By EB Bureau
Monday, December 30, 2013: Though the LED lighting industry in India is expected to touch a turnover of US$1.3 billion by 2018 (a CAGR of 47.3 per cent between 2011 and 2018), none of the indigenous manufacturers of LED lighting seem to be benefiting from this growth. This clearly indicates that the demand is being met either through imports or by the MNCs that do not manufacture in India. Most of the indigenous manufacturers of LED lighting are currently making losses or marginal profits. This is because of the low business volumes compared to the establishment costs and inventory obsolescence, feel industry experts.
The low volume of manufacturing in India is a major reason for the low profits manufacturers earn. The delays in government decisions on projects and low consumer awareness are other reasons for low profits, leading to higher product costs for the consumers.
A survey done by Electronics Bazaar found that the consumers prefer the bigger brands like Wipro, Philips, Havells, Osram and Halonix. Why have the indigenous manufacturers failed to create a strong brand presence? Why have they still not been able to gain the confidence of the consumers?
