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july-august 2009 issue
   
 
  INDUSTRY NEWS    

Havells Consolidates Switchgear Business, Launches LEDs

Noida-based electrical equipment major Havells India Ltd is building up its switchgear exports: it is making Baddi in Himachal Pradesh its switchgear-manufacturing hub, and plans to shift all its switchgear manufacturing operations from the Faridabad plant to the new unit, thereby increasing production capacity by about 67%.
The consolidation is aimed to take exports from Rs 150 crore to Rs 500 crore in the next three years. Confirming this, Sunil Sikka, the company president, says, “We have set aside a corpus of Rs 150 crore for investment in both the plants at Baddi. About Rs 35 crore has been spent on the new unit so far, which is likely to be commissioned by August. It will be the most automated switchgear manufacturing plant in India.” Sikka says that this move will give Havells an edge over the competition due to better efficiencies backed by large-scale automated operations at a single unit.
With the commissioning of the new facility, which has been set up near the company’s existing plant, the Baddi unit’s annual capacity will go up from the present three crore to five crore poles of switchgear for domestic use, while that of industrial switchgear will increase from the current 60 crore units to 100 crore. According to Sikka, about 50% of the total production will be exported. Besides, the company will also increase production of electrical wiring accessories from the present 2.5 crore units to 7 crore per annum - a notable 200% increase!
Downplaying the impact of global recession, Sikka says, “Economies in the US and Europe are weak and shrinking under the impact of recession, and this is giving us an opportunity to expand our products in these markets. Since they cannot afford to boost their manufacturing capacities at this point, they are now looking at countries like India and China.”
As regards the fast-recovering Indian economy, he anticipates a rapid increase in demand for electrical goods. “We expect a 50% increase in our switchgear business in the domestic market in the coming three years,” he says. Havells has export tie-ups with international companies GE, Eatons, Siemens-Electrium, Geyer and Proteus, and tie-ups with General Electric and Siemens-Electrium to market its products overseas.
In another development, Havells has entered the LED market with the launch of Endura Lite. According to Sikka, “The lamp is easy to install, does not emit UV radiation, is smaller in size and lighter in weight. It is suitable to fit in standard MR 16 fixtures, and has been tested for its high shock resistance and durability.” Available in 3x1W and 1x3W in daylight white and warm white colours, it is suitable for jewellery outlets, recreational areas, high-end specialty shops, auditoriums, theatres, art galleries and museums.

 

C&S Electric Launches LED Fixtures

Delhi-based electrical & lighting manufacturer C&S Electric Ltd has recently added a new range of LEDs to its repertoire of lamps. Says Ravi Kumar (ravi.kumar@c&selectric.com), the company’s vice president - sales & marketing, “These LEDs are designed for outdoor lighting applications that include street lighting, decorative lighting, and landscape lighting. The use of outdoor LED lights can be very beneficial and energy conserving: they not only help save energy, but provide a high colour brilliance and burn brighter without emitting heat. Plus, the cost of maintaining these outdoor lights is very low and efficient.”
According to Kumar, the new LEDs will revolutionise the Indian LED market as the luminaires are tailored to suit user requirements. “Today, the market is teeming with LEDs but no other company has taken the initiative of making them application-oriented. After all, every user has a unique set of preferences, and catering to these individual requirements has been our driving force.”
He is of the view that the company’s in-house core competence places it ahead of its competitors. “Our 16-acre manufacturing unit in Haridwar is equipped with the latest technologies, and since each and every component is manufactured indigenously, we are able to keep a check on the quality.”
Talking of marketing, Kumar informs that the company has 80 dealers spread across the country, a majority of whom are project oriented. “We rely more on project sales than on retail. Since our LEDs are application-oriented, they are priced on the higher side and find usage in large projects. But we are also marketing a variety of products through the home improvement chain Home Town to gauge consumer response in a retail scenario.”
Says Kumar, “LED lighting technology is the future of lighting. Manufacturers are making substantial improvements in the quality of LED lighting.” Nevertheless, he is of the opinion that the biggest deterrent to a deeper penetration of LEDs is their steep price. “It’s a strange situation: their price can be reduced only if their quality is sacrificed, which for us, as a responsible manufacturer, is unthinkable!”
He adds, “But the government can lend a helping hand to manufacturers by providing subsidies and initiating awareness programmes for the masses. The need of the hour is LED-based lights for mass application, which will certainly help in reducing energy conservation.”

