Military Brings Computer Manufacturing to Pakistan

[Riaz Haq]

Military-run Pakistan Aeronautical Complex (PAC) at Kamra has launched manufacturing of Android tablets, Android eBook readers and Windows/Linux notebook computers.

All three products are being offered by Commercial Products Manufacturing Cell (CPMC), a join venture of Pakistan Aeronautical Complex Kamra (PAC) and Hong Kong-based INNAVTEK. Initial prices range from Rs. 8,000 for PAC eBook reader tablet, to Rs. 15,000 for PAC PAD 1 tablet computer and Rs. 23,500 for PAC nBook notebook.

PAC PAD is the first to be manufactured in Pakistan, but not the first tablet offered for sale in Pakistan. Last year, PTCL also launched an Android based thin 7 inch tablet computer with EVO 3G and WiFi connectivity built-in. 3G EVO Tab is a 7 inch touch screen tablet with built-in EVO service to offer wireless broadband internet on the go in more than 100 cities and towns across Pakistan. Powered by Google Android Froyo 2.2 Operating system, 3G EVO Tab offers support for both 3G and Wi-Fi for an un-interrupted on-the-go connectivity. With a 5 MegaPixel Camera, a variety of built-in applications, 3G EVO Tab lets users browse, snap, share, communicate, navigate, play games and do a lot more on-the go, thereby making it an ideal connectivity solution for users looking for high speed on-the-go 3G connectivity on an Android platform. PTCL 3G EVO Tab offers convenience and speed with three diverse economy packages to suit individual needs and pockets. Its 12-month bundle offer has been very successful with majority sales in this bracket.Customers can get EVO Tab for as low as Rs 7,999 plus 12-month unlimited EVO service, all at Rs 31,999. In addition to the 12-month contract, EVO Tab offers bundled packages based on 3 and 6 month contracts at Rs 27,999 and Rs 29,999, respectively with 3 and 6 month of unlimited EVO service.

PAC's PAD is being built at Kamra complex that has set up advanced electronics manufacturing facilities used for building avionics for Pakistan's JF-17 fighter. A PAC press release issued at the launch of the project said that “for the joint production of JF-17, PAF [Pakistan Air Force] had established sufficient facilities which are appropriate for the production of both defence and commercial products.” CPMC website explains that “Innavtek jointly developed two products with (PAC's) Avionics Production Factory which are successfully flying on fleet of our JF-17 aircraft and three more products are under co development phase.”

History tells us that the Chinese People's Liberation Army (PLA) has played a huge role in China's phenomenal industrial progress and its emergence as the factory of the world in the last few decades. Even in the free-market capitalist system of the United States, great inventions like semiconductor chips, computers the Internet have their origins in the defense establishment. The US military has played a key role in funding research, development and manufacturing industries to support America's military-industrial complex and its space program. In spite of some of the well-deserved criticisms of the the world's biggest military-industrial and space complex in America, no one can deny that a lot of innovation, jobs growth and economic expansion has flowed from it to benefit the American society at large.

The latest PAC-Kamra venture is a good example of how military projects can help spawn commercial industries in Pakistan, essentially replicating the American and the Chinese industrial experience.

With experience and economies of scale, PAC computer products are likely to follow the traditional cost curve of electronics products and become more powerful and affordable for larger numbers of Pakistani customers. Growing domestic market for computers should also attract private investment in the sector and stimulate the national economy by creating more skilled jobs, and help boost human development and productivity.

PAC computer products have the potential to enable huge opportunities for education, communication, business and entertainment. Take distance learning as an example. The quickest and the most cost-effective way to broaden access to education at all levels is through online schools, colleges and universities. Sitting at home in Pakistan, self-motivated learners can watch classroom lectures at world's top universities including UC Berkeley, MIT and Stanford. More Pakistanis can pursue advanced degrees by enrolling and attending the country's Virtual University that offers instructions to thousands of enrolled students via its website, video streaming and Youtube and television channels.

PAC products can be expected to contribute to the ongoing information revolution in Pakistan by making information and education more accessible to a larger cross-section of Pakistani society. Such a revolution is essential for Pakistan to rapidly move into the 21st century, and reap full demographic dividend of its youthful population which is naturally attracted to modern gadgetry of computing and communications.

I applaud Pakistan's military for taking a page from the Chinese PLA playbook. As the only robust and well-functioning institution of Pakistani state, the military should do whatever is necessary to strengthen the nation's industry, economy, human capital and national security, regardless of any critics, including Ayesha Siddiqa Agha and her myriad fans. This is the best way forward to a well-educated, industrialized, prosperous and democratic Pakistan in the future.

