India Now - page 36

S EC TORAL UPDAT E
L I G H T I N G
34
FEBRUARY-MARCH 2015
|
Country/region wise split of lighting
industry by technology for YR 2014
by value
ifications. In addition, imported LED
lamps should undergo rigorous tests to
prevent dumping of inferior goods in
the local market.
Opportunity Led Market
Elcoma expects stupendous growth of
the lighting sector in the next three to
four years. The segment will grow from
`
5,540 crore in 2014 to
`
25,920 crore
in 2020. “Investors in this segment
will benefit provided they enter within
the next six months to one year,” says
Sujan. The government allows foreign
direct investment (FDI) in the lighting
industry and there are currently several
MNC players in the market includ-
ing the LED segment. Japanese LED
manufacturers Toshiba and Panasonic
are among the top LED manufacturers
who entered the Indian market most
recently. Toshiba announced the set-
ting up an Indian manufacturing base
through its subsidiary GreenStar in
September 2014. The company is tar-
geting a CAGR of ~40 per cent over the
next five years to reach US$ 40 million.
Recently, Opple Lighting became the
first major Chinese lighting brand to
enter the Indian market. The company
is expected to roll out 30 large format
exclusive brand stores across the top
30 cities in the country in the next
three years. MLS Co Ltd from China is
another recent entrant and has started
operations in a big way by putting up
its manufacturing facility in India.
Government Incentives
The Government of India’s initiative to
electrify all rural households by 2020
under the rural electrification plan and
the spurt in automotive lighting will
be among the primary growth drivers
going forward. The Automotive Mis-
sion Plan 2006–2016 document has
estimated that the total turnover of the
automotive industry in India would be
to the tune of around
`
636,000 crore
in 2016, a substantial increase from
`
204,000 crore in 2006.
LED market is forecast to grow at a
rate of nearly 40 per cent. Investments
made by the government in infrastruc-
ture with plans to develop 200 low cost
airports connecting tier II and III cities
in 20 years, road and highway projects
worth
`
400 billion and the 100 smart
cities project among other initiatives
will drive the growth of the industry.
According to
India LED Lighting
Market Outlook to 2019 – Next Wave of
Growth Driven by Government Initia-
tives
, a report released by Ken Research
in February this year, the nascent LED
light segment has been growing at a
CAGR of 56.1 per cent in the last five
years. This report too lists government
initiatives, rising concerns with respect
to energy conservation and falling
prices of LED lights as major growth
drivers for the industry. A February
2015 report by 6Wresearch, titled
India
LED Lighting Market (2015–2021),
fore-
casts that the LED industry will grow to
US$ 2.2 billion by 2021. Streetlighting
is one of the key growing applications
in India’s LED lamp market, boosted by
the many initiatives of the central and
the state governments to deploy LED
bulbs at various locations. Pilot proj-
ects to replace traditional streetlights
by LED bulbs in a phased manner are
underway in various states and union
territories including Chandigarh, Delhi,
West Bengal, Maharashtra, Andhra
Pradesh, Gujarat, Uttarakhand and
Punjab. According to ValueNotes, in
terms of geography, northern and west-
ern regions of India will continue to
be the biggest markets for LEDs. The
southern region, however, is expected
to see the fastest growth, as with rapid
industrialisation and corporate develop-
ment in many southern cities, a lot of
new infrastructure projects have been
announced which will push the sales
for LED products.
ValueNotes also sees the share of LED
rising significantly, while incandescent
lamps will be gradually phased out. It
forecasts that the LED segment will
grow at a rate of nearly 40 per cent
in the coming years, which is more
than double that of the overall lighting
industry. The growing emphasis on
green buildings and smart homes will
also drive the sector’s growth, especial-
ly in outdoor and indoor applications.
Rising household demand fuelled by
the rapidly growing real estate market
is another factor that will drive the
growth of LED industry.
With lighting accounting for ~20 per
cent of the power consumption across
India, there is a drastic need to shift to
more energy efficient lighting sources.
LED promises to light the way.
(Based on interviews and secondary
research)
India
Brazil
Russia China Middle
East
Latam North
America
Europe
Incandescent
CFL
LED
Others (LFL, HID, Halogen, etc)
Source: ELCOMA, ValueNotes Research, McKinsey Report
100
80
60
40
20
0
66
%
60
%
69
%
59
%
68
%
59
%
58
%
55
%
9
%
9
%
10
%
18
%
10
%
9
%
14
%
15
%
17
%
20
%
12
%
17
%
15
%
21
%
16
%
18
%
8
%
11
%
9
%
6
%
7
%
11
%
12
%
12
%
1...,26,27,28,29,30,31,32,33,34,35 37,38,39,40,41,42,43,44,45,46,...68
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