January 29, 2015: With LED applications increasing significantly in India, it is impacting businesses of companies who are into CFL and florescent lights. Leading lighting player and electrical goods maker Havells India has reported 4% decline in standalone net profit, with the third quarter closing at Rs 116.21 crore while sales rose by 5% to Rs 1,236 crore.
On the other hand, Eveready, which has recently penetrated in LED lighting business, has benefitted from the growth of its LED business. LED lighting sales grew handsomely by 63%. However, Eveready?s CFL business grew by 20% during the December quarter.
”Havells has been very aggressive in launching new products in LED and thereby improving its positioning in the premium lighting segment. However, traditional lighting continues to be substantial part of lighting division and its de-growth impacted overall growth of the segment,” the company said in a press release.
Now, Havells and Eveready, like other lighting players in India are betting big on LED business, enhancing their LED lighting products significantly.
The growth of LED lighting market is mainly due to sharp drop in its prices as well as marketing push by the retailers, who are encouraging consumers to shift to LED lighting. Prices of LED lighting products dropped by 30% in the last one year. Moreover, with drop in prices, payback for investments in LED businesses, particularly in lighting commercial spaces like shops and factories, has come down significantly. Industry insiders believe that demand for LED lighting will continue to grow by about 60%.
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