July 7, 2016: Following the increased demand for its LED lighting and fans, C K Birla Group firm, Orient Electric is set to expand its business by 20-25% this fiscal. With the Indian government’s push to use LED lighting through its Unnat Jyoti by Affordable LEDs for All (UJALA) scheme to reduce power consumption, the company has witnessed a huge demand from domestic customers and related industries, an Orient Electric spokesperson said. Hence, the company is growing its fans and LED lighting business in a huge manner.
Growing ESSL demand
Apart from increasing demands from industries and domestic consumers, the company is also witnessing growing demand from Energy Efficiency Services (EESL), a project of the Power Ministry. Such developments can be viewed as a great opportunity for the company to grow its LED light division. The spokesperson further said that Orient Electric, which clocked income of Rs 1,200 crore last fiscal, is aiming 20-25 percent expansion in top line in 2016-17. The company is also witnessing a vast demand for replacing street lights.
For its fans, the company has introduced aerodynamically-designed wider blades along with an advanced motor that needs just 48 W for higher air delivery even at low voltage. The company is expecting a rising demand for this product since it saves a great deal of energy.
Orient Electric to expand LED business by 20-25%
The company has also been investing in its tubelights segment and will soon launch more energy-efficient products. Orient Electric will be introducing LED modules in the tubelight divisions as well. At present, they have a capacity of one lakh tubelights when the market requirement is only 30,000 units. The company will however, boost the capacity of LED lightings, the spokesperson said. At present, the LED bulbs market is about Rs 1,500 crore where Orient Electric enjoys almost 8-9% share.
Orient Electric plans to boost its reach in global markets with the energy-efficient products. At present, exports contribute almost 5% of the sales, but now the company is looking to hit 10%. This is almost an Rs 30,000-crore market. Since the company recently ventured into the street-lighting segment of LED, it is expecting to attain 5-6% share within the next two years.