NTL targets tier 2 cities for LED lights

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Noida-headquartered NTL Electronics India Ltd, which in 2012, teamed up with Lemnis Lighting of the Netherlands to develop and market sustainable LED lighting solutions for the end consumers, is extremely bullish about the growth of the LED lighting business in India. NTL Lemnis currently sells its products under the ‘Pharox’ brand. Indian LED Lighting market, according to NTL Lemnis, is growing at a rapid pace with a CAGR of around 42-45 per cent and is expected to reach Rs 17,400 crore in 2019-20 from the current level of Rs. 9,900 crore, said Arun Gupta, managing director, NTL Group.

Interestingly, the JV company NTL Lemnis designs, manufactures and markets energy efficient LED lighting solutions not only for India, but also for the global market, particularly Europe, Africa and Asia under the global brand from the Lemnis stable-Pharox.

“India’s LED lighting market is currently growing at a furiously growing pace on the back of governmental initiatives, which are likely to continue for another few years. State-run Energy Efficiency Services Ltd (EESL)'s remarkable initiatives to provide free LED Lamps in the rural areas and subsidized Lamps in urban areas are ensuring large-scale adoption of this technology across the country. The industry is witnessing a great demand in commercial projects & offices and this is further expected to add to the growth in the coming days. We believe that there is a massive growth opportunity for the next 5-10 years. The demand is likely to also be in outdoor (street & road) lighting,” said Gupta.

Significantly, according to the Centre’s UJALA program, as of now, more than 22 crore bulbs and CFLs have been replaced by LED lamps. In the Street light segment, as of now EESL has replaced 20,46,845(as on April 18, 2017) street lights across India and under the National Street Lighting Programme, a total of 35 million conventional street lights are to be replaced with energy efficient LED street lights.

Besides Pharox, which is gaining a strong foothold in the consumer segment now, the other key players in the LED lighting space include Philips, Wipro, Crompton, and Bajaj.

“Pharox is positioned as a sturdy global brand that combines performance with aesthetics. Since the brand has Dutch ancestry, we are already seen as a brand that is very quality conscious and has a certain premium-ness associated with it.

We tweaked our brand positioning a little to suit the Indian conditions. In India, we are today positioned as a global brand which offers premium-ness at value for money pricing. We continue to be seen as a robust, reliable and performance focused brand with a wide portfolio of offerings, encompassing all segments of LED Lighting for residential, commercial and industrial domains,” said Gupta.

NTL group, which at present, has 3 manufacturing units with a total capacity of nearly 5 million pieces per month (the overall industry’s installed capacity is nearly 30 million pieces a month), notched up a consolidated turnover of Rs 517 crore in 2015-16, of which 20 per cent came from the LED business. The company is now aiming for nearly 60-65 per cent of the total group turnover to come from LED lighting business.

Asked if the growth of solar business in the country would also push LED business in the country, Gupta said that the focus of the Centre (and the state governments) is shifting to renewables, with 100 GW of solar capacity to be installed by the end of 2022. The increased focus of the government to move towards sustainable lighting solution and growing concerns of the impact on the environment will lead people to eventually move towards LED technology. In the outdoor segment, there is a huge amount of activity happening in LED solar street lights, but currently the demand is more in tier II and tier III cities.

ritwikmukherjee@mydigitalfc.com

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