 

UL Announces LED Safety Standards

Certification agency Underwriters Laboratories (UL), headquartered in USA, has announced certification standards for LED lighting products that are becoming increasingly popular.
UL started drafting safety standards for LED products in 2005 by specifying the requirements for their basic structure. This draft will now become the official UL 8750 standard shortly, and will list the safety standards for lighting products using LEDs, namely three basic categories: LED lighting products, LED bulbs and LED power supplies.
Says R A Venkitachalam, vice president and managing director of UL Emerging Markets, based in Bangalore, “The UL safety certification will act as a benchmark for lighting products using LEDs as a source, and will facilitate import and export of these products.” He adds, “Manufacturers targeting the international market need to be acquainted with these standards so that their products are accepted globally. UL aims to spread awareness about these standards in India now.”
Factors that are considered before according UL certification are product design, the components used, and the results of a test protocol, which includes rigorous tests at a UL laboratory to evaluate products for compliance to the specified requirements. Periodic and unannounced inspections are also carried out from time to time at manufacturers’ facilities to ensure compliance. If there is a change in product design or specification, the modified unit is re-tested before being certified.
Underwriters Laboratories, an independent product safety certification organisation with inspection centres in 117 countries, has been framing standards for safety, testing products, and conducting conformity assessments since 1984. The agency has been operating in India for the last 12 years in tandem with all major regulatory agencies. More than 1,200 standards across different product categories are presently in use such as plastics, fire and water protection, electric appliances, industrial control equipment, lighting, wires and cables.


Pierlite Sets up Innovation Center, Invites Channel Partners

Lighting company Pierlite India Pvt Ltd, a 100% subsidiary of Australia-based Pierlite-Gerard Corporation, has set up an Innovative Center at Ahmedabad. Gerard Lighting’s group chairman Robert Gerard was in India to inaugurate it.
Informs Rakesh Kasliwal (rakesh@pierlite.com), managing director of Pierlite India, “The state-of-the-art centre is spread over 5,000sft and is part of our 22,000sqm tool room-equipped manufacturing facility. The centre will facilitate innovative and customised product designing with the use of latest software, and it features a technical resource library, a goniophotometer (a fully automated, time-saving measuring device of automotive and general vehicle lamps), in addition to a large display area. Here, we can test the optical parameters of the fixtures that we develop, before production commences.” He adds, “An integral part of our business is the complimentary design service that we offer our clients.”
Kasliwal informs that the centre will disseminate lighting knowledge to users, contractors, traders, etc. “We can accommodate up to 40 channel partners here for a day-long training session on the various aspects of our fittings, features, qualities, installation, etc.”
Pierlite is one of the leading global brands in the field of professional lighting, with manufacturing facilities in six countries and operations in 14. Founded in the 1940s in Australia, it started off by manufacturing pier lights, and later shifted focus to hazardous and adverse-location luminaires. In the late 1980s, the company was acquired by the Gerard group, and Indian operations were set up in 1999, and in 2003 a 100% Indian subsidiary was set up.
While acknowledging that the company has a small distribution network at the moment, Kishen Seth (kishen@pierlite.com), associate vice president says that their plans for the year include inducting more dealers. “Our team of technically-qualified and highly-experienced sales personnel is equipped to handle the stringent needs of specifiers, designers and end-users. It will also provide support to our widening network of dealers, and enable them to garner more value-added business.”
Though Pierlite’s revenues come mainly from indoor lighting for the banking and insurance sectors, it is now focusing on the outdoor lighting segment as well, as the country’s infrastructure development is throwing up immense opportunities. “Projects such as city beautification, street lighting, stadium and landscape lighting are going to be our future growth drivers,” says Seth. The company plans to shift attention to more industry specific sectors such as pharmacy, hospital and hospitality in the near future. It will soon launch its new range of DOT downlighters based on energy-efficient lamps such as LEDs and CFLs.


