As LEDs burn bright, it’ll soon be lights out for CFL bulbs

After the old incandescent bulbs, it could be the turn of Compact Fluorescent Lights (CFLs) to be totally switched off in India. With lighting companies increasingly focussing on energy-efficient Light Emitting Diodes(LEDs), CFLs could be a thing of the past in the next few years.

“The prices of LED bulbs have come down drastically in the last three years and that has pushed up sales. LED lamps are also more energy efficient and produce more light compared to CFL lamps, whose sales are dwindling,” Shekhar Bajaj, Chairman and MD of Bajaj Electricals, told BusinessLine .

Already, nearly 60 per cent of the lighting market in India has been taken over by LEDs. And the government’s decision to switch to LED for all street lamps and public space lighting will only hasten the end of CFLs in India.

In 2014, a nine-watt LED bulb would retail at ₹300 but that has now come down to ₹65 and is slated to go down further. This is largely due to the government’s Unnat Jyoti by Affordable LEDs for All (UJALA) scheme, under which LED bulbs are distributed free in some States.

Government-backed Energy Efficiency Services Ltd (EESL) invites tenders from manufacturers and in the latest round, the lowest price quoted was ₹38 for a nine-watt bulb.

While nine watts may seem low, this LED lamp will emit light equivalent to an 18-watt CFL or 60-watt conventional incandescent bulb. “Now, LEDs bring over 50 per cent of the revenues in the lighting segment for us,” says Bajaj.

But Bajaj is not the only one benefiting from the growing appeal for LEDs. From Philips and Havells to Crompton and even new players, corporates are now investing money on expanding their LED portfolios. Corvi LED, which entered the space in 2012, reported revenues of ₹45 crore in FY 16.

“We expect to hit revenues of at least ₹200 crore by March 2019, a growth of four times over a three-year period,” says Vimal Soni, founder and principal product designer of Corvi.

Hero Enterprise, led by Sunil Kant Munjal, has already announced an investment of $10 million in Corvi, whose biggest focus is on design in LED lights. “India today urgently needs technologies that are scalable, sustainable and cost effective and LED lighting fits the bill. As volumes grow and unit costs come down, we expect LED lighting to become the de rigueur standard across homes, offices and infrastructure facilities,” says Munjal.

Another advantage of LED lamps is that they are cooler than CFLs, translating into longer life and lower life-cycle cost. So, if an LED lamp is used for 10 hours a day, it will last 12 years, while a CFL will last only 2.2 years with the same usage. Moreover, companies are also giving a warranty of up to two years on LEDs, making them more appealing to consumers.

“Today, consumers have become more discerning; there is a greater emphasis on features like lumen per watt, warranty, power factor and the ability to tolerate electricity fluctuation. As a design company, we address cost efficacy through a minimalist form of products that require lesser material,” adds Soni.

Corvi, a design-driven company, is already supplying to Europe, West Asia and Africa. At this growth rate, it won’t be surprising to see Indian companies lighting up overseas market too with their LEDs.