Description
This document is about CFL brands in india. CFL market is increasing 40% CAGR for the past four years, and hence studying the trends and market share is quite essential as there are almost 12 major players in the market, with ample experience of selling luminaries.This report compares the top five CFL brands in India.
July 2012
Hrishikesh P Khekale PGDM-IB (2012-14) Roll no. 19
STUFY OF TOP FIVE BRANDS SELLING CFL
Marketing Management Hrishikesh P Khekale PGDM – IB Roll no. 19
TABLE OF CONTENTS 1.) COMPACT FLUORESCENT LAMP a. Introduction b. Pollution Control c. Lifetime 2.) MARKET POTENTIAL 3.) CFL Manufacturing process 4.) HAVELLS a. History b. Havells CFL price list c. Promotions d. Unique Selling Propositions 5.) WIPRO a. History b. WIPRO CFL price list c. Promotions d. Unique Selling Propositions 6.) BAJAJ a. History b. BAJAJ CFL price list c. Promotions d. Unique Selling Propositions 7.) PHILIPS a. History b. Philips CFL price 2 12 12 13 13 13 10 10 11 11 11 8 8 9 9 9 3 4 4 4 5 6 6 7 7 3
list c. Promotions d. Unique Selling Propositions 8.) SURYA a. History b. Surya CFL price list c. Promotions d. Unique Selling Propositions 9.) CFL MARKET SHARE 10.) 11.) 12.) 13.) 14.) OVERALL CFL BCG MATRIX WHY CFL? CFL MARKET CONCERNS MARKET SHARE
14 14 15 15 15 16 16 17 18 18 18
3
COMPACT FLUORESCENT LAMP (CFL)
INTRODUCTION Compact Fluorescent light bulbs, also known as CFLs, are an ecofriendly alternative to standard incandescent light bulbs. CFLs can be screwed into the same sockets as other light bulbs and provide very comparable lighting. CFLs are easily recognizable due to their distinct twisting shape. These “green” light bulbs have a host of benefits that can help improve the planet, our home and finances. One of the greatest benefits of compact fluorescent light bulbs is their energy efficiency. A CFL uses 50 to 80 percent less energy than other light bulbs. While many consumers are dissuaded by the higher initial cost of a CFL these light bulbs must be replaced less often than incandescent bulbs. Compact fluorescent lights can have a dramatically extended lifespan, lasting as much as 10 times longer than their incandescent counterparts. While standard incandescent bulb will last for a year, a CFL can last anywhere
4
from 8 to 10 years. Furthermore, a 75-watt incandescent bulb can be replaced by a 20-watt CFL bulb.
- A still from the film Swades, use of incandescent bulbs is prevalent in villages
POLLUTION CONTROL: Manufacturing of CFL does not produce any pollution & hence does not require pollution control certificate from pollution control Board. However manufacturing of CFL is categorized under no pollution producing industry.
LIFETIME: The average rated life of a CFL is between 8 and 15 times that of incandescent. CFLs typically have a rated life-span of between 6,000 and 15,000 hours, whereas incandescent lamps are usually manufactured to have a lifespan of 750 hours or 1,000 hours. For a given light output, CFLs use 20 to 33 percent of the power of equivalent incandescent lamps.
5
MARKET POTENTIAL
Total Sales in 2012 (Expected):- Rs. 3700 Crore
CFL Sales
4000 3500 3000 2500 2000 1500 1000 500 0 Total Sales (in Rs. crore)
-Source financial report, Havells India ltd
CFL MANUFACTURING PROCESS
6
7
History
?
2011 : Launch of new range of Control Gear Cosmic Star series, Set up of new Industrial Switchgear Plant in Sahibabad ,Launch of Domestic Appliances ,Standard Electrical merged with Havells, Entered into a Joint Venture with Shanghai Yaming Lighting,China
?
2009 : Set up of fully automatic 2nd unit for switchgear manufacturing at Baddi, Global consolidation of CFL manufacturing plant at Neemrana for domestic and export purposes., Launch of India's 1st HPF CFL, Launch of India's 1st BEE 5* Rated Fan
?
