The biggest challenge in the domestic LED lighting segment is to make people aware of the advantages of LED lighting. The life span and quality of LED products has to be brought to the notice of consumers
By Shweta Sengar
Monday, November 24, 2014: Generating awareness about LED lighting and establishing a manufacturing base in India are essential to developing the industry. This was the starting point for the talk given by Sanjay Choudhary, business head, Fiem Industries Ltd, at the EFY seminar on ‘A to Z about manufacturing LED products in India.’ With the development of high efficiency and high power LEDs, it has become possible to use LEDs in lighting and illumination. LEDs have replaced the conventional lighting system because of their efficiency, quality, life span, the diverse colours available and their resistance to damage. LEDs are now finding application in different segments including industrial, commercial, residential, medical and educational establishments. Though LED lighting is the new and rapidly growing trend in the lighting industry, there are various untapped sectors where LEDs have not penetrated. In his presentation, Sanjay Choudhary emphasised the importance of the domestic manufacture of LED products and on tapping the unexploited segments into which LEDs can foray. He went on to elaborate on the measures that could be taken to penetrate the untapped segments.
LED technology enables the making of any kind of light source, which can be used in a range of applications. This is the most important reason why LEDs are gaining market share so fast. Another factor behind the speedy expansion of the LED market is its efficient usage of energy, in spite of delivering a high lumen output.
Untapped segments
According to Sanjay Choudhary, the untapped segments in the domestic market can be use in the product segment. “If we go by the product segment, projection lighting is one sector where LEDs still have to find a place. There are many other untapped sections, such as in film shooting, in which the LED characteristics of being flame proof, being built of well glass, delivering high intensity light even from small sized fixtures, arc lighting, etc, play an important and positive role,” added Sanjay Choudhary.
Penetrating the untapped segments
In order to capture the untapped markets, Indian players will have to take certain measures. Sanjay Choudhary outlined the following ways in which LED lighting can tighten its grip on the Indian lighting industry.
Partnering with energy service companies or contractors: According to Sanjay Choudhary, “Players in the lighting industry should partner with electrical contractors and energy service companies, along with distribution networks, to ensure a good presence in the industry and among domestic users.”
Ensuring technical competence: The technical capability of the company should be the area of focus. Since LED lights are technology oriented products, players should have a complete understanding of the product in order to deliver it or pass on its benefits to the end users.
Delivering consistently high quality: Along with the above mentioned points, superior product quality should be the key focus area for the players in the segment. “The pricing of the product must suit the Indian scenario,” added Sanjay Choudhary.
Increasing manufacturing facilities
There are numerous factors responsible for the low penetration of LED lighting in the domestic or household lighting segment. “LED lights do not have a strong manufacturing base in India. This leads to higher costs and eventually increases the price of the final product. Absence of government standards for LED products is another factor. Along with this, there is a lot of confusion among people in terms of energy efficiency. Last but not the least, the tax rates on LED lighting products are very high,” said Sanjay Choudhary. He went on to add, “We have not yet evolved to manufacture LED products in India. We must strengthen our foothold in manufacturing, so that the costs can be brought down and we can decrease our dependence on imports.”
Challenges faced
The biggest challenge in the domestic lighting market is to make people aware of the advantages of LED lighting. The customers are not aware about the various benefits of LED lighting and so this issue should be tackled on a priority basis. The life span and quality of LED products has to be brought to the notice of consumers. The costing part is another challenge. “If the government gives some tax rebates or lowers tax slabs, the cost of LEDs can be brought down significantly. Every state in India has a different set of taxes. There are some states that are levying tax as high as 15 per cent while in other states, there is only a 5 per cent tax on LEDs. It is not feasible for manufacturers to pay such high taxes,” concluded Sanjay Choudhary.
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