The LED Light Manufacturing business in India is expected to grow at a rate of 25 percent per annum to achieve $25 Billion in 2023. Hence, the LED Light Manufacturing business in India is a profitable venture for young and budding entrepreneurs.
With the global need to address the challenges of climate change, there is a need to stimulate innovation in generating more low-carbon emitting technologies. However, for a developing nation like India, this is the biggest challenge as to achieve a swift economic development; relatively cheap low cost and large-scale energy resources are used.
Climate-friendly technologies are often costlier as compared to cheap energy sources such as fossil fuels. Due to this, developing countries like India possess a very limited potential in producing more innovative low carbon-emitting technologies.
The expansion of India’s Light Emitting Diode- LED light manufacturing business has witnessed unprecedented growth in the past few years to achieve the goals of sustainable development.
Relevance of LED Light Manufacturing Business in India
LED are the semiconductors Light-emitting diodes that are used to emit visible lights by passing electric currents through them. The LED lights are smaller, low cost, and have long operating life as compared to the traditional or regular lighting systems. The LED lights used for residential purposes consume at least 75 percent less energy, lasting longer than other incandescent lights by using remarkably less power, and giving the same amount of output.
With more than 15 percent of the global electricity consumption, the global lighting market has witnessed a transition from conventional lighting systems and Compact Fluorescent (CFL) bulbs towards LED lighting technologies. The LED market in India has shown a growing trend by increasing the annual sales of LED lighting of 5m per annum to over 670m in 2018. Within 5 years, the LED Light Manufacturing business has grown 130-fold resulting in saving the annual energy of 30 Terawatt. This is a huge achievement that is enough to fulfill the power requirements of about 28m million Indian houses. With the Growing LED light business, India has witnessed a price drop of the LED bulbs from 400 rupees in 2014 to around 70 rupees in only 5 years. With the rapid increase of the LED lights in India, the market shares of LEDs have grown from 0.3 percent to 46 percent striking the CFL and tube light lamp in 2018. Therefore, this is the ideal time for all the young entrepreneurs to dive into the competitive LED Bulb manufacturing business.
Registrations and License of LED Light Manufacturing Business
Any young entrepreneur can set-up his LED Light manufacturing business on a large scale or even start a small-scale business unit in India. But, one needs to have the knowledge and understanding of the fundamentals of manufacturing the LEDs.
Following are the steps to obtain the government license and registration from the authorities of the government-
- Registration of Companies-
The LED Light manufacturing business can be a start-up in a proprietorship firm or partnership. In case a person wishes to start-up his business as a partnership firm, he must get his Company registered as a Private Limited Company or a Limited Liability Partnership (LLP). Whereas in case a person wants to start a firm, he needs to register his firm as a Proprietorship.
- Trade license-
Another important step to start the LED Manufacturing Business is that the entrepreneur must obtain a Trade License. A Trade License can be obtained from the Municipal Authorities of the concerned states.
- Energy Efficient certificate-
The LED Light Manufacturing Business is an energy generating industry that needs to obtain the Energy Certificate from the Bureau of Energy Efficiency Certification.
- Obtain a GST Number-
Another important mandate for starting up the LED Manufacturing Business is to obtain the GST number as per the rules of GST.
- Environment-friendly Certificate-
The LED Manufacturing Business involves various hazardous substances that are not environment friendly in nature. Thus, the LED Manufacturing business requires obtaining a Non-Objection Certificate (NOC) from the Pollution Control Board.
- Udyog Aadhaar Number-
The manufacturing industry in India is required to apply for the 12 digit Udyog Aadhaar Number through online mode and apply for the MSME Certificate as well.
- Trade Mark-
The LED Manufacturing business owner must obtain the Trade Mark to ensure the security and safety of his business brand.
- IEC Code-
An IEC Code is required by the LED Manufacturing Business if the business owner is willing to export the LED lights out of India and expand the business.
