LED lighting industry has caught on fast in the Indian market as switch by consumers from incandescent light bulbs to LED bulbs has been virtually seamless due to the greater energy efficiency the former boasts of as as well its environment friendly nature. Government is also promoting use of LED bulbs and making it available to people on cheaper than market rates. In a situation that is tailor-made for LED industry’s success, FE Online’s Akash Sinha, in an email interaction with Moser Baer’s Chief Marketing Officer Deepak Shetty, discusses the future strategy of the firm to tap into the potential India promises. Edited excerpts:
Q1. What challenges is the LED Lighting industry facing in India?
In India, the consumer mindset is the biggest challenge. LED adoption finds itself caught in many a tangles like pricing, availability and belief in the product and a ‘do I need it now?’ mindset. Since, LEDs are generally bought only after existing bulb has lived out its life and not bought in advance for the day when the existing bulb is likely to go ‘fused’, it is very critical for the user and buyer to understand the advantage of purchasing LEDs over other options. Also, most of the users do not change the entire lighting into LED, they replace one or two other bulbs in their homes. Due to this, the benefits of using LED may not be visible in the electricity bills.
Q2. How is Moser Baer working towards providing affordable LED products?
For any product to become affordable or cheap, it has to go through the life cycle and become mass used. Till the time a product is adopted only by a marginal section of people, it is very unlikely to achieve cost optimization. Right now, we are working towards establishing the credibility of the LED products and creating a market.
Q3. IS Moser Baer planning any joint venture or any merger or acquisition?
The Moser Baer brand has evolved over a period of time as a strong mass manufacturer in the technology space. Our manufacturing strength with presence across the country will be one of the critical differentiators for a LED venture. We are currently focussed on utilizing this inherent brand strength to hit the Indian market.
Q4. Moser Baer LED is expanding across India. Is there a major hiring programme in the works?
Moser Baer has always worked on the right person for the job and hence we are going by the needs emanating from a particular region to hire a person. Our model depends on ensuring the availability of the product in a close proximity of the consumer. Hence, the hiring is very concentrated.
Q5. What makes Moser Baer LED stand out in the crowd?
Moser Baer products have always been acknowledged for their quality and our LED products will not be any different. The quality and ROI to the user is what will make our LED products attractive to the consumers.
Q6. Govt of India is keen to encourage LED lighting to save power. It has started a scheme to provide LED bulbs at price of Rs 130. Is it also feasible for private sector to provide LED bulbs of good quality at a low price like this?
Pricing mechanism is dependent on scale at manufacturing level and adoption rate by the consumer. The government realising the need to conserve energy, is encouraging rapid adoption of LED which in turn would bring prices down. In India, private sector has been an able partner the government and even in the LED sector it would be no different.
Q7. How you plan to tap Indian market?
We are working on creating awareness of the benefits of LEDs and ensuring availability of the products in close proximity to the consumers. The good part is, the response till date has been very encouraging from the consumers as the brand recall of Moser Baer is very high.
Q8. What is Moser Baer future plans?
There are projections that the Global lighting market is set to reach $133 billion by 2020 and 62% will be LED. Frost & Sullivan expects Indian LED Lighting market to be $1.3 billion i.e. ~ Rs 8,000 crore by 2018, hence our current priority is to make early inroads in the sector.