Summer Internship Project Final Report.docx

EXECUTIVE SUMMARY Success factors are those elements that determine whether a company succeeds or fails in a given industry. That varies greatly by industry. Some examples of possible success factors include quick response to market changes, a complete product line, fair prices, excellent product quality or performance, knowledgeable sales support, a good record for deliveries, solid financial standing, or a strong management team. The reason for identifying success factors is that it will help lead the organization to areas where it can establish competitive advantages. The first step is to determine whether or not the company possesses each success factor identified. The relentless pursuit for excellence, the urge to never stand still, to never slow down and to never stop thinking; Philips believes in constant innovation and progress. On the back of a strong product line-up, they accelerated growth and increased profitability. Philips which is a more focused group, able to deliver consistent performance while continuing its transformation into a market-driven lifestyle and technology company their innovative products enhance people's lives, giving them easy access to quality of life benefits. Doing this in a simple and straightforward way illustrates what their slogan mean by "sense and simplicity". In the growth initiatives of Philips, emerging markets and sustainability will be key focus elements because it both makes great business sense and because it perfectly fits with their mission "to improve the quality of people's lives". The company itself knows that it must create conditions where entrepreneurship, measured risk-taking and creativity all come together in a climate where everyone gives of their best. So for the company had been have been refining their approach to sustainable business and building new markets. This is in keeping with their commitment to improving the quality of people's lives with sustainability as a cornerstone of company's strategy. It's about creating value. So that why Philips always concentrating on new distribution channels and different business models where the latest technologies can spread fastest. Their determination to develop business in these markets - how to get people the products or services they need in a viable business model that also contributes to their economic growth. That why Philips decided to launch domestic appliances in 2003 in this promising Bangladeshi Electronic market where a great amount of potentiality has been required to meet with their organization's policies and strategies in terms of creating value of their products. So they had launched the wave of their brand positioning campaign, giving the stakeholders a vision of how "sense and simplicity" is shaping their company as well as the future growth and success. The company itself have gained some good momentum and 1

confident of meeting targets, which include embedding sustainability throughout the organization and also for Orange plus led. Over the years, opportunities for Light Emitting Diodes (LEDs) in Indian lighting markets have showcased and materialised in automotive, communications, signage, signalling, and architecture. The opportunity for LEDs in the general space illumination segment of residential and commercial buildings has most recently emerged. This segment is niche and has significant potential for market transformation towards LED lighting. LED technology has been globally recognised as super-efficient and eco-friendly in comparison to the conventional lighting technologies. Several strategies have been considered to promote LED lighting in India with demand aggregation being the key initiative. The estimation of space lighting demand in India is a complex web of quantification of parameters involving a very high degree of uncertainty. The floor space and connected load are the two primary input parameters driving the space lighting demand in residential and commercial buildings in the country. The scale of this demand estimated in this study is enormous with 31 GW of lighting load in the residential buildings and 11 GW in the commercial buildings. Further this study estimates that in residential buildings, 46% of the current lighting stock is accounted by CFLs followed by other florescent lamps (41%) and incandescent lamps (13%). In the commercial buildings 63.7% is accounted by CFLs followed by other fluorescent lamps (34.6%) and incandescent lamps (1.6%). Apart from this the total annual lighting service is also determined in terms of teralumen-hours. Keeping this parameter constant per square metre of floor area, the future growth in the lighting market is determined for the next two decades. The market for general interior space illumination in India is estimated to increase by approximately 82% in the residential buildings and 54% in the commercial buildings over the next two decades. After quantifying the lighting demand and the national lighting stock, the present levels of efficacy for various lighting technologies have been analysed to determine the energy savings potential and GHG emission reductions. With complete market transformation in the present day’s scenario, the annual energy savings potential and GHG reductions are estimated to the tune of 29,850 GWh and 25.6 million tcO2 respectively. The residential buildings contribute 76% of the national savings potential whereas the commercial sector is contributing for the remaining 24% potential. In order to understand the future of Indian lighting market, a comprehensive analytical model is being developed considering the various dynamic characteristics of Indian lighting industry. Variations in critical lighting parameters like efficacy, price, useful life etc. are analysed and competition 2

among conventional technologies are considered in the development of this model. The parameters affecting the market penetration of LEDs have been forecasted after significant secondary research and consultations. This model conclusively determines that between 2016 and 2021 the price reductions and efficacy improvements anticipated in the LED technology will bring down the relative payback periods with respect to the conventional technologies to less than 3 years. The model also predicts that by 2021 the LED technology will penetrate 57% of the lighting market in commercial buildings where as it will capture only 32% of the market in the residential buildings. By 2031 more than 80% of the lighting market will be captured in both the building categories. The findings of this model are based on Empirical frameworks which assume that market penetration is solely driven by the economics of transactions (payback periods). However the income level of the consumers, standardization of the technology, consumer confidence and many other purchase characteristics may also drive market penetration of LEDs. In the final task of this study, demand aggregation strategies have been proposed and analysed to assess and quantify the overall benefits for the system as whole. Demand aggregation strategies by public entities can be very useful in transforming the lighting market and motivating the major LED manufacturers to set up production facilities in the country. Such strategies are always accompanied with benefits of bringing down the initial costs to affordable prices. The demand aggregation options proposed in this study may integrate with the existing schemes & policies or bring about a complete market transformation with newly evolved guidelines. The strategies are proposed for a variety of consumer segments like BPL households, Non BPL households, central government buildings, private commercial buildings etc. The price reductions of LED luminaries corresponding to the volume of the demand aggregation have also been determined from a variety of sources. With properly structured demand aggregation projects, LED lights can be procured at extremely competitive prices with discounts up to 30%. Detailed financial statements have been developed to further evaluate the demand aggregation options after considering the benefits of price reductions (discounts) and domestic manufacturing facilities. The whole set of assumptions in terms of aggregated demand, energy use parameters by various lamps, prices of luminaries, cost of energy saved and useful life have been developed for the sake of economic analysis. The economic analysis is not relevant to any particular stakeholder. The overall costs and benefits of demand aggregation projects (as whole) are being considered to evaluate the cash flows. The analysis shows that all the proposed demand aggregation options are economically very attractive at 3

discount rates beyond 50% whereas the options with discounts less than 50% are promising only for replacement of incandescent and T12 lamps in residential and commercial buildings respectively. Therefore demand aggregation strategies seem to be very promising with high volumes of aggregation and higher price reductions are availed from manufacturers. The LED technology is still emerging and there is significant potential for growth in the efficacy, cost effectiveness and useful life of the LED lighting fixtures. Thus the improvement of these critical parameters will drive the market penetration of LED technology in the near future. The findings of this study indicate that the market penetration in commercial buildings will be more aggressive in the future as compared to the residential buildings. Therefore the government should focus on initiating demand aggregation options for residential buildings to kick start the penetration of LED lighting technologies. Also the future policies in the Indian lighting industry should focus on initiating the following strategies:

 Extensive multi state demand side management programs with LED lighting as the focal point

 Initiative Investment conducive environment for global manufacturers for setting up Domestic

 Manufacturing facilities of LEDs for long term sustainability Extensive R&D in the LED lighting areas for capitalizing the potential for technology improvements in LED

In order to understand the future of Indian lighting market, a comprehensive analytical model is being developed considering the various dynamic characteristics of Indian lighting industry. Variations in critical lighting parameters like efficacy, price, useful life etc. are analysed and competition among conventional technologies are considered in the development of this model. The parameters affecting the market penetration of LEDs have been forecasted after significant secondary research and consultations. This model conclusively determines that between 2016 and 2021 the price reductions and efficacy improvements anticipated in the LED technology will bring down the relative payback periods with respect to the conventional technologies to less than 3 years. The model also predicts that by 2021 the LED technology will penetrate 57% of the lighting market in commercial buildings where as it will capture only 32% of the market in the residential buildings. By 2031 more than 80% of the lighting market will be captured in both the building categories. The findings of this model are based on Empirical frameworks which assume that market penetration is solely driven by the economics of transactions 4

(payback periods). However the income level of the consumers, standardization of the technology, consumer confidence and many other purchase characteristics may also drive market penetration of LEDs. The estimation of space lighting demand in the commercial and residential sectors of India is a complex web of quantification of parameters involving a very high degree of uncertainty. The rising floor area (residential and commercial), economy (especially the boom in services sector), gap in demand and supply of power, rising electricity/fossil fuel costs, industrial growth and many other factors play significant role in driving the space lighting demand. The availability and reliability of relevant sources of data has been a significant challenge in the development of the overall analytical approach. Two different approaches have been adopted in structuring and developing the model for Indian space lighting demand. The overall analytical approach is presented in the following diagram. A comparative study of the findings of both the approaches is carried out in the later part of this study to identify the most appropriate demand estimate.

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OBJECTIVES OF STUDY  

To know the quality and preference of orange plus led products in the retail market. To study the availability of orange plus led products in the retail stores.

