Electronics and Hardware: Manufacturing of
Electronics and Hardware: Manufacturing of
Electronics and Hardware: Manufacturing of
CCTV cameras
Electronics and
Hardware
Government of Gujarat
Contents
Project Concept 3
Market Potential 6
Growth Drivers 8
Gujarat – Competitive Advantage 9
Project Information 10
- Project Location
- Infrastructure Availability/ Connectivity
- Raw Material Suppliers
- Key and Emerging Players
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 15
Approvals & Incentives 17
Key Department Contacts 21
Page 2
CCTV – Overview
Closed-circuit television (CCTV), also known as video surveillance, is the use of video cameras
system.
Technology Components
Network Camera
IP-based CCTV
system
Video analytics
Wireless-based
CCTV system Video servers
Video management
software
Major use of CCTV is in powerful continuous surveillance system. Today’s modern CCTV comes
along with Digital video Recorders [DVRs].
CCTV cameras have with two types of video recorders (i) DVR - Digital video recorder and (ii)
Page 3
Varifocal: A camera with a varifocal lens allows the operator to zoom in
CCTV – Types
or out while still maintaining focus on the image.
Page 4
Project Concept
CCTV – Types
Market Potential
Retail Sector
Source: Technavio
Transportation Sector
The Global Surveillance and Security Equipment (GSSE)
market is expected to grow at a CAGR of 14% to reach Education Sector
over US$100 billion by 2019. BFSI Sector
Page 5
India video surveillance market overview
Page 6
Market Potential
ITeS &
Software
Banking and
Financial Homeland
Services Security
CCTV
Educational Potential Government
Institutions Institutions
Markets
Special
Retail Mall and Economic
Multiplexes Zones (SEZs)
Construction,
Residential and
Commercial
Complexes
Indian CCTV Camera market is expected to grow with a CAGR of about 27.16% in the period from
2016 to 2021.
The Indian CCTV market is attracting bigger CCTV companies such as Sony, Samsung, Zicom
Electronic Security, Vintron Informatics Limited and many others.
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Government/public sector demand remains high for the overall security followed by Industrial and
commercial sector.
The growth in the CCTV market is driven by the growing awareness among different end user
segments.
Growth Drivers
Growing online video live streaming. This will enable the real-time connection of
mobiles and CCTV. penetration of
India smartphone market is estimated at 40 million units and is
smartphones
forecasted to grow to 216 million units by 2020.
Page 8
Competitive Advantage
Ease of doing Established Flourishing business infrastructure
economy
Gujarat ranked first in Located on the west coast Gujarat contributes 7.2% ease of
doing of India, Gujarat is well of the Nation GDP and business as per DIPP connected
to the major shows leadership in
report 2015. cities of the India and to the many areas of
rest of the world by air and manufacturing and
Only state with 100% infrastructure sectors.
sea routes.
compliance with Gujarat’s GSDP (Gross
environmental The state has 40 ports, 13 State Domestic Product)
procedures. domestic airports and 1 at current prices
international airport in
Gujarat was ranked registered a growth of
addition to an extensive rail as the best in e 11 % during the year
and road network.
transactions for 2014-15.
government services Gujarat is the one of the Gujarat has attracted power surplus states
in the
It was also ranked as cumulative FDI worth
country. This helps it in the best in terms of US$12 billion
from April
attracting huge amount of setting up a business, 2000 to March 2015.
investment from the
allotment of land and Gujarat contributes
industries and tagged as
obtaining a around 19.1% to India’s
preferred investment
construction permit. total exports of goods in
destination in the country.
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Indian Institute of Technology (IIT),
Gandhinagar
Sardar Vallabhbhai National Institute of
Technology, Surat
Gujarat Technological University,
Ahmedabad
Nirma University - Institute of Technology,
Ahmedabad
2014-15.
Page 10
Gujarat Government enacted the Special investment regions (SIR) act in 2009 with the objective of
creating large size investment regions in the state and develop them as global hubs of economic
activity supported by world class infrastructure.
The state has three SIRs for electronics manufacturing.
