Presentation for the
PEC Workshop ,27th April 2011
Mudassar Hussain
Telephone Industries of Pakistan
Ministry of Information Technology
Overview of Presentation
 Historical Perspective: Public Sector R&D and
Manufacturing
 Survival and sustainability: recipe for the future
 Solving real problems , be relevant to markets and compete:
leverage synergies
 Opportunity in adversity: The case for indigenous
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alternative energy products (Solar/Hybrid)
PCRET/NIE/TIP Collaboration: Value proposition
Proposed Collaboration Framework: the progress so far and
targets
Parameters for success
Recommendations to the GoP
Historical Perspective: Public Sector R&D and
Manufacturing
 Multitude of Research organizations set up by the Govt. with different “
Research and Development” mandates.
 Successful in development of technology to varying degrees but no
visibility in real life scenario due to lack of clear path for
commercialization.
 Public sector manufacturing organizations primarily JVs between
foreign technology companies with narrow product focus primarily
targeting public sector market and no focus on diversification and
R&D.
 Change in technology and focus of principle JV partners , large
overheads and outmoded way of working led to gradual decline
•
Public Sector R&D and Manufacturing have been operating in silos
and have never been meaningfully linked leading to failure on both
counts
• Local R&D making way to the markets and
• Truly indigenous production in public sector manufacturing
Practical Realities and Way forward
 Are publicly funded R&D and Indigenous
Manufacturing lost causes?
 Funding scenario in economic downturn increasingly
fluid and limited: sustainability of research
 Govt cannot afford to keep funding sick industrial
units that continue to lack innovative product
portfolio
• Market and commercial products present a lifeline:
Pool Strengths, solve market relevant problems,
build commercial products and achieve self
sustainability for both R&D and Manufacturing
• Ready example: Cost Effective Alternative energy
Opportunity in adversity: Indigenous
Alternative energy products (Solar/Hybrid)
 Energy sector scenario: Established need to diversify the
mix, increase alternative energy contribution.
 The case for solar power: would depend on cost
effectiveness & RoI for mass scale adoption in public
sector and open market.
 Indigenous and tailored solutions can play a vital role in
the market: competitiveness against imports across entire
ecosystem is crucial
 Opportunity for Public sector Organization JVs for
innovative and sustained indigenous supply to markets
Case For Possible Synergistic
Collaboration
TIP/NIE/PCRET
Leveraging Synergies for Tapping Alternative
Energy Market
 R&D organizations PCRET and NIE have developed an array of alternative
energy/solar power generation systems, subsystems and end products, at
research prototype level
 They however have no capability to address market level production
volumes and almost no marketing experience. And most crucially no
brand for instant recognition by market even if products produced on
commercial level
 TIP has extensive strength in mass scale manufacturing, a strong brand
name with household recognition, extensive experience in supply testing
and commissioning and after sales service. R&D and design are however
major weaknesses
•
•
PCRET/NIE/TIP is a natural alliance that can leverage each others
strengths through bipartite or multipartite JV arrangements with
each partner focusing on specialized role.
From R&D to Market for Solar products: The
PCRET/NIE/TIP Proposition
Market
assessment &
PCRET/NIE
Competencies
R&D
Support and
market
response
assessment
Marketing and
Commissioning
TIP Strengths
Prototyping
and
qualification
Scale
production
TIP Overview
 Established in 1953: Mandate to manufacture and supply broad
range of engineering products particularly Telco and energy
related equipment for the GoP
 Remained profitable for 50 years.
 Established household and industry brand name particularly for
terminal equipment, exchanges and energy meters.
 Decline in recent decade due to change in technology, telecom
deregulation, PTCL privatization, lack of competitive product
development and marketing, narrow telecoms related focus.
Diversification of product line is imperative: TIP is
ready for the Alternative energy opportunity due to
expected market volumes
TIP Manufacturing Capability
Tool designing & Manufacturing.
Progressive cutting tools.
Pressure Die casting Moulds.
Customized Jig and Fixtures.
Customized precision gauges
Light/Medium/Heavy Steel Fabrication.
Containers refurbish services.
CNC Nibbling Facilities.
CNC Machining.
Conventional Machining.
Pressing Work.