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RESEARCH METHODOLOGY The information necessary for this research data collected by tapping primary and secondary sources. The sources are as follows

Primary Data a) Questionnaire b) Personal interaction Primary research involves the collection of original primary data. It is often undertaken after researchers have gained some insight into an issue by reviewing secondary research or by analysing previously collected primary data. It can be accomplished through various methods, including questionnaires and telephone interviews in market research, or experiments and direct observations in the physical sciences, among others.

Secondary Data a) Company Websites b) Related Information from Internet c) Company Reports Books and Publications. Secondary data refers to data that was collected by someone other than the user. Common sources of secondary data for social science include censuses, information collected by government departments, organizational records and data that was originally collected for other research purposes. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis can save time that would otherwise be spent collecting data and, particularly in the case of quantitative data, can provide larger and higherquality databases that would be unfeasible for any individual researcher to collect on their own. In addition, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments. However, secondary data analysis can be less useful in marketing research, as data may be outdated or inaccurate.

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Sampling Concerned to my project, the respondents were chosen Convenience sample. Convenience sampling is a type of non-probability sampling that involves the sample being drawn from that part of the population that is close to hand. That is, a sample population selected because it is readily available and convenient, as researchers are drawing on relationships or networks to which they have easy access. The researcher using such a sample cannot scientifically make generalizations about the total population from this sample because it would not be representative enough.

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LIMITATIONS OF THE STUDY

 Certain open-ended questions have been put in the questionnaire to give respondents freedom to express their perception.  Time constraints was also there  Chances of some bias couldn’t be eliminated.

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LITERATURE REVIEW

Schleich and Gruber (2008): have shown that the retail sector warrants particular focus in terms of developing policy that addresses the barriers to energy efficiency. However, it has received limited attention, despite the significance of the retail sector in terms of its economic, social and environmental consequences. Economically, the services sector is one of the fastest growing sectors in Europe, and accounted for 13.3% of European energy consumption in 2014. The services sector was the only sector where energy consumption increased over the period 2005 to 2013, by 5.7% (European Environment Agency, 2015).The retail sector represents the largest share of electricity consumption in the services sector and is responsible for 30% of the total electricity consumed (Constantinos et al., 2010; Enerdata, 2014). This is accredited to the increase in demand for electrical appliances, in particular information and communication technologies and energy intensive processes such as air conditioning. Among retailers, food retailers are responsible for both direct and more significantly indirect negative environmental impacts due to their proportionately large energy consumption in the services sector. They have the highest specific energy consumption followed by textile retailers and DIY and furniture stores (Retail Forum for Sustainability, 2009). Socially, the retail sector and in particular food retailers, play a pivotal role in providing employment and as a space whereby community residents interact daily with each other. Environmentally, the food retail sector Improvements in energy efficiency have the potential to positively contribute to sustainably developing each of these features. Sweeney (2009) and Hirigoyen et al. (2005): suggest that energy efficiency may have the potential to contribute towards the environmental aspect of a supermarkets corporate social responsibility. However, Ochieng et al. (2014) argue that while retailers can improve their image by showcasing environmental improvements resulting from energy efficiency measures, it is not a high priority for consumers and therefore may not be an important driver of energy efficiency adoption. No sub-sectoral energy consumption data exists specifically for the Irish retail sector, however it can be expected to follow international trends with regard to the potential for energy efficiency improvements. The retail sector uses most energy in lighting, heating, ventilation, air conditioning and refrigeration. Food retailers have higher refrigeration energy costs (approximately 48% of energy costs and therefore consume a higher proportion of electricity over other energy sources), than other retailers while others have more significant 10

air conditioning costs (Jamieson, 2014). Improving energy efficiency can make a big difference to energy consumption – highly efficient refrigeration systems, for example, can result in up to 44% less energy consumption and 78% reduction in CO2 emissions compared with conventional refrigeration systems. The building fabric is also important in food retail store energy consumption with typically two-thirds of heat in-store lost through the building fabric. A 20% cut in energy costs is estimated to represent the same bottom line benefit as a 5% sales (The Carbon Trust, 2012).

Ruyter and Bloemer: The relationship between loyalty and satisfaction has remained equivocal. This may be even truer for services that are delivered over longer periods. Oliva et al. argue that the relationship between service satisfaction and customer loyalty is non-linear. Anderson and Mittal argue that the links between customer satisfaction and customer retention can have asymmetric and non-linear aspects. Heskett et al. propose that job satisfaction and customer satisfaction are closely related. Furthermore, Heskett et al. claim that there is direct and strong relationship between profit, growth, customer loyalty, customer satisfaction, value of the goods and services delivered to customers, and employee capability, satisfaction, loyalty, and productivity. Oliver also states that quality, satisfaction, and loyalty have an impact on profits. Ruyter and Bloemer in their attempt to extend knowledge about loyalty in services by including value attainment as a factor, argue that, in cases of relatively high levels of satisfaction, satisfaction would be the most important determinant of customer loyalty. However, in cases of extended service encounters, it may not always be possible to attain high levels of satisfaction. Extended service encounters have the following characteristics as they represent interpersonal relationships: duration, an affective or emotional content, and the spatial proximity of service provider and customer. In these encounters, value attainment and positive mood may have an additional impact on customer loyalty intentions. Nevertheless, Ruyter and Bloemer studied the simultaneous effects of satisfaction, value attainment, and mood on customer loyalty, as there is some empirical evidence of an interaction effect among value attainment, mood, and consumer evaluations of the service experience. The relative importance of value attainment is considered to be greater than that of mood and therefore it is likely that value attainment similarly has a stronger impact on the satisfaction-loyalty relationship than mood. However, more research is required on the conceptual difference between satisfaction and mood.

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Naeem Abas Kalair: Techno-economic performance comparison of compact fluorescent lamps (CFL) with light emitting diodes (LED), electrode less fluorescent lamps (EEFL), fluorescent tubes, incandescent bulbs, photovoltaic (PV) and fiber optic lighting systems was carried out in view of worsening power and energy crisis in Pakistan. Literature survey showed 23 W CFL, 21 W EEFL, 18 W fluorescent tube or 15 W LED lamps emit almost same quantity of luminous flux (lumens) as a standard 100 W incandescent lamp. All inclusive, operational costs of LED lamps were found 1.21, 1.62. 1.69, 6.46, 19.90 and 21.04 times lesser than fluorescent tubes, CFL, EEFL, incandescent bulbs, fiber optic solar lighting and PV systems, respectively. However, tubes, LED, CFL and EEFL lamps worsen electric power quality of low voltage networks due to high current harmonic distortions (THD) and poor power factors (PF). Fluorescent lamps emit UV and pollute environment by mercury and phosphors when broken or at end of their life cycle. Energy consumption, bio-effects, and environmental concerns prefer LED lamps over phosphor based lamps but power quality considerations prefer EEFL. CFL and EEFL manufacturers claim operating temperatures in range of −20 °C < TCFL < 60 °C and −30 °C < TCFL < 50 °C but CFL frequently damage in wet and damp locations. Costs of low THD and high PF CFL, EEFL and LED lamps may be five to ten times higher that high THD and low PF lamps. Choice of a lamp depends upon its current THD, PF, life span, energy consumption, efficiency, efficacy, colour rendering index (CRI) and associated physical effects. This work proposes manufacturing and user level innovations to get rid of low PF problems. Keeping in view downside of phosphor based lamps our research concludes widespread adoption of LED lamps. Government and commercial buildings may consider full spectrum hybrid thermal photovoltaic and solar fiber optic illumination systems. Debabrata Pradhan: The biomasses of microalgae are rich in different types of polysaccharides like pigments, antioxidants, fatty acids, and anticancer chemicals. They are used as additives for the production in various food industries, pharmaceutical, cosmetics and nutraceuticals. These beneficial usages enforce the large-scale production of microalgae in photo bioreactors. Photo bioreactor provides a controlled environment of all the parameters helping the efficient growth within small period of time. It uses different light sources such as sunlight, fluorescent lamp and incandescent lamp. Nowadays light emitting diodes (LEDs) are capturing more attention as one of the light sources in the photo bioreactors due to their narrow bandwidth spectrum. The advantages, such as small size, lightweight, durable and efficient in terms of longer operating life, make the LEDs more compatible as the source of light in the photo bioreactors. The amount of light given off is much higher compared to their power 12