2006 : Crabtree India merged with Havells India, Added CFL production unit in Haridwar manufacturing plant, Expansion at Alwar manufacturing plant for increase of production capacity, Expansion at Baddi manufacturing plant and set-up of an Export Oriented Unit, First Company to get the ISI Certification for complete range of CFLs, Started mid-day meal program at Alwar, Rajasthan caters to 10,000 students from 77 schools.
8
?
2004 : Set up manufacturing plant at Baddi , HP for manufacturing of Domestic Switchgear, Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in Faridabad, Haryana.
? ? ?
Attained the CE certificate for CFL. 2003 : Launch of Fans, CFL and Lighting 2002 : Standard Electrical Company becomes a 100% Subsidiary of the company, Attained the IEC certification for Industrial switchgear and CSA certification for all manufacturing plants.
?
2001 : Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in the company to consolidate its area of core competence.
?
2000 : Acquired controlling stake in Duke Arnics Electronics (P) Limited engaged in manufacturing of Electronic Meters-Single Phase, Three Phase, Multi Function, Tri Vectors.
? ? ? ?
Acquired controlling interest in an industry major-Standard Electricals Ltd. 1990 : Set up a manufacturing plant at Sahibabad, UP for Changeover Switches. 1971 : Bought HAVELLS brand 1958 : Commenced trading operations in Delhi
HAVELLS CFL PRICE LIST
Havells Product 4U Dwarf Normal Retrofit T2 Curvy Non-retrofit Havells2 Watt 9-15W 5-15W 11-27W 33-85W 5-12W 9-15W 5-26W Havells3 Price Range (in Rs.) 150-175 135-165 145-255 360-775 210-240 185-290 70-135
-source Havells India Ltd website
9
PROMOTIONS
-
Rajesh Khanna promoting Brand HAVELLS. advertisement from Havells
–Shock laga
Unique selling propositions: 1.)Introduced the concept of GREEN CFL 2.)0.85 Power factor
3.)
Other Havells? products marketed as shock proof
10
Milestones
? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1947 - Establishment of an Oil crushing unit at Amalner in Maharashtra 1970 - Manufacture of Hydrogenated cooking (Vanaspati) medium at Amalner 1982 - Introduced Flexi Packs for Hydrogenated cooking medium - a first in India 1986 - Santoor soap launched 1991 - Wipro Lighting established 1991 - Wipro Baby Soft Products launched 1999 - Launch of Wipro Active 2003 - Launch of Wipro Safewash 2003 - Glucovita acquired 2003 - Chandrika Marketing Rights obtained 2004 - Launch of Santoor Facewash and Cream 2005-06 Amongst the fastest growing FMCG companies 2006 - Acquisition of North West Switches 2007 – Acquisition of Unza, One of the leading companies of South East Asia, in personal care business. 2009 – Relaunch of Santoor. WCCLG Revenues cross Rs. 2000 Cr.
11
-Wipro smart lite advertisement CEO Mr.Kurien
-WIPRO
WIPRO PRICE LIST
Column1 Product WIPRO CFL 23WATS WIPRO CFL 11 MINI 3U WIPRO CFL 15W TWISTER WIPRO CFL REGULAR 8W WIPRO Watt 23W 11W 15W 8W Column2 Price Range (in Rs.) 440 150 220 140
PROMOTIONS
12
R Jayram in Wipro smartlite matlab “SAVINGS advertisement
Paresh Rawal in Wipro Smartlite
Unique selling propositions: 1.)Markets around saving energy bills
History
?
Jamnalal Bajaj was the founding father of the Bajaj Group. The adopted „fifth? son of Mahatma Gandhi, and the 'merchant prince' who held the wealth he created in trust for the people of his country. Trust - a simple word that contains a whole philosophy handed down by Jamnalal Bajaj to his successors. He valued honesty over profit, actions over words and common good over individual gain.
?
It
was incorporated as Radio Lamp Works Limited under the Indian
Companies Act, 1913 as a public company limited by shares, pursuant to a certificate of incorporation dated July 14, 1938. Subsequently the name of our Company was changed to Bajaj Electricals Limited, pursuant to a fresh certificate of incorporation dated October 1, 1960. 13
?