Related Links:

Haq's Musings

Military's Role in Pakistan's Industrialization

Pakistan's Demographic Dividend

Pakistan's Defense Industry Goes High-Tech

Pakistan Launches UAV Production Line at Kamra

Pakistan Going Mainstream in IT Products

Pakistan Launches 100 Mbps FTTH Access

Pakistan's $2.8 Billion IT Industry

Pakistan's Software Prodigy

[Riaz Haq]

Here's an excerpt of Express Tribune report on LG Electronics investment in Pakistan:

“We have decided to expand our operations by enhancing production capacities to capture growing consumer demand in Pakistan,” said DY Kim, President of LG Electronics Gulf, while talking to The Express Tribune on Thursday.
“Currently, our production in Pakistan is only limited to televisions and LCDs, but in a couple of months we will start producing other household items like microwaves and washing machines,” he added.
LG Electronics is a global leader and technology innovator in consumer electronics, mobile communications and home appliances with 117 operations around the world.
LG achieved global sales of $49 billion in 2011. It is offering products in four segments – home entertainment, mobile communications, home appliances and air conditioning & energy solutions.
In Pakistan, LG is increasing investment to enhance production capacity, but Kim did not divulge exact figure and only said it would be in billions of rupees.
The company is looking to compete with Samsung, which has increased its market share in recent years.
“We want to give consumers with some other option and we are hopeful this will not take much time,” Kim said.

http://tribune.com.pk/story/550418/lg-to-invest-billions-to-capture...

[Riaz Haq]

Here's Express Tribune on laptop manufacturing by Haier in Pakistan:

The government on Monday signed contract with Haier China to procure 100,000 laptops under the Prime Minister’s youth scheme. Plans for setting up a laptop assembly plant in the outskirts of Lahore was also announced to have been approved in principle.
The agreement was signed in a ceremony at the Higher Education Commission secretariat in Islamabad accompanied by a meeting at the prime minister house that was chaired by Maryam Nawaz Sharif.
Director General, Information Technology HEC Anwar Amjad and Zhang Le, International Projects Manager, Haier Electrical Appliances Corp. Ltd. signed the contract.
The prime minister’s scheme aims to distribute 100,000 laptops during 2013-14.
The Prime Minister’s Youth Programme chairperson directed Haier Pakistan to establish a laptop assembly plant in Pakistan. The laptops produced in this plant will also carry the label of “Assembled in Pakistan,” she further directed.
Haier Electrical Appliances Corp Ltd General Manager Wang said that his company, “always focus on customers’ demands.”
The plant is expected to produce laptops of the same quality which are being imported.
COO Haier Pakistan Khalid Afridi, GM Haier Computers Tristan Wong, and Managing Director PTV Mohammad Malick were present at the meeting.

http://tribune.com.pk/story/704569/haier-to-sell-pakistan-100000-la...

[Riaz Haq]

Here's an Express Tribune story on Chinese interest in manufacturing smartphones in Pakistan:

A Chinese delegation expressed its commitment to set up a smartphone manufacturing plant in Pakistan before Finance Minister Ishaq Dar assured the investors of reduced income tax rates as a neatly-folded package of incentives.
The delegation said the plant would be set up on a fast-track basis as Pakistan begins to move forward in the telecom sector after acquiring next-generation 3G and 4G services.
In response, the government on Friday assured the Chinese mobile manufacturing companies that its upcoming production plants of smart-phones for next-generation services will qualify for reduced income tax rates announced in the new budget as part of incentives to lure foreign investors.
Chinese Mobile Companies Association Secretary General Lou Peide, who was the head of the delegation, informed that the group comprises prominent Chinese companies in the smartphone manufacturing sector. He said the delegation is in Pakistan to share Chinese experience and expertise as Pakistan’s domestic market presents a huge opportunity for the manufacturing of smartphones capable of 3G/4G technology.
Piede mentioned that with a population of nearly 200 million and a high growth rate of the mobile industry, there is a huge requirement for local manufacturing units in the country.
He informed that Chinese companies own almost 80% of the global market and produce smartphones that cost between $22 to $600, highlighting the impact of Chinese companies in the global mobile phone market.
The auction of next-generation contributed significantly to the national exchequer and Pakistan earned over $1 billion from the auction of these licences. Two licences of next-generation technology remain unsold.
Incentives
As against the present corporate income tax rate of 33 percent, the Foreign Direct Investment (FDI) in manufacturing, construction and housing will be subject to 20 percent corporate income tax.
Assisted by the Minister of State for Science and Technology and other officials, Dar briefed the Chinese investors on the latest economic indicators and performance of the economy during the last year. He also discussed the proposed budget which provides special incentives for foreign investment in Pakistan.
Dar said that FDI in the Information Technology sector will enjoy a special corporate tax rate for the next five years if they complete their projects in a three-year time period till June 30, 2017. The finance minister assured the group of investors that their concrete proposal prepared in consultation with the ministry of IT and the Board of Investment (BOI) will be considered seriously to develop local mobile manufacturing units in Pakistan.
He further assured the delegation of Chinese investors that the government will provide incentives for local manufacturing of smartphones and other IT related solutions during the next three years.
Dar concluded commenting that as Pakistan has an educated and skilled young labour force, the country can and should be used as an export base to the whole region.