Globus Set to Launch Own CFL Brand

Roorkee-based CFL manufacturer Globus Lamps is planning to enter the domestic market under its own brand. Till now the company has been an original equipment supplier to other lamp companies.
Says the company’s managing director Kshitij Talwar (kshitij.talwar@globuslamps.com), “Positives abound for the CFL manufacturers. Firstly, the government has initiated promotional campaigns and subsidies for increasing the penetration of CFLs. And secondly, consumer awareness programmes held by BEE have also fructified. Considering these two factors, we now plan to launch our own brand by the beginning of 2010.”
Notably, Globus clocked a turnover of Rs 25 crore during the last fiscal, and has set itself an ambitious target of Rs 100 crore for the current year. “Our production capacity is 15.5 million CFLs per annum, and we are vendors to companies like Eveready, PowerCell, Asian Electronics and HPL. The fast expanding market for CFLs has brought us healthy sale revenues. And as the year progresses we plan to add one more CFL line, an electronic ballast unit, and a PBT housing facility. Once the new units are fully functional, our capacity will increase two-fold.”
Although the company plans to launch its brand next year, it is still studying the pros and cons of the market before taking on dealers. “Indian consumers are a mix of rural, semi-urban and urban, each with their own preferences. So, we plan to first build our brand and then penetrate on a regional basis. It’s too early to say anything about our planned dealer network and target cities. However, the sales and marketing teams are working on it.”
Talwar claims that Globus Lamps is the only Indian company which manufactures spiral clear shells for CFLs, and this will give it a competitive edge over other manufacturers. “Apart from this,” he informs, “the mercury content in our CFLs is 5mg and very soon we will be shifting to pill dosing technology. So in terms of quality, we are second to none.”
Of late, the government has been pressurising the manufacturers to produce only high power factor (HPF) lamps, and the response from manufacturers has been mixed since this move is likely to lead to an increase in production cost. Talwar asserts that Globus will begin offering HPF lamps by October. “There is likely to be a price differential of around Rs 10-15, but on the upside, consumers will achieve huge power savings.”
Talwar is also of the opinion that there is an urgent need to install facilities for safe disposal of damaged CFLs, and the onus lies with the government to invest in the necessary infrastructure for recycling of these lamps.


Melcon Launches Dimmable LED Drivers

Pune-based electronic ballast manufacturer Melux Control Gears Pvt Ltd has introduced a new range of dimmable LED drivers for 3W, 6W, 15W, 24W and 48W lamps. These drivers are available in two versions: analogue type with potentiometer dimming, and bell-push switch type for digital dimming. Observes the company’s director Manoj Bidkar (manoj@melconindia.com), “LEDs are gradually becoming the new face of outdoor lighting and therefore they merit modifications time and again.”
According to Bidkar, Melcon has been a well known OEM supplier of electronic ballasts for half a decade and its clientèle includes all major lamp manufacturers. “Our products have been well received by the manufacturers, and this is a real achievement for us. We have also obtained all the national and international certifications which are required in this trade.”
Although the company has traditionally been a vendor to other lamp makers, Bidkar informs that it is now planning to get aggressive on the retail front. “Our dealers and distributors are spread across the country and we now want to expand this network. By associating with a brand like ours, a dealer can avail a lot of benefits : our products are of a high quality, we offer a trade margin of 35%, plus we support our dealers with trade samples.”
Interestingly, Melcon has earmarked Rs 10 lakh for advertisement and promotion during 2009-10. “This year, we will almost double our spend on promotion, and expect that this will give a boost to our brand visibility in the market.”