In 1964, Matchwell Electricals (India) Limited, ("Matchwell"), a manufacturer of electric fans became a subsidiary of our Company and subsequently, with effect from July 1, 1984, the business and undertaking of Matchwell was amalgamated with our Company.
?
In January 1998, our Company established a new manufacturing unit at Chakan near Pune and commenced operations of manufacturing of fans and die-cast components. The production of fans at our manufacturing activities of the Matchwell unit also was gradually shifted to our Chakan unit.
?
In September 1999, our Company established and commissioned a wind energy generation unit with an installed capacity of 2.8 mega watts at Village Vankusawade, Tal. Patan, District Satara, Maharashtra.
?
In the year 2000-2001 our Company set-up our manufacturing facilities including a fabrication unit and a galvanizing plant at Ranjangaon, near Pune for the manufacture of high masts, lattice towers, and related products, and the said manufacturing facilities commenced commercial production with effect from April 1, 2001.
?
In November 2002, our Company entered into a technical collaboration and brand licensing agreement with Morphy Richards, United Kingdom, for the sales and marketing of electrical appliances under the brand name of "Morphy Richards" in India.
?
In the year 2007, we acquired 32% of the share capital of Starlite Lighting Limited, a company engaged in the manufacture of Compact Fluorescent Lamps ("CFLs").
14
BAJAJ CFL PRICE LIST
Column1 Product High Wattage T2 Ecolux T3 Non-Retrofit-linear Non-retrofit Retrofit-HW Bajaj Watt 9-15W 8-12W 9-27W 5-23W 18-36W 9-15W 35-65W Column2 Price Range (in Rs.) 150-175 200-225 150-315 145-250 130-150 75-205 490-765
-source Bajaj Electricals website
PROMOTIONS
-honeycomb CFL, fits anywhere, Bajaj CFL advertisement
Unique selling propositions:1.)Cheapest selling CFL?s in the market
15
History
The foundations of Philips were laid in 1891 when Anton and Gerard Philips established Philips & Co. in Eindhoven, the Netherlands. The company begun manufacturing carbon-filament lamps and by the turn of the century, had become one of the largest producers in Europe. By 1910, with 2,000 employees, Philips was the largest single employer in The Netherlands. In the early years of Philips & Co., the representation of the company name took many forms: one was an emblem formed by the initial letters of Philips & Co., and another was the word Philips printed on the glass of metal filament lamps.
Milestones
? ? ? ? ? ? ? ?
1891 – 1915 Philips began by making carbon-filament lamps and, by the turn of the century, was one of the largest producers in Europe. 1915 – 1925 Innovation and Diversification: X-rays and Radio Reception 1925 – 1940 First Televisions and Electric Shavers 1940 – 1970 Technology Breakthroughs: Introduction of Compact Audio Cassette 1970 – 1980 Continued Product Innovation for Images, Sound and Data 1980 – 1990 Technological Landmark: the Compact Disc 1990 – 2000 Changes and Successes: Introduction of DVD 2010 – The organizational structure was simplified per January 1, 2008 by forming three sectors: Healthcare, Lighting and Consumer Lifestyle
16
PHILIPS CFL PRICE LIST:
Column1 Product Tornado Spiral Ecotone Spiral Decotwist Special Genie Stick Essential Stick PHILIPS Watt 5-20W 45-80W 25W 5-14W 8-23W Column2 Price Range (in Rs.) 200-255 675-900 399 125-160 130-210
Promotions:
-Source Philips facebook page, John Abraham promoting brand Philips 17
Unique selling propositions: 1.)Brand value of Philips in other electronics products.
2.)
Oldest manufacturer of luminaries in the world.
