According to a recent report from the Electric Lamp and Component Manufacturers Association (ELCOMA), the Indian lighting market is expected to de-grow by INR 30 billion between years 2020-21 since the industry has faced slowdown due to the recent 2-month nation-wide lockdown followed by slow recovery rate. However, the association is also certain that Indian lighting industry can make a comeback through localisation as Diwali festivities bring back demand.
Affirming the industry’s potential to make a positive return, Shyam Sujan, Secretary General, ELCOMA shared “Although the lighting industry is currently facing a slowdown due to 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 LED market occupying 92% share of total lighting value. As the economy resettles, the step to localise 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' organised by Messe Frankfurt India, industry players gathered together to discuss the fate of the LED segment and the need for increasing domestic capabilities. Divyansh Gupta, MD, Kundan Edifice Pvt Ltd said, “The COVID crisis has been a real eye-opener to the LED industry. It is crucial for 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.”
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 – Light India & LED Expo (Mumbai & Delhi Editions) have played a key role in showcasing the transition from CFLs to LED, and now moving towards solar-LEDs, smart lighting and UV lighting innovations. Raj Manek, Executive Director & Board Member, Messe Frankfurt Asia Holdings Ltd. informed that as intelligent systems 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 the market demand.
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 recent call for 'Atmanirbhar' Bharat by Prime Minister Narendra Modi has brought focus on local manufacturing potential in the country. Localising 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 other sectors such as automotive, infrastructure, hospitality and health care (due to increasing need for UV disinfection). Manek concludes that localising LED supply chain will not only help in meeting festive demands but also kindle a new confidence among domestic manufacturers, urging them to carry on the momentum.
