Greentech Lead India: Philips Lighting India is actively pursuing innovation in LED lighting. Currently, the higher price of LED is preventing its mass adoption in countries like India. Philips and other LED leaders are investing hugely in R&D efforts aimed at reducing the price of LED.
Greentech Lead recently had an interaction with Sumit Joshi, senior director, Marketing, Philips Lighting, India, to discuss the overall trends and opportunities in LED lighting in India.
Our interaction follows:
What are the key challenges that prevent massive adoption of LED lights?
The LED Lighting technology is on its way to become the most preferred form of lighting over the years. The technology is rapidly getting acceptance in India across both professional and home segment. The major challenge that this technology faces is its perceived higher cost. LEDs are perceived to be expensive as their initial cost is much higher compared to the traditional lamps but in the long run, LEDs prove to be much more economical considering the energy savings and long life and the reduction in maintenance & replacement costs. At the same time, the industry and Philips are investing heavily in R&D to offer LED-based lighting solutions at a more affordable price for the consumers.
What are Philips’ focus areas in energy efficient lighting? What are the major products in this category?
The lighting industry is undergoing a major transformation with energy efficient and LED lighting solutions. As the worldwide market leader in lighting, Philips is focusing on developing innovative and sustainable lighting solutions. Philips provides advanced energy-efficient solutions for all segments: road lighting, office & industrial, hospitality and home – and has been instrumental in enhancing sustainability through innovations in lighting technology.
Philips offers a broad range of full-featured, energy-saving light products and solutions that reflect the best in energy saving technology available today, including the world’s most energy efficient halogens, TLs and high-quality compact fluorescents (CFLs), LEDs, etc. The green solutions offered by Philips reduce costs, energy consumption and CO2 emissions.
What are the major customer segments/industries that can adopt LED and energy efficient lighting technologies in a cost effective way? Why?
Currently, the industrial or the professional market is much bigger than the home segment for LEDs in India. The LED technology has gained a lot of importance in the professional segment in the form of street lighting, retail lighting, stadia lighting and workplace lighting. This technology has helped the establishments save a lot of energy and cost by using the LED light fixtures. Philips already has several success stories of LED lighting installations in various professional segments and has been constantly introducing advanced LED based lighting solutions.
Home segment on the other hand is also gradually witnessing an increased acceptance of LED usage in home decorative lights. The home users today are looking forward to smarter and energy efficient homes, thereby, going for LED lights. Philips offers LED based lighting solutions for home segment such as the Philips Ledino range which is a breakthrough solution that defies traditional boundaries and brings in innovative design combined with high power LED for better home ambience. Philips’ LivingColors range enables users to express themselves by creating striking light effects to personalize their own ambience with the color of their choice, with just the press of a button. Philips has also launched first indigenously developed consumer LED bulb in India which is now available in 5W and 7W variants.
What do you expect from the Government of India to accelerate the adoption of energy efficient lights in India?
The Indian government is taking initiatives along with the industry to encourage adoption of energy efficient lighting solutions. Philips  works closely with organizations such as IGBC, BEE, TERI, etc. to create platforms to educate consumers and create more awareness around the benefits of making the switch. Philips was also associated with the Bachat Lamp Yojana in Kerala which was rolled out in 2010.
How do you expect the market of LEDs to grow in the next five years?
At Philips, we believe that the LED is the most promising technology of the future that will revolutionize the Indian lighting landscape. The Indian market for LED lighting is expected to grow to $400 million by 2015 (at a rate of 53 per cent per annum – according to Frost & Sullivan report on LED lighting market in India), making it one of the fastest growing sectors. The growth will also be driven by an increase in government investments in energy efficient lighting systems and technological innovations to make it affordable. LEDs initial cost is high as compared to the other regular lights but it proves to be much more economical as it saves a lot of energy and maintenance cost in the long run. The digital capabilities of LEDs will allow for tremendous customization in terms of light output to provide optimum light coverage.
Give a brief account of your R&D efforts in LED lights in India?
Philips inaugurated India’s first global research and development centre for Lighting in 2008 in Noida. The Noida center works on development of products and solutions which are more suitable for Indian operating conditions and standards. One of the primary research areas for the Noida centre is to develop products that can tackle high voltage fluctuations, extreme weather conditions, power failures, etc. Some of the innovations from the center include the first indigenously developed consumer LED bulb for India, the GreenLED LED lighting solution for offices, the GreenLine Smart LED street lighting solution and the first-of-its-kind street lighting solution that combines LED with solar energy to offer a solution with high payback.
What are your investment and expansion plans in India?
Philips Lighting will continue to focus on the professional segment to drive conversion to LED lighting solutions with the target segments being streets, offices, retail and hospitality. The company will also continue to drive energy efficient home solutions through slimmer tube lights, CFLs and consumer LED retrofit solutions. Philips Lighting is also looking to expand its retail presence across the country by adding more Light Lounges to the existing network.
CFLs and LEDs – which one is the future? Why?
LEDs will revolutionize the Indian lighting landscape in near future. The market for LED lighting is growing rapidly as they are one of the most energy efficient and green lighting solutions available today and are going to be in the near future. The technology will see a greater demand across all sectors including professional as well as home users segment. LED’s do cost more than CFLs but their long life covers up the initial high cost. Also, LED bulbs are available in different sizes, colors and shapes and can be used from decorative to heavy duty industrial applications.
The long term benefits that the LED bulb offers will make the transition from CFL to LEDs smooth.
Rajani Baburajan