18
Milestones
Kashipur Plant
1984 - Lighting division and factory building construction began 1985 - GLS chain started production - First chain of FTL started production - Surya tubes and bulbs launched in the market 1986 - Second chain of FTL started production - Modern glass factory began production 1987 - Second GLS lamp chain started production 1988 - Bulb blowing machine added to production 1989 - HPSVL and Energy-Efficient 26mm FTL production began 2002 - Blended lamps and Blue Tubes developed - ISO 14001 and OHSAS 18001 certifications received for safety & environment 2004 - Production capacity of HID lamps increased from 1.5 lac Pcs. p.a. to 4.5 lacs Pcs. p.a. 2005 - Additional tube Drawing Line installed in lead glass Furnace doubling the production capacity - Additional tube Drawing Line on sodalime Furnace installed.Production capacity of tubular shells increased by 50% - New FTL chain installed from GE (Hungary) 2006 - Capacity of wire drawing & filament plant enhanced by 90 million filaments p.a.
Malanpur Plant
1992 1993 1994 1995 1996 1997 1998 1999 2003 2004 2005 - Production of 5 million FTLs and 20 million GLS started - FTL capacity expanded to 10 million - Production of H4-Halogen Lamps started - Production of H3 Lamps started - High Speed Falma started for GLS lamp manufacturing with speed 3500 Pcs per Hr. - Aluminium cap plant for GLS started - FTL automatic packaging machine started - New Osram GLS chain started - Asia's largest ribbon glass plant started with annual capacity of 400 million GLS and 25 million FTL shell - 14" Danner machine started increasing capacity of FTL shell to 35 million p.a. - Automatic Unit Carton Packaging machine for GLS started - Second high speed falma chain installed with speed 4000 Pcs Per Hr. - Third line of FTL installed. - New fully Automatic FTL Packaging machine installed.
19
2008 - Worlds best CFL plant from GE Europe commissioned
20
SURYA CFL PRICE LIST
Column1 Product T-3 T-4 High Wattage Spiral Spiral-2 PL PLL Surya Watt 5-11 W 8-27W 35-85W 15-27W 35-85W 9-18W 18-36W Column2 Price Range (in Rs.) 125-145 120-230 350-650 210-265 450-750 65-125 150-190
-source Surya website
Unique selling propositions: 1.)Brand recognition due to Surya Bulbs. 2.)Very high availability.
Revenue Comparison
21
Revenue
40000 35000 30000 25000 20000 15000 10000 5000 0 Bajaj Electricals Havells India Philips Surya
Revenue
-Source ACE analyser
CFL Market Share (Metro Cities)
Overall and City wise market share:
Company Overall Delhi Mumbai Kolkata Bangalore Philips 30.2 26.2 37.9 32.6 27.7 Crompton 7 6 0.5 3.3 18.3 Wipro 4.1 0.3 6.3 0 12.1 Bajaj 3.1 6 1 0 3.1 Surya 10.5 21.3 1.9 0.5 10.3 Orpat 16.7 0.5 44.7 34.9 0 Havells 10 12.2 4.4 5.3 12.5 Others 18.4 27.5 3.3 23.4 16 Total 100 100 100 100 100
Column1
-Source survey report, Voice India, Method – Field Survey
22
Overall CFL Market Share
Overall Market Share
18.4 10 7 4.1 10.5 30.2
16.7
3.1
Philips Crompton Wipro Bajaj Surya Orpat Havells Others
-Source survey report, Voice India, Method – Field Survey
23
BCG Matrix
CFL Market Growth Rate = 37 % (2005-2010) CAGR (source ICRA)
24
25
WHY CFL?
1.)If 400 million bulbs are replaced by CFLs, the resultant saving would be to the tune of Rs 14,000 Crore. 2.) It would mean power saving of 31 billion units per annum 3.) The money saved from these could additionally fund a 3500 Mw power plant in the county 4.) CFLs can work on 6-12 volt batteries, helping villages off the grid get illumination
CFL MARKET
1. The market is complex with more than a dozen branded players and many more unbranded players 2. Cross selling between manufacturers and brands are common (Philips or Phoenix is the biggest?) 3. A huge chunk of the CFLs of different qualities are still imported from China (brought down market price to Rs 4050 per piece) -- new anti-dumping regulations?
CONCERNS
1. Number of CFLs sold in the market without BIS certification 2. PF of .85 made mandatory from January 1, 2009 but industry opposition continues. 3. Given the market structure, what other systems and standards are needed to ensure quality and life?
