Luminous Power Technologies is an Indian company that manufactures inverters, batteries, and other electrical products. It was founded in 1988 and has since expanded significantly. In 2004, Luminous partnered with Eagle Picher, a US battery technology leader, gaining access to advanced battery manufacturing processes. It now has seven manufacturing facilities in India and produces a wide range of electrical goods, including solar products. The document discusses Luminous' distribution strategy in Ranchi, with one central distributor supplying approximately 32 retail outlets to serve the local market.

1. STUDY THE RETAIL MANAGEMENT OF
LUMINOUS
SUBMITTED TO
PROF. ANMOL R. BODRA
Head of Department, Marketing
Xavier Institute of Social Service
Submitted by-
Raunak Dhanjal (35)
Joydeep Das (36)
Subhash Gautam (44)
Sonal Jangir (52)
XAVIER INSTITUTE OF SOCIAL SERVICE
RANCHI

2. INTRODUCTION
Luminous Power Technologies (P) Limited is a New Delhi based company which was founded
on 10 June 1988. By 1991, the first Luminous Inverter got rolled out. Three years later the first
uninterrupted power supply device (UPS) by the company was delivered to the market. The next
six years were spent in innovation and further improving its offerings. At the turn of the century
the first Luminous Inverter* was exported.
GROWTH
In the meanwhile, Luminous decided to manufacture batteries. As a consequence a plant was set
up in 2004. In the same year Luminous entered into an agreement with Eagle Picher Inc. a USA
major and a leader in battery technology. Eagle Picher Inc. is an original equipment supplier to
such diverse industries and activities as automotive, space, chemical processing, defense,
environmental, medical and nuclear applications. Its heavy-duty customised batteries are
working in the most demanding conditions such as space ships and on planet Mars. The company
offers a six-sigma process that gives them the worldwide recognition.
Soon after the agreement was signed, technology flowed in from Eagle Picher Inc. and Luminous
launched a broadside on the battery market. A full range of advanced batteries for automotive
use, Home UPSs, tubular batteries and VRLA (valve regulated lead acid) SMF (sealed
maintenance free) batteries were delivered to a market.
A separate agreement for power products was signed in 2006 with Hyundai to provide the end
user with another option for power back up solutions based on advanced Korean technology as
well as leverage the strong Hyundai brand name.
CURRENT SCENARIO
Today, Luminous is part of the Schneider Electric conglomerate
At present, the company has seven manufacturing facilities and an R&D centre. It has several
patents to its credit in the inverter and battery manufacturing space. Taking advantage of its new
parent’s global product and technology platform, Luminous has ventured in electrical product
space. The offerings include electrical wires and cables, wiring protection devices such as

3. MCBs, RCCBs (types of circuit breakers), distribution boards, all types of fans and modular
switches.Luminous Power technologies is also focusing on renewable energy in the form of solar
panel and solar home lighting. It also aims to offer various solar applications to rural India as an
alternative power solution.

4. To carry on the discussion further to know the entire distribution system of the company from its
manufacturer to the retailer a few sets of questions have been formulated, the answers of which
will the picture vivid and clear.
The distribution strategy is based largely on the sales strategy of Luminous inverters. Hence the
sales strategy is seen below.
Manufacturer C & F agents Distributors Dealers Retailers

5. Lower margin with wholesale price is the sales strategy that is implemented in rural areas as the target
market consists of lower middle class, who concentrate only on their basic needs being met.
This is seen clearly in the case of Ranchi, where there are approximate 32 retail outlets getting supply
from a single CNF located near Mesra. This CNF caters to the need of entire Jharkhand state.
Thus this gives us an answer to the question “Why Luminous has choosen this type of retail”.
The main motive of Luminous is optimum sales mainly from the builders and contracters. Thus to tap in
these customers they need a retail outlet at every main location in Ranchi. It believes that a customer
should get inverters at every decent electronics shop he approaches.
What kind of competition Luminous faces from organized retailer?
In Ranchi Luminous faces very low competition from organized retailers as the existence of an
organized retail is very low in Ranchi. However organized retailers like e zone does hamper the
sales a bit but it is very marginal as Luminous’ target customers are not the one who would visit
organized retailers much

6. 3. What is the strategy of appointment of C & F agents, distributors, dealers, retailers?
For C & F agents, distributors, dealers and retailers
 Manufacture publish an advertisement in the news papers for a particular state.
 There is only one C & F agent in the State.
 Interested person apply for C&F to the manufacturer
 An investigation authority came to see the requirement of applicant.
 Past 5 years performance of the applicant.
 Financial position of the applicant.
 Credibility of the applicant.
 Availability of warehouse.

7. How do Manufacture locate C & F agents, distributors, dealers, retailers?
 Luminous have a C & F agent in every state for easy distribution of product in the state.
 According to the demand of the product.
 Size of warehouse can be extend according to the demand of the products.
 Every District has a distributor to supply the consignment to the dealer
 Dealer transfer the product to the retailer

8. When do companies appoint C& F agents , Mother depots and Why?
~ Companies appoint C & F agents, Mother depots:-
 Increase in demand of products.
 Market pentration
 Easy availability of product