The Indian Prime Minister Shri Narendra Modi started the Ujala scheme to increase the promotion of energy efficient lighting in houses through LEDs. After this move, the prices of LED bulbs lowered down to almost Rs 70-80 apiece from Rs 150-160 earlier.
Also, the demand (and production) for compact fluorescent lamps (CFL) came down tremendously since the consumers and later manufacturers also switched to LEDs.
Since 1998, when these bulbs first came into the market as an alternative to incandescent bulbs, tremendous innovation in the coming 10 years meant that there were better alternatives to CFLs. More importantly, many reports during the coming years stated that the mercury from CFL could be a major cause of skin cancer. The rise of LEDs has also been due to the fact that they are not only mercury-free however also consumes less energy compared to CFLs.
Gradually the use of CFL came down. In a recent interaction, Bajaj Electricals Chief Financial Officer Anant Purandare said CFL contributed Rs 360 crore to its lighting business revenue of Rs 600 crore in 2013. “This dropped to Rs 54 crore in Q4 FY18.” He admitted that the CFL segment is almost dead and LED lighting has picked up.
Around the world, big giants such as General Electric have already taken a decision to pull the plug on CFL lights. The cost and environment conscious companies have undertaken significant steps in order to reduce the CFL exposure and switched to LED bulbs. LEDs not only conserve energy however also come at a similar price point.
In India also, large players like Havells have confirmed that they will concentrate on producing LEDs. Industry estimates state that about 150 million CFL bulbs are produced annually compared to 450-470 million LED lamps. Moreover, it is touted that a further reduction in prices to Rs 40-45 per LED bulb will spell more trouble for CFL producers as the former lasts longer and is cheaper.
According to numbers and estimates, it is being predicted that CFL bulbs will soon cease to exist even among online and offline retailers. As per the current scenario, the consumer durables industry has been quick enough to adapt to customer needs and global energy standards which is further enhancing the rise of LEDs.