SEZ are special duty free enclaves for the purpose of trade. These zones are self-contained and
integrated, having their own infrastructure and support services. Apart from state-of-the-art
infrastructure and access to a large skilled work force, the SEZ also provides enterprises with
attractive incentives.
The state has one electronics SEZ at Gandhinagar and 14 IT/ITeS SEZs - six at Ahmedabad,
four at Gandhinagar, three at Vadodara and one at Valsad.
Gujarat Government introduced a new IT policy to provide a proactive and industry-friendly climate
for the IT industry. Incentives and assistance would be provided in allotment of land,
development of IT/ITeS parks, stamp duty concession, electricity duty exemption and capital
assistance on lease rentals.
The policy also intends to establish the state as a preferred IT destination for micro, small and
medium enterprises (MSMEs) by providing assistance on quality certification, technology
acquisition fund, skill enhancement, patent assistance, simplification of labour laws, subsidy on
bandwidth for connectivity and exemption from zoning regulations.
Gujarat Government introduced new Electronics policy with the aim of establishing a self-reliant
ESDM industry that caters to needs of domestic and international market. The policy includes
development of human resources, creation of local demand for electronics products, creation of
eco-system for innovation and R&D, and incentives such as VAT/CST subsidy, single window
clearance, uninterrupted power supply, registration and stamp duty concession and interest
subsidy.
Gujarat Government, recognising the need for additional support for Electronics & IT/ITeS startups
and keeping this at the centre of its strategy as recognized by the Government of India, through
‘Start-up India initiatives and to supplement efforts in that direction has decided to come up with
a focused policy for Start-ups in Electronics & IT/ITeS sector.
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IT/ITeS and electronics regions
Ahmedabad
Gandhinagar
Viramgam
Halol-Savli
Vadodara
Tourist Navlakhi
Electronics SIR flow*
IT/ITeS SEZ
Electronics and IT/ITeS SEZ Valsad
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Project Information Project Informa
Ahmedabad
Vithalapur
Gandhinagar
Sanand
Halol
Vadodara
Jambusar
Tourist
flow* Bharuch
Greenfield EMCs
Brownfield EMCs
Upcoming Greenfield
Location suggested
Gandhinagar is a capital city of Gujarat
state and has seven special economic
zones and 10 industrial estates along
Key highlights with creative IT Park and Gujarat
International Finance Tech City (GIFT)
4 (Mansa, Kalol, Dahegam,
Talukas It is considered as an emerging
Gandhinagar)
‘Knowledge Hub’ with the establishment
Gram of various educational institutes such as
302
panchayats IIT and IIMs.
Various computer hardware
Area 2140 sq. km
associations such as Gandhinagar
Population 13,91,753 Computer Hardware Association
(GCHA) and Gujarat Informatics ltd
Literacy rate 85.77% (GIL) have their presence in
Gandhinagar.
Focus areas Electronics, textiles, IT -ITES Gandhinagar has been selected as one
of the 100 Indian cities to be developed
as a smart city under PM Narendra
Modi’s flagship Smart Cities Mission.
Project Information
Page 14
Inter-connecting the PCBs, sub
assembly and CCD Camera
Page 15
Key machinery providers
Audiotec Instruments equipment Pune
Electromech Bangalore
Key considerations
Lack of end-to-end solution providers and components. Components of the CCTVs are not locally
available. 70% of the components are sourced from either China or Taiwan.
Leading OEMs are unwilling to transfer cutting edge technologies with limited management
control in the Indian entity.
24 /7 availability of power and network bandwidth are key problems in deployment of the system.
Video based surveillance systems requires heavy storage and continued mantainence.
Storing low-resolution video online can reduce storage requirements but also reduces
effectiveness of the video
Page 16
Project Information
Project Financials
Project cost
Project cost
Project components & specifications Cost (INR Crore)
Land (Area: 93 sq. m - 1000 sq. ft.) 0.42
Rate: (INR4,480 per sq. m.)
