Domestic Manufacturing Of Premium Lighting Products May Double In 3 Years: Official

The Indian premium decorative lighting industry is focusing on domestic value addition to replace imports, and expects the localisation level to double from the current stage in the next three years as the demand is on the rise, a senior company official said.

Localisation refers to locally producing or manufacturing components. It is beneficial for a sector as it cuts down the cost of the component or the whole product.

The localisation and domestic manufacturing of premium lighting products is now around 20 per cent, which is expected to double in the next three years, said Usha International. president and business head (lighting) Vikas Gandhi.

He explained that the volume did not support complete localisation, but the revival in the market with a boom in the housing and hospitality sectors has encouraged the company to promote local value addition.

Currently, most of the imports are from China, according to the executive, whose company sells its products under the Tisva brand since 2014.

"The government policies are also encouraging for greater local manufacturing. We are empowering and supporting local vendors for greater domestic manufacturing and value addition of premium products," Gandhi said.

Chandeliers, pendant lights, table lamps, floor lamps, ceiling lights, wall lights, and outdoor lights are some of the products in the premium decorative lighting category.

Meanwhile, the lighting vertical of Usha International expects a compound annual growth rate (CAGR) of 35-40 per cent, driven by the premium decorative and architectural lighting segment, Gandhi said on the sidelines of the company's foray into the eastern region market.

The company claimed that their average ticket size spending has grown by about seven times in the last six years, he said.

"We are very bullish about the premium segment of the lighting market, which comprises the decorative and architectural segment. This segment is growing strongly on the back of the booming housing sector and hospitality industry. It is growing at a CAGR of 20 per cent, but our growth will be much higher," Gandhi said.

The overall lighting market is worth Rs 15,000 crore, of which decorative and architectural lighting is estimated to be at Rs 3,000 crore. And of that, the estimated value of the decorative segment will be worth Rs 800 crore but registering strong year-on-year growth.

"Our presence is now in 50 cities in different formats. In the next two to three years, the brand will be expanded to 100 cities," Gandhi said.

"With the launch of our first Kolkata exclusive store, Tisva Studio, we now have 15 such stores in 13 cities. Our presence in the rest of the cities is through dealerships or shop-in-shops," he added.

Speaking about the company's foray into the eastern region with an exclusive store, Gandhi said the company considers it an important growing market. He expects that the eastern region will be a focus region for the company and that it will gradually deepen its presence in this region along with national expansion.

In the future, the company aims to open new exclusive stores in cities like Lucknow, Surat, Jaipur, Chennai, and Kerala.