26
4. Currently there is no regulation to limit the amount of mercury going inside CFLs.
27
doc_349335876.docx
This document is about CFL brands in india. CFL market is increasing 40% CAGR for the past four years, and hence studying the trends and market share is quite essential as there are almost 12 major players in the market, with ample experience of selling luminaries.This report compares the top five CFL brands in India.
July 2012
Hrishikesh P Khekale PGDM-IB (2012-14) Roll no. 19
STUFY OF TOP FIVE BRANDS SELLING CFL
Marketing Management Hrishikesh P Khekale PGDM – IB Roll no. 19
TABLE OF CONTENTS 1.) COMPACT FLUORESCENT LAMP a. Introduction b. Pollution Control c. Lifetime 2.) MARKET POTENTIAL 3.) CFL Manufacturing process 4.) HAVELLS a. History b. Havells CFL price list c. Promotions d. Unique Selling Propositions 5.) WIPRO a. History b. WIPRO CFL price list c. Promotions d. Unique Selling Propositions 6.) BAJAJ a. History b. BAJAJ CFL price list c. Promotions d. Unique Selling Propositions 7.) PHILIPS a. History b. Philips CFL price 2 12 12 13 13 13 10 10 11 11 11 8 8 9 9 9 3 4 4 4 5 6 6 7 7 3
list c. Promotions d. Unique Selling Propositions 8.) SURYA a. History b. Surya CFL price list c. Promotions d. Unique Selling Propositions 9.) CFL MARKET SHARE 10.) 11.) 12.) 13.) 14.) OVERALL CFL BCG MATRIX WHY CFL? CFL MARKET CONCERNS MARKET SHARE
14 14 15 15 15 16 16 17 18 18 18
3
COMPACT FLUORESCENT LAMP (CFL)
INTRODUCTION Compact Fluorescent light bulbs, also known as CFLs, are an ecofriendly alternative to standard incandescent light bulbs. CFLs can be screwed into the same sockets as other light bulbs and provide very comparable lighting. CFLs are easily recognizable due to their distinct twisting shape. These “green” light bulbs have a host of benefits that can help improve the planet, our home and finances. One of the greatest benefits of compact fluorescent light bulbs is their energy efficiency. A CFL uses 50 to 80 percent less energy than other light bulbs. While many consumers are dissuaded by the higher initial cost of a CFL these light bulbs must be replaced less often than incandescent bulbs. Compact fluorescent lights can have a dramatically extended lifespan, lasting as much as 10 times longer than their incandescent counterparts. While standard incandescent bulb will last for a year, a CFL can last anywhere
4
from 8 to 10 years. Furthermore, a 75-watt incandescent bulb can be replaced by a 20-watt CFL bulb.
- A still from the film Swades, use of incandescent bulbs is prevalent in villages
POLLUTION CONTROL: Manufacturing of CFL does not produce any pollution & hence does not require pollution control certificate from pollution control Board. However manufacturing of CFL is categorized under no pollution producing industry.
LIFETIME: The average rated life of a CFL is between 8 and 15 times that of incandescent. CFLs typically have a rated life-span of between 6,000 and 15,000 hours, whereas incandescent lamps are usually manufactured to have a lifespan of 750 hours or 1,000 hours. For a given light output, CFLs use 20 to 33 percent of the power of equivalent incandescent lamps.
5
MARKET POTENTIAL
Total Sales in 2012 (Expected):- Rs. 3700 Crore
CFL Sales
4000 3500 3000 2500 2000 1500 1000 500 0 Total Sales (in Rs. crore)
-Source financial report, Havells India ltd
CFL MANUFACTURING PROCESS
6
7
History
?
2011 : Launch of new range of Control Gear Cosmic Star series, Set up of new Industrial Switchgear Plant in Sahibabad ,Launch of Domestic Appliances ,Standard Electrical merged with Havells, Entered into a Joint Venture with Shanghai Yaming Lighting,China
?
2009 : Set up of fully automatic 2nd unit for switchgear manufacturing at Baddi, Global consolidation of CFL manufacturing plant at Neemrana for domestic and export purposes., Launch of India's 1st HPF CFL, Launch of India's 1st BEE 5* Rated Fan
?
