Professional Documents
Culture Documents
LED Lights
Project Concept 3
Market Potential 6
Growth Drivers 7
Gujarat Competitive Advantage 9
Project Information 10
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key and Emerging Players
- Key Considerations
Project Financials 16
Approvals & Incentives 18
Key Department Contacts 19
Page 2
Project Concept
Page 3
Project Concept
Cost
comparison
Incandescent
Parameter LED CFL
bulb
Life span (hrs) 50,000 10,000 1,500
Cost of usage for one hour @INR6/kWh - INR 0.036 0.084 0.36
Cost of usage for 50,000 hours (A) - INR 1,800 4,200 18,000
LEDs are clearly more energy efficient, long lasting CFL is ~2.2x ICL is ~8.3x
and economically viable than their conventional more expensive more expensive
counterparts than a LED bulb than a LED bulb
*Note: A 6W LED, 14W CFL and 60 W ICL will all emit 800 lumens respectively If calculated over the life cycle of the LED bulb
Page 4
Project Concept
Page 5
Market Potential
*Note:*ELCOMA is the apex body of lighting manufacturers in India which liaisons with govt agencies & supports lighting industry in
India.
As per the official estimates, Use of LEDs in households and public lighting could reduce energy
consumption by 50% to 90%.
It is expected that if 770 million incandescent bulbs sold in Indian households were switched to
LEDs, the country could save 25 billion KWh (units) of energy per year.
Prime Minister Narendra Modi launched LED household and street lighting program, Prakash
Path (way to light) on Jan. 5, 2015 which has led to adoption of LED efficient lighting systems.
Page 6
Growth Drivers
Demand-side drivers
Energy efficient Smart Cities Project
LEDs unique design makes them 90% more The GoI has envisioned a goal to build 100
efficient than incandescent sources. At that smart cities (renamed Smart Cities Mission)
rate, LEDs can significantly reduce annual and rejuvenate another 500 cities in India.
home lighting energy bills to a very large The government is looking towards more
extend as compare to other lighting. energy efficient solutions to light up cities.
Make in India campaign was launched in 2014 to attract investments in manufacturing in India.
The campaign aims to develop India as a manufacturing hub, by eliminating redundant regulations
and shortening bureaucratic processes. The initiative is expected to benefit the electronics industry
as significant investments are expected in the next two to three years.
LEDs has extra-long lifespan, shining on for Government schemes like Ujala scheme,
years and even decades beyond traditional Domestic Efficient Lighting Programme
light sources. LEDs can survive up to three (DELP) and Street Light National
times longer than compact fluorescent, eight Programme (SLNP) are strongly supporting
times longer than halogen, and a whopping the cause by distributing subsidized LEDs.
25 times longer than incandescent bulbs. The cost has been reduced to INR250-300.
Supply-side drivers
Preferential Market Access The GoI launched PMA policy in 2013 to focus on giving preference to
(PMA) locally manufactured electronic products in Government procurement.
Electronic Development In December 2015, the GoI announced a special EDF worth INR100
Fund (EDF) billion to help develop an R&D ecosystem in electronics in India.
Page 7
Growth Drivers
The increased
The same will be available compliance norms will
to LED-based solar lighting It has also decided to phase arrest the dumping of
system, further increasing out 60W ICL in 2016, Chinese sub-standard
their affordability and followed by 40W in 2017 LEDs and will promote
adoption uptake of locally
manufactured products
*Note: The STAR rating system would be mandatory from 1 Jan 2017 and needs to be adhered before 31 Dec 2018
Page 8
Gujarat - Competitive
Advantage
Ease of doing Established Flourishing
business/ Policy infrastructure economy
support
Gujarat is ranked first in Located on the west coast Gujarat contributes 7.2%
ease of doing business of India, Gujarat is well of the Nation GDP and
as per DIPP report connected to the major shows leadership in
2015. cities of the India and to many areas of
the rest of the world by air manufacturing and
Only state with 100% and sea routes. infrastructure sectors.
compliance with Gujarats GSDP (Gross
environmental The state has 40 ports, 13 State Domestic Product)
procedures. domestic airports and 1 at current prices
international airport in registered a growth of
Gujarat ranked No.1 in addition to an extensive rail
e-transactions for 11% during the year
and road network. 2014-15.
government services
Gujarat is the one of the Gujarat has attracted
Gujarat was ranked No.
power surplus states in the cumulative FDI worth
1 in terms of setting up
country. This helps it in US$12 billion from April
a business, allotment of
attracting huge amount of 2000 to March 2015.
land and obtaining a
investment from the
construction permit. Gujarat contributes
industries and tagged as
Encouraging Start up around 19.1% to Indias
preferred investment
and Electronics policy total exports of goods in
destination in the country.
of State. 2014-15.
Gujarat Chief Minister Anandiben Patel launched the Central governments Ujala Scheme
according to which domestic consumers will be provided LED bulbs at a subsidised rate
of INR80-85 per piece. Till now 1.07 Cr bulbs has been sold at the subsidize rate in Gujarat.
Page 9
Electronics and IT SEZ
in Gujarat
IT/ITeS and electronics regions
Gujarat Government enacted the Special investment regions (SIR) act in 2009 with the objective
of creating large size investment regions in the state and develop them as global hubs of
economic activity supported by world class infrastructure.
