Mumbai lacks a show representing entire electronics ecosystem

Mumbai mainly has exhibitions and events that cater to niche segments. Figures show that the electronics industry in India’s western region has been growing fast in terms of manufacturing and is a clear leader in the trading of electronic components

By Richa Chakravarty

Thursday, July 18, 2013: Although Mumbai hosts a number of exhibitions that cater to niche electronics segments like automation, LEDs, etc, the electronics industry feels that the city lacks a show that covers the entire electronics ecosystem. Electronica India and Productronica India which caters to the electronics industry as a whole had initially started out in Mumbai, but gradually shifted out of the city to exhibit in Delhi and Bengaluru. Hence, despite its strategic location, Mumbai remains an untapped market for an expo covering the complete electronics ecosystem. With more than 125,000 footfalls in a three-day show like Elecrama 2012, it is clear that an electronics expo that covers the entire gamut of electronics will also be a success.

However, the industry is divided over this issue. While one section feels that Mumbai has added advantages to host an exhibition for the electronics ecosystem, another section feels that the city has a space crunch and, more importantly, the electronics industry is still not very strong in the city. A third group feels that region-specific expos are more convenient—expos in Delhi, Mumbai or Bengaluru are equally important, and one cannot be replaced by the other.

Advantages offered by Mumbai

Currently, west India’s electronics industry is one of the fastest growing markets in the country. Figures indicate that it has been growing fast in terms of manufacturing and is a clear leader in trading of electronics components. An electronics expo in Mumbai would help the buyers of the western region to source components and other electronic equipment easily. It will also offer an opportunity for small and medium sized companies to market their products to west India’s electronics industry.

Size of the industry:

With Pune being India’s biggest automotive hub, Mumbai’s proximity to this city makes it a favourable location to host an electronics event. Also, neighbouring Gujarat is one of the fastest developing states, throwing open more opportunities for the industry. Hence, an expo in Mumbai will benefit manufacturers and traders of these regions. “Heavy engineering industries are located in and around Mumbai. Goa is one of the biggest hubs for pharmaceuticals companies and provides a conducive market for all OEMs. Other cities like Aurangabad and Nashik are the upcoming manufacturing belts,” adds Prashant Jain, senior product manager, electrical, Fluke.

A massive electronics trading business: Mumbai houses one of the largest electronics trading hubs in the country at Lamington Road. It is an 80-year-old electronics market, which has more than 3000 shops catering to every aspect of the electronics and electrical industry. A large number of buyers from this market are expected to attend any electronics expo in the city.

Geographically blessed: Mumbai is located at a strategic position, which is near a sea port. The city is well connected to all major cities and countries, and is surrounded by many industries besides electronics. Hence, it is convenient for both northern and southern India exhibitors and buyers. “Exhibitors from Mysore, Chennai, Bengaluru and Hyderabad find Mumbai easily accessible. Exhibitors from Delhi also find it easy to travel to Mumbai, rather than down south,” says N Chandramohan, country head, SMT division, Juki India Pvt Ltd. “Exhibitors like the SMT players who have huge machines to exhibit at the show are concerned about the logistics issues and the related wear and tear on their machinery. Mumbai is closer to ports; hence transportation costs will be less. Customs clearance will also be easy. Hence, the cost of exhibiting in Mumbai will be less than doing so in other regions,” adds Chandramohan.

Advantages of good infrastructure and venues: Mumbai boasts of some major business centres and industrial exhibition centres like the NSE Complex and the Bombay Convention and Exhibition Centre (BCEC) at Goregaon. Covering around 370 hectares, the Bandra Kurla Complex (BKC) is another planned commercial complex in the suburbs of the city. The World Trade Centre and Nehru Centre are two other venues that offer good infrastructural facilities. “Compared to these venues, facilities at Pragati Maidan in New Delhi are not up to the mark, and logistics is a major concern there,” says NY Patil, general manager, marketing, Kyoritsu Electric India Pvt Ltd.

Some limitations

Lack of advanced and modern venues: Some experts are, however, of the opinion that Mumbai lacks venues with advanced and modern facilities. “The expos being held at NSE or BKC have just raw space with very basic facilities, where the organisers need to construct everything,” says Suresh Nair, director, Leaptech Corporation. However, a new exhibition-cum-convention centre is being constructed at Vashi, in Navi Mumbai. This is expected to be completed by the end of this year.

Absence of manufacturing units and decision-makers: According to Suresh Nair, the size of the electronics industry in Mumbai is way too small compared to Delhi and Bengaluru. Mumbai has fewer manufacturers and decision-makers, as well as potential buyers. Hence, Mumbai is not an ideal place for electronics expos. In comparison, Delhi has Noida, Gurgaon and Manesar belts nearby and Bengaluru has Mysore, Chennai and Hyderabad nearby, he adds.

Mumbai is a sourcing and commercial hub: States Vijay Gujarathi, director and VP, operations, EOS Power India Pvt Ltd, “Generally, all major companies prefer to have Mumbai as their corporate head office. The real decision-makers, though, are sitting far away from Mumbai. The city is more of a sourcing hub of electronic products and components.”

“Cities like Nashik, Vadodara and Ahemdabad are developing and it is expected that the industry will pick up in these areas as the opportunities in Pune have already been exhausted. So, companies are now eyeing these cities to generate business. Owing to the high cost of labour, the high cost of living and unfavourable manufacturing and trading policies by the state government, Mumbai is yet to establish itself as a manufacturing hub,” he adds

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