INDUSTRY AT A GLANCE •Lighting industry in India is seven decades old and has gone through a period of transition and growth •The industry has developed from being an importer of lighting systems to a self sufficient, indigenous producer of lighting systems •The lighting industry in India is growing at nearly 17 to 18% per annum over the last two to three years to an annual turnover of Rupees 7500 crores plus •Currently, the overall lighting industry is estimated at Rs36bn, of which CFL market is around ~ Rs19bn. •The CFL market in India is intensely competitive, featuring around 20 organized- and several unorganized-sector players •In India, Presently –1 out 5 Lamps is CFL •ELCOMA, is an Association of Electrical Lighting Manufacturers in India.
Strength  Regular Price Reduction Subsidies or reduction of duties on various raw materials More Govt. Initiatives Electricity cost savings by use of CFL A target of 100% CFL country by 2020


Opportunity  Growth in population and living standard Rapid growth in Real estate sector

Weakness  CFL is bit costlier than incandescent bulb or tubes Shortage in production of CFL Environmental threat posed by use of mercury in CFLs

Threat  Rapid growth in solar industry Cheap import from China and Korea Intense competition



600.0 500.0 400.0 300.0 200.0 100.0 144.0 0.0 2007-08

(In INR Bil) 42% 40% 28% 26% 26% 26% 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 199.0 2008-09 255.0 2009-10 321.3 2010-11 404.8 2011-12E 510.1 2012-13E 11.6 0.0 2007-08 2008-09 2009-10 2010-11 2011-12E 2012-13E 15.1 19.0 24.1 30.4 37.8 40% 30% 26% 27%

Life Cycle Stage Revenue Volatility Capital Intensity
26% 24%

Mature Medium Low Medium Medium Medium High

Regulation level Technology change Barriers to entry Competition level

No.Of Pcs(In Mlns)

Growth rate

Total sales (In Bln) Source: Elcoma Website, IIFL Brokers Report, Google

Growth rate

KEY DEMAND DRIVERS R Residential R Office R Retail Hotels  Increase in Urbanization and working populations High disposable income and aspiration levels Fiscal Incentives to house loan  India accepted as most attractive destination for IT and BPO services  Entry of global brands India ranked as second most attractive retail destination  Increased business travel both domestic and foreign due to buoyant economic growth and growing FDI PHASE OUT PLAN 2000 1500 India has set itself a target of being a 100 per cent CFL country by the year 2020.659 14.537 Crompton Greaves 100. print and electronic media Elcoma website carries information on Energy Efficient Lighting The Government is doing a great job through the Bachat Lamp Yojana and seeing that more people come into the CFL consumption fold KEY TAKE AWAYS HAVELLS 55.066 35. INDUSTRY INITIATIVE S  Regular (Qty. IIFL Brokers Report. the Indian real estate industry faces its own share of concerns Real estate companies are coming up with various residential and commercial projects to fulfill the demand for residential and office properties.291 71.648 11.660 38.189 17.483 2.469 4.502 12.635 29.756 EBITDA 2. Google This Industry has 6 Major players in India only in Lighting systems .690 the economy shows signs of decreasing GDP growth rate.092  As KEY PLAYERS FINANCIALS (In INR Millions) Sales Operating Income Net Income Total Assets Total Liabilities BAJAJ Elect 27. seminars. Million Pcs) 1000 500 0 CFL Incadescent price reduction One year warranty introduced to reassure of quality Exhibitions & Seminars Coordination with BIS on mandatory standards Regular interaction with Government to initiate awareness programs Subsidies or reduction of duties on various raw material VAT reduction to 4% throughout the country Awareness programs through exhibitions. which will further boost the booming lighting industry The cumulative street lighting systems in India is anticipated to grow at a CAGR of around 13% all through the forecast period Source: Elcoma Website.580 5.227 2.051 11.679 4.

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