New Delhi: Philips Lighting will increase the level of local content in its LED lamps to up to 70 percent in six to eight months to tap rising demand for such products.
The company is expecting 40 percent of its lamps sales to come from LED (light-emitting diode) segment by 2017.
"We would increase the value-addition on the material part of LED's to up to 70 percent in next six to eight months by deepening our supplier base here," Philips Lighting India Marketing Head Sumit Joshi told PTI.
At present, the company sources 40 to 50 percent locally.
He also added that 90 to 95 percent products, which Philips Lighting sells in India are conceptualised, designed and manufactured here.
According to Joshi, close to 30 percent of lamp sales of Philips Lighting is from LED segment and in two years it would grow up to 40 percent by replacing compact fluorescent lamps (CFL).
"By 2017, CFL will have 15 to 20 percent of the pie, incandescent bulb and tube-lights will make for 30 to 40 percent and the remaining 40 percent of the market will be LEDs," he said.
Moreover, cost of LED in comparison to CFL would also come down as the production and sales would increase. In next six to eight month LED price would further come down and it would be around double the price of CFL, he added.
Expanding its offerings, Philips has introduced two LED products -- Razor LED and 2-in-1.
The brand 2-in-1 offers two colour options, yellow and white light, and is priced Rs 750 onwards, while Razor LED is a downlighter and starts from Rs 1,790.
For Philips Lighting India, LED sales grew by 76 percent in 2014 and is above than the industry average.
Philips had last week introduced its two global brands, Luceplan and Modular here to tap the Rs 350-crore Indian luxury lighting market.
It will also extend its contract with brand ambassador and Bollywood actor Ranbir Kapoor, Joshi said.
The LED market, at present, is estimated at around Rs 2,275 crore in India and is growing at a compounded annual growth rate (CAGR) of more than 40 percent.
