LED product manufacturers are facing several challenges, which the govt should look into: Gururaja, Avni Energy

EB: What has the growth of your company been like over the last two years?

Since we established ourselves in 2009, we have been growing year on year. While in 2012-13 our growth was 45 per cent, in 2013-14, we grew by 96 per cent.

EB: Which are the regions or cities that witness demand for your LED products?

We get demand for our LED products from across India. However, most of the demand comes from the south. Our lighting systems are extensively used in government offices and private institutions as well.

EB: Has the demand increased in the last two years?

Yes, definitely, there has been a significant rise in the demand for LED products. It has increased more than three fold in the last two years.

EB: In what way are your LED products technologically advanced?

With LED technology evolving very fast, we are among the first to adopt the latest and come out with new products. In 2011-12, we were using high power LEDs for indoor lighting applications. But with the introduction of mid-power LEDs in 2012-13, we were the first to launch products that used low-power and mid-power LEDs. Even in streetlights, we have introduced 440 V protection as well as external spike protection devices (SPD) for added protection.

EB: What are the challenges that you face while manufacturing LED products in India?

The main challenge for the manufacturers of LED lights is the investment in tools and moulds for the fixtures. China is very advanced in manufacturing aesthetically good fixtures as it caters to a global market so it can afford to invest on the tools needed for this type of manufacturing. Whereas in India, the return on investments made in tools is very low.

The second challenge we face in the LED business is having to compete with low cost Chinese LED lights, which are easily available in the Indian market. Despite their inferior quality, customers tend to get attracted by these products due to their low price compared to domestically manufactured products. Third, LED being a new technology, there are no standard specifications for the lights yet, which results in a huge number of product variants (in terms of wattage).

Nowadays, all government tenders ask for various test certificates, which cost manufacturers a lot (Rs 2.5 to Rs 4 lakh). Yet customers do not give any weightage to this most important feature of LED lights. Moreover, we then need to get all the tests redone and acquire new certificates for even small changes in the wattage. So spending on tests and certificates is a heavy investment.

We work with several challenges, which the government should take care of.

EB: Do government policies help in boosting LED product manufacturing in India?

The policies as such are not boosting LED product manufacturing in India the way they ought to have, but government agencies like BEE, EESL, MNRE, SECI, BIS, the Ministry of Power and various local urban development bodies are rigorously promoting LED technology. Some of these agencies are standardising the specifications of LED products to make it affordable, yet feature reliable technology.

The government is playing a major role in promoting LED technology by creating the demand. The government is the largest customer and the active involvement of its various nodal agencies will surely boost demand. The government keeps coming out with huge tenders, which automatically triggers the demand.

EB: Are you coming up with any new products this year?

With the lumen per watt increasing every year, it is quite obvious that we have to change the design of our products to achieve the maximum lumen/watt/dollar.

EB: What are your growth plans this year?

This fiscal year, we are aiming to cross the Rs 1000 million mark.

EB: What marketing and sales strategies do you follow?

We work through a close network of dealers and distributors in the retail segment. We are also associated with architects and electrical contractors for the industrial and commercial segments. We are closely working with several original equipment manufacturers (OEMs) to achieve volumes. For the solar segment, we operate through systems integrators.

EB: How do you contribute towards the development of the LED product manufacturing ecosystem in India?

Avni is one of the pioneers in LED-based lighting solutions. We started the trend in providing the best quality products at a very affordable price. We are educating at least 1000 customers every year about LED technology through our marketing network. This is creating awareness about LED technology among end users. So, we are contributing in creating awareness about LED technology.

EB: What LED products do you manufacture?

We offer innovative and cost-effective solutions, which include quality products, with zero defects, and we can deliver all this in the shortest possible time.

We offer a comprehensive range of LED lighting, which is available in different colours. Our company deals in and distributes indoor and outdoor LED lighting products. For indoor lighting applications, we offer down lights (square and round), corridor lights (square and round), tube lights, workstation lights, bulbs, MR-16, wall mountings, bay lights, home light luminaires, etc. For outdoor lighting, we have streetlights, high mast lights, flood lights, focus lights, bollards, gate lights and pathway lights. Besides, we also offer solar lighting products that include solar streetlights, emergency lanterns, study lamps, task lamps, home light kits and flood lights.