http://tribune.com.pk/story/718418/moving-forward-chinas-help-for-s...

[Riaz Haq]

Haier Pakistan has announced that it will start a mobile phone assembling and production facility in the country by the end of 2015.

This was declared by the President of Ruba-SEZ Group, Mr. Shah Faisal Afridi in a media gathering organized for the launching of 15 mobile phones from the company.

While talking to More Magazine, Mr. Afridi said,”we will invest some $8 million in 2015 for expanding our mobile phone division and with the expertise of our Chinese friend, Haier will generate employment for more than 800 people in its production facility”.

“We are not relying on importing mobile phones from China but our focus is the transfer of technology in the country so that we could manufacture our own product here. We have already started an assembly line for the laptops in Pakistan”, added Afridi.

Today, Haier Pakistan assembles some 2000 laptops in Pakistan every month which it mainly produces for Prime Minister Laptop Distribution Scheme. The company plans to enhance the capacity by the end of 2015 when it starts production for the masses.

Pakistan is a market of 2.5 million mobile phones that are imported every month. Afridi foresees that with the introduction of Haier mobile phones in the country, the figure will go up by 30% by the end of current year.

To a question about the quality of  phones, Afridi responded as, “after the entry of Haier mobile phones into the market, non-branded and weak quality phones will be filtered out in the first phase. We are eyeing to position our product with the brands like Huawei and Apple”.

“One needs to feel the product that we are providing now. No other brand in Pakistan has created the eco-system that we have designed for our customers. Our phones will be integrated with other Haier’s electronic products available in the market”, added Afridi

Haier Pakistan has announced three categories of handsets including feature phones, mid-level and high-level smartphones.

It is yet to be seen the actual performance of the company in a new and different market which is much volatile than home appliances business. However, with the initiatives like Haier, a very positive message for the foreign investors is certainly on the wall.

http://www.breakingnewspak.com/haier-pakistan-to-start-mobile-phone...

[Riaz Haq]

Excerpt from International Business: An Asia Pacific Perspective
By Andrew Delios

Haier entered Pakistan in February 2001 by jointly establishing a facility with Pakistan-based Panapak Electronic Company to produce Haier air conditioners. Next, the Group opened Haier (Pakistan) Industrial Park in Lahore in April 2001. In 2004, Haier was the first foreign brand home appliance manufacturer in Pakistan to obtain the ISO9001:2000 Certification which confirms the company meets requirements for quality management systems and enhanced customer service. Haier continues to develop the Pakistan home appliance industry. 

https://books.google.com/books?id=86vEY6UE7BQC&pg=PA1955&lp...

[Riaz Haq]

Excerpts from China's Outward Foreign Investment: A Political Perspective
By Xiaofei Li

Haeir has 8 industrial complexes, two of which are foreign-one in the United States, and one in Pakistan.


Haier does localization in Pakistan: For Pakistani market, Haier especially designed a washer that can hold 15 long gowns at one time, which is suitable for daily life in Pakistan. 

https://books.google.com/books?id=xVK8edumB2AC&pg=PA218&lpg... 

[Riaz Haq]

Last month, an India-based mobile manufacturing company named Ringing Bells announced a series of ultra-low budget, domestically-produced mobile handsets. These new phones included India’s cheapest 4G smartphone at ₹2999 ($44.60) and a 3G model dubbed Freedom 251 priced at a jaw-droppingly low ₹251 ($3.80).

