Specializing in motor control and human interface technologies for the consumer appliance and electric mobility ecosystem, Virtual Forest (VF) employs one of a kind business models where they both design and help OEMs manufacture motor controllers for a variety of applications like EVs, ACs, ceiling fans, washing machines and mixers/grinders.
Expressing his thoughts on the significance of localizing electronic component supply chains in India, Omer Basith, Founder CEO, Virtual Forest had a brief interaction with Aishwarya.
- Briefly tell us about Virtual Forest latest offerings and what makes your product different from others.
We specialize in motor control electronics & human interface technologies for the consumer appliance and electric mobility ecosystem. We provide a unique category of service that gives the Indian consumer electronics ecosystem access to world-class Electronic Manufacturing Services (EMS) while avoiding the high-cost lengthy process of application of new technologies and capacity creation.
Virtual Forest gives its customers a unique design and manufacturing experience – hand holding them in the absence of design requirements, providing in-house domain expertise, and helping them walk the journey from R&D all the way to mass manufacturing. We want to make India the hotspot of electronics manufacturing by becoming the go-to partner for leading Original Equipment Manufacturers (OEMs).
Virtual Forest is trying to address a major gap in the electronics ecosystem, where there is a lack of R&D and huge dependence on imports. The company is trying to build a local supply chain of critical electronic components by designing & developing motor controllers in-house (local IP creation). A lot of OEM players are highly dependent on neighboring countries like China or Vietnam for these components. The government is also trying to build a domestic supply chain of electronics manufacturing to cut down on imports and position India as a manufacturing powerhouse. Schemes like PLI, PMP, FAME are all steps in that direction. Our vision is to capture the value of license costs (involving high margins) in electronics manufacturing on Indian soil. As of now, we are largely assembling and testing finished products and the initial stages of the supply chain are completely outsourced.
As of now the market is filled with vendors who are just buying and selling outsourced electronic components. We are trying to change that by specializing in ESDM (Electronics System Design & Manufacturing) capabilities – which is seriously lacking in the ecosystem currently.
- State your opinion on India’s EV manufacturing policy and how is VF contributing to this cause?
The Government has rolled out progressive policies like FAME-II and the e-Amrit portal towards achieving 30% vehicular electrification by 2030. The Production Linked Incentives (PLIs) aligned with the policy are also aiding the end-to-end localization of the electronics supply chain. However, there is a major systemic loophole that undermines ‘Atma Nirbharta’ or self-sufficiency in the EV supply chains by perpetuating import reliance.
Although policies like FAME-II have called for the localization of up to 50% of the EV components to curb import dependence, there is a major loophole that manufacturers use to circumvent this provision. As per the current duty structure, manufacturers importing a Completely Built-Up (CBU)or a finished vehicle are expected to pay an import duty of 30-125% on the Cost, Insurance and Freight (CIF) value. They instead opt to import Completely Knocked Down (CKD) units or the individual components of the vehicle which attract only an import duty of 15% of the CIF value. This totally defeats the purpose of building a domestic capacity of building EV components in-house. We are not only realizing the full value (high margin CBU units if manufactured locally) of the supply chain but we are also losing out on import duty revenue. Virtual Forest is addressing this by developing critical EV components like motor controllers in-house, which are ASIL certified (highest standard) and developed in collaboration with an Israeli-based company Redler Technologies.
- Considering the lack of R&D facilities prevalent in the ESDM ecosystem, how do you think Indian EV space is going to cope with imports and high costs?
A few measures can certainly help in boosting R&D facilities in the ESDM ecosystem for EVs:
- The import structures need to be evaluated to avoid the circumvention of import duty and loss of revenue.
- An ecosystem conducive to the building of indigenous design capabilities rooted in localized knowledge and solutions can also be created.
- Foreign companies can be incentivized to set up components manufacturing units in India and contribute towards capacity building within the sector.
- When it comes to R&D, both facility and skill are missing and we need to build an end-to-end testing and knowledge management ecosystem indigenously. This may take some time to build, in the meanwhile strategic partnerships with national and international industry leaders should be encouraged.
- Assessing the roadblocks to accommodate MSMEs in the EV space will play a huge role in catalyzing the growth of the sector. It is these startups that are coming with innovative solutions that can solve critical problems.
- Mention any specific case study that you will like to share wherein your product solved your customer’s issues.
