Having been in the LED manufacturing business for 25 years, Spectrum Techvision has gone through all the highs and lows of the industry. The company believes in offering end-to-end LED manufacturing solutions under one roof and supplies more than 20 variants of LED lights to the market at the moment — both as a brand and as an OEM supplier to certain Indian companies. In a conversation with Samonway Duttagupta of LED Bazaar, V. Sudarshan, managing director, Spectrum Techvision Pvt Ltd, shares his experiences of ‘making in India’ and talks about the industry’s future in the country
LB: You manufacture a wide range of LED lighting products. Which of these are in maximum demand at the moment and why?
We manufacture more than 20 variants in LED lighting at the moment. The products most in demand are the 7W bulbs and the 121.92cm tubelights. This is because most of our business comes from lights that are primarily for domestic applications.
LB: What about the demand in the B2B segment?
In the business-to-business segment also, tubelights are in high demand at the moment. But there are certain lights that are used as office fittings, like panel lights and troffer lights, which are in demand and also streetlights, to some extent.
LB: What are the challenges you face when manufacturing LED lights in India?
The biggest challenge is the people’s preference for low prices rather than quality. The cost of a product is the most critical factor in a buying decision. Most buyers come with a clear idea of the pricing but lack the technical knowhow of a product. However, if price is given higher priority, quality automatically suffers. At Spectrum Techvision, we never compromise on the quality. So we are always stuck in the middle of a battle between price and quality. That is a major challenge for us.
LB: Understanding that India is a price sensitive market, what can be done to ensure a balance between price and quality?
Imports, especially from China, are a major reason for the price competitiveness in the market, because they are cheaper. This is because there are very few manufacturers of these lights in India. If there was a more vibrant LED manufacturing ecosystem in India, this would not have been the case—the price war would have been almost non-existent. Hopefully, the ‘Make in India’ campaign will help in stopping the import of these low quality products. Once a larger number of companies start making in India and common standards are set for the quality of these products, like the Bureau of Indian Standards (BIS), this issue will be sorted out.
LB: Where do you source your components from?
The products we manufacture require both mechanical and electronic components. The mechanical components are easily available in India and having been in this business for 25 years, we have a strong local base from which we source these components. Even when it comes to the electronic components, a lot of them are available in India. However, there are some that we need to import. Several companies that are making these electronic components abroad have set up their offices in India, thus making it even easier for us to source them. It helps us avoid direct imports.
LB: How ready is India to manufacture these electronic components?
Right now, India is at a preliminary stage when it comes to manufacturing electronic components. Talking about LED lighting specifically, the technology is not new—it has been around for more than two decades. It is only in the case of India that the importance and acceptance of LED lighting have been felt just recently. The current demand for LEDs and the ‘Make in India’ campaign have together created a ripple effect in the complete value chain, as a lot of companies are seriously thinking of manufacturing these components in the country now. So India is eventually getting ready to manufacture these electronic components. At least there is a lot of movement within the industry—everyone can feel that this is the beginning of a bright future for India in the LED lighting segment. But it cannot be one-sided. It is very important for the government to focus on small and medium-sized enterprises (SMEs) that want to be a part of this industry and promote them by providing enough support for setting- up their manufacturing facilities.
LB: You have been manufacturing LED lights for a long time. How beneficial do you think the ‘Make in India’ campaign has been for the LED lighting industry?
The very words used in this initiative—‘Make in India’—have definitely had a considerable impact on the industry. But as I mentioned earlier, the threat is not internal; it is foreign imports that are spoiling the game for Indian manufacturers. One of the major factors giving these companies an advantage over their Indian counterparts is the volumes. Even experienced manufacturers like us have not been able to match the volumes produced by these companies. If we can match those high volumes in our country, we will be in a much better position than China. The government needs to intervene and support the ‘true’ entrepreneur, rather than create a uniform and rigid policy for the entire industry.
LB: What do you think of the LED lighting industry’s role in the government’s ‘100 smartcities’ initiative?
Since the importance of LED lighting is just being felt in India, the industry’s role in the ‘100 smartcities’ initiative is also at an infant stage. Besides, a lot of people still need to understand the importance of such an initiative. The government should take more steps to educate the people about the advantages of LED lights—live examples should be set up by the government for a deeper understanding of the technology and its benefits. Once the results of this initiative are in front of the people, the demand for LED lighting will automatically get a push.
LB: Is your company participating in this initiative?
To take part in these government projects, one needs to go through a tendering process, which we have not tried to do yet because the norms do not encourage any SMEs to get in. This is simply because it is never possible for SMEs to follow these stringent norms and sustain themselves at the same time. There needs to be a higher degree of flexibility provided by the government to allow smaller companies to get into the act.
LB: What steps should the government take to make the LED manufacturing ecosystem better in India?
The concept of single window interaction does not exist anymore. There is no way in which companies can approach the government and propose a plan or get answers to their questions. The government should act in a manner similar to what private banks do these days—they come to our doorsteps offering their services. The government should identify SMEs and walk into their offices to check and ask what else they need to manufacture more of, or how can they manufacture better. Besides, a lot of SMEs in India also have their own reservations about approaching the government as there is too much bureaucracy in the system. So the mindsets should change from both ends.
LB: How are the Indian lighting needs different from the needs of other countries?
The lighting needs to differ geographically, so they even vary within the country. These needs change every three to six months as customers want something new to come into the market. The turnover of these new kinds of LED lights is quick.
The customer is not concerned about the technicalities of these lights, as long as they are capable of slashing electricity bills. The other factor that is driving customer demand is the changes in form—in the look and feel of these lights, which happens frequently. So the challenge for any manufacturer lies in constantly bringing out new kinds of LED lights in the market, synchronised with the end user demands.
LB: How does Spectrum Techvision innovate to meet these different needs?
As I mentioned, we have been around since 1990. We have 25 years of manufacturing experience. Over all these years, we have evolved into a company that has its complete design facility, mould and die manufacturing facility and assembly testing unit—everything that makes a company an end-to-end manufacturing solutions provider in the field of LED lights. What makes us special is that we hardly depend on anyone else. That is our biggest strength; we are passionate about innovating, and hence bring out new products to the market all the time.
LB: Are there any unique products manufactured by you?
Unfortunately, in India, patent rights are not strong. Rather, I should say that the terminology is there but the rights hardly exist. The moment I show something to somebody and say that this particular product is unique, some other company will make a prototype of it and claim it as its own. The government should step in and make these patent rights so strong that if I make a unique product and claim it to be mine, no one else can make it or claim it to be his own.
LB: What is your current turnover?
In the current FY, we are aiming for a turnover of around ₹ 150-200 million. But according to the growth potential that we have plotted down for the coming years, the turnover will start to double, year on year. So it is a vertical growth instead of a gradual one that we are looking at.
