards are more common in the industry. Says Dinesh Sharma, manager of Circuit Systems India Pte Ltd (CSIL), “While some manufacturers in the industry are trying to produce 16 to 20 layer PCBs, we are going to concentrate on rigid flexible PCBs, which has hardly any manufacturer in India.”







Between 10 and 15 manufacturers are producing multilayer PCBs. The industry has numerous single-side and double-side PCB manufacturers because these types of production do not require huge investments or specialist technologies. Only about two to four makers are producing flexible and rigid-flexible PCBs because there is no demand for them in India.

On companies that concentrate solely on flexible PCBs, M. Tyagrajan, VP of Indian Printed Circuit Association (IPCA), says, “Flexible PCBs are not very common in the Indian market because it is limited to certain types of printers and communications equipment. There are only three or four companies manufacturing flexible PCBs in the country, and they are exporting products for use in military equipment.”







Local PCB manufacturers are generally targeting domestic and international markets, with most enhancing their production facilities for high quality output. According to Tyagrajan, “Manufacturers are upgrading their facilities to offer high quality PCBs, and compete on the international market. Last year, manufacturers invested huge amounts of money on these improvements.”



The big demands for PCBs come from consumer, industrial, and automotive electronics markets, as well as from telecommunications. Multinational companies are also contributing to this demand by securing their needs from the domestic market. Furthermore, contract manufacturing firms such as Solectron, Flextronics, Jabil Circuit, Elcoteq, Celetron, Arrow, Elipher, and HP are also demanding domestically produced PCBs to facilitate their own production needs. Should domestic manufacturers fail to provide quality products and good delivery time, they would not likely survive.















Says Tyagrajan, “Leading multinationals are setting up operations in India, making the country a hub for consumer electronics. Consumer electronics companies, such as LG, Philips, Samsung, and Videocon, have strong demands for PCBs. We can target these types of companies and can get good local business.” While demand is increasing, so is supply.



Imports come mainly from China, Taiwan, Hong Kong, Korea and the US. China and Taiwan imports are cheaper than locally produced PCBs by about 15 percent, but imports from the US and Europe are more expensive by about 20 to 35 percent.



According to the Ministry of Communication and Information Technology, Government of India (MIT), the industry showed a 12 percent growth in 2004 ($129.99 million); and an estimated 20 percent growth in 2005 ($156 million). Says CSIL’s Dinesh, “We are investing in PCB production and planning to double our capacity. Earlier we were making 100,000sq.m. per annum, and it is almost double now.”





INCREASING INVESTMENTS

Other manufacturers are also increasing investments with a view of ramping up their capacities.



According to Amit Agarwal, proprietor, Everedy Components India Pte Ltd, “Our installed capacity is around 100,000sq. m., and we are utilizing 100 percent capacity. We are planning to increase it by 30 percent next year.”



Investments are expected to continue for the rest of this year and in 2007.



Says Vaidraj Kulkarni, general manager, Sulakshan Circuit Ltd, “With demand increasing, manufacturers are making investments, and it is expected that the industry would show between 20 and 25 percent growth over the next two years.” Adds Everedy’s Amit, “Since last year we have doubled our production capacity, and next year we will increase it by 50 percent.”





IMPORTED MATERIALS

To produce PCBs, according to Yogesh G. Adalatwale, executive technical, Electronic Industries Association of India (ELCINA), manufacturers use imported raw materials such as copper, polycorbon sheets, and silver printing processes from China and Taiwan. However, the cost of these raw materials has increased by about 15 percent over the last year. Kurrian Vargis, manager, Hybrid Matels Pte Ltd, suggests that price of raw materials has increased by 15 to 20 percent.



India is exporting about 45 percent of its production to the US, Germany, Malaysia, Australia, Belgium, Netherlands, the UK, Italy, Spain, Thailand and New Zealand. According to Yogesh, the country is exporting single-side, double-side, and multilayer PCBs to the US, Europe and ASEAN countries.



Indian manufacturers are able to supply products in small quantities, and this is one of the biggest advantages the country has over China, which can only supply in bulk. Says Vaidraj Kulkarni, general manager, Sulakshan Circuit Ltd, “We are exporting about 35 percent of our PCBs to Sweden and Germany.” CSIL’s Dinesh adds that his company is exporting about 40 percent of its production and would increase it if there is a demand next year.