India’s new government’s initiative to push usage of energy saving bulbs is looking to provide cash benefits for manufacturers of LED lights, with the sector expected to reach INR 20,000 crore by 2020.
Manufacturers of LED lights are looking to cash in on the opportunity arising out of the new Indian government’s initiative to push usage of energy saving bulbs and said they expect the sector to reach INR 20,000 crore by 2020.
According to the Electric Lamp and Component Manufacturers Association (ELCOMA), the government’s initiative could help propel the industry to grow five-fold in five years from its current size of INR 4,000 crore.
“As per the ELCOMA vision, LED bulbs market would grow to INR 20,000 crore by 2020 from an estimated INR 4,000 crore in 2014. This has been driven by government initiatives of phasing out inefficient lighting sources such as incandescent bulb, tubes and halogen lamps,” Havells India President Sunil Sikka said.
Sikka, who is also President of ELCOMA, said Havells is moving swiftly towards LED (light-emitting diode) based products.
“Almost 40 per cent of our luminaire manufacturing has been changed to LED and we expect this transition to be faster in the coming year,” he added.
According to Philips Lighting, government’s initiative will have an enormous impact in providing India with an energy efficient lighting source.
“This programme will help consumers make the shift to LED lighting and for them to realise the benefits and power of LED lighting. We believe that this initiative for LED based home along with the street lighting will have a great impact in providing our nation with an energy efficient lighting source,” said Philips Lighting Head – Marketing – Sumit Joshi.
Expressing similar views, Surya Roshni, Managing Director Raju Bista said that apart from promoting LED bulbs for house lighting, the government has decided to change all street lights and lights in public spaces to LED lights and initiated making all LED specifications. The growing demand would also boost the ‘make-in-India’ initiative.
“It would also help and support Prime Minister Narendra Modi’s ‘make-in-India’ campaign as companies would manufacture locally here,” Bista said adding that the company is looking at INR 500 crore from this segment in the next two to three years.
C K Birla Group firm Orient Electric has also expressed similar views, saying government support would help consumers adopt LED technology and be benefited by it.
“We have geared up to switch more than 50% of our production capacity from CFL to LED. We have started producing LED Lamps and will be reaching 9 lac LED lamps per month by the end of February 2015,” said Orient Electric Sr Vice President and Business Head – Lighting Puneet Dhawan.
According to Bista, the present government has taken steps to reduce energy consumption by 13% in the lighting segment by 2019 which at present is at 18%, amounting to 1,900,00 MW.
“Energy Efficiency Services Limited (EESL) and the ministry of power are working hand in hand with industry to bring this transition and ensuring that all government procurement of LED is made in India, helping the industry to move faster,” Sikka added.
The company has manufacturing units at Neemrana in Rajasthan and sells LED lights in India under the brand name Havells and Sylvania in Europe and Latin America.
“The industry feels by extensive use of LED products, this (lighting energy consumption) shall come down to a level of 13% by 2020, which shall be comparable to developed countries. Other than the reduction in energy consumption, it shall help to reduce global warming and save precious natural resources like coal and oil,” Bista said.