consumption. This review summarizes the knowledge on the use of different LEDs in photo bioreactors for the microalgae growth. Microalgae require light as source of energy to convert CO2 and water into carbohydrate and O2in the photosynthesis process. Three important variables of light for proper photosynthesis are intensity, spectral quality and photoperiod. Low light intensity causes photo-limitation and higher light intensity causes photo-inhibition. Bent Herrmann: Light-emitting diodes (LEDs) have been tested in trawl fisheries to reduce the bycatch of unwanted species through behavioural stimulation. Previous studies used LED lights to either highlight escaping routes or increase the contact rate with square-mesh panels. However, phototactic responses (moving towards or away from light sources) to LED lights could also be exploited to separate species during the catching process. We investigated if either positive or negative phototaxis can be used to improve fish vertical separation from Nephrops (Nephrops norvegicus) in the aft section of a horizontally separated trawl coded. The aim was to increase the proportion of fish entering the upper compartment. We conducted two different experiments in front of the separation into compartments, inserting green LED lights in the upper and lower netting panel, respectively. Species vertical separation was analysed and compared in two identical trawls towed in parallel, one equipped with lights and one without. We obtained significant changes in vertical separation, but no clear species-specific photo tactic response was identified. Neither of the light positions improved fish separation from Nephrops. However, the potential of LED lights as behavioural stimulators is confirmed, and a more mechanistic understanding of light and fish vision may improve the results of future applications. Katerina Karamanoli: The impact of light-emitting diodes (LED) on developmental, physiological, and phytochemical characteristics of pomegranate seedlings was investigated. Five LED lights [L20AP67 (moderate blue and red, high green), AP673L (moderate blue, high red and red: far-red), G2 (low blue, high red and far-red), AP67 (moderate blue, high red), and NS1 (high blue and green, low red, high red: far-red, 1% UV) with wide and continuous radiation spectra were used. Fluorescent [FL (high blue and green, low red)] tubes constituted the control treatment. Among treatments, seedlings grown under L20AP67 exhibited the best morphological and growth characteristics (rapid height increase, longer roots, greater fresh and dry weight, greater leaf area). Root activity was comparable among the various treatments, with FL exhibiting the lowest arithmetic value. A variant effect on pigments and secondary metabolites was recorded with the highest chlorophyll and carotenoid content detected under FL, flavonoid under G2 and AP67, and anthocyanin under G2, AP67 and NS1. In addition, 13

NS1 produced the highest total phenolic compound content. Root growth capacity (RGC) was monitored in specialized chambers, then assessed to evaluate the transplanting capacity. Transplanted seedlings of AP67 had the longest, of L20AP67 the heaviest newly formed roots, thus securing a successful transplantation. The herein undertaken study demonstrates that certain LEDs promoted developmental characteristics in pomegranate more efficiently than conventional FL. In particular, the use of L20AP67 was proven a promising tool for producing robust pomegranate seedlings, while some of the other LEDs tested apparently imposed a stressful situation on plants. David C. Houghton: Light housings were made from com-metrically-available clear high density poly-ethylene (HDPE) tubes of 3.8 cm diameter (www.uline.com) (Fig. 1A). Tubes were cut into 31 cm sections and fitted with water-tight caps at both ends. One cap was drilled for insertion of the power switch and then sealed with watertight adhesive. Six 3-watt LEDs (~3.2–3.8V, 700 mA) were glued in an alternating manner at either ~45º or ~180º angles along a 1 cm diameter polyvinyl chlo-ride (PVC) tube inserted into the housing. Three additional LEDs were glued onto the face of the battery pack. The battery pack was wired to three 10w constant current (900 mA) drivers to maintain a steady light output. Each driver was wired to three of the LEDs (Fig. 1B). Each light thus consisted of 9 LEDs of a particular ultraviolet wavelength. A completed light (Fig. 1C), including the 8 1.5V AA alkaline batteries needed to run it, weighed 0.3 kg. A completed light took 2–3 hours to construct, did not require any complex circuitry, and cost between $13.00 and $25.00 for parts, depending on the cost of the specific LED bulbs.

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CHAPTER I

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INTRODUCTION Marketing management employs tools from economics and competitive strategy to analyse the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others. Depending on the industry, the regulatory context may also be important to examine in detail. In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors. Marketing management often conduct market research and marketing research to perform marketing analysis. Marketers employ a variety of techniques to conduct market research, but some of the more common include: 

Qualitative marketing research, such as focus groups and various types of interviews

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Quantitative marketing research, such as statistical surveys

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Experimental techniques such as test markets

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Observational techniques such as ethnographic observation

Recent developments in light-emitting diode technology have allowed LED lighting products to penetrate the commercial lighting market with enormous potential for growth. Our team developed several conclusions forecasting the future of LED lighting in the commercial market and made recommendations for a business’ strategic entry into the commercial lighting market with LED products. Our team’s conclusions and recommendations were based on our own market, cost-benefit, and behavioural analyses pertaining to the viability of LED lighting products for widespread adoption in the commercial sector. A universal trend toward the progressive development of an environmentally sustainable society has brought about a substantial demand for innovative, energy-efficient technology. As these new technologies are developed, they must be evaluated and compared to existing products in order to determine whether the new technology will be more suitable to serve its intended purpose. This evaluation must take into account a number of factors including, but not limited to, energy-efficiency, 16

cost-efficiency, ability to perform the intended task(s), and degree of innovation in the new technology. One area in need of new technological advancement is the commercial lighting industry. Commercial buildings, including stores, offices, restaurants, hospitals, and schools, account for approximately twenty percent of the United States’ total energy consumption. Thirty-eight percent of this energy consumption is in the form of lighting. Current widely-utilized lighting methods include linear fluorescent, compact fluorescent, high-intensity discharge, and incandescent. Commercial buildings primarily use fluorescent lighting. Retailing includes all the activities involved in selling goods or services directly to final consumers for personal, non-business use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing. Retailer also convey ideas, suggestions and complaints of consumers to company. From this very fact we can conclude that how important is a retailer or middleman both to company as well as to consumers. Retailers affect the sales of a company up to a large extent. Although the ultimate demand is affected by consumers but, word of mouth of a retailer about company’s product also matters a lot in affecting the consumers purchase process. Retailer is the main point where a company can follow push and pull strategy in marketing. Reasonable sales incentives, fair treatment, proper discounts and other required allowances to the retailers proves to be a tool to boost sales and motivate retailers which ultimately enhance the building of brand image. A Retailer percept the products from many points. The companies which offer maximum profits to Retailer, provide better Sales Promotion Schemes, treat fairly etc. are winners. A retailer also precepts the products is same way as consumer does but with a slight differences in use of products. A consumer percept the product from the point of view for final consumption but retailer does percept the product with a view to maximize his profits. The perception process of retailers also consists of the components like retailer imagery, perceived product quality, perceived service quality, retailer’s attitude and all what a consumer perception consists. Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. A stimulus is any unit of input to any of the senses. Examples of stimuli (i.e., sensory input) include products, package, brand names, advertisements, and commercials. Sensory receptors are the human organs (the eyes, ears, nose, 17

mouth and skin) that receive sensory inputs. Their sensory functions are to see, hear, smell, taste and feel. All of these functions are called into play–either singly or in combination– in the evaluation and use of most consumer products. The study of perception is largely the study of what we subconsciously add to or subtract from raw sensory inputs to produce our own private picture of the world. Products and brands have symbolic value for individuals, who evaluate them on the basis of their consistency (i.e. congruence) with their personal pictures of themselves. Some products seem to agree with an individual’s self-image; others do not. Consumers attempt to preserve or enhance their self-images by buying products they believe are congruent with that self-image and avoiding products that are not.

The production and supply scenario of LED lighting systems LED is an abbreviation for Light-Emitting Diode and is a semiconductor light source and works on the principle of electroluminescence - a phenomena in which an object emits light when under the influence of electricity. The phenomena itself was discovered in 1927 by the British experimenter H. J. Round. The first LED was developed in 1927 by the Russian Oleg Vladimirovich Losev and it emitted light in the infrared spectrum. However, no practical use of the discovery was made until several years later when in 1962, Nick Holonyak Jr. fabricated the first LED capable of emitting light in the yellow spectrum of the visible light. He is credited to be the “father of the light-emitting diode”. Ever since, the LED has been used as indicator light in several appliances. Recent developments in the LED technology has permitted the use of LED as traffic lights, remote controls, aviation lighting etc. The development of “White-Light LED‟s” capable of producing high intensity white light have further enhanced the spectrum of their usage in room lighting, lamps, automotive lighting etc. The fabrication process of white-light LED‟s and the raw materials involved are present below.

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White-Light LED 

RGB systems:-These systems employ the principle of mixing different colours (mainly Red, Green and Blue – RGB) to obtain white light. Theoretically, this method has the highest quantum efficiency (ratio of the number of emitted by the LED system, to the number of electrons incident on the system). However, since the blending and diffusion of different colours is controlled exactly, the „quality‟ of white light produced is often poor. There is a trade-off between higher luminous efficiency (ratio of luminous flux to power) and the colour rendering capability which is the ability of the light source to reproduce the colours of various objects faithfully as compared to an ideal or natural light source. This method is relatively expensive as it requires the different coloured LED‟s to be electronically controlled and hence is not widely in use

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Phosphor based LED‟s :-This method is based on the principle of using the light from an LED to excite a phosphor. The resulting phosphorous produces white light. Usually a blue light LED is used. A typical Phosphor based LED typically consists of a blue LED encapsulated in a phosphor coated epoxy. Cerium-doped Yttrium Aluminium Garnet (Ce3+: YAG). The colour rendering capability of this method is better than the previous method. However, the efficiencies are typically lower than the RGB systems. The method is also relatively inexpensive and less complex and hence commercially more in use.

