By BizLED Bureau
Apr 8, 2016: In spite of the decline in the global economic outlook 2016, the Indian market has come out as a radiating encouragement for lighting manufacturers. Increasing domestic demands, stress on tariff-free, Made in India along with other prospects are encouraging manufacturers to be a part of the market.
Alternatively, there are still obstructions manufacturers require to conquer in the local market like familiarizing with the Indian culture, shortage of proper infrastructures as well as power cuts. All such factors present challenges in business operations and organization.
Opportunities and challenges
The government of India started its four-year LED bulb supplementary and connected policies in 2014. And by 2015, the government had subsidized in about 150 million LED bulb subsidies via different government projects and bids. However, the LED bulb tender cost has dropped to INR 72 per bulb from INR 310 (US $4.82) in 2016. Despite the plummeting bulb procurement rates, total volume of LED bulbs obtained by the central government has sustained to make the public sector tempting to the varied manufacturers across the globe.
The CEO of Forest Lighting India, Ita Lin has recognized the opportunities and challenges of the Indian market. He has opined that the LED bulb tenders of India will grow at a rate beyond 200 million bulbs per year by 2018. Well-known lighting brands and manufacturers of India have made a clarion call, and on the whole have got the major shares from government lighting tenders.
The entire lighting products that step into the local trade channels needs to be approved by the Bureau of Indian Standards (BIS), and products ought to get an energy efficiency tag of minimum three stars. However, lack of manufacturing equipment and infrastructure are accountable for making the local LED lighting business greatly dependent on LED packages.
Indian govt LED lighting tenders might go to Forest Lighting
The requirements are already the utmost global bulb specs, but a variety of factors are driving down costs in the local market with each passing day. It is predicted that by the second half of 2016, costs of LED bulbs will almost reach to INR 44 per bulb, the targeted cost as specified by the Power Minister of India, Piyush Goyal.
In an answer to the taxing demands of the Indian market, Forest Lighting has positioned its market plan of delivering LED package products chiefly to top three LED bulb manufacturers in the lighting tender market. In order to place itself in the Indian lighting market, the firm will launch Forest Lighting branded LED bulbs soon most probably, during the second half of 2016.