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UJALA: the revolutionary scheme leading the Indian LED lighting market to a sheer growth

In 2015, with the target of replacing 770 million traditional lamps by the year 2019 the government had already laid the foundation for the tremendous growth of LED lighting market to be coming in the near future. With nearly 24.21 Crore units sold under UJALA in just 2 years, the overall LED lighting market has got a major breakthrough in terms of growth. Government is procuring all these units in bulk from the private players and is providing at a lower rate to the citizens. Thus, has emerged as a win-win situation for the manufacturers as well as the consumers. In the initial stage when the LED lights introduced in the market it was very troublesome for it to get a place in the market which was highly penetrated by the Incandescent and CFL lightings. To compete these lighting ranges which were available at a lower price, especially In the Indian market where major portion of population comprises of the middle class income group citizens was very difficult. Moreover with the lower demand the manufacturers also were not able to take the advantage of economies of scales and pull down the per unit price of LED lights. The only thing they were in need was indeed a bulk order which allows them to do a large scale production and pull the prices down. The UJALA and SLNP schemes of the government became the drivers for that and the steep growth LED lighting market has seen is a very result of both the initiatives. According to recently published report of Bonafide Research, "India LED Lighting Market Outlook 2022", the LED lighting market did not comprise even a 10% of the total lighting market till 2011-12, has grown above 10% by the year 2014. However the major development the market has got was just in the last two year of 2015 and 2016 when the market has grown 3 times than the previous year with quite a rapid growth rate of more than 250% making the LED lighting market one of the fastest growing market in India. It is very obvious that the people do not replace a bulb unless it stops working, but the problem which was arising till 2014 was people replacing the old incandescent of CFL bulbs with the same technology and not the LED lights as the LED lights were costlier. It was very necessary to make the people tend towards using the LED lights at the time of replacement. With the government introduced schemes the citizens literally ran behind it for getting the maximum units of 10 fixed by the government they can avail and it led the foundation for the repurchase of LED lights in the creating a strong market scope in future for the LED lights. Moreover the exhaustive promotional ad advertisement activities being carried out by the companies, by making people aware about the long term cost effectiveness of LED lights as well as the environmental benefits of LED lights, has played a major role in convincing people to by the LED lights despite it being somewhat costly initially and has accelerated the growth of the market. The another major thing that happened was that with the government providing LED lights at a cheaper rate the market prices of the LED lights had also fell down by a significant rate. At present while the UJALA bulb is available at INR 70 the market rate is somewhere between INR 110-130 which is not a huge difference. With the declining prices of the LED lights the sales of private players has also increased significantly. As after achieving the target of 770 million units the government will move out from the market making the whole field open for the private players. The efforts which have been made in the current years have given the spontaneous results but it will carry on providing its fruits to the private players in the future years as well. Major international companies operating in the LED lighting market of India are Philips India Limited, Havells India Limited, Surya Roshni Limited, Bajaj Electricals Limited, Syska LED Lights Private Limited, Crompton Greaves Consumer Electricals Limited, Eveready,GE India Industrial (P) Limited, Osram India Limited, and Moser Baer.


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