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Components of LED luminaires 

Indium: Indium is a rare earth metal occurring predominantly in the zinc sulphide ore mineral, sphalerite13. The average recoverable Indium in the Zinc deposits ranges from 1 ppm to 100 ppm. The major producing countries of Indium are presented in the table below. As can be seen from the table-39, China leads the production of Indium.

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Gallium: Gallium is a soft, silvery, metallic poor metal existing as a brittle solid at room temperature. It has a melting point slightly above the room temperature. Semiconductor use is almost the entire (about 95%) world market for Gallium. However, other uses are yet to be discovered14. Elemental Gallium does not occur in nature. It mainly occurs as Gallium (III) salt in Bauxite and Zinc ores, Bauxite being the major source. Most Gallium is produced as a by-product of treating bauxite ores and the remainder is produced from zinc-processing residues. Data on the production of primary Gallium are unavailable because data on the output of the few producers are considered to be propriety. The table-40 below shows the estimates of the production capacities of primary Gallium by the US Geological Survey.

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Nitrogen: Nitrogen occurs freely in the atmosphere and is the major component of the air (78%).

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Yttrium: Yttrium is a silvery white metal often classified as a rare earth element (REE). It is chemically similar to lanthanides and is almost found combined with them. It is difficult to separate from the REE‟s and is normally concentrated with the heavy rare earth elements (HREE). There are four main sources of REE14. o Bastnäsite. o Monazite o Xenotime o Ion absorption clays or Lognan clays

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Aluminium: Aluminium is a silvery white metal of the Boron family. It is the third most abundant element on earth after Oxygen and Silicon and is the most abundant metal. Aluminium is a very reactive metal and hence doesn’t occur natively. It is found combined in over 270 different minerals with Bauxite being the chief ore. The below table presents the major producers of Aluminium

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Cerium: Cerium is a soft silvery ductile metal that easily oxidizes in air. It is one of the most abundant of the rare earth elements. Monazite and Bastnäsite are its most important ores. The exact country wise production of Cerium is not known.

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Voltage drivers: An LED light works on DC current. The supply to domestic and commercial sectors is usually AC current of 230V. The voltage driver is essentially a step down transformer come rectifier, which steps down the voltage from 230V to the desired level and converts the AC to DC. According to ELCOMA and the various manufacturers of LED, the production of these ancillary products has already taken off in India. These materials are supplied locally to the firms manufacturing the LED products. The production capacity has the potential to match the growth projected by the demand aggregation strategies. The quality aspects of the products are being worked upon and will meet the requisite standards within the coming years.

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MANUFACTURING PROCESS 1. Preparation of the semiconductor wafers: An LED is essentially a diode. Hence, the semiconductor core consisting of the p-n junction forms the core of the LED. The color emitted by the LED is generally governed by the semiconductor and the doping used. There are various methods of fabricating the semiconductor to the appropriate thickness and the right doping for the particular colour. The step involves creating a wafer, polishing it and chemical cleaning to remove any impurities. The wafers are prepared for the next step. 2. Adding epitaxial layers: Here the semiconductor wafers are „grown‟ in thickness. Generally materials having the same crystalline structure as the substrate (initial wafer) below. This method produces exceptionally uniform layers which are several microns thick. Additional dopants can be added for enhanced efficiency or color. Generally Nitrogen or Zinc ammonium are the preferred dopants. Nitrogen makes the emitting light a more yellow or green.

3. Adding metal contacts: Metal contacts are then added to the wafers. These determine whether the diodes are to be used singly or in combination with other diodes. A coating of a photoresist material (sensitive to light) is added to the entire wafer. A master pattern or mask is then duplicated over the entire wafer. The remainder of the photoresist material is washed away by exposure to UV light. The metal contacts are then evaporated over the wafer so that it fills the exposed areas. The entire material is then kept in a furnace so that the metal and the wafers bond chemically and they do not flake off. This wafer is then cut out to form individual segments. This is accomplished by either cleaving or by sawing off with a diamond saw. This step is the most difficult and error prone process, cutting results in far less than 6000 useable LED‟s and is one of the bigger factors in limiting production costs. 4. Mounting and packing: Appropriate metal leads are attached to the segments depending on the manner in which the diode is going to be used. The entire assembly is sealed in a plastic chamber and is filled with liquid plastic or epoxy. The Epoxy is cured before the LED rolls out.

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Using floor area and allowable Lighting Power Densities (LPDs) This approach adopts the total floor area estimates in the commercial and residential building categories as the primary input parameter. Further it analyses the actual existing lighting power densities in these building categories. Based on the floor area and the existing LPD estimates, the total wattage of the lighting equipment’s installed is calculated. The following sections will detail the analysis and relevant sources adopted for deriving the floor area and existing LPDs.

Commercial buildings A variety of sources report the floor area estimates for the commercial buildings category in the country. However further classification of this floor area estimate into public and private commercial is limited. Recently in June, 2010 a study („Total commercial floor space estimates for India‟) has been carried out by the ECO III team with the support of USAID and BEE for estimating the total floor area in the commercial buildings category. Similarly a study by LBNL „India energy outlook, 2009‟ also estimates the commercial floor space in India. The floor area estimates calculated by ECO III and LBNL are based on the no. of enterprises and establishments reported for various categories of businesses/services defined in the „Economic census, 2005 by Ministry of statistics and programme implementation‟. The other sources that report similar information are Mckinsey, 2009 and ClimateWorks Foundation. The ECO III study mentioned above also provides a comparative analysis of the commercial floor space estimates determined across different sources in the industry. In addition to the floor space estimates, the compounded annual growth rates are also provided by the respective sources (see Table-1). The study also estimates that approximately 30 Million sq.m of commercial floor space may be added every year across the country. Apart from this, the ECO III study has also made informed assumptions for the % distribution of commercial buildings floor space among public (26%) and private sectors (74%). These estimates are provided by the expert industry sources after significant consultations. The annual growth rates of commercial floor space provided in table-1 will form the basis for forecasting the space lighting demand in this sector. Another useful source of information for estimating commercial floor space is the „Market assessment study for Tri-generation in India‟ undertaken by DSCL Energy Services Company Ltd in February, 2010. This study commissioned by GIZ has undertaken a review of the 23

commercial floor space estimates reported by various agencies for different categories of buildings in commercial sector.

Residential buildings For the Residential building sector, the total floor area estimate has been calculated based on the provisional population totals derived from the census of India, 2011. The division of population among urban (30%) and rural (70%) India has been derived from the „Report of the technical group on population projections constituted by the national commission on population‟ published by census of India in May 2006. The Census of India, 2006 report also provides population and urbanization projections until March 2026. A recent study by World Bank in 2008 for quantifying the electricity consumption in residential sector has further extrapolated these projections until 2031. Apart from these projections the World Bank study has also projected the average household size in urban and rural India.

Estimation of lighting power density (LPD) The LPD of a building represents the wattage of the lighting fixtures in the unit lighted area of the building. The Energy Conservation Building code (ECBC), 2007 developed by BEE defines the allowable LPDs for different categories of buildings in the country (see – Tables 5 & 6). The average LPD for various types of commercial buildings/spaces defined by ECBC is 12.3 watts/sq.m. The allowable LPD estimate for multifamily residential buildings is 7.5 watts/sq.m. The LPDs defined by ECBC signify allowable values that are theoretically calculated based on the function and purpose served by the building. However the estimation of space lighting demand should consider the actual existing LPDs rather than the allowable LPDs. Also the ECBC, 2007 does not categorize the buildings as public and private sector while defining the LPDs. Therefore various sources of building energy audit reports have been reviewed and analysed to derive the actual existing LPDs in the residential and commercial buildings. The energy efficient building program of BEE has undertaken energy audit studies for more than 25 commercial buildings in the public sector. These public sector buildings are distributed across different states and functions like educational university, hospital, hostel, office, administrative etc. Annexure-2 shows the summary of the energy audit studies pertaining to 24

the lighting aspect of these buildings. The average interior LPD derived from this sample of commercial buildings is about 9.07 watts/sq.m. For private commercial buildings in the country, the estimation of average existing LPD has been a major challenge as there are very few energy audit studies reported in the public domain. Also the scope of energy audit studies of private commercial buildings may vary significantly given the variety of services provided in this category of buildings in the country. However if the lighting aspect of these buildings are studied with a substantial sample size covering the various types of buildings, the results may be further analysed to derive the average existing LPD for these buildings. Therefore in the absence of such information 12.3 W/sq.m of LPD has been adopted for this category based on ECBC, 2007 recommendations. For residential buildings in the country, the PwC team has analyzed recent survey findings of about 200 household buildings in the state of Himachal Pradesh. The built up area, lighting load, distribution of lighting technologies and other aspects of lighting have been analysed for all the 200 residential buildings. The average LPD estimated based on this analysis is about 3.43 watts/sq.m.

