The manufacturing industry has been under pressure since the last year due to a high increase in the cost of raw materials and freight – a trend that is likely to continue in the short term. Coupled with a shortage of key components over the past few months, the industry still has a long way to go before it comes to a new normal stage.
Overcoming the challenges, consumer lighting, and consumer durables brand Surya Roshni has clocked 20 percent growth in LED lighting and domestic appliances in H1 FY 2021-22. The company is currently working to strengthen its leadership position in the consumer lighting segment.
“We plan to build the brand further by more than doubling our Advertising and Promotion spends in this financial year, strengthen our leadership position in Consumer Lighting segment, drive high growth in our Professional Lighting business and Fans and Domestic Appliances,” said Nirupam Sahay, ED and CEO, Lighting and Consumer Durables, Surya Roshni.
This year despite an uptick in the demand of LED Lighting demand, prices have gone up a couple of times over the past year, due to an increase in the cost of raw materials and freight charges. The increase in production cost leads to a decline in production as it will otherwise overshoot the budget constraints of the producer.
Surya Roshni relies on its ability to drive up productivity and continuous value engineering, along with a strong focus on innovation to drive through the challenges. (Value engineering is a systematic, organized approach to providing necessary functions in a project at the lowest cost).
“We are focused on R&D and innovation, understanding our consumers well and catering to their needs, and being as agile as possible,” Sahay stated.
On the shortages of key components plaguing the manufacturing industry, Sahay said, “Surya has long-standing relationships with its key suppliers, and we have been able to manage the procurement of key raw materials well.”
Potential In The Market
Some of the macroscopic developments in the sector have paved the way for massive growth in the sector.
To give an example, in September 2021, FICCI Electronics Manufacturing Committee Chairperson Manish Sharma said that ~52 companies have applied for availing PLIs for white goods makers, proposing an investment of ~Rs 6,000 crore in manufacturing components for air conditioners (ACs) and LED lights. These investments are set to happen in the next 2-3 years, following which the production for components is likely to scale.
Moreover, the push for local manufacturing over the reliance on foreign markets to meet our needs has helped to set things in motion.
Sahay said, "Government schemes like the Production Linked Incentive (PLI) scheme for White Goods, including LED Lighting, encourage investment in manufacturing and backward integration. Surya is participating in the PLI scheme for LED Lighting."
In fact, with a distribution strength of 2,500 distributors and 2,50,000 retailers for lighting, Surya Roshni is one of the biggest players in the market. MIC Electronics, NTL Lemnis India, Avni Energy Solutions Pvt Ltd, etc. are some of the other big players in the LED market.
In the coming months, the company has set the target to launch multiple Smart Lighting products, mid-range and premium Fans, innovative Water Heaters, Induction Cooktops, Air Coolers, etc.