Bajaj Electricals Lights up Bandra-Worli Sea Link

The recently inaugurated Bandra-Worli sea link in Mumbai has been lit up by Bajaj Electricals. The Rs 8.9-crore project involved illumination and electrical power distribution on the sea link, for which the Engineering & Projects Business Unit of the company was sub-contracted by main contractor Hindustan Construction Company Ltd.
“We are very honoured to be a part of the prestigious Bandra-Worli Sea Link project, which will be another feather in our cap,” remarks Shekhar Bajaj, chairman & managing director of Bajaj Electricals Ltd.
Bajaj informs that the illumination of the bridge involved installing aesthetically appealing lighting poles and luminaires while ensuring resistance to the saline atmosphere of the surroundings. For this purpose, glass fibre reinforced polymer (GRP) poles have been installed. “The poles are resistant to corrosion, aggressive chemical agents and UV radiation. Their mechanical strength is also better than that of conventional steel poles and their smooth surface, tapering pattern and choice of colour make them perfectly suitable for this ambitious project. To ensure a robust installation, the poles have been fixed with anchor bolts along with additional anchor fasteners,” he says.
The most modern lighting concepts have been applied by Bajaj for this project, in order to obtain maximum light output while using minimum energy. For instance, specially designed luminaires with ingress protection and precision photometric distribution have been used to ensure uniform illumination on the bridge. In all, 224 sodium vapour lamps of 250W and 150W have been used on 148 poles, of 12m and 8m in height, for lighting up the first carriage way that has been thrown open for public. The cable-stayed area, which is the most visible part of the bridge, has been illuminated by narrow-beam metal halide flood lights. The toll booths have 250W metal halide medium bay light fittings, and high mast lights have been used to illuminate the area surrounding the toll plaza.
According to Lalit Mehta, executive president (E&P BU), the expected daily power consumption for lighting is 687KwH, for 12-hour use. A timer circuit will be installed soon, to turn off 50% of the 250W lamps after midnight to reduce usage to 557KwH. The sea-link will get power supply from two sources: REL on the Bandra side and BEST on the Worli side. In case of power failure on any one side, a provision has been made to switch to the other side.
Bajaj Electricals will also carry out the entire electrical works including HT/LT cabling, and provisioning of sub-station equipment, transformers and DG sets for critical back-up purposes.


Eveready to Expand CFL Range, Launch Incandescent Lamps

Battery major Eveready Industries Ltd has announced the expansion of its lighting product line with the launch of a new range of incandescent bulbs and CFLs. The company, which has a market share of 51% in the batteries segment, had launched CFLs in the 5-25W segment in 2007. Now it will expand the range to 85W and make an impact in the Rs 1,000-crore Indian CFL market, which is growing at 25-30% per annum.
Eveready’s turnover in the lighting segment declined from Rs 44.22 crore in 2007-08 to Rs 36.38 crore in the last financial year. According to the company, the dip was due to supply problems which cropped up after the imposition of anti-dumping duty on Chinese and Vietnamese imports, and changes in the mandatory specification requirements. With the stabilising of supplies and clearer regulations, the company now feels that the situation will improve in the coming year. It is also pitching on its different ‘non-electrical’ brand recall, and is planning to launch incandescent lamps.
R Sriram, senior general manager, light products division, informs, “Our new lighting products will cater mainly to the rural market, which constitutes around 60% of our company’s sales.” According to him, Eveready CFLs come with improved components such as a bigger transistor to ensure that the lamps perform well even with high line voltage fluctuations. In his opinion, the company’s late entry in the market would not be a deterrent as there is a huge potential in the rural belt due to the power savings that these lamps offer. The lamps are being distributed through the company’s existing distributor and dealer network, and it is planning to increase the dealer base to increase reach all over the country.
Eveready clocked a turnover of about Rs 800 crore in 2007-08 and expects to reach Rs 900 crore levels at the end of the current financial year. The company seems aggressive on the promotion front too, as it has allocated a budget of Rs 20 crore for advertising and sales during this year.


 
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