Estimation of space lighting demand The Interior lighting power allowance of the building represents the total wattage of lighting fixtures required to illuminate the building. It is the product of the gross lighted area and the allowable LPD defined for the building. For simplification of analysis, the gross lighted areas of buildings in the residential and commercial sectors have been assumed to be equal to the average floor area estimated in the previous sections. The average floor area and LPD estimates calculated in the previous sections are used to determine the Interior Lighting Power allowance. This parameter which represents the total wattage of lighting fixtures presently installed in the country may also be considered as the total space lighting demand in the residential and commercial building sectors. Table-8&9 show the present space lighting demand in Giga Watt estimated for residential and commercial building sectors in the country. The residential buildings category contributes 33 GW of space lighting demand whereas for the commercial buildings four different estimates have been calculated based on the four different sources of floor space information. For further sub-categories of buildings in the commercial sector, the floor area estimates presented in table-2 and the allowable LPD estimates based on ECBC,

25

2007 are used to determine the space lighting demand. These space lighting demands correspond to the year of the floor area information available for the respective sub- categories of buildings (see Table-10). The demand estimates calculated in this table are not exhaustive and does not cover the whole of commercial sector buildings in the country.

Space lighting demand Share of lighting load in the residential and commercial buildings among the various functions like HVAC, lighting, ICT & Entertainment and others. Further this share of lighting load is multiplied with the total connected load estimated in the previous section to derive the space lighting demand. The project team has come across several studies to analyse the load distribution profile based on the load research surveys for a sample of consumers. However none of these studies have adopted the samples that are representative of national level with a uniform geographical distribution of the sample. For residential buildings, the most useful source of information for this purpose is a recent load research report “Load Research for Residential and Commercial establishments in Gujarat” prepared by IRG/USAID in consultation with BEE in 2010. This report which was concluded recently in March, 2010, (IRG/USAID in consultation with BEE) conducted a load research survey targeting 400 residential households in the state of Gujarat. The objective of this study was to understand the end-use consumption patterns of various appliances and evolve a suitable programmatic approach to be taken up by the state utilities. As per the findings of this survey, the lighting load constituted 5% of the total connected load in the residential buildings. Another useful source of information available for residential buildings is the Himachal survey data which was used to estimate LPD in the earlier section. Analysis of this survey data shows that lighting accounts for 19.66% of the total connected load. The % share of lighting load derived from Gujarat study may represent the economically developed states in the country where as the % share derived from the Himachal survey may represent the economically underdeveloped states. Further the estimation of most appropriate value (% lighting load) that is the representative of national level is derived from a weighted average calculated based on the population of economically developed and underdeveloped states. The corresponding weights derived from the population in the states as per their economic development is 0.3 for the % share of lighting load from Gujarat study and 0.7 for 26

the % share of lighting load from Himachal survey. Thus the overall weighted average % share of lighting load estimated for residential buildings on this basis is 15.27%. For the residential buildings category, the project team has considered an indirect approach which compares the end use electricity consumption of lighting appliances across various other reliable sources of information. To begin with, the end use electricity consumption of lighting appliances is estimated based on the findings of lighting demand from approaches 1 &2. Further an annual average of 1580 hrs of operation has been assumed for all types lighting appliances in the residential buildings. This assumption is based on the secondary research of various load profile studies by LBNL, TERI etc. With this estimate of annual hours of use, the project team has calculated two different estimates of lighting energy consumption based on the total wattage/demand of lighting appliances derived from approaches 1&2 (see Table-12). The approach 1 has yielded 52,399 GWh of electricity consumption whereas approach 2 has yielded 48,253 GWh of consumption by lighting. Apart from this, the 17th Electric Power Survey (EPS) of India has projected the total electrical energy consumption in residential sector in India until 2011-12. A total consumption of 194937 GWh is projected by CEA in the residential building sector. With respect to the total consumption of electricity, approach 1 estimate contributes 27% and the approach 2 estimate contributes 25% in 2011. Further the lighting energy consumption calculated in Table-12 has been compared with two important sources of information which have studied the appliance wise end use electricity consumption in residential building sector in the past. The primary source of information regarding the electricity consumption by lighting appliances is adopted from a World Bank study “Residential consumption of electricity in India” in 2008 which was commissioned as a background study for developing strategies for low carbon growth. The study quantifies and projects the electricity consumption as a function of the no. households, household expenditure, electrification rates and appliance ownership. This assignment by World Bank has estimated 57, 786 GWh of electricity consumption by lighting appliances in the Residential sector contributing about 30% of the total electricity consumption in this sector for the year 2011 Another important source of information in this regard is the distribution of electricity consumption in Indian buildings provided by the Centre for Monitoring Indian Economy (CMIE) in 2001. As per this source, 28% of the annual electricity consumption in residential buildings is contributed by lighting.

27

Therefore after comparing the lighting energy consumption estimates across various sources of information, the residential space lighting demand estimated as per approach 1 (33 Giga Watt) is considered as most appropriate value for further analysis in this study. A lot of reasons can be attributed to explain the non-appropriateness of lighting demand estimated from approach 2. Inherent differences in the data, methodology and assumptions may have lead to different results. In approach 2, the Lighting demand in the residential sector is derived from mainly the connected load data which is surveyed by CEA. The connected load information surveyed by CEA during the time of establishment of residential buildings may increase significantly with the increase in household income/expenditure. Therefore the actual load in the residential buildings in most of the cases may be greater than the connected load. Such cases can be seen from the Gujarat load research study by TERI, wherein average connected load per household was found in the range of 27%75% of the actual load. In contrast to the residential sector the reverse was found in the commercial sector, wherein the connected load exceeded the actual load in about 80% of the cities/towns covered under the study. The range of connected load varied between 105%-189% of the actual load. A recent load research report prepared by IRG/USAID in consultation with BEE in 2010, a load research survey conducted by TERI in the city of Delhi in 2007 and another load research study initiated by the Himachal Pradesh Electricity Regulatory Commission (HPERC) in 2010. The first report has analysed the penetration of different lighting technologies from the survey of a sample of 400 residential households and 200 commercial establishments in the state of Gujarat. Among the different lighting technologies in the residential buildings, tube lights account for 55% of the lighting load followed by CFL (29%) and incandescent lamps (16%). In the commercial buildings, tube lights account for 58% of the lighting load followed by CFL (38%) and incandescent lamps (4%). The load research study conducted by TERI was a case study approach in the city of Delhi for a sample of 1000 households in 2007. The purpose of this study was to ascertain the usage and ownership pattern of electrical appliances in the households. As per the findings of this study fluorescent tube lights account for 63% of the lighting load followed by incandescent bulbs (33%) and CFLs (4%). In the state of Himachal Pradesh, recently a load research survey was undertaken by the state regulatory commission for development of a state wide DSM regulation. About 200 households 28

and 100 commercial establishments have been surveyed for analysing the end use appliance consumption and load patterns. As per the findings of this study fluorescent tube lights account for 55% of the lighting load in the residential building sector followed by incandescent bulbs (28.7%) and CFLs (16.8%). In the commercial building sector fluorescent tube lights account for 64% of the lighting load followed by incandescent bulbs (3%) and CFLs (33%). After reviewing all of the three relevant load research studies, the ECO III study in Gujarat and the load research study in Himachal Pradesh (HP) have proved as the most promising sources for information regarding penetration of lighting technologies with the latest information. For the residential sector, though TERI has analyzed the lighting distribution for a sample of 1000 households, the information presented is relatively old (2007). The lighting technology penetration (%) values derived from the Gujarat study may represent the economically developed states in the country where as the % penetration derived from the Himachal survey may represent the economically underdeveloped states. Further the estimation of national level lighting stock is derived from a weighted average % of penetration calculated based on the population of economically developed and underdeveloped states. The corresponding weights derived from the population in the states as per their economic development is 0.3 for the Gujarat study and 0.7 for the Himachal survey. For commercial buildings the findings of only Gujarat study has been considered. Figures-6&7 show the distribution of lighting stock in residential and commercial building sectors estimated as discussed. The data from the above mentioned sources used in the calculation of lighting stock is illustrated in Tables - 13&14. The subsequent columns in these tables show the normal wattage per lamp and the total demand in kW for various lighting technologies. The wattage considered includes the losses in the ballast. The total stock of fixtures in the country is calculated based on the penetration levels and the total lighting demand in kW estimated for residential and commercial buildings in the previous sections. In the residential buildings, a total of 992 million lighting fixtures have been estimated with 450 million stocks of CFLs, 406 million stocks of fluorescent Tube lights and 131 million stocks of incandescent lamps. In the commercial buildings category, a total of 398 million lighting fixtures have been estimated with 250 million stocks of CFLs, 138 million stocks of fluorescent Tube lights and 6 million stocks of incandescent lamps. Figure-8 shows the present national lighting stock of various technologies in these sectors

29

Baseline lighting demand in lumen hours For each of the lamp types, the lamp wattage by sector is multiplied by the estimated installed base of lamps and the annual operating hours. For fluorescent lamps, ballast losses are included with the lamp wattage estimate. This provides lighting system kilowatt hour (kWh) consumption per annum for the residential and commercial building sectors. These values are then multiplied by their respective light source efficacies, converting the national annual energy demand (in kWh) into an annual lighting service demand (in teralumen-hours). For example, if a residential dwelling consumed 100 kWh of electricity for general service incandescent lighting, this would be converted into 1300 kilo lumen-hours per year of lighting service. This result is found by multiplying 100 kWh of electricity consumption by 13 lumens per watt (lm/W), the estimated efficacy of a residential general service incandescent lamp. Often, higher incandescent wattage lamps of the same type have higher efficacy ratings, and increasing wattages and efficacies will both contribute to greater annual lumens of service. Conversely, fluorescent lamps tend to have increasing efficacy at lower wattages. The teralumen-hours of lighting service calculated has been further classified and apportioned into three technology bins. The technology bins are created to group together the annual lighting demand according to the lighting service quality. Table-16 shows the baseline annual lighting service demand estimated for the grouped technology bins.

