The Hindu Business Line : Philips plans to hike capacity at Mohali plant

Kolkata, Sept. 28 With the compact fluorescent lights (CFL) business growing at 20-25 per cent annually, Philips Electronics India Ltd is firming up plans to ramp up the production capacity at its Mohali plant in the years ahead.

By 2010, the Mohali plant will meet around 80 per cent of the domestic demand for CFL applications, according to Mr Mathew Job, Marketing Director, Lighting Division, Philips Electronics India Ltd.

Addressing newspersons at a function held here today to introduce the company’s latest range of lighting solutions for “Office, Shop and City Beautification”, Mr Job said the size of the CFL market in India was pegged at 100 million pieces in 2007.

Philips is likely to garner a 25 per cent share of the domestic market for CFL products in 2007. Around 70 per cent of the CFL products sold by the company would be imported from its production facilities in China and Europe.

However, with CFL sales gradually picking up in India, Philips was hopeful of ramping up its domestic production of CFL products to meet 80 per cent of the local requirements by 2010, he said.

Philips Electronics India currently accounts for around 25 per cent of the “highly fragmented” market for lighting products in the country. In 2006, the lighting division of the company generated a revenue of around Rs 1,200 crore. This, in turn, amounted to around 50 per cent of the company’s overall turnover. For the lighting division, conventional fluorescent lights sales accounted for 35 per cent of the division’s revenue in 2006 while compact fluorescent lights accounted for 25 per cent. GLS lamps – or ordinary bulbs – and sodium vapour lamps, etc, contributed to the balance.

According to Mr Job, the market for GLS lamps “was stagnating or marginally declining while that for compact fluorescent lights was going up by around 20-25 per cent per annum”.

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