Bajaj Lighting, the lighting division of Rs 2,700-crore Bajaj Electricals Ltd, is planning to supply compact fluorescent lamps (CFLs) to domestic lamp makers. The company is mulling utilising its excess production of CFLs of nearly one million (after having met the domestic demand and export requirements) for this purpose.
CFLs are manufactured at its Nasik unit in Maharashtra. The company currently produces nearly 4 million (40 lakh) CFL lamps a month at Nasik unit. Of these, nearly 3 million (30 lakh) CFLs are sold in the domestic market while a small portion of it is exported.
Bajaj exports a minor portion of its CFLs to European home décor major, Ikea. This apart, the company already has a buyback option with the US-based General Electric (GE). GE had installed the production facilities at Bajaj's Nasik factory.
“We are talking to several domestic firms for OEM supplies. Things however, are still in nascent stage,” Mr C.G.S. Mani, President – Lighting, Bajaj Electrical, said on the sidelines of the launch of the company's Hyperions range of consumer lighting and LED lanterns on Saturday. The company also announced its entry into the premium home lighting segment.
Incandescent and fluorescent lamps and tubelights are produced at Shikhodabad in Uttar Pradesh.
Premium Segment
According to Mr Mani, the consumer segment (home lighting) is experiencing a healthy growth of 30 per cent and contributes nearly 50 per cent of the total sales in the lightings segment. This has prompted the company to explore opportunities in the premium CFL-enabled lighting segment.
Philips and Wipro already have offerings in the premium segment.
“Growth in the commercial segment is subdued due to the current market conditions. However, we are expecting the consumer segment to do well,” he said.
Revenue
Mr Mani said the lighting segment aims at a turnover of nearly Rs 800 crore this fiscal. Last fiscal, the lighting division, that includes both commercial and home lighting, had reported a turnover of nearly Rs 580 crore.
“The home lighting segment is expected to contribute nearly Rs 435 crore this fiscal,” he said.