Electrical goods maker Havells India expects its LED products to contribute up to 45 per cent to its lighting segment revenue by the end of this fiscal with traction coming from replacement markets and metros.
"Lighting vertical in Havells is around Rs 800 crore. We expect to do close to 40-45 per cent of LED by March 2015," Havells India President Sunil Sikka told PTI.
Moreover, the company would also continue a year-on-year (YOY) growth of 20 per cent in the coming years.
It had a revenue of Rs 4,719.69 crore during the last fiscal (2013-14) ended on March 31 this year.
According to Sikka lightning is going under huge change as in 3-5 years time, LED would be dominating over other source of lighting.
To handle the growing demand of LED, the company would expand the capacity of its Neemrana, Rajasthan based manufacturing unit, which is which is used for Indian as well as foreign consumption.
However, Sikka declined to share the capex which the company would invest in its Neemrana unit saying that it would be decided next year.
"We would be augmenting the capacity of Neemrana plant by next year to double up its operation. May be we may take the capex budget in the next year, we would have to increase... develop the machinery but it would be huge machinery," he added.
Havells, which has a good export base and is catering the markets of USA and Europe and had last year exported goods worth Rs 400 crore.
"Out of Rs 400 crore export, Rs 80 crore was of lighting vertical, of which 40 per cent was LED and the balance 60 per cent was fluorescent fixture fittings," he said, adding that the share of LED would increase further.
The company is globally sourcing chip sets for its LED lights from leading makers -- US-based CREE and Japan-based Nichia Corporation.
Havells owns brands such as as Crabtree, Sylvania, Concord, Luminance and Standard, and has 91 branches spread over 50 countries across the globe.
It has 14 manufacturing units in India located at Haridwar, Baddi, Noida, Faridabad, Alwar, Neemrana and six in Europe, Latin America and Africa.
