Latest news with #PCBA
Business Recorder
5 days ago
- Business
- Business Recorder
APTMA demands immediate removal of yarn, fabric from EFS
KARACHI: All Pakistan Textile Mills Association (APTMA) has urged the government to immediately remove yarn and fabric from the Export Facilitation Scheme (EFS), warning that their continued inclusion is jeopardising the domestic textile industry and distorting fair market competition. Addressing a press conference at APTMA House here on Tuesday, Kamran Arshad Chairman APTMA said that inclusion of Yarn and Fabric in the EFS has resulted in unfair market competition as the domestic industry products are paying 18 percent GST, while importers are enjoying tax-free and duty-free regime. He said that Pakistan Cotton Brokers Association (PCBA) and Pakistan Cotton Ginners Association (PCGA) and many other textile associations are supporting APTM's move. APTMA for removing yarn & fabric from ambit of EFS On the occasion, Naveed Ahmed, Chairman of APTMA Southern Zone, Khawaja Muhammad Zubair, Chairman PCBA and Dr Jassu Mal PCGA, Yasin Siddik former chairman APTMA, Asif Inam and others were also present. 'FY25 budget removed sales tax exemption on local inputs under EFS; however, imports are sales tax-free and duty-free. This move is directly hurting the domestic industry', Kamran Arshad He mentioned that some 18 percent sales tax on local inputs is refundable, but refunds are delayed, incomplete, and costly to process, especially disadvantageous to SMEs. Due to this disparity, over 120 spinning mills and 800 ginning factories have already shut down; looms are also closing and loom workers are protesting on streets in Faisalabad. SMEs are specifically disadvantaged as they have fewer channels for import and pay sales taxes at every stage. In addition, only 60 to 70 percent of refunds are issued, while the rest are stuck in manual processing with no progress in the last 4-5 years, he added. 'Due to cheap import of yarn and fabric, exporters strongly prefer imported inputs, resulting in disadvantageous local suppliers.' There is a massive $1.5 billion increase in import of only cotton, yarn and greige cloth compared to export growth of $1.4 billion in FY25. The import of these items rose from $2.19 billion in FY24 to $3.64 billion in FY25, he mentioned. Chairman APTMA said that subjecting local supplies to 18 percent sales tax while bestowing zero rating on imports is an anti-Pakistan policy that is bleeding the economy within. He informed that APTMA has pushed as much as it can for restoration of the EFS to its June 2024 position with sales tax zero-rating on local supplies. 'We have held meetings with the Minister Finance, Chairman and Members FBR, IMF representatives; however, the IMF has not agreed to restoration.' He said a high-level committee was also formed led by Ahsan Iqbal, Minister for Planning Development & Special Initiatives of Pakistan for negotiation with IMF; however, the meeting could not hold. Copyright Business Recorder, 2025
Forbes
20-05-2025
- Business
- Forbes
An Alternative To Tariff Panic: Six Tips For Product Developers
Ryan Gray is co-founder and CEO of SGW Designworks , a full-service product development and engineering firm featured in The Lean Startup. getty I often tell people that building a business around manufactured products is a lifestyle choice. Those of us who are drawn to the world of physical products, how they work and how they're made often find it really rewarding to develop and build new things. But the world of hardware products is nuanced—and hard to be profitable in. Even in stable economies, variables beyond our control can determine whether our hardware products are successful. Components can go end-of-life (EOL), manufacturing partners' leadership turnover can lead to quality issues, materials can become scarce and regulations can morph. Add to that a new variable—tariffs—and things start to feel wholly unmanageable. But beyond the uncertainty many businesses are feeling today, how should these new realities impact how we develop and produce our products? How do we position our next generation of products to be successful and provide the financial returns we need to justify their existence in our businesses? What design decisions does this drive early in the development process? I recently had a call with the vice president of product at one of our client companies. Her company markets an enterprise electronics device, comprised of a printed circuit board assembly (PCBA) with injection-molded and sheet metal enclosure parts. She uses a contract manufacturer in Malaysia to produce a product that our product development firm designed for her. We helped her get the manufacturer lined up, and at the time, they were a great choice. They were a bit more expensive than a competitor in China, but they were easier to work with. They also had a strong track record, solid quality control systems and a dedicated point of contact for her. But as new tariffs were announced in April, she realized the landed cost for her products could increase significantly. She was looking for advice. Should she relocate production? Were there other options she should be considering? I shared the following advice with this client and encourage other businesses facing a similar situation to keep the same in mind: 1. Don't force a decision right away. It seems like there's a chance things could look different in a few months, but nobody knows quite how, exactly. It would be a shame to make a costly decision to move production only to find that the tariff-loaded costs shift, changing the outcome. 2. Dive deep to figure out what impact your competitors are feeling. Are your competitors manufacturing in China? If so, you might be in a great position if you both raise your prices to fully cover the tariff burden. And if this is the case, perhaps prepare for a marketing campaign focused on your price position relative to the competition. This could be a great time to pick up market share. 3. Compare the cost impacts of redesigning the product to exclude specific features. Do this with an emphasis on 'tool-safe' changes, or changes that will not require new production tooling. 