----------

The market for budget smartphones in India is massive: though the per capita income is just under $1,600, this year India is projected to overtake the United States in smartphone purchases. Currently, the market is dominated by a few major players: Samsung, Micromax, and Intex. Using manufacturing facilities in China, companies like Micromax and Intex produce hardware replicas of iPhones, Samsung Galaxys, and HTC Ones, trying their best to provide specifications that keep up with the current global standards. These efforts include Micromax’s $34 3G enabled phone and Intex’s HTC-inspired model for just $50.

------------
But until now, no one had tried to market a phone for less than $4. What’s it like to use a $4 smartphone? I decided to investigate. From the start, something about the Freedom 251 didn’t seem right: though the expected delivery date is set at June 2016, it was almost impossible to obtain a review unit after the big reveal. I reached out to Ringing Bells’ media relations team to get one and was repeatedly stonewalled.

Then, reports surfaced indicating that the review units that were made available weren’t actually Freedom 251s. They were Adcom Ikon 4s, a $61 handset developed by a Delhi based company, and manufactured in Chinese, and Taiwanese units, and currently available in the market.

Amidst the confusion, reports of fraud surfaced. India’s Income Tax Department paid the company’s head office —which was shut down earlier this month— a visit. Since their initial announcement, the Ringing Bells’ website has listed all of its phones, including the Freedom 251 as unavailable for immediate sale, and their social media channels are flooded with unhappy customer comments. All their phones have reached pre-order limits according the communication on their website. Customer support is unavailable, and after failing to get in touch with company representatives over phone and email, it is difficult to understand whether Ringing Bells is still a functioning company. The enforcement directorate has ordered an investigation into Ringing Bells possible breach of the Foreign Exchange Management Act.
Ringing Bells has admitted to purchasing demo handsets from Adcom and dressing them up as Freedom 251s to give the press an idea of what their eventual product would look like. But there’s no way Ringing Bells could build a phone comparable to the Ikon 4: a breakdown of the phone’s parts reveals it would cost roughly ₹2500 ($37.33) to build. Adcom, along with everyone else, was dumbfounded by Ringing Bells’ logic; the company has threatened to seek damages against Ringing Bells for dragging its company, and brand name, into this mess.

Eventually I did get my hands on one of the Adcom Ikon 4s, shabbily repackaged as the Freedom 251. While booting up, it pops up a rather optimistic screen that has the Hindi line ‘your dreams will come true,’ written in English. The inside panel and battery were taped over with Freedom 251 branding, and the Indian flag was printed across the back panel. In the week I used it, the phone held up pretty well, maintaining a solid 3G connection and functioning about as well as I could expect a $60 smartphone to. 

http://www.theverge.com/2016/3/18/11260488/india-ringing-bells-4-do...

[Riaz Haq]

Datawind’s $38 Tablet Looks like a $38 Tablet
For tablets, the race to the bottom has just reached a new low with Datawind’s Ubislate 7Ci, an Android tablet that’s on sale now for $38.

The Ubislate 7Ci has an interesting history. It started out as a project by India’s government to get cheap tablets into the hands of students, under the name Aakash. After being announced in 2010 with a target price of $35, the finished product arrived a year later with a $45 bill of materials, and DataWind as the manufacturer.

But back then, it wasn’t possible to buy the Aakash outside of India, and a comparable tablet from DataWind cost well over $100. It’s taken a couple years, but Datawind has finally managed to reach a sub-$40 price for U.S. consumers. You can buy the Ubislate 7Ci straight from Datawind’s website.

Here’s what $38 gets you:

7-inch, 800-by-480 resolution capacitive touchscreen
1 GHz single-core processor
512 MB of RAM
4 GB of storage
MicroSD card slot
0.3-megapixel front camera
Android 4.0.3
Basically, these are the specs we were seeing on smartphones a few years ago, and tablets of this quality were showing up for $100 as early as 2011. You get what you pay for with these devices, and that generally translates to poor viewing angles, weak battery life and so-so performance. The meager 4 GB of storage doesn’t leave much room for apps, though the inclusion of a MicroSD slot is helpful.

Even if you don’t find this tablet appealing, the price point alone is impressive. The average tablet today could reach a similar price in a few years, opening up new uses and business models. Magazines or newspapers could bundle their subscription costs into cheap tablet instead of paper. Schools could install a touchscreen on every desk. Touchscreens and Internet connectivity could become much more commonplace in appliances like ovens, washers and dryers and kitchen tables.

For those uses, cheap and “good enough” are all that are required, and that’s exactly where Datawind is headed. Suneet Singh Tuli, Datawind’s CEO, told the Washington Post that the company hopes to be producing $20 tablets in a year or two. For now, Datawind is targeting students and users who don’t have an Internet connection.