National lumen demand projection The lumen-hour demand calculated by sector and technology bin is projected over the analysis period to estimate the growth in lighting demand between 2011 and 2031. The lumen-hour demand calculated in 2011 is divided by the cumulative national floor space for each sector to determine a lumen-hour of lighting demand per square metre of building space. Then, the projections for square feet of building growth by sector are used to project the lumen-hour demand from 2011 to 2031, holding the lumen intensity per square metre constant. This assumption is based on the premise that in the future, people occupying a space will continue to expect today’s luminance levels and duration of service. For the residential sector, the annual lighting demand in 2011 is approximately 331 kilo lumen-hours per square metre while for the commercial sector the demand is almost ten times higher; 1493 kilo lumen-hours per square metre (see Table-18). The lighting service is higher due to the longer operating hours and higher levels of illumination in commercial floor space compared with residential. The annual average growth estimates of floor space in the residential and commercial sectors are used to project 30

the increase in lumen demand moving forward. The residential floor space increase is projected for every year over the 20-year analysis period and the commercial sector floor space increase is projected to increase at 30million sq.m over the analysis period. The lumen-hour demand estimated for both the present and future scenarios forms a critical input for further analysis of the lighting market in the country. The scale of annual lighting service (in terms of lumenhours) contributed by various technologies in the present day's scenario is fundamental to understand and quantify how the lighting market may respond to the influx of new energy efficient technologies. The further sections of this study will attempt to quantify the impact of LED market penetration the present and future scenarios of the lighting industry. The impact will be determined in terms of the energy savings potential and the greenhouse gas (GHG) reductions.

GHG Emission Reduction Potential In India, thermal power is the mainstay of electricity generation. In CO2 Baseline Database for the Indian Power Sector published by Central Electricity Authority, for every MWh of energy generated in India about 0.85 tCO2 (or equivalent) was emitted in 2009-10. This statistic has remained constant over a period of time. All the planned conventional plants planned in the future are high efficiency plants with the low carbon footprint. Also the number of renewable based plants is expected to increase exponentially in the future. This would result in reduction of the Indian grid emission factor. The Planning Commissions‟ report on Low Carbon strategies for inclusive report envisions a percentage reduction in energy intensive by a factor of around 24.16% (24.44 % for 8% GDP growth and 23.88% for 9% GDP growth) with determined efforts and 33.84% (34.40 % for 8% GDP growth and 33,27% for 9% GDP growth) with aggressive efforts over 2005 levels. The energy intensity has remained fairly constant since 2005. For the basis of this analysis we also assume that the percentage reduction in energy intensity would be same as percentage reduction in emission factor and this trend would remain the same in future.

31

CHAPTER II

32

COMPANY PROFILE Online Instruments (India) Pvt. Ltd, since inception in 1994 has been a pioneer in distribution of high quality Telecommunication and Office Automation products and solutions. Having been associated with Industry giants, the company has been acknowledged as one of the leaders in providing innovative solutions and products to the consumers in the Industry. The key features of the management team are highly motivated professionals who emphasize more on Process driven and cost effective methodologies which leads to customer satisfaction, Mumbai, Pune with overseas presence in Singapore and Dubai. Online Instruments (India) Pvt. Ltd, has now embarked to address the burgeoning LED Lighting Industry through its own Brand “Orange plus LED”. In order to address this new opportunity, Our Group Company is setting up its own LED Manufacturing plant to ensure affordability of high quality energy efficient products. The “Orange plus LED” product portfolio consists of all high demand indoor,

outdoor,

commercial

and

professional

range

of

products.

These are available for both Premium and Economic usage and are specifically targeted to provide energy efficient lighting systems for commercial, architectural, hospitality, health care, educational, residential and industrial applications. Online Instruments (India) Pvt. Ltd is guided by the motto ‘Quality of Service’ & value for Money. This has been the force that has helped the Company to be a leading player against all odds and competition. With a reputation solely

earned

through

commitment,

service

quality

&

support,

online Instruments (India) Pvt. Ltd will always stand as “Reliable, committed & Supportive” partner to the Industry. BO YA LIGHTING (HK) CO., LTD Subsidiary of ORANGE LIGHTING (DONGGUAN) CO., LTD founded in 2003, is a professional LED lighting manufacturer in mainland China, has been making contribution of mitigating global warming by integrating the latest LED technology into energy efficient lighting products and solutions. With the production base covering more than 3000 square meters, Our company LED lighting products series including Outdoor lighting(LED flood lights, Led garden lights, Tri-proof led lights, Led gas station lights, Led high bay lights, Led street lights and etc.),Indoor lighting(Led tube lights, Led panel lights, led downlights, Led spotlights and etc.) “Provide high quality product, Best service, Innovate” is our management spirit, we focus on orientation and specialized in R&D and production, we do our best to offer best service and perfect products. We are always improving and innovating, working hard to be the top LED Lighting manufacturer. We established a

33

efficient global distribution network, and our products exported to many countries and widely applied in many big projects, such as Asia, Europe, Africa America, Middle East, etc. And we establish strong cooperation relationship with many customers worldwide more and more. Light Emitting Diode (LED) is a relatively old technology, circa 1970, that has advanced from numeric displays and indicator lights to a range of new applications, including exit signs, accent lights, task lights, traffic lights, automobile lighting, signage, wall sconces, and outdoor lighting and down lighting. LEDs offer benefits such as small size, long lamp life, low heat output, energy savings and durability. They also allow extraordinary design flexibility in colour changing, dimming and distribution by combining these small units into desired shapes, colours, sizes and lumen packages. When an LED unit is activated, a power supply converts AC voltage into sufficient DC voltage, which is applied across the diode semiconductor crystal. This results in electrons (negative charge carriers [N]) in the diode’s electron transport layer and holes (positive charge carriers [P]) in the diode’s hole transport layer combining at the P-N junction and converting their excess energy into light. The LED is sealed in a clear or diffuse plastic lens that can provide a range of angular distributions of the light. LEDs are low-voltage, low-current devices and efficient light sources. For red, amber, yellow, green and blue LEDs, new materials have been developed that are more efficient than traditional materials, producing efficacies (lumens per watt) greater than incandescent lamps and rivalling fluorescent lamps. A. Efficacies as high as 100 LPW have already been achieved in laboratory conditions. According to Steve Johnson, group leader of lighting research for the Lawrence Berkeley National Laboratory, “It is not unrealistic to expect the efficacy of solid-state sources to achieve 150-200 lumens per watt in the coming decades.” LEDs offer benefits such as small size, long lamp life, low heat output, energy savings and durability. They also allow extraordinary design flexibility in colour changing, dimming and distribution by combining these small units into desired shapes, colours, sizes and lumen packages. Currently, relatively low overall light output, poor colour rendering and questions about advertised service life may indicate that LEDs, while very useful in many applications, are not yet ready for “prime time” in some architectural applications. Notably promising current applications include retail display, coloured lighting, and tight spaces, areas that require low light levels, exterior lighting and applications where the integration of light sources and architectural elements is critical. LEDs currently dominate the exit sign market and many cities have adopted them as a replacement for incandescent lamps

34

in traffic signals. In the architectural market, the development of a visible/white light LED has awakened lighting designers to new possibilities with this light source. White light LEDs, however, currently do not produce enough lumen output to make them competitive with many general light sources. This restricts their use in architectural projects to applications where small lumen packages are needed and where the characteristics of a lower CRI rating and high colour temperature are acceptable.

35

CHAPTER III

36

COMPETITOR ANALYSIS The LED lighting industry has various competitors which can be listed as commercial and industrial lighting players (manufactures and distributors). Few major competitors have been listed down in the next few pages.