Buildings Built-up area: (Area: 93 sq. m - 1000 sq. ft.) 0.10
Rate: INR1,000 per sq. feet
Machinery and equipment 0.011
Office equipment, furniture & working tables etc. 0.011
Tools, Jigs, fixtures etc. 0.02
Electrification charges and pre-operatives expenses 0.01
Working capital (Personnel) 0.033
Working capital (Raw material requirements) 0.425
Utilities 0.02
Other contingent expenses 0.03
Total cost 0.63
EBITDA calculation
Project components & specifications Cost (INR Crore)
Total recurring expenditure 1.855
Depreciation on plant and machinery @ 10 % 0.01
Depreciation on office equipment, furniture etc. @ 20% 0.02
Depreciation on tools jigs, fixtures etc. @ 25% 0.01
Interest on capital investment @12% 0.73
Total cost of production 1.933
Turnover (units) 3600
Unit price (INR) 5,853
Total revenue (per annum) 2.107
EBITDA (per annum) 0.252
Note: 1) Land rate based on Gandhinagar IT SEZ (rate may vary depending on the location of the site in Gandhinagar).
Page 17
Project Financials
Payback period
Capacity (units) 6,000
Capacity utilization (%) 60 %
Production (units) 3,600
Price per unit 5,853
Revenue (INR crore) 2.107
EBITDA 25.2
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Approvals & Incentives
• For approvals, the project report should be submitted to respective District Industries Centres
( DICs). DIC will forward the proposal to Industries Commissioner who will submit the report
to State Level Approver Committee (SLAC) for final approval.
Incentives from Government of Gujarat
• Government of Gujarat introduced Electronic Policy for the state of Gujrat (2016-2021) in order
to establish Gujarat as a globally-recognized hub for the ESDM industry with a turnover of
US$16 billion by 2021 and an investment of US$6 billion to create employment opportunities for
500,000 people by 2021.
• In addition to the assistance available under any of the schemes of the Government of India,
eligible EMC and ESDM units will be entitled to the following assistance from Government of
Gujarat,
Incentives to the Electronics Manufacturing Clusters (EMCs)
Page 19
Approvals & Incentives
Interest subsidy for a maximum period of five years to the eligible ESDM units
Page 20
Approvals & Incentives
Other exemptions
• Eligible ESDM units will be given power tariff subsidy at the rate of INR1 per unit in the billed
amount and 100% reimbursement for electricity duty, for a period of five years.
• Eligible units will be given the benefit of reimbursement of the EPF contribution made by them
for their employees for a period of five years subject to overall ceiling of INR1 crore per annum.
• Patent Assistance at the rate of 50%, subject to a ceiling of INR0.2m per patent for domestic
patents and INR0.5m per patent for international patents, for meeting the expenditure for
obtaining patents.
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Approvals & Incentives
Approvals
• Registration of the industrial undertaking
• Industrial Entrepreneur Memorandum or Udyog Aadhar
• Non-agriculture land permission and purchase deed registration
• Consent to Establish from Gujarat Pollution Control Board
Quantum of incentives
% of eligible
% of Net VAT
Category of fixed capital % of Net VAT to
reimbursement Incentive period
Project Location investment be paid to
to ( no. of years )
(Taluka) entitled for Government
the unit
Incentive
1 100 90 10 10
2 80 80 20 10
3 70 70 30 10
Net VAT incentives
Net VAT incentive will be reimbursed to the industrial undertaking in one financial year will not
exceed one-tenth of the total amount of eligible incentive.
Classification of the Project Amount (in INR crore)
Ultra Mega Industrial Unit 500
Mega lndustrial Unit 400
Large Industrial Unit 150
Micro, Small or Medium Industrial Unit 50
Electronics & IT/ITeS Start-up Policy 2016-21, GoG: Incentives
Particulars Details
Stamp Duty & Registration Fee
100 %
Reimbursement
Lease Rental Subsidy 50 sqft per employee at the rate of INR15 per sqft per month
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Approvals & Incentives
http://meity.gov.in/
http://www.iesaonline.org/
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http://www.dst.gujarat.gov.in
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.