LED Lighting Industry Fuelling The Growth Of Capacitors In India

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Home-Splash_Led-Lighting_Sep-15With a growth rate that is always on the rise, the Indian LED lighting industry is expected to drive the demand for capacitors to a whopping 400 million pieces in the next two years

The Indian government has embraced LED lighting technology with open arms, be it the ‘100 Smartcities’ programme, the ‘Prakash Path’ project or even the ‘Make in India’ initiative. The impact has been felt even at the micro level, where people are lighting up their homes with LED lights. So, while the government is promoting this technology by distributing these lights at highly subsidised rates, people’s awareness of its eco-friendly benefits is also on the rise and they are now purchasing these lights for their homes. But with so much focus on the LED lights, a key stakeholder that often goes unnoticed is the supplier of LED capacitors, in spite of the fact that a capacitor is one of the most important passive components in an LED circuit. It helps in making the lights energy efficient.

Pushing the demand for capacitors

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The Indian government has set a target for the LED industry to manufacture 200 million lights in the next two years, which translates to 100 million lights in each year. Each LED light requires one to two capacitors in its circuit—this clearly indicates that about 300 to 400 million capacitors will be sold in the next two years. Anil Bali, vice president, Deki Electronics, gives us a deeper insight into this scenario. He says, “As a consequence of the government’s target and its inclination towards LED lighting, a lot of tenders have come out, which indicate that the number of LED lights manufactured in the next two years will surpass the target by huge numbers.”

Anil Bali
Anil Bali, vice president, Deki Electronics

Charting the path towards growth

This ambitious government target essentially includes 7W bulbs. However, there are two other types of lights which are also in demand these days—streetlights and downlights, in addition to the target that has been already set. There are only two types of capacitors used in these kinds of lights—metallised polyester and metallised polypropylene. So, this demand for capacitors will not only fuel the Indian manufacturing ecosystem, it will also bolster the country’s economy. These components are in constant demand and that, too, at a particular price. Bali says, “Since all these government tenders are being given out on the basis of a bidding process, it has become impossible for LED manufacturers to import these capacitors at such a short notice. So they are willing to source the capacitors from anyone who can supply to them immediately.” Deki Electronics is one of the Indian companies that is ready to meet this demand.
In fact, the target given by the government has opened up an immense opportunity for every Indian manufacturer of capacitors to step up their operations. After all, the skyrocketing demand for LED capacitors in the years to come might become too much for the current prominent companies to cater to.

Inspiration for new players

This phenomenon will probably inspire a lot of new Indian companies to manufacture capacitors. But Bali expresses his doubts, as he says that sourcing the new machines required for manufacturing these capacitors is expensive and might take time. This can delay the setting up of a manufacturing facility to an extent that might make it difficult for these new firms to contribute to the two-year target. The current momentum in the Indian LED lighting segment indicates that the demand for these lights will only rise in the next couple of years. In fact, consumers will acquire a deeper understanding of this technology as time passes, leading to its wider acceptance.

Key to success

Amidst all the opportunities emerging in the course of the LED lighting revolution, price plays a critical role. As Bali points out, “The price of L1 lights has fallen from ₹ 314 in the first tender to ₹ 69.76 in the most recent one. So there is a constant pressure for all stakeholders in the LED lighting business to operate in sync with this price competition. One of the proven ways to deliver products at a competitive price is to manufacture in volumes, hold stocks and be ready to supply whenever there is a requirement.”

A bright Indian future

In spite of certain hurdles, the LED lighting industry is expected to grow exponentially in the future—to the extent that India might become capable of even exporting LED lights to a lot of countries. According to Bali, the country could well become a manufacturing hub for LED bulbs and LED streetlights.

 

By Samonway Duttagupta

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