Philips Electronics India Limited Philips is the leader in LED lighting Key business areas include Luminaires, Lamps, Lighting Electronics, Automotive and Special Lighting Products are made with most advanced and innovative technology. Philips has a superb pan Indian distribution and after-sales service Huge collection of LED products in various categories like green LED, Professional Luminaires, Lighting Electronics, Lifestyle modular switches with protective technology, Home Decorative Lighting collection, etc. Philips won the L-Prize competition and got a huge $10 million cash prize for manufacturing a high-efficiency, durable replacement for the standard 60-W incandescent light bulb. The winning LED light bulb is currently available to customers. It produces around 900 lumens of light at an input power of just 10 W

OSRAM India Pvt. Ltd. One of the world’s leading players in the global lighting market Supplying innovative and sustainable lighting solutions for more than 100 years The company is providing a wide-range of around 5500 products for numerous applications in homes, workplaces, industrial units, and even on the roads. All of these products are not only energy-efficient but also environment-friendly. OSRAM India – is a wholly owned subsidiary of OSRAM GmbH

37

OSRAM India has been manufacturing several innovative and best-in-class products for General Lighting, Electronic Control Gear, Automotive Lighting, Display Optics and Light Emitting Diodes (LEDs) They are widely known for their extensive range of LED products including Indoor LED luminaries, Outdoor LED luminaries, Lamps, Modules, LED retrofit lamps, etc.   Havells India Ltd. Havells Group is a well-known name in the field of electrical products and its accessories Havells created history by acquiring the world-renowned lighting company named Sylvania and by doing so the company registered itself amongst top five lighting companies in the world Havells possess some of the most prominent international brands such as Crabtree, Luminance & Standard, and Concord Havells India Limited has become the top-most electrical equipment company in India. It can be said that the company is literally enjoying the market dominance across a huge range of products including Cables & Wires, Fans, Industrial & Domestic Circuit Protection Devices, Motors, Modular Switches, Electric Water Heaters, Home Appliances, Luminaires for Domestic, Commercial and industrial Applications, etc. In the year 2010, Havells entered the Light-Emitting-Diodes (LED) Market. And today, Havells is one of the leading LED lighting manufacturers in India. It offers a wide range of energy-efficient LED products including down lights, spot lights, commercial lights and street lights

Promotion Comparison Philips: They offer extended guaranties to their products CG: Keep in touch with the customers through various interactive platform.

38

Havells: Aggressive brand building initiative by patronizing cricket. Sponsorship of T-20 World cup IPL and quiz shows. High brand visibility on mass media through TV commercial being aired across product category Halonix: Billboard in cricket stadium and cities like New Delhi as a part of its Safer City project. Orange Plus: New business verticals for rural electrification to build for itself a first mover advantage.

Industry Growth

Trend Setters •

Color-changing bulbs

•

Motion-sensing bulbs

•

Brightest energy-saving bulbs

Factors Affecting the Threat of Entry •

LED lighting industry on path to securing up to 80% of market share for lighting by 2020

•

Steady cost reductions and improved technology performance make new companies want to enter LED lighting industry

Orange Plus LED’s Advantages •

Benefits greatly from Economies of Scale

39

•

•

Newly released 100 W-equivalent LED bulb •

Better quality

•

Lower price

Vertically integrated with solid positioning from upstream chips to downstream lighting fixtures and applications.

Top Brands of LED Lights in India 1. Philips 2. Osram 3. Havells 4. Wipro 5. Bajaj 6. Eveready 7. SYSKA 8. Oreva 9. Moser Baer 10. Surya Other Emerging LED Lighting Companies in India 1. GE Lighting 2. Orange Plus LED 3. Charlston 4. NTL Lemnis 5. Reiz Electrocontrols Pvt Ltd 6. MIC Electronics Ltd 7. Innovlite India Private Limited 8. Sanarti Group 9. Goldwyn Ltd 10. Laaj Lighting

40

CHAPTER IV

41

DATA ANALYSIS AND INTERPRETATION Brands Available In Market Table No: 1 ROW LABLES

FREQUENCE

PERCENTAGE

CROMPTON GREAVES

3

12%

HAVELLS

4

16%

PHILIPS

6

24%

SURYA

8

32%

WIPRO

4

16%

GRAND TOTAL

25

100%

Graph No: 1

BRANDS AVAILABLE IN MARKET 9 8 7 6 5 4 3 2 1 0 Crompton Greaves

Havells

Philips

Surya

Wipro

INTERPRETATION Above table and graph show that 32 percent of customer get surya brand lights when they think of led lights

42

Awareness of Orange Plus LED Table No: 2 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

7

28%

VERY GOOD

16

64%

GOOD

1

4%

FAIR

0

0%

POOR

1

4%

GRAND TOTAL

25

100%

Graph No: 2

BRAND AWARENESS

Excellent

Very Good

Good

Fair

Poor

INTERPRETATION The above table and graph show that 28 percent of customers are excellently aware, 64 percent of customers have very good awareness of the brand.

43

Brand Uniqueness Table No: 3 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

10

40%

VERY GOOD

11

44%

GOOD

3

12%

FAIR

0

0%

POOR

1

4%

GRAND TOTAL

25

100%

Graph No: 3

BRAND UNIQUENESS 12 10 8 6 4 2 0 Excellent

Very Good

Good

Fair

Poor

INTERPRETATION The above graph and table state that 40 percent of the customer feel the brand is unique.

44

Quality Performance Table No: 4 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

8

32%

VERY GOOD

9

36%

GOOD

7

28%

FAIR

1

4%

POOR

0

0%

GRAND TOTAL

25

100%

Graph No: 4

QUALITY PERFORMANCE 10 9 8 7 6 5 4 3 2 1 0 Excellent

Very Good

Good

Fair

Poor

INTERPRETATION The above graph and table state that 32 percent of the customers are happy with the quality of the products produced by Orange Plus Led

45

Pricing Table No: 5 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

4

16%

VERY GOOD

15

60%

GOOD

5

20%

FAIR

1

4%

POOR

0

0%

GRAND TOTAL

25

100%

Graph No: 5

PRICE VALUE

Excellent

Very Good

Good

Fair

Poor

INTERPRETATION The above graph and table state that Orange Plus Led is very good with its pricing strategy according to 60 percent of the customers.

46

Performance On Design Table No: 6 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

5

20%

VERY GOOD

13

52%

GOOD

6

24%

FAIR

1

4%

POOR

0

0%

GRAND TOTAL

25

100%

Graph No: 6

PERFORMANCE ON DESIGN 14 12 10 8 6 4 2 0 Ecellent

Very Good

Good

Fair

Poor

INTERPRETATION The above table and graph state that 52 percent of customers say that Orange Plus Led perfume very good with its products design.

47

Website Communication Table No: 7 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

4

16%

VERY GOOD

8

32%

GOOD

7

28%

FAIR

4

16%

POOR

2

8%

GRAND TOTAL

25

100%

Graph No: 7

Sales

Excellent

Very Good

Good

Fair

Poor

INTERPRETATION The above table and graph shows that 8 percent customers state that Orange Plus Led need to provide more information about their products and there range.

48

Rating For Distribution System Table No: 8 ROW LABLES

FREQUENCE

PERCENTAGE

5

1

4%

6

0

0%

7

1

4%

8

7

28%

9

8

32%

10

8

32%

GRAND TOTAL

25

100%

Graph No: 8

RATING FOR DISTRIBUTION SYSTEM 9 8 7 6

5 4 3 2 1 0 5

6

7

8

9

10

INTERPRETATION 32 percent of the respondents are very much satisfied with the service of the Orange Plus Led. Customers expressed their opinion as favourable to the behaviour of the service personnel at the time of taking delivery.

49

Order Place System Table No: 9 ROW LABLES

FREQUENCE

PERCENTAGE

SALES REPRESENTATIVES

12

48%

ONLINE ORDER SYSTEM

11

44%

OTHER

2

8%

GRAND TOTAL

25

100%

Graph No: 9

ORDER PLACE SYSTEM 14 12 10 8 6 4 2 0 Sales Representatives

Online Order System

Other

INTERPRETATION 48 percent of the respondents are placing order through sales representatives so, it is advisable to the firm to concentrate on this aspect and to pay attention to give value added service to the customers so as to make them 100 percent satisfaction.

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Response To Customers Table No: 10 ROW LABLES

FREQUENCE

PERCENTAGE

VERY SATISFIED

6

24%

SATISFIED

15

60%

NEUTRAL

2

8%

NOT SATISFIED

2

8%

GRAND TOTAL

25

100%

Graph No: 10

RESPONSE TO CUSTOMERS 16 14 12 10 8 6 4 2 0 Very satisfied

Satisfied

Neutral

Not satisfied

INTERPRETATION 60 percent of the respondents satisfied with the knowledge of the sales person, his mental ability, organization skills, and 24 percent of the respondents are satisfied with the ability of the service managers. It is also advisable to the company under study to conduct more training sessions to make more useful to the organization and to improve the service quality. The company can train their employees to provide full qualitative service to its customers.

