Indian Lighting Industry

Towards a Brighter Greener India

Frost & Sullivan’s 2nd Annual Executive Congress on LED

Lighting

Delhi

November 16, 2011

2

Advantage India

02468

109.7 9

6.78 8.5 8.3

GDP Growth (%)

Robust GDP Huge Domestic Market

� 560 million consumers in 20-49 age

group expected by 2015.

� 5th largest consumer market by

2025.

� Increased disposable incomes &

changing lifestyles.

Expanding Infrastructure

� Infrastructure spend to be the biggest

thrust in coming years

� Investment in infrastructure in past five

years doubled from 4% to 8% of GDP

�US$ 1 trillion investment proposed for

2012-17.

Pro Investment Environment

� 100% FDI permitted in most

sectors under automatic

route.

� Several incentives to

encourage investment and

attract capital

Rich Human Capital

� Third largest pool of scientific &

technical manpower.

� Large English speaking population

� Over 380 universities (11,200 colleges).

� 1,500 research institutions and 9,000

PhDs.

� Over 200,000 engineering graduates

produced annually.

3rd Most

Attractive

FDI

Location *

Transparency

� RTI Act

� Corporate Governance

Initiatives

� Road Map for DTC, GST

* AT Kearney FDI Confidence Index, 2010

To Surpass Japan as

the 3rd Largest

Economy (PPP) in

2011

3

Golden Decade of Indian Electronics Industry

0

50

100

2009 2010 2011 2012

51

.1

65

.1

81

.1 96

.5

29

.4 36

43

.8 53

.4

Re

ven

ue

s ($

Bil

lio

n)

Indian Electronics Market Revenues, 2009-

2012

TM

TAM

0

100

200

300

400

500

2015 2020

17

3.7

44

1.3

10

1.7

32

8.1

Re

ven

ue

s ($

Bil

lio

n)

Indian Electronics Market Revenues, 2015,

2020

TM

TAM

TM growth rates to

continue;

Electronics

manufacturing

policy to boost TAMContribution to Global Industry to touch 15 percent

4-5 Electronics Clusters ; Labs to Fabs comprehensive Infrastructure

2-3 Semiconductor Fabs; Developed Ecosystem

Designed, Developed and Made in India Electronic Products to Rule the World

India to be the hub for Electronics Design and Manufacturing

20

20

: In

dia

’s

Ele

ctro

nic

s In

du

stry

Solar

Wireless

LED Nano

Technology

Automation

4

India Lighting Industry Overview

Indian Lighting Industry

Category 2010 Revenues ($ Million)

Lamps 929.26

Luminaires /

Fixtures488.90

Gears, Drivers

& Controls310.00

Total 1728.16

Source: Frost & Sullivan

45.5LED

26.6HID

17.9Fluorescent

(14.8)Incandescent

Growth TrendCAGR

2010-2015 (%)

Segment

Source: Frost & Sullivan

• Price Advantage & Brand Image are crucial competitive

factors in the highly competitive Indian Lighting Market.

• LEDs are garnering significant interest and playing a vital

role in LEED certified buildings in India.

• Bureau of Energy Efficiency (BEE) working with Lighting

associations to define standards, testing protocols and

certifying parameters for different lighting applications.

• Star rating labels to be made mandatory for

luminaires/lamps for indoor commercial and outdoor lighting

applications.

Indian Lighting Market

expected to grow at 12-

15% CAGR from 2010 to

2020.

LED Lamps & Luminaires

exhibit strongest growth

trends among all lighting

technologies.

5

India LED Lighting Market

The revenue growth is attributed to the implementation in Street Light applications and the

steady demand from the Railways sector. Demand from the Street lighting applications and

Railways sector constituted over 60 percent of the total demand in 2010.

CAGR

Till 2015 Till 2018

45.53 % 47.76 %

Total LED Lighting Market: Revenue Forecast (India), 2009 - 2018

0

200

400

600

800

1000

1200

1400

1600

1800

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Year

Reven

ue (

$ m

illio

n)

0%

10%

20%

30%

40%

50%

60%

Gro

wth

Rate

(%

)

Revenues (in $ mil lion) Growth Rate (%)

$73.3M

$1.66B

6

0.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1400.00

1600.00

1800.00

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Re

ve

nu

es

($ M

illi

on

)

Indian LED Lighting Market: Revenue Forecasts by Applications (2009-2018)

Others

Automotive

Streetlight

Railways

Industrial

Outdoor

Indoor

Demand Areas

Street Light, Railways

- Short term Target;

Automotive, Industrial

and Outdoor - Long

term

7

Drivers & Restraints

Huge Energy

SavingsGovernment

InitiativesDesign Flexibility

Cleanest and

Green lighting

technology

Least total cost

of Ownership

Operational life of

white LED lamps is

100,000 hours; Av. life

of an incandescent

bulb is just 1000 hours.

A building’s carbon

footprint from lighting can

be reduced by 68% by

replacing all incandescent

lamps with LED lamps.

Standards Definition;

Setting up of Testing

Centers; Influencing

adoption in Government

buildings and for Street

Lights

Despite high initial cost,

LED lamps have longer

life and need minimal

maintenance.

High Initial

investment Lack of Standards

Economies of scale

hinders local

manufacturing

Competition

from sub

standard cheap

imports

Once standards are

defined, adoption rates

shall increase across

users and this will drive

up the EoS.

The absence of standards for different type of LED

lighting products is restricting adoption through

prevalence of sub standard products.

The price of LED lights are

4 times more than

conventional lighting

technologies.

Sub standard Chinese /

Taiwanese imports are

flooding the market and

are bought increasingly

because of their low cost.

Re

stra

ints

Dri

ve

rs

8

Opportunities Galore

Short term & Long term opportunities in different applications

Rev

en

ue

Period of Impact

Short Term2011

Long Term2020

High

Low

Medium Term2015

Medium

Source: Frost & Sullivan.

Railways

Government Buildings

Street Light

Automotive

Residential

Industrial

Commercial

9

High Potent Applications for the Short Term

Railways – Signals,

Displays

Street Lighting – On

Grid

Hotels / Restaurants

– Outdoor -

Architectural

Industrial – General

Purpose

2015

CAGR 47.5%

Rev $262.4 M

2015

CAGR 47.5%

Rev $34.4 M

2015

CAGR 47.5%

Rev $22.5 M

2015

CAGR 47.5%

Rev $36.7 M

Application Product Type Market Potential

10

High Potent Applications for the Long Term

Hotels / Restaurants

- Indoor

Street Lighting – Off

Grid

Automotive

Shops / Malls -

Indoor

2018

CAGR 51.8%

Rev $58.9 M

2018

CAGR 48.9%

Rev $56.8 M

2018

CAGR 42%

Rev $121.6M

2018

CAGR 45.8%

Rev $40.7 M

Application Product Type Market Potential

11

The Path to Success for India’s LED Lighting Industry

Defining Standards

Encouragement for Indigenous Manufacturing

Ecosystem Development

Influencing Adoption

Government and Industry together Hold the Key to Success

12

For more Information…..

Frost & Sullivan’s report on the Indian LED Lighting Market – the

only exhaustive market analysis report on the Indian LED Lighting market.

Thank You!