CNC Plastic Injection Single Moulding.
CNC Plastic Injection Double Moulding.
Thermoplastic Compression Moulding.
Pressure Die Casting,
Telecommunication Equipment Supply,
installation , commissioning and staff
training.
Material Testing. Mechanical , Physical,
Chemical tests.
PCB and Hybrid Fab
Component stuffing through THT & SMT
Packing Solutions:
Styropore packing.
Card board packing.
Wooden Packing.
Surface Treatment & Heat Treatment:
Electro Plating. Ferrous and non
Ferrous.
Precision part bakes painting.
Screen Printing.
10
Hot Dipped Galvanizing ( up to 24 feet
length)
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Manufacturing Capacity (Per annum)
1.
Digital Telephone Exchanges (EWSD)
500,000 lines Units
2.
Telephone Sets (All versions)
250,000 Sets
3.
Container Shells for Digital Exchanges
200*
4. Cross Connect Cabinets
1000
5.
5000 Sq. m
Printed Circuit Boards
6. Thick Film Hybrid Circuits
400,000 Nos.
7.
300*
Fire Alarm Systems
8. Drop Wire
36,000 Km
9. Single Phase Energy Meters
200,000
10. Telecom Towers and Masts
300*
11. Earthquake rehabilitation shelter
1000 homes
Capacity enhancement depends on labor force and can be increased
any time
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Roles of Collaborating Partners
PCRET
NIE
TIP
• provide PV panels of
different dimensions
and power rating
• Provide
moulds/designs of PV
panel frames
• housing cabinets for
batteries, inverters
and controllers etc
• All electronic design
including Charge
controller inverters,
junction boxes, grid tie
inverters
• Mutually selected
ready design of LED
based and other
products
• Testing facilities etc
• All manufacturing and
integration facilities.
• Brand for products
• Marketing and supply
chain in both public
and private sectors.
• Testing
commissioning and
after sales services
• Mutually funded
upgrade for product
manufacture if
required.
Complete value chain for R&D, Design, Manufacturing & Marketing
Proposed Collaboration Framework:
Developments and progress
 Joint Professional Working Group Set up after inter-ministerial meeting to
 Shortlist priority marketable products from existing designs at PCRET and
NIE
 Build business plans for the targeted products.
 Work out operational collaboration framework
 Possible scenarios being considered by the Joint Group
 TIP acting as contract manufacturer for NIE/PCRET with no TIP brand or
role in marketing the product
 Multipartite inter-organizational JV/MoU with TIP brand for all solar
systems and products
 Separate commercial limited company with stakes of all three
organizations, corporate style working with independent diverse Board
utilizing all shared resources
 Since joint product development will entail some production line setup and
upgrade, new product test and QA facility as well as the initial input costs the
organizations will devise
 Revenue and profit sharing model also being worked out by the Joint Group
Ingredients for Success
 Sound collaboration Framework
 Prompt and realistic market study and feasibility of
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products.
Effective product line and brand strategy
Competitiveness. (Quality, capacity, service & price)
Bundling of product with financing
Market entry facilitation (Policy and administrative
arrangements)
Incentives for both manufacturing outfits/consortia and
the user (tax break, rebates).
Sustained high level ownership and funding of Initiatives
Recommendations to GoP
 Need for clear-cut policy
 for commercialization of academic, public sector and publicly funded research.
 Need for institutional support for entrepreneurship and innovation and renewable sector
startups
 Venture capital style access to resources.
 Research funding and incentives for this particular area.
 Enabling adoption of the products reproduced through the proposed collaboration
particularly public sector market in the beginning without distorting free competition.
 Enable quick decision making in all collaborating public sector organizations, through
their respective Ministries and PPR modification for the purpose to enable such public
JVs to stay market relevant.
 Enable financing of viable business plans not through PSDP but form specially designed
package to support Public sector JVs in the renewable energy area.
 Incentives for major economic sectors for conversion to alternatives and for using
indigenous products.
 Mandate all public sector bodies and authorities to give first priority to indigenous
products while considering energy conservation
Thank You
Questions and Answers
Mudassar Hussain
mhussain@moitt.gov.pk
md@tip.org.pk
Phone 051-9221048
Fax 051-2870790