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Industry Dynamics

Meet the high demand for India LED light bulb PHILPS turned to China's imports"

source: LED time: Dec 11,2016 Passengers:

In September this year, PHILPS India (Philips India) successfully won the India government for UJALA planned LED bulb tender case, 50 million LED lighting supply contract, has provided the first batch of several light bulbs, however, most of them Chinese manufacturing "".

According to the contract, PHILPS India in 150 days to implement the UJALA plan of the state owned Enterprise Energy Saving Service Co., Ltd. (EESL) to provide 50 million watts of LED light bulbs, each bulb 38 rupees (equivalent to about RMB 3.9 yuan).

General manager Saurabh Kumar said, "in accordance with the contract, within five months of PHILPS LED provides the number of bulbs only amounted to 50 million. PHILPS said that the first light bulb is imported from PHILPS lighting factory in China, but they are upgrading production capacity in India, since December to provide 12 million LED bulbs per month. Import is only a temporary measure to ensure delivery on time. According to PHILPS, they will gradually stop importing light bulbs, in addition, PHILPS's India plant will be fully operational within one or two months."

According to the UJALA plan, EESL first to Private Companies to provide a certain number of light bulbs procurement contracts. Once these bulbs are delivered, they will be distributed to the state power companies. When consumers go to power companies to pay the bill, you can buy these priced lower than the market price of LED bulbs. Currently, PHILPS 9 watt LED bulb price of 130-190 rupees (equivalent to RMB 13.34-19.49 yuan).

PHILPS lighting India vice president and chief marketing officer Harshavardhan Chitale said, "as a global market leader in lighting, factory is located in the us from around the world and through India's powerful network of suppliers to buy LED bulb. We already have a large production capacity, last year, we provided to the EESL more than 15 million India made LED bulbs. Due to the huge volume of this special order, the need to significantly increase production, therefore, part of the order of light bulbs will be purchased from factories around the world, but most will be supplied by the India factory.

In response to the question about how the company can provide lighting at such a low price inquiry, Chitale said: "although we can not comment on specific to the tender price, but we can say that, because of the huge number, we provide a terminal users to more easily afford the price of LED lighting, meet all the requirements of the tender. The sharp increase in demand for LED bulbs in India led to sales growth, so that we can maximize the value of shareholders in a way that provides a better price through the economies of scale.

According to the tender documents, if other companies can match the lowest bidder's bid price, they should also get a substantial supply contract share. "In the same manner as all EESL tenders, the order will be allocated between 5-6 qualified bidders who are able to match the L1 price (the price offered for PHILPS in this case). EESL follow the same principle, requiring bidders to reach L5 to match the L1 price. They do not agree to do so, such as RFP (proposal), EESL will be allocated to all orders in the tender expressed willingness to supply 50 million PHILPS, Kumar said.