2006 : Crabtree India merged with Havells India, Added CFL production unit in Haridwar manufacturing plant, Expansion at Alwar manufacturing plant for increase of production capacity, Expansion at Baddi manufacturing plant and set-up of an Export Oriented Unit, First Company to get the ISI Certification for complete range of CFLs, Started mid-day meal program at Alwar, Rajasthan caters to 10,000 students from 77 schools.
8
?
2004 : Set up manufacturing plant at Baddi , HP for manufacturing of Domestic Switchgear, Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in Faridabad, Haryana.
? ? ?
Attained the CE certificate for CFL. 2003 : Launch of Fans, CFL and Lighting 2002 : Standard Electrical Company becomes a 100% Subsidiary of the company, Attained the IEC certification for Industrial switchgear and CSA certification for all manufacturing plants.
?
2001 : Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged ECS Limited in the company to consolidate its area of core competence.
?
2000 : Acquired controlling stake in Duke Arnics Electronics (P) Limited engaged in manufacturing of Electronic Meters-Single Phase, Three Phase, Multi Function, Tri Vectors.
? ? ? ?
Acquired controlling interest in an industry major-Standard Electricals Ltd. 1990 : Set up a manufacturing plant at Sahibabad, UP for Changeover Switches. 1971 : Bought HAVELLS brand 1958 : Commenced trading operations in Delhi
HAVELLS CFL PRICE LIST
Havells Product 4U Dwarf Normal Retrofit T2 Curvy Non-retrofit Havells2 Watt 9-15W 5-15W 11-27W 33-85W 5-12W 9-15W 5-26W Havells3 Price Range (in Rs.) 150-175 135-165 145-255 360-775 210-240 185-290 70-135
-source Havells India Ltd website
9
PROMOTIONS
-
Rajesh Khanna promoting Brand HAVELLS. advertisement from Havells
–Shock laga
Unique selling propositions: 1.)Introduced the concept of GREEN CFL 2.)0.85 Power factor
3.)
Other Havells? products marketed as shock proof
10
Milestones
? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
1947 - Establishment of an Oil crushing unit at Amalner in Maharashtra 1970 - Manufacture of Hydrogenated cooking (Vanaspati) medium at Amalner 1982 - Introduced Flexi Packs for Hydrogenated cooking medium - a first in India 1986 - Santoor soap launched 1991 - Wipro Lighting established 1991 - Wipro Baby Soft Products launched 1999 - Launch of Wipro Active 2003 - Launch of Wipro Safewash 2003 - Glucovita acquired 2003 - Chandrika Marketing Rights obtained 2004 - Launch of Santoor Facewash and Cream 2005-06 Amongst the fastest growing FMCG companies 2006 - Acquisition of North West Switches 2007 – Acquisition of Unza, One of the leading companies of South East Asia, in personal care business. 2009 – Relaunch of Santoor. WCCLG Revenues cross Rs. 2000 Cr.
11
-Wipro smart lite advertisement CEO Mr.Kurien
-WIPRO
WIPRO PRICE LIST
Column1 Product WIPRO CFL 23WATS WIPRO CFL 11 MINI 3U WIPRO CFL 15W TWISTER WIPRO CFL REGULAR 8W WIPRO Watt 23W 11W 15W 8W Column2 Price Range (in Rs.) 440 150 220 140
PROMOTIONS
12
R Jayram in Wipro smartlite matlab “SAVINGS advertisement
Paresh Rawal in Wipro Smartlite
Unique selling propositions: 1.)Markets around saving energy bills
History
?
Jamnalal Bajaj was the founding father of the Bajaj Group. The adopted „fifth? son of Mahatma Gandhi, and the 'merchant prince' who held the wealth he created in trust for the people of his country. Trust - a simple word that contains a whole philosophy handed down by Jamnalal Bajaj to his successors. He valued honesty over profit, actions over words and common good over individual gain.
?
It
was incorporated as Radio Lamp Works Limited under the Indian
Companies Act, 1913 as a public company limited by shares, pursuant to a certificate of incorporation dated July 14, 1938. Subsequently the name of our Company was changed to Bajaj Electricals Limited, pursuant to a fresh certificate of incorporation dated October 1, 1960. 13
?
