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Chinese players set to bag huge orders under Indian govt LED program

Chinese players set to bag huge orders under Indian govt LED program

By BizLED Bureau

April 24, 2015: In October 2014, the Indian government launched a massive energy saving campaign and ordered to replace 750 million tungsten bulbs, particularly streetlights, with energy-saving LED lights. This initiative boosted the morale of the domestic LED manufacturers, as they were hopeful of getting good business due to this campaign.

However, it seems that the Indian manufacturers will be disappointed, as they will once again lose out to the Chinese companies.

It is reported that the Chinese companies are set to bag a bulk order of the potential Rs 240,000 million worth of orders, as the domestic companies are not well equipped to meet this demand. Even the bigger players do not have the required manufacturing capacity, and most of them import from China. Even if they want to scale up manufacturing facility, it will take almost six months.

Industry analysts say that since LED lighting lasts for several years, the Indian market will be in the hands of the Chinese players for at least two years.

A HT report says that the order size can swell to about 2 billion bulbs, and with an average of Rs 120 per LED light, the business will be potentially be about Rs 240,000 million.

Praveen Khandelwal, the national general secretary of the Confederation of All India Traders (CAIT), told HT that if the Chinese players bag the orders, it would go against the Prime Minister’s ‘Make in India’ campaign. However, the tendering process is open to all players?big or small.


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