Wipro To Unveil Phalanx Of Circular Fluorescent Lamps

Wipro Lighting plans to take on industry leader Philips in an aggressive strategy to flood the market with a series of circular fluorescent lamps in a market dominated by traditional linear fluorescent lamps.

The company intends to invest Rs 30 crore under an expansion plan for setting up a glass shell unit as backward integration and also an E coater plant for manufacturing of speciality lamps.

Wipro has also entered into a fresh tie-up with Toshiba of Japan for manufacturing of fluorescent circular lamps for the first time in the country at an additional investment of Rs 10 crore.

All these plants are expected to come close to its existing plant at Waluj near Aurangabad.

 

By introducing fluorescent circular lamps (FCL) as an alternative for existing linear fluorescent lamps, technically known as FTL (fluorescent tube lamps), Wipro Lighting hopes to grab a significant market share from the market leader Philips which holds about 30 per cent of the spoils.

Wipro, which entered the lighting business four years back, has a current market share of four per cent. Philips, which has been an overall market leader in the Indian lighting industry, is said to have lost a significant of its market share in the last five years, while Surya has emerged as the leader in fluorescent lamps.

To increase its presence in market, Wipro will use the distribution channels of Wipro Consumer Products which amounts to almost nine lakh direct and indirect retail outlets.

The current market size for fluorescent tube lights (FTL) is around Rs 330 crore out of an estimated total market for lighting of Rs 1500 crore.

The rest of the major players include Surya (10 per cent); GE (8 per cent); Crompton Greaves (8 per cent); Bajaj (8 per cent). The rest is shared by medium and small players.

Wipro had first entered the market by arranging a technical collaboration with Toshiba for its fluorescent range of lamps.

According to Ravi Deol, general manager, sales and marketing, Wipro Lighting, the backward integration plan for glass shell plant is critical for achieving higher quality and for low cost manufacture.

By tightening the cost of manufacture and distribution, the company hopes to pass on the value to the customer.

Labelled as `Wiprolite,' the circular lamps are already popular in European and Far Eastern countries, he said.

"Our strategy is to focus on supplying energy efficient lighting products which give high value and innovative products to customers at a low and affordable price," he said.

The in-house R & D and product design department of the company are gearing up to introduce new and innovative products in the market

Wipro Lighting made a revenue of Rs 54 crore during 1995-96 and expects an increase of around 15-20 per cent for the year ended March 31, 1997.By introducing

fluorescent circular lamps as an alternative to existing linear fluorescent lamps, Wipro Lighting hopes to grab a significant market share from Philips