Crompton Greaves to focus on Home Appliances to Drive Growth
India: Crompton Greaves Consumer Electrical
Limited (CGCEL), an Indian Multinational company, which is focusing on LED as
well as home appliances segment. In the fourth quarter of financial year
2015-16, the company witnessed 129 percent growth in the LED bulb segment and
54 percent expansion in the premium fans category.
In
order to boost the production, company incurred a capital expenditure of around
USD4 as listed on the BSE this month, had million in 2015. To increase their
presence in India market, the company has expanded its sales network and has
plans to introduce its product in rural market. Company sells its products
through retail outlets, and online websites. As of 31st march, the
company’s total debt was calculated to be around USD100 million.
According
to TechSci Research, Crompton Greaves’ focus on LED lighting products is a good
move, keeping in mind the Government of India’s increasing initiative on energy
efficient products. LED lighting
products market size in India is small, but the market is expected to grow on
account of factors such as increasing awareness about LED less power consumption
as well high product cycle, this will further help the company to generate more
revenue.
Company
should also focus on expansion of its distribution network in rural areas.
Instead of selling its product through wholesalers, who sells different company’s
product, company should sell directly either by opening their own outlets or by
appointing exclusive distributor.
According
to a recent report published by TechSci
Research, “India
LED Lighting Market By Type, By Application, By End Use
Sector, Competition Forecast and Opportunities, 2011 - 2021” LED lighting market in India is
projected to register a CAGR of over 30% during 2016-2021, due to increasingly
affordable prices of LED lights coupled with implementation of LED bulbs
distribution scheme by the government of India at subsidized rates. Demand for
LED lights in India is predominantly concentrated in the South and North
regions due to high population density, increasing urbanization, rising number
of government initiatives that encourage use of LED lights, etc. In 2015, LED
lighting market in India was dominated by LED bulbs and lamps, followed by LED
batten lights; and this trend is forecast to continue through 2021. Philips,
Surya Roshni, Havells, Syska LED and Osram are few of the leading players in
India LED lighting market. Outdoor lighting applications, which includes street
lights, lights in parks, traffic lights, garage lights, parking lots and other
public places, accounted for a majority revenue share in India LED lighting
market in 2015.