1. WKI Solutions Pvt Ltd
DEVELOPING A BUSINESS PLAN FOR
ENERGY EFFICIENT LIGHTING
3 December 2010
Copyright © 2010 by WKI Solutions Pvt Ltd
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any
means — electronic, mechanical, photocopying, recording or otherwise — without the permission of WKI
Solutions Pvt Ltd.

2. WKI Solutions Pvt Ltd CONTENTS
CONTENTS
BACKGROUND
MARKET OVERVIEW
SCOPE OF THE PROJECT
TIMEFRAME
CONCLUSIONS
© WKI Solutions Pvt Ltd December, 2010 2

3. WKI Solutions Pvt Ltd BACKGROUND
Previous oil shocks were caused by disruptions in supply, but the reasons today
are different
Problem Statement
• An energy-efficient lighting company in need of a business plan
• Firm has an array of investment opportunities available, particularly with both foreign and
domestic suppliers of energy-efficient lighting products
• A well thought-out industry specific business plan is required to pitch to the investors
Sector Overview
• Lighting in a typical telecom building constitutes about 25% of the energy bills
• There is a considerable scope of reducing energy consumption through energy efficient lighting
schemes
• However, the experience shows that there are barriers in providing energy efficient lighting
schemes due to high capital cost, lack of knowledge and good quality products
© WKI Solutions Pvt Ltd December, 2010 3

4. WKI Solutions Pvt Ltd CONTENTS
CONTENTS
BACKGROUND
MARKET OVERVIEW
SCOPE OF THE PROJECT
TIMEFRAME
CONCLUSIONS
© WKI Solutions Pvt Ltd December, 2010 4

5. WKI Solutions Pvt Ltd FACTS
Key facts explaining need and size of the market
• A third of the world’s population relies on kerosene, candles or firewood for lighting
• Fuel based lighting is inefficient, very unhealthy and unsafe, costly, and ecologically unsound
• The cost to governments in terms of fuel dependency and subsidies, is very high
• Centralized electrical grid systems pose high costs for governments and are ineffective for serving
remote rural villages
• Lack of suitable home lighting is solidly linked to illiteracy & poverty
© WKI Solutions Pvt Ltd December, 2010 5

6. WKI Solutions Pvt Ltd CONSUMPTION
Though at industrial level, the lighting component is less than 5%, in certain
industries such as textiles, pharmaceuticals and electronics it may be upto 15 %
of total electricity consumption
Electricity Used (% of Total) Lighting Component (% of Electricity Used)
60
50
40
30
49 50
20
24
10 17
10
4 5 2
0
Industry Commercial/Public Domestic Others
Total Electricity Consumption for lighting purposes in various economic sectors
© WKI Solutions Pvt Ltd December, 2010 6

7. WKI Solutions Pvt Ltd DRIVERS
Why energy efficient lighting is required?
• High and rising energy prices
• Change in Global Climate
• Exhaustion of Non Renewable Sources for electricity generation
• Leads to reduction of investment for expansion of electric power sector
© WKI Solutions Pvt Ltd December, 2010 7

8. WKI Solutions Pvt Ltd TYPE OF LIGHTING
Broadly three categories are defined
• Incandescent lamp
• Gas Discharge lamp
o Low pressure discharge (Fluorescent, LPSV)
o High pressure discharge (metal halide, HPSV, high pressure mercury vapor), HID family
• Solid State Lighting (SSL)
o Light Emitting Diode (LED)
o Organic Light emitting diode (OLED)
© WKI Solutions Pvt Ltd December, 2010 8

9. WKI Solutions Pvt Ltd TECHNOLOGY COMPARISION
LED technology is expected to continue to improve at a very fast pace, leading
to an even greater energy disparity between LED products and CFLs
Comparison of the use phase and production energy consumption for various lighting technologies
© WKI Solutions Pvt Ltd December, 2010 9

10. WKI Solutions Pvt Ltd CONTENTS
CONTENTS
BACKGROUND
MARKET OVERVIEW
SCOPE OF THE PROJECT
TIMEFRAME
CONCLUSIONS
© WKI Solutions Pvt Ltd December, 2010 10

11. WKI Solutions Pvt Ltd FACTS
The study will deliver a Business Plan for the proposed project
Deliverables
• Chapter 1 – Introduction – This chapter will briefly explain
o Overview of the global lighting sector
o Analysis of the share of various products and technologies for lighting
o Estimate of market size
• Chapter 2 – Promoters and Management
• Chapter 3 – Market opportunity and Revenue Growth Plan
o Summary of the market opportunity and key segments –customers and product offerings being
targeted
o This chapter will contain a detailed validation of the business model of the proposed range of
products
o Validation of revenue potential of the proposed business model based on the facts
o Go-to-market strategy
• Chapter 5 – Technology and Business Configuration
• Chapter 6 – Investment requirements and Financial Plan
© WKI Solutions Pvt Ltd December, 2010 11

12. WKI Solutions Pvt Ltd CONTENTS
CONTENTS
BACKGROUND
MARKET OVERVIEW
SCOPE OF THE PROJECT
TIMEFRAME
CONCLUSIONS
© WKI Solutions Pvt Ltd December, 2010 12

13. WKI Solutions Pvt Ltd TIME FRAME
The study will be completed in 4 weeks
Weeks
Activity
1 2 3 4
Planning, Discussion with
Client, Secondry Research
Validation of Business Model
Anlaysis and Report writing
© WKI Solutions Pvt Ltd December, 2010 13

14. WKI Solutions Pvt Ltd CONTENTS
CONTENTS
BACKGROUND
MARKET OVERVIEW
SCOPE OF THE PROJECT
TIMEFRAME
CONCLUSIONS
© WKI Solutions Pvt Ltd December, 2010 14

15. WKI Solutions Pvt Ltd CONCLUSION
To summarize, the proposed study should address certain key issues while
drafting the business plan
Critical Issues to be Addressed
• What is the overall need for an energy efficient lighting system ? What will the scale of operations
be ? How big is the market? What range of product needs to be offered?
• How should one price the product given the competition in the market, bargaining powers of the
different entities in the value chain, revenue generating potential, do-ability etc?
• Is the technology or process or both patented or protected by some other laws?
• What can the overall revenue target for the proposed product be? How soon will the production be
scaled up? What kind of additional services can be monetized?
• Given the business model, what will the capital investments be? What would the operating costs
be?
• Is this plan financially feasible? If yes, what are the returns expected? What will be the critical
success factors for this venture?
Draft a Business Plan that gives answers to the above questions
© WKI Solutions Pvt Ltd December, 2010 15

16. WKI Solutions Pvt Ltd THANK YOU
This document can only provide a limited insight into the work and capabilities of WKI
Solutions. We assume it as the first step in a comprehensive dialogue between you
and us. For more information about how WKI Solutions could help your business,
please Contact:
Ankur Tripathi
Head-Business Development
WKI Solutions Pvt Ltd
Email: ankur@wki.co.in
© WKI Solutions Pvt Ltd December, 2010 16