Word is that DataWind will be showing off its $38 tablet at the CES trade show next month, so hopefully we’ll be able to check it out then.

http://techland.time.com/2013/12/16/datawinds-38-tablet-looks-like-...

[Riaz Haq]

GFIVE a mobile communication brand of GFIVE Group is the first-ever mobile manufacturing company in Pakistan. GFive is listed in top 10 in terms of global sales volume, has continued to hold the title of the fastest developing communication company. With established strong sales network based on the 95 global operations centers (including Pakistan), G’FIVE expands its business in full communication industry, dedicated in providing smart phone service to more consumers globally.

Since 2014 GFIVE team made efforts to establish world leading standard manufacturing plant in Pakistan. Today by the Grace of ALLAH (ALL MIGHTY) GFIVE Mobile (Pvt) Limited is the Pioneer in Pakistan who assembled and produced GFIVE Smart Phone & Bar Phone handsets first time in Pakistan with labeling “Made in Pakistan”.

By installing State-of-the- Art Assembling Plant and Equipment approved by Pakistan Telecommunication Authority (PTA) with the capacity to produce over half million handset per month. Gfive started its trail production successfully in January 2016, and produced over 87,000 handset of Smart and Bar Phones which completely meets the high quality standards.

With the aim, GFive Mobile (Private) Limited started their first ever state of the art Mobile production line & assembling unit in Pakistan for feature & Smart Phone segments to serve our valuable Pakistani customers nation-wide back up with strong after sale services.

GFive management always primarily focus on introducing reliable products to their customers at a very economical prices with strong after sale services & support nation-wide, We always believe, Pakistan is a highly potential market for production & assembling mobile handsets after the introduction of 3G/4G and upcoming 5G services together with a significant development towards digitized Pakistan and this is the right time to serve our Pakistani people, who feel proud to buy first ever “Made in Pakistan” handset.

GFive Mobile (Private) Limited has kept very strong network coverage, which cover all major & connecting cities of Pakistan through our strong distributional channel include whole-seller, dealer/retailers, high profile corporate sector such as Hypermarkets, Mobile Operators, Online Stores and Banks, etc. In addition of this, we also kept presence of our own outlets, regional offices, direct sales team and Customer care Centres.

We wish and hope that Government will also lead the initiative through practical steps in this direction and encourage companies to setup such type of production & assembling units in Pakistan and put Pakistan on the world map where handsets are assembled and manufactured in Pakistan and GFive Mobile (Private) Limited is a pioneer and of-course trend setter in Pakistan telecom industry and being served Pakistan 100% by Made-In Pakistan” Handset.

We are proud of what we’ve achieved but this journey continues and we want to be better than we have ever been before as we strongly believe that we are bigger than ‘a handset provider’.

http://phoneworld.com.pk/gfive-as-first-ever-mobile-manufacturing-c...

[Riaz Haq]

#India’s most profitable retail chain run by #Indian Army. 3900 stores $35 million profit in 2014-15 http://qz.com/760021 via @qzindia

The Indian defence services could teach the country’s top private retailers a thing or two about making money.
A chain of 3,900 stores of the Indian defence ministry’s canteen stores department (CSD) earned Rs236 crore ($35 million) in profit in financial year 2014-15, according to a report in the Economic Times on Aug.17, based on a reply to a right to information query.
For the same period, the Kishore Biyani-owned Future Retail, which runs supermarket chains such as Big Bazaar and eZone, reported a profit of Rs153 crore; the corresponding figure for Reliance Retail was Rs159 crore.
The CSD stores typically work on operating margins as low as 1%—this figure can vary anywhere between 8% and 18% for a private retailer. These canteens function on a not-for-profit basis, but their volumes are huge. In 2014-15, their turnover stood at Rs13,709 crore, according to the report, trailing that of Reliance Retail at Rs17,640 crore but ahead of Future Retail’s Rs11,149.87 crore.
A big reason to the CSD stores’ better profitability is lower overhead costs.
“CSD does not have to bear two expenses that are major operational costs for retailers—real estate and advertising,” explains Devangshu Dutta, CEO of Third Eyesight, a New-Delhi based consulting firm. That’s because they are located within easy reach of defence staff, typically inside cantonments and not in commercial locations such as markets or malls.
“Staffing and training costs are lower than private retailers since the management workforce is partially shared with the standing armed forces. CSD also has a focused, sometimes captive, audience which it doesn’t really have to fight for,” Dutta said.