The state has three SIRs for electronics manufacturing.
SEZ are special duty free enclaves for the purpose of trade. These zones are self-contained and
integrated, having their own infrastructure and support services. Apart from state-of-the-art
infrastructure and access to a large skilled work force, the SEZ also provides enterprises with
attractive incentives.
The state has one electronics SEZ at Gandhinagar and 14 IT/ITeS SEZs - six at Ahmedabad,
four at Gandhinagar, three at Vadodara and one at Valsad.
Ahmedabad
Gandhinagar
Viramgam
Halol-Savli
Vadodara
Tourist Navlakhi
Electronics SIR flow*
IT/ITeS SEZ
Electronics and IT/ITeS SEZ Valsad
Project location
Vatva industrial estate and adjoining areas in Ahmedabad district are appropriate location to
establish an LED manufacturing plant.
The site is owned and managed by Gujarat Industrial Development Corporation (GIDC) and falls
under Ahmedabad district. DMIC**
Page 11
Project Information
Infrastructure availability
Logistics & connectivity
Rail Road
Vatva has access to broad gauge Vatva is located on Delhi Mumbai Industrial
railway network from the following Corridor (DMIC). DMIC is intended to be the
railway stations: manufacturing hub serviced with world class
Ahmedabad railway station: 10 Kms infrastructure.
Vadodara railway station: 106 kms It also has a very good connectivity with other
cities of the state such as Vadodara and
Surat.
Air Port
Utilities
Water Power
Gas
Gujarat State Petroleum Corporation (GSPC) is the gas supplier to the site through a well
established pipeline.
The company needs to directly apply for gas to GSPC.
Page 12
Project Information
Manpower requirement
Departments Executives
Administration (3) General Manager (1) , Secretary (2)
Human Resources (9) HR Manager (1), IMPEX/Delivery and Shipping (2), Nurse
(2), Security Guard (2), Warehouse Keeper (2)
Financing (5) Finance Manager (1), Accounting Clerk / bookkeeper (4)
Marketing (3) Sales Manager (1), Planner/Buyer (2)
Production (50) Production Supervisor (2), QA Inspector (2), Line/Facility
(8), Technician, Process Engineer/R&D (2), Non-Skilled
Total - 70
Worker (34), Material Control and Finish Goods Handler (2)
Page 13
Project Information
Miscellaneous equipment
1 Alarm System 12 Air conditioner
2 Bundy Clock 10 Chair
10 Desk 10 Computer with printer
1 Photocopying Machine 2 Telefax
12 Telephone Office Supplies
20 Fire Extinguisher 10 Exhaust Fan and Smoke Detectors
15 Smoke Detector
Page 14
Project Information
Lamps, Tube Lights, Down Lights, Panel Lights, Strip Lights, Multibox Lights,
Track Lights, Moisture Proof Lights, Flood/Beam Lights, Hi-bay, Tunnel Lights,
SYSKA
Industrial Lights, Portable Lights, Corn Lights, Street Lights, Garden Lights
Black/White, Garden / Wall Lights, Parking Lights
Lamps, Night Lamps, Down Lights, Panel Lights, Spot Lights, Tube Lights,
Oreva
and Street Lights
Bulbs, Panel Lights, High Bay Lights, Street Lights, Down Lights and Tube
Moser Baer
Lights
Lamps, Spot Lights, Battens, Decorative luminaries, Down Lights, Strip Lights,
Surya
Street lights, Facade lights, High-bays luminaries and Linear Lamps
Page 15
Project Information
Key considerations
Non-standard ratings
Ratings of electrical equipment are not standardised and all utilities follow
their own standard ratings.
To meet their requirements, manufacturers have to constantly modify the
design and spend resources in redesigning, etc. moreover, testing of
such electrical equipment is also time consuming and costly.
Access to Technology
Technology expertise is one of the most critical challenge faced by the
Indian LED manufacturers.
Leading OEMs are unwilling to transfer cutting edge technologies with
limited management control in the Indian entity.
Even in case of Tier-3 suppliers the established companies are reluctant
to transfer the technology.
Page 16
Project Financials
Project specifications
Project specifications Details
Land requirements for the facility* 50 acre
Number of LED units produced annually** 2.57 Cr
Direct employment generation 2,000
Approximate cost required for setting up a plant* INR500 Cr
Average selling price of LED bulb INR300
EBITDA margin (LED Industry)*** 12.00%
*The land requirement and average cost of setting up of the plant (alongside the employment
generation) has been considered based on the recent proposal of Telangana LED plant.
**The total annual units production has been calculated by dividing the total annual revenue of
lighting segment by average cost of LED bulb.
***The EBITDA margin has been calculated by averaging the top LED manufacturers figures.
Page 17
Project Financials
Page 18
Approvals & Incentives
Approvals
Industrial approval
Secretariat For Industrial Approval(SIA), New Delhi
Land for project
Allotment of plot/shed in Industrial Estate from GIDC
Environment clearance
No Objection Certificate from the Gujarat Pollution Control Board
Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
Page 19
Ministry Of Electronics And Information Technology
http://meity.gov.in/
India Electronics & Semiconductor Association
http://www.iesaonline.org/
Department of Science & Technology, Government of Gujarat
http://www.dst.gujarat.gov.in
Gujarat Industrial Development Corporation
www.gidc.gov.in
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.