In 1964, Matchwell Electricals (India) Limited, ("Matchwell"), a manufacturer of electric fans became a subsidiary of our Company and subsequently, with effect from July 1, 1984, the business and undertaking of Matchwell was amalgamated with our Company.
?
In January 1998, our Company established a new manufacturing unit at Chakan near Pune and commenced operations of manufacturing of fans and die-cast components. The production of fans at our manufacturing activities of the Matchwell unit also was gradually shifted to our Chakan unit.
?
In September 1999, our Company established and commissioned a wind energy generation unit with an installed capacity of 2.8 mega watts at Village Vankusawade, Tal. Patan, District Satara, Maharashtra.
?
In the year 2000-2001 our Company set-up our manufacturing facilities including a fabrication unit and a galvanizing plant at Ranjangaon, near Pune for the manufacture of high masts, lattice towers, and related products, and the said manufacturing facilities commenced commercial production with effect from April 1, 2001.
?
In November 2002, our Company entered into a technical collaboration and brand licensing agreement with Morphy Richards, United Kingdom, for the sales and marketing of electrical appliances under the brand name of "Morphy Richards" in India.
?
In the year 2007, we acquired 32% of the share capital of Starlite Lighting Limited, a company engaged in the manufacture of Compact Fluorescent Lamps ("CFLs").
14
BAJAJ CFL PRICE LIST
Column1 Product High Wattage T2 Ecolux T3 Non-Retrofit-linear Non-retrofit Retrofit-HW Bajaj Watt 9-15W 8-12W 9-27W 5-23W 18-36W 9-15W 35-65W Column2 Price Range (in Rs.) 150-175 200-225 150-315 145-250 130-150 75-205 490-765
-source Bajaj Electricals website
PROMOTIONS
-honeycomb CFL, fits anywhere, Bajaj CFL advertisement
Unique selling propositions:1.)Cheapest selling CFL?s in the market
15
History
The foundations of Philips were laid in 1891 when Anton and Gerard Philips established Philips & Co. in Eindhoven, the Netherlands. The company begun manufacturing carbon-filament lamps and by the turn of the century, had become one of the largest producers in Europe. By 1910, with 2,000 employees, Philips was the largest single employer in The Netherlands. In the early years of Philips & Co., the representation of the company name took many forms: one was an emblem formed by the initial letters of Philips & Co., and another was the word Philips printed on the glass of metal filament lamps.
Milestones
? ? ? ? ? ? ? ?
1891 – 1915 Philips began by making carbon-filament lamps and, by the turn of the century, was one of the largest producers in Europe. 1915 – 1925 Innovation and Diversification: X-rays and Radio Reception 1925 – 1940 First Televisions and Electric Shavers 1940 – 1970 Technology Breakthroughs: Introduction of Compact Audio Cassette 1970 – 1980 Continued Product Innovation for Images, Sound and Data 1980 – 1990 Technological Landmark: the Compact Disc 1990 – 2000 Changes and Successes: Introduction of DVD 2010 – The organizational structure was simplified per January 1, 2008 by forming three sectors: Healthcare, Lighting and Consumer Lifestyle
16
PHILIPS CFL PRICE LIST:
Column1 Product Tornado Spiral Ecotone Spiral Decotwist Special Genie Stick Essential Stick PHILIPS Watt 5-20W 45-80W 25W 5-14W 8-23W Column2 Price Range (in Rs.) 200-255 675-900 399 125-160 130-210
Promotions:
-Source Philips facebook page, John Abraham promoting brand Philips 17
Unique selling propositions: 1.)Brand value of Philips in other electronics products.
2.)
Oldest manufacturer of luminaries in the world.
