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30/12/2011 14:34

Cover Story | LEDs

The tiny diode emits much more light per watt than any other type of lamp, yet punches a hole in the pocket
in off-grid regions of the country where the LEDsolar combo is promising a new life to people; the application of LED is being mandated in high use areas such as public lighting and down lights in retail space; and the creativity of designers is bursting at the seams due to the versatility of this wonder lamp. According to a Frost & Sullivan study titled Indian LED Lighting Market, LED offers better return on investment as compared to other lighting technologies. Though the market is growing, according to the study the numbers are negligible and there is a lot more which is still to be achieved through introduction of new concepts and applications. The report estimated the domestic LED lighting market to be worth `221 crore ($49.6 million) in 2009, and predicts that it will reach `1,770 crore ($399 million) by 2015, growing at a CAGR of 41.5%. This data, though impressive, does not give the complete picture. To understand the significance of the storm that has hit the lighting industry, it is important to see whats happing at the international level. Leading consulting company McKinsey has predicted that the size of the global lighting market will touch $160 billion by 2020, and 59% of this will be accounted for by LED. Of the total LED lighting business, nearly 67% (as against 10% in 2010) will come from general lighting for homes, work and outdoor applications.

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The market for LED-based lighting is evolving at lightning speed. Its not that LED has become the most preferred source of light. It would have but for its deterring price tag. But whats happening is that while its efficiency is rising it is in the realm of 130160 lumens per watt - prices are definitely falling. Thankfully, Indian performance standards are now in place and may be announced by the Bureau of Indian Standards any time, while a network of testing facilities is taking shape. There is a crying need for investment in a LED ecosystem - represented by chip manufacturing and packaging, LED fabrication, and fixture design and there are indications that this may soon happen. Meanwhile the market for LED lighting is taking off

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Cover Story | LEDs

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India it is yet to take off. There are but a few units that specialise in design and manufacture of fixtures for LED lamps, and no investment has gone into chip packaging and manufacturing. This is the reason why this industry remains dependant on imports whose quality is suspect. Thats also the reason why prices continue to remain high, making the product unaffordable for most lighting users.

The report also suggests that the global dominance of lighting majors Philips, Osram and GE is likely to be challenged strongly by tech companies who have been manufacturing LEDs for decades, for use in electronics like televisions and mobile phones. Companies like Panasonic, Moser Baer, Sharp and Mitsubishi have started diversifying into lighting, and may soon come calling on distribution networks with their own ranges that are purely LED-based, and hard to resist. This insight is confirmed by Manoj Verma (manoj. verma@cgglobal.com), vice president consumer products & international business of Crompton Greaves Ltd, which is investing heavily in the LED business in order to leapfrog over its larger lighting rivals. We believe that its not necessary be a lighting leader to be successful in LED lighting. The key to success in LEDs is going to be how conversant you are with the technology, how well you are adapting to the fast changing technology, and how you are educating the customers about what they actually need when it comes to LEDs. Verma says these are the principles on which his company is approaching the lighting business now, and he is optimistic that rapidly growing Indian market will offer opportunities for leadership. While globally the ecosystem required to percolate LED lighting to the user level is well established, in

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Yet, theres a ray of hope for LED players. Instead of waiting for the replacement market to build up, they need to focus on the new application segment where traditional lamps like the incandescent and the fluorescent have been ineffective or imprac-

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Cover Story | LEDs

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tical. Task lighting is one such application. LEDs can provide just the right amount of lumens without any overflow; substantial amount of light is wasted when other lamps are used. LED lights can be applied to niche, hard to reach spaces because of their small profile, as inside furniture, around bathroom fittings and cabinets, in water bodies and pavements, interior design elements like vases and curtain pelmets and ceilings etc. Applications where lighting is required for long periods of time, such as on streets and landscapes, in hotel lobbies, on display in retail outlets, are also the right candidate for LEDs. Their use can reap a very fast payback on investment due to the drastic cut they can cause in energy bills. The most promising application of LED is turning out to be in the realm that has yet to see artificial light, the off grid regions of the country where power supply has still not arrived. This is the world that depends on kerosene, coal or other fuel for illumination. The innovative combo of LED, which barely require any energy, and photovoltaic cells that convert the Suns heat into electrical energy, are proving to be a dream come true for the light deprived population. The arrival of light in these dark regions via LED has the potential to change lifestyles by increasing the hours available for education and income generation, and improving health and safety. Economists believe that more light leads to more income, and nowhere is this likely to be more true than in India. There is a diversity of estimates to the number of villages that are still in the dark. The number ranges from 85,000 to 1,25,000 and this is the market that needs to be fed with LED.

Life in a Happy Village Technology is transforming life in rural settings across the globe. In India, as elsewhere, the Internet and the mobile phone have enriched the lives of people and dramatically brought them into the economic mainstream. LED is another technology that can make communities happy by making lives sustainable and healthy. Over a lakh Indian villages, of at least 250 households each, which are yet to be connected to the power grid need not wait any longer. Solar-powered LED products including street, commercial and residential lights, have the potential to light up lives and boost the village economy. If put to use, the off-grid solar-based option will not only reduce infrastructural costs, it will also cut fire and health hazards that accompany use of kerosene lanterns, as well as the humongous subsidies the government has built into kerosene prices. Commerce will get charged up with the advent of light, as will education. More lit hours will enable families to spend happier times together, adding a missing spark to peoples lives. Such a transformation to the social milieu can have a huge impact on the overall economy of the country, given the size of population that is likely to be affected.