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Accuracy Of Order Fill Table No: 11 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

2

8%

VERY GOOD

16

64%

GOOD

6

24%

FAIR

0

0%

POOR

1

4%

GRAND TOTAL

25

100%

Graph No: 11

ACCURACY OF ORDER FILL 18 16 14 12 10 8 6 4 2 0 Excellent

Very Good

Good

Fair

Poor

Series 3

INTERPRETATION 64 percent of customers feel the company is very good at order fill. The success of the organization, in this competitive environment is based on the role of services provided by the company and its quality. It is important now to protect the customer satisfaction by providing good qualitative services.

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Rating For Orange Plus Led Table No: 12 ROW LABLES

FREQUENCE

PERCENTAGE

1 Star 2 Stars 3 Stars 4 Stars 5 Stars GRAND TOTAL

0 1 4 19 1 25

0% 4% 16% 76% 4% 100%

Graph No: 12

RATING FOR ORANGE PLUS LED 20 18 16

14 12 10 8 6 4 2 0 1 Star

2 Stars

3 Stars

4 Stars

5 Stars

INTERPRETATION 76 percent of the customers gave the brand a 4 star rating. Customers expressed that they are fully satisfied with the services provided by the Company, so that they have given ‘Excellent’ rank to these services.

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Reasonable Time of Delivery Table No: 13 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

4

16%

VERY GOOD

13

52%

GOOD

7

28%

FAIR

1

4%

POOR

0

0%

GRAND TOTAL

25

100%

Graph No: 13

REASONABLE TIME OF DELIVERY 14 12 10 8 6 4 2

0 Excellent

Very Good

Good

Fair

Poor

INTERPRETATION 54 percent of the respondents satisfied with the time taken for delivery of products. It is also advisable to the company under study to conduct more training sessions to make more useful to the organization and to improve the service quality. People are also of the opinion that they are getting very transparent information from the service staff from time to time.

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Reliability on Orange Plus Led Table No: 14 ROW LABLES

FREQUENCE

PERCENTAGE

EXCELLENT

3

12%

VERY GOOD

13

52%

GOOD

7

28%

FAIR

2

8%

POOR

0

0%

GRAND TOTAL

25

100%

Graph No: 14

Series 3 14 12 10 8 6 4 2 0 Excellent

Very Good

Good

Fair

Poor

Series 3

INTERPRETATION The above table and graph show that 52 percent of customers are reliable on orange plus led.

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CHAPTER V

56

FINDINGS



The survey results reveal a number of interesting facts. From an energy efficiency standpoint, perhaps the most notable is the significant remaining population of MV fixtures, a source technology that was invented more than 100 years ago. Also interesting is the number of respondents indicating the average age of the luminaires in their system exceeds 30 years.



LED products are already the most prominent source technology in their street and area lighting inventory. Other large variations in the characteristics of ownership and maintenance of public lighting systems are also evident.



Respondents suggested a shift toward light fixtures and corresponding light bulbs.



Constant demand of products is causing a challenge for manufacturers



Regarding high cost structure, company can reduce duplication across national organizations in manufacturing by centralizing manufacturing and also by account profitability to be the central criteria for evaluating performance.



Launching some new campaign for only Orange Plus DAP items regarding with various occasions .Can also increase associations with other renowned institution to promote those items as their trade promotional products.

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LEARNINGS Sales Professionals need to stay in touch with the customers even after the deal. Never ignore their calls. Call them once in a while to exchange pleasantries. Give them the necessary support. Help them install, maintain or operate a particular product. Any product found broken or in a damaged condition must be exchanged immediately by the sales professional. Don’t harass the customers. Listen to their grievances and make them feel comfortable. Create a section in your organization’s website where the customers can register their complaints. Every organization should have a toll free number where the customers can call and discuss their queries. The customer service officers should take a prompt action on the customer’s queries. The problems must be resolved immediately. Take feedback of the products and services from the customers. Feedback helps the organization to know the customers better and incorporate the necessary changes for better customer satisfaction. Ask the customers to sign Annual Maintenance Contract (AMC) with your organization. AMC is an agreement signed between the organization and the customer where the organization promises to provide after sales services to the second party for a certain duration at nominal costs. The exchange policies must be transparent and in favour of the customer. The customer who comes for an exchange should be given the same treatment as was given to him when he came for the first time. Speak to him properly and suggest him the best alternative.

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CONCLUSION The market for interior illumination purposes in residential and commercial building categories is enormous. This market in India is estimated to increase by approximately 82% in residential buildings and 54% in commercial buildings over the next two decades. The current share of the lighting market penetrated by LED lighting is about 0.1% only. This clearly indicates the scale of huge market potential yet to be captured by LED based lighting solutions. The benefits of LED lighting are also huge and accrue to a variety of stakeholders. The annual energy savings potential and GHG reductions are to the tune of 29,850 GWh and 25.6 million tcO2 respectively. The peak demand supply gap faced by many utilities across the country may well be avoided. Apart from this India currently being the third largest source of greenhouse gas (GHG) emissions could rapidly move towards becoming a leader in the adoption of superefficient technologies. Also considering a dynamic future market for lighting with rapid improvements in efficacy/life and price reductions, it is estimated that by 2021 LED technology will penetrate 57% of the market in commercial buildings and about 33% of the market in residential buildings. By 2031 more than 80% of the lighting market will be captured in both the building categories. The market penetration of LED in the future will be more aggressive in commercial buildings as compared to the residential buildings.

However, in the present scenario there are many barriers for adopting LED based lighting solutions. The high initial cost and lack of confidence among the consumers are the key problems faced. Demand aggregation as recommended by government of India could be one of the key strategies to kick start the market penetration in large scale. This could also motivate the key players in the industry to set up production/manufacturing facilities in the country. With properly structured demand aggregation projects LED lights can be procured at extremely competitive prices with discounts 30% to 50%. Discounts of 50% or more in the near future may be very economical for replacing all the conventional technologies for all categories of consumers. The LED technology is still emerging and there is significant potential for growth in the efficacy, cost effectiveness and life of the fixtures.

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ANNEXURE Questionnaire:

1) When you think of this type of products, what brands come to your mind?

2) How familiar are you with our brand and products? o o o o o

Excellent Very good Good Fair Poor

3) How unique is our brand? □ □ □ □ □

Excellent Very good Good Fair Poor

4) How well does our brand perform on quality? o o o o o

Excellent Very good Good Fair Poor

5) How well do our brand perform on price? o o o o o

Excellent Very good Good Fair Poor

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6) How well do our brand perform on design? □ □ □ □ □

Excellent Very good Good Fair Poor

7) How well does the website communicate our company’s products? □ □ □ □ □

Excellent Very good Good Fair Poor

8) What is your rating towards our company’s distribution system?

1

2

3

4

5

6

7

8

9) How do you place your order? □ Sales representatives □ Online order system □ Other 10) How satisfied are you with the responsiveness of sales executives? □ □ □ □ □

Very satisfied Satisfied Neutral Not satisfied Very dissatisfied

11) How accurate are our executives in order fill? o o o o o

Excellent Very good Good Fair Poor

61

9

10

12) How would you rate the brand? 5 STARS

4 STARS

3 STARS

2 STARS

13) Was the delivery time of our products reasonable? o o o o o

Excellent Very good Good Fair Poor

14) How reliable is our brand? o o o o o

Excellent Very good Good Fair Poor

15) Do you have any other comments, questions or concerns?

62

1 STAR

PRODUCT RANGE

63

64

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BIBLIOGRAPHY Energy consumption. (2013). Retrieved Oct 3, 2013, from http://www.need.org/needpdf/infobook_activities/IntInfo/ConsI.pdf IMS Research. (2012). Succeeding in the global retail LED lamp market Pike research: LEDs to capture 52% of commercial lighting by 2021. (2013). Retrieved December 2, 2013, from http://lighting.com/pike-research-leds/ Philips 433227 10.5-watt slim style A19 LED light bulb, soft white. (2014). Retrieved February 12, 2014, from http://www.amazon.com/Philips-433227-10-5-watt-StyleDimmable/dp/B00I134ORI Green creative titanium LED. (2014). Retrieved February 15, 2014, from http://earthled.com/products/green-creative-titanium-led-4-foot-t8-ultra-led-retrofit-tube-dlclisted-led-t8 Chen, K., & Murray, W. (May 1980). Energy, incandescent lighting, and 100 years. Industry Applications, IEEE Transactions, IA-16(3), 413-419. Superior Lighting. (2013). CFL components. Retrieved 10/20, 2013, from http://www.superiorlighting.com/Compact_Fluorescent_Lamp_Components_s/2466.htm Dupuis, R., & Krames, M. (May 1,2008). History, development, and applications of highbrightness visible light-emitting diodes Journal of Lightwave Technology, 26(9), 11/13/20131154-1171. Bulbs.com. (2013). Incandescent bulbs. Retrieved 11/2/2013, 2013, from http://www.bulbs.com/learning/incandescent.aspx https://www.researchgate.net/search/publications?q=led%2Blights

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