Introduction:
This case study highlights how Virtual Forest, helped an undisclosed EV startup (referred to as Company X) rationalize their Bill of Materials (BOM) and achieve significant cost savings. By analyzing Company X’s design requirements, Virtual Forest proposed eliminating the Vehicle Control Unit (VCU) and incorporating its functionality into the Motor Controller, thereby streamlining the BOM and reducing overall costs.
Background:
Company X, a promising EV startup, was in the process of developing an electric vehicle model. Their initial design included a dedicated VCU and a separate Motor Controller, which added complexity to the BOM and increased manufacturing costs. Recognizing the potential for optimization, Company X sought the expertise of Virtual Forest to help identify cost-saving opportunities without compromising functionality or performance.
Analysis of Design Requirements
Virtual Forest conducted a comprehensive analysis of Company X’s design requirements, including the functionalities required for the VCU and Motor Controller. By closely examining the communication and control protocols between these components, Virtual Forest proposed a more efficient and cost-effective alternative.
Solution: Integration of VCU Functionality into the Motor Controller
Virtual Forest suggested eliminating the standalone VCU and integrating its functions into the Motor Controller. This solution involved modifying the motor controller’s application layer to accommodate the additional control and communication functionalities required by the VCU.
Technical Modifications
To incorporate the VCU functionalities into the Motor Controller, Virtual Forest’s engineering team conducted a thorough analysis of the VCU’s control algorithms and communication protocols. They then redesigned the Motor Controller’s application layer to support the required functionalities while ensuring compatibility with the existing system architecture.
System Integration
Virtual Forest collaborated closely with Company X’s engineering team to seamlessly integrate the modified Motor Controller into the EV’s overall system architecture. This involved extensive testing and validation to ensure that all required functions, including motor control and vehicle communication, were successfully integrated.
Results and Benefits:
The decision to eliminate the standalone VCU and integrate its functionalities into the Motor Controller led to several significant benefits for Company X:
Cost Savings:
By eliminating the need for a separate VCU and streamlining the BOM, Company X achieved substantial cost savings. The removal of redundant components and associated manufacturing processes resulted in reduced production costs, contributing to improved profitability and competitive pricing.
Simplified System Architecture:
The integration of VCU functionality into the Motor Controller simplified Company X’s overall system architecture. This reduced the complexity of wiring and communication protocols, leading to easier maintenance, troubleshooting, and future upgrades.
Enhanced Efficiency:
The optimized design and consolidated functionality improved the overall efficiency of the EV’s control system. By leveraging the processing power and capabilities of the Motor Controller, the vehicle’s control algorithms and communication protocols were streamlined, resulting in improved performance and responsiveness.
Conclusion:
Virtual Forest successfully assisted Company X in rationalizing their BOM and achieving significant cost savings by eliminating the standalone VCU and integrating its functionalities into the Motor Controller. This solution not only reduced manufacturing costs but also simplified the system architecture and enhanced the efficiency of the EV’s control system. Through their expertise and collaborative approach, Virtual Forest helped Company X optimize their design and strengthen their competitive position in the rapidly evolving EV market.
- Name some of the key industries or companies VF caters to and do you offer customized offerings?
As of now we are servicing the home appliance and electric mobility sectors. We have large OEM players as customers – many of which are Indian blue-chip manufacturers including IFB, Voltas, Crompton Greaves, Bajaj, etc. Yes, we do offer customized solutions according to customer requirements. This is possible as we own the technology and we can tweak it as we like. We support them in the entire product lifecycle – from design to manufacturing.
- Where do you see VF in terms of EV based R&D in future?
We recently got a Grant of 4 Mn Dollars from Global Innovation & Technology Alliance (GITA) to develop ASIL-certified motor controllers for 3 W light EVs. The GITA Grant is an innovative mechanism between the Government of India and Indian Industry to facilitate the growth of indigenous R&D through matchmaking, soft funding and global partnerships. We applied for the Grant along with our partner Redler Technologies and got selected after a comprehensive technical audit of our R&D credentials. We are one of very few Indian startups to have been approved by the DST, without affiliations to academic institutions or large corporate bodies. Right now, we are working towards building the motor controllers and finishing it by the end of 2024 for the market, as this is a 24-month project that involves the whole process — from design to development. These motor controllers will be used for light 3W in the logistics segment. We picked 3W light EVs because this is where we believe the ASIL certification will be adopted the fastest. This will be followed by light and medium logistics vehicles. We believe that getting an ASIL certification is a must if EVs are to become mainstream in the country.
We as a company want to establish ourselves in one domain – motor controllers rather than making numerous components. We will slowly expand to reach vehicle segments, including passenger vehicles.