Fast-moving electrical goods (FMEG) maker Havells will soon stop manufacturing and selling compact fluorescent lamp (CFL) products as it wants to focus on light-emitting diode (LED) lights that contribute 75 percent to the lighting division’s turnover of Rs 10 billion as of March 2017.
Besides, the government is also promoting the use of energy-efficient LED products and encouraging people to shift from CFL. This, senior company executives said, will gradually lead to phase out of CFL lighting products from the market.
According to DNA, Anil Bhasin, executive vice president, Havells India Ltd said that the company will discontinue production of conventional and CFL lighting products. By the end of the current calendar year, conventional and CFL products will cease to exist from our bouquet of offerings. He added that Havells has already started the process of phasing out these products and converting existing CFL users to LED lighting products.
Bhasin shared that the government has levied 28 percent goods and services tax (GST) on CFL lighting products as against 12 percent on the LED. The government’s focus is also promoting usage of LED products across the country, be it for street light, flood light, industrial, office light or for that matter usage by household consumer point of view. Lighting industry in the near future will continue to grow faster because there is a huge untapped opportunity in the market. Every household using a conventional fixture is moving to LED as everyone wants to save money. There are many corporates who are our clients and we are aggressively pursuing them to change to LED purely for energy and money saving reasons.
Currently, the lighting industry is dominated by players like Philips, Havells, Bajaj, Crompton Greaves and Wipro. Some of the recent entrants in this space include Eveready, Orient, Usha, Syska, etc.
Growing at a rate of 12-13 percent annually, lighting industry in India is estimated at around Rs 90 billion. A late entrant in the lighting business, Havells claims to have captured 14 percent market share growing at a compounded annual growth rate (CAGR) of 25 percent over the last five years.
Having enhanced its manufacturing capabilities from five lakh lamps to 2.5 million lamps per month, the company is eyeing a leadership position in next couple of years. This, Ajay Saraf, business head – lighting, Havells India Ltd, said, will be achieved by offering an array of innovative products and strategic alliances.