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The rush to this market has already begun, and non-lighting companies have taken the lead. Power backup companies Su-Kam and Luminous, who hold significant shares in the inverter market, have quickly realised the potential of the solar-based inverter that powers LED lights. Both companies have launched user-friendly packs that consist of an inverter, photovoltaic panel and a LED light, all at an affordable price targeted at the rural market.

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Events
SEMICON/LED Korea 2012 7-9 February 2012 Venue: Seoul, Korea www.led-korea.org Strategies in Light 7-9 February 2012 Venue: California, USA www.strategiesinlight.com LED CHINA 2012 20-23 February 2012 Venue: Guangzhou, China www.ledchina-gz.com The Arc Show 29 February-1 March 2012 Venue: London, UK www.thearcshow.com LED Packaging EXPO 2012 13-15 March 2012 Venue: Seoul, Korea www.chinaexhibition.com 2012 LIGHTFAIR International 9-11 May 2012 Venue: Nevada, USA www.lightfair.com
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and safe, having low power consumption and a long life. Despite the all round optimism about the benefits that LED lighting is supposed to bring to users, there remains a concern regarding performance standards. Though BIS has formalised standards for LEDs, they are yet to be announced and it may take a few months before that happens. In the meanwhile, claims of lamp life and other performance parameters remain hard to verify. According to Vrinda Bhandarkar (vrindab@strategies-u.com), director of research for LED lighting, Strategies Unlimited, a US-based research organisation, This is a delicate time for the market because it is difficult for the buyer to judge the quality of the LED products. The buyer cannot be assured of the life of the LED lighting product as different manufacturers claim different hours. The quality of colour of the light is not standard, it is either too blue or too green, along with colour change/shift over time. Bhandarkar feels that the real potential is yet to be realised. But things are changing, and a network of testing facilities for LED is gradually emerging, both in the public and private sectors. The Central Power Research Institute (CPRI) has testing facilities at Bengaluru, and has set up a new one at Noida recently. The BIS is planning another testing facility by end of 2012. US certification company Underwriters Laboratories (UL) is setting up a facility at Manesar, which will become operational by end of March 2012. Technology leader Cree Inc, which is based in US, has recently launched a LED testing service named TEMPO to manufacturers globally, including in India. Indian lighting giant Surya Roshni recently set up a state-of-the-art lighting laboratory and research centre named Surya Technology & Innovation Centre (STIC) in Noida, which also has the capability to test LED products. Similarly Regnant Lighting, a Delhibased lighting firm, has set up a lighting laboratory which is equipped with latest testing equipment including UV and visible spectroradiometers, in-

euroLED 2012 13-14 June 2012 Venue: Birmingham, UK www.euroled.org.uk But it is not just domestic lighting that is going to be LED-based in the rural setting, there are many more applications where this light source will be used, say experts. There is talk of the concept of Happy Village, a community that is harmonious, healthy and sustainable due to the use of solid state lighting, because LEDs are considered to be non-polluters

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Cover Story | LEDs

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tegrating spheres, electric meters, power quality analysers, single axis goniophotometer, EMC testing equipment, battery capacity testing equipment, battery life cycle equipment and LED chip electrical analyser. LED lights still remain out of reach of the mass market even though prices have fallen by 50%. A 5W lamp, which cost Rs.1,200 over a year ago, is now available for Rs. 600. Budgetary concession, which saw excise duty being reduced on this lamp from 10% to 5%, helped prices slide another 10-12%, and a price point of `450 seems likely in the next six months. However, no significant impact on the acceptance of LED lights is anticipated, since their prices are still 5-6 times that of CFLs. Moreover, as prices of phosphor rise, in the next five years it is anticipated that CFLs will become as costly as LEDs. The need, therefore, is to rapidly build up demand for this lamp, primarily through government intervention and extensive awareness building, so that volumes help in bringing down prices to more acceptable levels. This is already happening. Advertisement campaigns of lamp makers are routinely explaining how various LED models replace incandescent or halogen bulbs, giving the same amount of light yet consuming a fraction of the energy. Central and state governments on the other hand are rolling out street and municipal lighting projects for new lighting or replacement of less energy-efficient lamps. Companies including LSG kick-started its India operations by bagging a street-lighting project from BSES Rajdhani. Fred Maxik, its chief technology officer, says, LED lighting will play a critical role in infrastructural development in India. LED would be one component which would offer quality living standards.

The government is also providing incentives under the National Mission for Enhanced Energy Efficiency (NMEEE). Two funds, Partial Risk Guarantee Fund and Venture Capital Fund, have been set up under the mission to provide financial incentives necessary to kick-start this industry. Under the former fund, which has a corpus of Rs.100 crore, the government will pay for first loss of up to Rs. 10 crore and half of any loss suffered thereafter. From the latter fund the government will provide partial equity to start up energy efficiency units.

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