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Indian premium lighting industry targets 100% domestic value addition
Industry News- Sep 18,23
Anticipating a surge in demand, the industry aims to double the level of localisation over the next three years.
A senior official from the Indian premium decorative lighting industry has highlighted the sector's current emphasis on enhancing domestic value addition in order to reduce reliance on imports. Anticipating a surge in demand, the industry aims to double the level of localisation over the next three years. Localisation involves the production or manufacturing of components within the country, a move that effectively reduces production costs.
Presently, the level of localisation and domestic manufacturing for premium lighting products stands at approximately 20%. Usha International's President and Business Head for Lighting, Vikas Gandhi, expect this figure to double in the coming three years. While Gandhi acknowledged that complete localisation might not be feasible due to volume constraints, resurgence in the market, particularly in the housing and hospitality sectors, has spurred the company to actively promote local value addition.
China is the primary source of imports at present, according to Gandhi, whose company has been selling its products under the Tisva brand since 2014. He emphasised that government policies are also encouraging greater domestic manufacturing. The company is actively supporting and empowering local vendors to enhance domestic manufacturing and value addition for premium products.
The premium decorative lighting category encompasses a range of products, including chandeliers, pendant lights, table lamps, floor lamps, ceiling lights, wall lights, and outdoor lights.
In addition, Usha International's lighting division anticipates a compound annual growth rate (CAGR) of 35-40%, primarily driven by the premium decorative and architectural lighting segment. Gandhi made this announcement during the company's expansion into the eastern region market.
The company reported that its average spending per customer has grown nearly sevenfold over the past six years. Gandhi expressed strong optimism about the premium segment of the lighting market, comprising both decorative and architectural lighting. This segment has been experiencing robust growth due to the booming housing sector and the hospitality industry, with a CAGR of 20%. Usha International anticipates even higher growth rates in this segment.
The overall lighting market is valued at Rs 15,000 crore, with decorative and architectural lighting estimated at Rs 3,000 crore. Within this segment, the decorative sector is estimated to be worth Rs 800 crore and is registering significant year-on-year growth.
Currently, the company has a presence in 50 cities across various formats. Over the next two to three years, the brand plans to expand its presence to 100 cities. Usha International has already established 15 exclusive stores in 13 cities, including the recent launch of their first Kolkata exclusive store, Tisva Studio. In other cities, their presence is through dealerships or shop-in-shops.
Regarding the company's expansion into the eastern region with an exclusive store, Gandhi emphasised the region's importance as a growing market. He expects the eastern region to become a key focus area for the company, with plans to further strengthen its presence there alongside national expansion. The company also has plans to open new exclusive stores in cities like Lucknow, Surat, Jaipur, Chennai, and Kerala in the future.
Source: Business Standard
Indian lighting industry
Domestic Value Addition
Premium Lighting Products
Usha International
Lucknow
Surat
Jaipur
Chennai
Kerala
Tisva Studio
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