4. Understand the real implications of moving production. In my experience, it is almost always extremely difficult, if not impossible, to move production tooling from one manufacturer to another, so analyze the cost to produce new tooling, purchase the board-level components and place the initial production order. This is going to tie up a lot of cash. 5. Revisit product designs. If it does seem attractive to move production after considering No. 4 above, recognize that we are looking at purchasing new tooling, so now is a great time to revise the product to make any tweaks or additions that customers have been asking for. Look at a bit of product redesign and refresh, and build the quote package with that design. I also recommend checking for any onboard-level components that are about to go EOL, since now is a good time to redesign the PCBA accordingly. 6. Think carefully about what the switchover from one manufacturer to another will look like. How long will it really take to get production units out of the new manufacturer? And what could changes in the tariff landscape look like between now and then? How long will you need to run both in parallel and how much working capital will that require? The Takeaway Ultimately, the right path for that client of ours, and anybody in the manufactured product space, is driven by the interplay of many different variables. But there are things companies can proactively do to help identify their best options and maybe even turn this upset condition into a business advantage for product lines. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Zawya
14-04-2025
- Business
- Zawya
India's electronics manufacturing value addition jumps to 70%, set to reach 90% by FY27
New Delhi: India is strengthening its position as a global manufacturing hub, with value addition in electronics manufacturing having increased from 30 per cent to around 70 per cent, and is projected to reach 90 per cent by FY27, according to Axis Capital report. With a new components policy in place, the country is aiming to increase value addition from the current 15-16 per cent to 40-50 per cent. Mobile phone exports have grown 77 times in the last 10 years. India has cut down its imports of fully built air conditioners (CBUs) from 35 per cent in FY19 to just 5 per cent in FY25. Key parts like compressors, copper tubes, and aluminum coils are now being made in India. In FY24, about 8.5 million RAC compressors were imported, but within the next 2-3 years, all of them are expected to be made locally. The demand for Printed Circuit Board Assembly (PCBA) has jumped in both business and consumer sectors, helped by higher import duties. Until 2016, India imported more electronics than it produced. But things have changed. Thanks to the "Make in India" push, local production is now about 24 per cent higher than imports (as of FY24). Electronics exports are growing at a fast pace, with a compound annual growth rate (CAGR) of about 26 per cent from FY16 to FY25. Imports of mobile PCBAs, worth around Rs 300 billion in FY18, have dropped to nearly zero in FY24. With new policies in place, India is now moving toward making more PCB and other electronic components within the country. India is quickly becoming a top choice for global electronics manufacturing and exports. Thanks to supportive government policies like the Production Linked Incentive (PLI), Phased Manufacturing Program (PMP), and Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), along with a skilled workforce and improving infrastructure, the country is gaining ground in the global supply chain. To attract manufacturers, the government has reduced the corporate tax rate to just 15 per cent for new manufacturing units. Combined with the global "China +1" strategy and easier export processes, India is now seen as a strong alternative for global companies. India is now the second-largest mobile phone producer in the world. Around 99 per cent of the phones sold in India are made locally. © Muscat Media Group Provided by SyndiGate Media Inc. (
Times of Oman
11-04-2025
- Business
- Times of Oman
India's electronics manufacturing value addition jumps to 70%, set to reach 90% by FY27
New Delhi: India is strengthening its position as a global manufacturing hub, with value addition in electronics manufacturing having increased from 30 per cent to around 70 per cent, and is projected to reach 90 per cent by FY27, according to Axis Capital report. With a new components policy in place, the country is aiming to increase value addition from the current 15-16 per cent to 40-50 per cent. Mobile phone exports have grown 77 times in the last 10 years. India has cut down its imports of fully built air conditioners (CBUs) from 35 per cent in FY19 to just 5 per cent in FY25. Key parts like compressors, copper tubes, and aluminum coils are now being made in India. In FY24, about 8.5 million RAC compressors were imported, but within the next 2-3 years, all of them are expected to be made locally. The demand for Printed Circuit Board Assembly (PCBA) has jumped in both business and consumer sectors, helped by higher import duties. Until 2016, India imported more electronics than it produced. But things have changed. Thanks to the "Make in India" push, local production is now about 24 per cent higher than imports (as of FY24). Electronics exports are growing at a fast pace, with a compound annual growth rate (CAGR) of about 26 per cent from FY16 to FY25. Imports of mobile PCBAs, worth around Rs 300 billion in FY18, have dropped to nearly zero in FY24. With new policies in place, India is now moving toward making more PCB and other electronic components within the country. India is quickly becoming a top choice for global electronics manufacturing and exports. Thanks to supportive government policies like the Production Linked Incentive (PLI), Phased Manufacturing Program (PMP), and Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), along with a skilled workforce and improving infrastructure, the country is gaining ground in the global supply chain. To attract manufacturers, the government has reduced the corporate tax rate to just 15 per cent for new manufacturing units. Combined with the global "China +1" strategy and easier export processes, India is now seen as a strong alternative for global companies. India is now the second-largest mobile phone producer in the world. Around 99 per cent of the phones sold in India are made locally.