Raw Materials for LED Manufacturing Business
The raw materials that are required for assembling up to 10W LED lights are given below-
- Heat sink device
- LED Chips
- Rectifier circuit
- Filter
- Cap holder (Metallic)
- Plastic glass reflector
- Wire for connecting
- LED Manufacturing Equipment
- Materials for packaging of LED Lights
- Plastic body
- Soldering flux
- Metallic cap holder
Machines for LED Light Manufacturing Business
The following major machines are required for the LED Manufacturing Business and assembling procedure of the LED lights-
- PCB assembly machines for LED
- Assembling machines for LED lights
- High speed LED mounting machine
- LED Chip SMD mounting machine
- LED Tube light assembly machine
- LED Candlelight assembly machine
The LED manufacturing business also requires certain small equipment manufacturing and assembling machines are as following-
- Soldering machine
- Sealing machine
- Continuity tester
- Lux meter
- Oscilloscope
- Manufacturing process LED
- Drilling machine
- LCR meter
- Packaging machine
- Digital multi-meter
Business Process
The LED Light Manufacturing business consists of four steps listed below-
- A Semiconductor wafers
The primary material that is required in the manufacturing business of LED is making a Semiconductor wafer. Various chemical elements including Arsenic are required to create a high-pressure chamber to liquefy the elements and mix them. The chamber is sealed by a layer of boron oxide to prevent their escape. The impurities and dirt from the wafers are removed by using several chemicals to create better lighting when cleaned rigorously.
- Epitaxial layer
In the next step, a Liquid Phase Epitaxy (LPE) is used to manufacture the layer of crystal semiconductor on the clean surface of the water. The semiconducting layer is then crystalline and accumulates on the wafer that is filled in a container consisting of melted GaAsP. After the doping process, the facer is placed on a high-temperature furnace tube to diffuse with nitrogen, zinc, and ammonium that helps to make the color of the LED lights more yellow or green.
- Metal contact
The pattern of contact of the metal is dependent upon the designing and combination of diodes that are kept in a 100degree temperature to make it hard. The photo resist is covered by the mask and exposed to the ultraviolet lights and covered with a semiconductor layer.
- Packaging
The packaging of all the dies is done and it is mounted on 2 metal leads that are about 2 inches long. Thereafter, the wafers back are covered with a metal layer that forms the electric contact, and the other lead is tied up with the small leads of gold and is wire bonded. The wires and dies are assembled in an airtight plastic after fulfilling the optical parameters.
Marketing of the LED Light Manufacturing Business
The most important steps in the LED Light Manufacturing Business is the marketing strategies for the sale of the LEDs are as following-
- Retail Marketing– For the marketing of the LED lights in the retail markets, the business owner must aim to target the retail markets that are locally available for example showrooms, malls, electronic shops nearby the manufacturing unit established.
- Online Marketing– Online marketing is the cost of common marketing strategies in the present times. The online marketing of the LED Light manufacturing business can be done through the B2B Websites or B2C Websites.
The B2B websites provide the online platforms for selling the products in bulk with a minimal profit margin. Whereas, the B2C Websites provides a platform where the buyer orders the products by himself that will be directly delivered to the consumers at their relevant address. The B2C Websites involves more profit margins as compared to the B2B Websites.
- Wholesale Marketing- The wholesale marketing of the LED Light business involves selling in bulk raising the overall sales, and makes more profit comparatively than the retail markets.
- Export Markets- One can increase the export of his LED Light manufacturing business through the international level contact. The only requirement for selling the LED Lights in the international market is to acquire the IEC Code.
Conclusion
LED has transformed the lives of people globally by emerging as the energy saver but also by giving a better quality of lights to the people at much cheaper rates than conventional lights. The Government of India has been giving various benefits to the young aspiring entrepreneurs to motivate them to start the LED Light Manufacturing business in India.
The Government has provided various incentives by launching the Modified Special Incentive Package Scheme (M-ISPS). LED Light manufacturing business has potential as the LED market has expanded with the expanding electricity access in India by more than 70 percent in the year 2010. LED Light manufacturing business in India is very crucial in giving more access to electricity by creating less carbon footprint and achieving the Sustainable Development Goals.
The Government has played a very crucial role in creating a huge market base for the LED light manufacturing units by launching an initiative known as ”Unnat Jyoti by Affordable LEDs for all”. The ”UJALA” is an initiative that has been launched to procure more LED bulbs in the Indian domestic market and bring down the prices through bidding and by selling the LEDs through the registered vendors and kiosks. This is a huge step to make India independent and to reduce its dependence on imports from China and to expand the light manufacturing business.
India has a huge capacity for the continued growth of the LED markets with a long term sustainable economic growth producing low carbon footprints. Therefore, all the young and aspiring entrepreneurs must dive into the opportunity of building the LED manufacturing business. The Aatmnirbhar Sena is also working tirelessly to provide financial aid to the budding entrepreneurs and making their dreams a reality and helping them to establish their own LED light manufacturing business.
