The report elaborates on the probable effect of LEDs growth on the CFL market in India; given CLFs are the current dominant technology and how it will change in the coming years with a wider acceptance of newer technology, the LEDs.

1. December 2012
The Effect of LED growth on the CFL market in India
Contents:
1. Current scenario | Dominance of CFLs
2. Future Scenario | Impact of LEDs
2.1 State of LEDs Manufacturing in India
2.2 Growth Drivers of LEDs
2.3 Impact on sale of CFLs
2.4 Impact on End User Segments
2.5 Impact on geographical usage
3. Conclusion
4. Technical Annex
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2. Current scenario | Dominance of CFLs
Until about 10 years ago, the lighting market in India was dominated by fluorescent tube lights (FTLs) and
incandescent bulbs (ICLs). They were easily available, cheaper when compared to other lighting sources and
were easy to install and maintain. But the biggest drawback of using these light sources was their inefficiency.
If we talk about ICLs, only 20% of the energy consumed by these lamps gets converted into light, while the
rest turns into heat. Despite the issue of poor conversion, FTLs and ICLs continued to grow and dominate the
market in the absence of a cost efficient alternative. However, given the poor conversion ratio and the
constant focus on power consumption, as high as 17% for lighting, meant such a situation was unlikely to
continue.
Therefore the government started taking initiatives to promote the ‘then feasible’ energy efficient lighting
source, that is, the compact fluorescent lights (CFLs). Initially these lamps were quite expensive when
compared to the age old ICLs and FTLs, but with spreading awareness and special subsidies by the
government, the prices of CFLs came down drastically in the last few years, and therefore the demand
increased substantially. According to the industry figures published by Electrical Lamp and Component
Manufacturers Association (ELCOMA), the manufacturing of CFLs in India has grown manifolds from a mere
20 million pieces in 2002 to a massive 340 million pieces in 2011.
CFLs find their application across all end user segments but the biggest reason
for CFL dominance is its wide acceptance by the residential segment. Today
almost 60% of Indian households use CFLs, whether urban, semi urban or
rural. Also, CFLs are up to four times more energy efficient when it comes to
lumens/watt output. If we can replace a 100 watt ICL with a 22 watt CFL, we get
the same lumen output but the CFL will use70-80% less energy. The life of an
ICL is 1,000 hours but for a CFL it goes up to 8,000 hours. They are also
aesthetically more appealing than the ICLs as they come in different shapes
and sizes.
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3. Current scenario | Dominance of CFLs
The government has been one of the biggest contributors to the overall CFLs market, as for the last 10
years they have been trying to push CFLs as against older technologies. For example, Punjab State Power
Corporation (Powercom) replaced almost two crore ICL bulbs with CFLs across the state under Bachat
Lamp Yojna in 2009. Similarly, Karnataka government also planned a phase out plan for ICLs where they
were giving free CFLs in exchange of ICL bulbs. But in the last two to three years, the growth of CFL lamps
has slowed down a little bit.
Diagram 1: Declining growth of CFLs manufactured (in volume) in the last four years
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4. BAG Electronics (www.bagelectronics.com)
BAG Electronics is known across the world as a premier partner in the lighting industry. They create innovative solutions and new ideas
for more efficiency and lower energy consumption, and as such are active in markets that point to the future. Their corporate group
develops, manufactures and markets electronic components for the operation of fluorescent and high pressure discharge lamps as well
as for LED applications.
They offer not only products but made-to-measure solutions, and they meet such demands with efficient processes and optimal delivery
performance. They have approximately 3,000 employees around the world. In addition to their headquarters in Arnsberg, Germany, they
also maintain sales and development locations in Europe and Asia as well as production sites in China, India and in the Philippines.
BAG offers a wide spectrum of electronic control gear for the operation of LED modules with the ZITARES product family. Long term
BAG experience in the sector of electronic ballasts was implemented for development of the ZITARES control gear in order to achieve
maximum quality and reliability for the various applications. Because LED today offers an efficient alternative to conventional light
sources in many applications, the ECG is also an essential factor for considering total system efficiency. ZITARES in this respect offers a
selection of products with an above average efficiency of up to 93%.
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5. Thank you
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