COMPANY PROFILE

SOLAR LIGHTING

Lights of Transformation

This lighting company is seeking a strong foothold at the bottom of the pyramid

Life is not the same at Orissa’s New Keringa Village nowadays! Till not so long ago its inhabitants, deprived of electricity, walked miles to purchase kerosene for their lanterns. And, considering that the average income of a family here is a mere Rs 600 per month, a substantial portion of it was being spent on kerosene alone. But within a week of December 2008, their lives brightened considerably when their kerosene lanterns were replaced by solar-powered LED lamps.
The villagers owe the transformation from lanterns to LED lamps to Noida-based lighting company d.light design, which recently moved its headquarters from USA to India. Says the company’s CEO Sam Goldman (sam@dlightdesign.com), “Our mission is to replace every kerosene lantern in the world to provide everyone access to a basic human need: safe and bright light. Kerosene lamps are a poor source of light, and depend on a costly fuel that takes up to a third of a family’s monthly income. Not only this, these lamps release hazardous fumes which can be fatal if inhaled for a prolonged period of time.” d.light aims to reach the people at the grassroots level, and that’s why it has launched its lamps in rural areas. “We select villages where the population is 5,000 or higher, and we sell one lamp to every household.”
The company’s efforts in New Keringa have changed the lives of villagers in more ways than one: “Since the families have stopped spending on kerosene, their average monthly incomes have moved up from Rs 600 to Rs 800. Earlier, the inhabitants spent up to nine hours a week travelling to procure kerosene. Now, the time saved on commuting is being utilised to work at night. And by doing this, the families, majority of whom are stone crushers, are able to earn an additional Rs 1,000 per month. Also, the children are studying for longer hours under healthy light.”
Currently, the company is manufacturing two types of fixtures: a study lamp and a portable lamp. The moot point, however, is whether ‘below poverty line’ families will be able to purchase these fixtures? Goldman offers an explanation, “The study lamp is priced at Rs 800 while the portable light is being sold for Rs 1,600. To encourage buyers who might find the prices unaffordable, we are asking them to make low initial down payments and pay the balance through easy weekly installments.”
He adds, “While we are not a financing company, we would still like to see villages across India using these products. Therefore, we are in the process of tying up with government organisations, NGOs and micro finance institutions, who will market these products and provide finance facilities as well. As a matter of fact, we have undertaken (successful) experimental financing schemes with such bodies.”
Goldman feels that the venture is bound to succeed in India because it has worked well in Africa where many villages have to contend with extreme poverty. “We undertook a similar switchover drive in Benin in West Africa and discovered that people really appreciated the lamps. In India, the average income is much higher, and so is the awareness level. The only difference is that here, people are not willing to give up kerosene because it is available at subsidisedrates, and they have to be persuaded time and again to switchover to the lamps. Despite the hurdles, we have beenable to improve over 2,50,000 lives the world over.”
He is of the view that the Indian market is full of potential, as it is supported by strong distribution networks and logistical facilities. “Our products have been very well received here thanks to our channel partners. Right now we have around 100 dealers and 50 distributors who are sellers of FMCG products, consumer durables, batteries and electrical items. While our network is currently located in the northern and central parts of the country, if things go as planned, we will soon have apan-India presence.” Clearly, India does look promising and probably the reason why the company has established its headquarters here.
Interestingly, d.light design is also marketing its products through building products retail chain Home Town,through which Goldman expects to reach out to consumers of all income groups. “Our products are functional for each and every individual who need light inone way or the other, whether he is a city dweller or a villager.” But for now, the company is focussing on the country’s eastern, northern and central rural regions. Says Goldman, “India is a huge country and that’s why we have to concentrate on one state at atime. Right now, our top priority states are Orissa, Maharashtra and Uttar Pradesh. Next in line are Rajasthan and Gujarat.”
Undoubtedly, d.light has got a sound start: people have welcomed the solar LEDs, and in a short span of time it has created a healthy retail network. And once the company establishes a pan-India presence, it can definitely expect brighter times ahead.

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