lighting industry2

8/7/2019 lighting industry2

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Presentation

on

lighting industry

Presented By:

SAGAR KUMAR G209080



Lighting industry in India is seven decades old and has gone througha period of transition and growth

The industry has developed from being an importer of lightingsystems to a self sufficient, indigenous producer of lighting systems

Industry turnover is around Rs. 7500 crores two years back andincreasing 17 to 18% per annum

China is the world largest exporter of CFL, with a share of 56 per cent of world exports in 2007 (or 75% if intra-EU trade is excluded)

Technological sophistication is still in its infancy stage



Lack of economies of scale in most units

High input costs of new materials & components resulting in noncompetitive prices and poor exports

CFL which offer significant energy savings are still notcompetitive, as incandescent lamps in the 25 - 100W range continueto dominate the domestic & commercial lighting

Over capacities have resulted in price wars & commission wars, profitability of players have eroded

Cheap imports from China and Korea a serious issue



Future outlook y

Due to ever increasing energy costs & growingenvironmental concerns CFL will be the order of theday (as it saves 80% on electricity bills)

yIncreasing energy, maintenance costs & seriousconcerns with respect to safety will result inElectronic Control Gear (ECG) replace conventionalBallast

y In FTL segment should shift to energy efficient tri- phosphor lamps of lesser diameter which isthe international trend



Annual Manufacturing Trends in India

by Lamps Category

Quantity (in million pieces)

y

Category 2005 2006 2007 2008 2009

y Incandescent Lamps 711 757 779 734 766

y Fluorescent Lamps 180 186 190 186 179

yCompact Fluorescent Lamps 67 100 140 199 255

y Special Lamps 10 14 17 21 18



Energy saving initiative

y The most commonly used incandescent lamps are of 100 W rating and cost around INR

10 to 13. Assuming that the 400 million incandescent lamps are of 60 W lets calculate theenergy savings when they are replaced by 15 W CFLs:

y Annual consumption by incandescents (8hrs/day) = 70 million MWh

y Energy consumption annually = 70 million MWh/ 8760 = 7990 MW

y

Annual electricity consumption by CFLs (8hrs/day) = 17.5 million MWh

y Energy consumption annually = 17.5 million MWh/ 8760 = 1997 MW

y Energy savings = 6000 MW or 0.05% of India's total energy demand.

y Since about 70 percent of the electricity in India is generated by coal-fired power plants,

6000 MW of savings means about 4200 MW of coal-powered generation prevented. The

Indian government believes that if everything goes as planned, this massive incandescent

replacement program will bring significant reduction in carbon emissions from the power

sector, helping achieve country-wide carbon intensity targets.



SWOT AnalysisSTRENGTHS

y Huge number of potential buyer.

y Affordable and quality product available in market

y Good consumption in household and commercial

y Powerful venture capitalist taking interest in investingin growth opportunity

WEAKNESS

y Poor electricity supply

y Lacking in latest technology.

y Lacking of technical professionals



OPPORTUNITIES

y Horizontal and vertical expansion of existing customer

base into new marketsy Upgrading infrastructure in corporate sector in india

y High demand of environment friendly products.

THR EA TS

y High Billing rates of electricity

y Political instability



THANKYOU

lighting industry2

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