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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.

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