18
Milestones
Kashipur Plant
1984 - Lighting division and factory building construction began 1985 - GLS chain started production - First chain of FTL started production - Surya tubes and bulbs launched in the market 1986 - Second chain of FTL started production - Modern glass factory began production 1987 - Second GLS lamp chain started production 1988 - Bulb blowing machine added to production 1989 - HPSVL and Energy-Efficient 26mm FTL production began 2002 - Blended lamps and Blue Tubes developed - ISO 14001 and OHSAS 18001 certifications received for safety & environment 2004 - Production capacity of HID lamps increased from 1.5 lac Pcs. p.a. to 4.5 lacs Pcs. p.a. 2005 - Additional tube Drawing Line installed in lead glass Furnace doubling the production capacity - Additional tube Drawing Line on sodalime Furnace installed.Production capacity of tubular shells increased by 50% - New FTL chain installed from GE (Hungary) 2006 - Capacity of wire drawing & filament plant enhanced by 90 million filaments p.a.
Malanpur Plant
1992 1993 1994 1995 1996 1997 1998 1999 2003 2004 2005 - Production of 5 million FTLs and 20 million GLS started - FTL capacity expanded to 10 million - Production of H4-Halogen Lamps started - Production of H3 Lamps started - High Speed Falma started for GLS lamp manufacturing with speed 3500 Pcs per Hr. - Aluminium cap plant for GLS started - FTL automatic packaging machine started - New Osram GLS chain started - Asia's largest ribbon glass plant started with annual capacity of 400 million GLS and 25 million FTL shell - 14" Danner machine started increasing capacity of FTL shell to 35 million p.a. - Automatic Unit Carton Packaging machine for GLS started - Second high speed falma chain installed with speed 4000 Pcs Per Hr. - Third line of FTL installed. - New fully Automatic FTL Packaging machine installed.
19
2008 - Worlds best CFL plant from GE Europe commissioned
20
SURYA CFL PRICE LIST
Column1 Product T-3 T-4 High Wattage Spiral Spiral-2 PL PLL Surya Watt 5-11 W 8-27W 35-85W 15-27W 35-85W 9-18W 18-36W Column2 Price Range (in Rs.) 125-145 120-230 350-650 210-265 450-750 65-125 150-190
-source Surya website
Unique selling propositions: 1.)Brand recognition due to Surya Bulbs. 2.)Very high availability.
Revenue Comparison
21
Revenue
40000 35000 30000 25000 20000 15000 10000 5000 0 Bajaj Electricals Havells India Philips Surya
Revenue
-Source ACE analyser
CFL Market Share (Metro Cities)
Overall and City wise market share:
Company Overall Delhi Mumbai Kolkata Bangalore Philips 30.2 26.2 37.9 32.6 27.7 Crompton 7 6 0.5 3.3 18.3 Wipro 4.1 0.3 6.3 0 12.1 Bajaj 3.1 6 1 0 3.1 Surya 10.5 21.3 1.9 0.5 10.3 Orpat 16.7 0.5 44.7 34.9 0 Havells 10 12.2 4.4 5.3 12.5 Others 18.4 27.5 3.3 23.4 16 Total 100 100 100 100 100
Column1
-Source survey report, Voice India, Method – Field Survey
22
Overall CFL Market Share
Overall Market Share
18.4 10 7 4.1 10.5 30.2
16.7
3.1
Philips Crompton Wipro Bajaj Surya Orpat Havells Others
-Source survey report, Voice India, Method – Field Survey
23
BCG Matrix
CFL Market Growth Rate = 37 % (2005-2010) CAGR (source ICRA)
24
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WHY CFL?
1.)If 400 million bulbs are replaced by CFLs, the resultant saving would be to the tune of Rs 14,000 Crore. 2.) It would mean power saving of 31 billion units per annum 3.) The money saved from these could additionally fund a 3500 Mw power plant in the county 4.) CFLs can work on 6-12 volt batteries, helping villages off the grid get illumination
CFL MARKET
1. The market is complex with more than a dozen branded players and many more unbranded players 2. Cross selling between manufacturers and brands are common (Philips or Phoenix is the biggest?) 3. A huge chunk of the CFLs of different qualities are still imported from China (brought down market price to Rs 4050 per piece) -- new anti-dumping regulations?
CONCERNS
1. Number of CFLs sold in the market without BIS certification 2. PF of .85 made mandatory from January 1, 2009 but industry opposition continues. 3. Given the market structure, what other systems and standards are needed to ensure quality and life?
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4. Currently there is no regulation to limit the amount of mercury going inside CFLs.
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