Reconnecting Business Networks

The return of LED Expo Mumbai edition from 20 – 22 May 2021 will once again be a hotspot for the LED sector, where businesses can securely explore new innovations and renew their business connections, while collectively strengthening the LED supply chain

LED Expo Mumbai edition from 20 – 22 May 2021

The increasing preference towards energy-efficient electronics and rise in infrastructural activities is bringing growth in the LED segment. India’s goal to achieve ‘100% household electrification’ combined with the initiative for affordable housing will also provide a fillip to India’s lighting sector in the coming period. While future demand is ample, the LED producers need to nurture a strong and well-integrated supply chain to outperform their competitors and gain influence in the market.

The previous LED Expo (2019) edition brought together 295 exhibitors and 10,221 business visitors from across India; 4,527 were from the state of Maharashtra alone. The platform enabled players to share knowledge, build new networks, and reconnect with the industry players. Around 90% visitors comprised key decision makers such as entrepreneurs, co-owners, personnel from the top-management, as well as those heading the central management. Exhibitors were able to generate key leads and build lucrative connections. The fair also enabled visitors to expand their industry connections, resulting in an integrated network of 12,18,393 second-degree connections – all of which speaks volumes about the influence of the platform.

As India’s well-known exhibition that covers the entire value chain of the LED industry, the LED Expo has played a crucial role in keeping the LED supply chain knit together. As per a survey conducted by organizer Messe Frankfurt India, it was found that 88% of decision makers rely on exhibitions to make purchase decisions and 92.6% buyers affirmed that touch and feel of products, along with face-to-face interactions influenced their decisions.

LED Expo Mumbai edition from 20 – 22 May 2021

Opportunities for domestic LED and lighting manufacturers
With the Indian government pulling the plug on LED imports, domestic manufacturers have a massive opportunity in their hands to expand their footprint in the market. LED exporters offering products at cheaper price have hitherto dominated the Indian market outselling even local businesses.

According to a recent report from the Electric Lamp and Component Manufacturers Association (ELCOMA), the Indian lighting market is expected to de-grow by Rs 30 billion between the years 2020-21 since the industry has faced a slowdown due to the recent nation-wide lockdown, followed by a slow recovery rate. However, the association is also certain that the Indian lighting industry can make a strong comeback through localization.

Affirming the industry’s potential to make a positive return, Shyam Sujan, Secretary General, ELCOMA, shares: “Although the lighting industry is currently facing a slowdown due to the global supply chain disruption, the industry is expected to bounce back stronger by gaining 5% year-on-year growth in the next three years, with the LED market occupying 92% share of the total lighting value. As the economy resettles, the step to localize the supply chain will definitely strengthen the industry and eventually help us become one of the major players in the global lighting segment.”

Even though a majority of LED assembly plants operate in India, a huge chunk of LED lights, tubes and chips are still being imported internationally, depicting the segment’s major dependency on imports. During a webinar on ‘Impact of Covid-19 on lighting industry’ organized by Messe Frankfurt India, industry players discussed the need for increasing domestic capabilities. “The Covid crisis has been an eye-opener for the LED industry. It is crucial for the Indian LED segment to encourage local manufacturers to start in-house production of goods and materials in order to make our supply chain self-reliant,” commented Divyansh Gupta, Managing Director, Kundan Edifice.

Innovation is the key to growth in every segment including the lighting industry, and Messe Frankfurt India’s building technology portfolio, which includes the country’s leading lighting fairs, have played a key role in showcasing the transition from CFLs to LEDs, and now moving towards solar-LEDs, smart lighting, and UV lighting innovations.

“As intelligent systems gradually gain the attention of modern consumers and advancements such as wireless, sensor-based and solar-based smart lighting, as well as enhanced technologies like Light Fidelity (Li-Fi) now coming up, this is the right time for sector players to strengthen their supply chains to meet market demand,” says Raj Manek, Executive Director & Board Member, Messe Frankfurt Asia Holdings Ltd.

LED Expo Mumbai edition from 20 – 22 May 2021

Even on a national scale, the rapid adoption of energy-efficient street lighting systems, development schemes and upcoming smart building projects initiated by the government offer inordinate opportunities to domestic manufacturers to produce complete LED products within India. The ‘Make in India’ initiative and the recent call for ‘Atmanirbhar Bharat’ by the PM has brought focus on local manufacturing potential in the country. Localizing LED supply chain will be a prominent step as it will not only eliminate import costs, but also help India transform into a major exporter of LED goods in the coming years.

Apart from conventional lighting applications, LED technology is crucial for many major sectors such as automotive, infrastructure, hospitality, and health care (due to increasing need for UV disinfection). “In the current scenario, localizing LED supply chain will not only meet demand but also kindle a new confidence among domestic manufacturers, urging them to capitalize on the momentum,” observes Manek.

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