Sep 15. 2016: With the aim to replace traditional street lights and residential lighting with LEDs across India by March 2019, the Indian government seeks to procure 200 million LED bulbs through open bids in 2016
Surprising the entire industry,Philips has quoted as low as $0.57(Rs38) for a 9W light bulb at the last open bid held in March 2016. Philips’ bid price is 30.8% lesser than the procurement price of $0.82(Rs 54.9), industry sources said.
Philips bids Rs 38 to bag Indian govt’s LED bulb order
India is looking tocut procurement price from $4.5 (Rs 300) in the third-quarter of2015 to $0.66% ( Rs 44). With the recent bounce back of LED device prices, procurement cost for an LED light bulb was likely to fall to the mark of $0.66% in thefourth-quarter of 2016. However, Philips has already quoted $0.57 to win the procurement orderof 50 million LED light bulbs.
Taiwanese LED epitaxial wafer and chip manufacturer, Epistar and Chinese LED makerMLS havecooperate to export LED devices for being assembled in India. They have also cooperated with Indian assembling partners to compete in the open bid. However, since Philips has offered such a low price, the competition already seems tough for other players.