Capital Goods: Sector Update | 21 October 2016
India Electricals
Please refer our detailed
report dated June 2016
Energy Efficiency Services Limited (EESL) order tracker
Lighting continues to be the dominant category
EESL orders at INR10.5b in 1HFY17; target to reach INR36b in FY17 and
INR63b in FY18:
EESL orders stood at INR10.5b in 1HFY17, with the lighting
segment contributing 70% of orders placed. Within lighting, LED lamps (47% of total
orders) was the largest category, followed by LED tube lights (13%) and streetlights
(10%). EESL started procurement of fans and air conditioners in FY16, which formed
miniscule proportion of overall order awards. However, we note that the share of
fans grew to INR0.76b (7% of total awards; INR96m in FY16) and of air conditioners
to INR87m in 1HFY17. For FY17, EESL has a target to procure 150m LED lamps (90m
in FY16), 2m fans, 2m streetlights, ~0.6m pumps and 50m tube lights with capex of
INR36b. This is expected to rise to INR63b in FY18, with fans, air conditioners and
pumps procurement also picking up in a meaningful manner.
LED lights – largest category in procurement (70% share):
Lamps at INR5b
(47% share v/s 37% in FY16) remains the largest procured category. Phillips has
retained its market leadership (38% share vs. 13% in FY16), primarily due to a major
tender (50m units) where it is supplying 9W LED bulbs for INR38/unit. We highlight
that no other company was willing to participate at this price and thus the entire
contract was awarded to the L1 bidder. Tube lights (20W LED) at INR1.4b (13%
share) saw procurement of 10m units at a price of INR140/unit (it sells these to end-
customers at INR200/unit). This compares favorably to retail price of INR500-
600/unit. Surya Roshni (20% share) and HQ Lamps (20% share) were the market
leaders in this category. Street lights (10% share) saw ordering worth INR1b, with
BVG India grabbing a 74% share (INR78m) for the supply of 165,000 LED streetlights
to Goa.
Fans and air conditioners account for only 8% of procurement at INR851m:
EESL has sourced 1m BEE 5-star-rated fans for INR78m (INR770/unit) in 1HFY17 vs.
0.1m fans sourced at INR960/unit in 4QFY16. These would be sold to consumers at
~INR950-1,000/unit v/s retail price of INR1,600-1,800/unit. EESL aims to procure 2m
fans in FY17. For 5-star-rated BEE air conditioners, INR87m worth of procurement
has been done, primarily for central government buildings.
Fans, air conditioners and pumps pricing unlikely to go the LED way:
EESL bulk tendering would lead to lower prices for categories such as fans, air
conditioners and agricultural pumps (on higher volumes procured and savings on
channel margins, typically at 20-30% of sales), the price decline is unlikely to be of
the same magnitude as LEDs, in our view. This is because: a) technology in these
product categories is mature and cost of production is unlikely to decline
significantly hereon (unlike LEDs) and b) warranty (4-5 years) and servicing
requirements (8-10 years of life) will ensure participation from only serious players
and weed out non-serious competition. EESL has already implemented minimum
Ankur Sharma
(; +91 22 3982 5449
Amit Shah
(; +91 22 3029 5126
Motilal Oswal research is available on, Bloomberg, Thomson Reuters, Factset and S&P Capital.
8 August 2016
Investors are advised to refer through important disclosures made at the last page of the Research Report.

Capital Goods
service center requirements in recent tenders to ensure competition is restricted to
serious players.
EESL will negatively impact prices and be margin dilutive for light electrical
Within our coverage – Havells, Voltas and Crompton Greaves Consumer Electricals
(CGCEL) – the exposure to EESL is limited to ~0-7% of overall sales. However, this
share would rise as EESL increases procurement of fans, tube lights, air conditioners
and agricultural pumps. Our interactions with management indicate that players
would be judicious in bidding for EESL tenders and try to balance volumes with
profitability. However, as EESL procurement volumes rise, these companies would
be tempted to increase their share, which would negatively impact margins over the
medium term. Havells India is likely to be least impacted (16% of sales from fans and
14% from lighting) as it would like to focus on sales via its traditional channels
(distributors/retailers) and use Promptec to participate in streetlight tenders from
EESL. CGCEL could be most affected as EESL is now shifting focus to fans, agricultural
pumps and tube lights in FY17/18; these categories account for 94% of sales for
CGCEL. However, we do note that CGCEL is a small player in the agricultural pumps
market. Voltas could be impacted from FY18/19 as EESL’s procurement of air
conditioners picks up.
Valuation and view:
We maintain our
rating on Havells (TP: INR420; 33x
FY18e EPS) and Voltas (TP: INR360). We retain our target price of INR190 (32x FY18e
EPS) and our
Crompton Greaves Consumer Electricals.
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EESL order award analysis for 1HFY17
Lighting remains biggest category in procurement (70% share)
EESL awarded orders worth INR10.5b in 1HFY17 (v/s INR22.5b in FY16) for LED
streetlights, LED lamps, tube lights, fans, air conditioners and miscellaneous
equipment/services. LED lamps (47% of total orders) was the largest category,
followed by tube lights (13%) and streetlights (10%). EESL began procurement of
fans and air conditioners in FY16, which formed miniscule proportion of overall
order awards then. However, we note that the share of fans has grown to
INR0.76b (7% of total awards; INR96m in FY16) and of air conditioners to
INR87m in 1HFY17.
Exhibit 1: Market share by product category in EESL tenders in 1HFY17 (INR10.5b)
Fans, 7%
Others, 22%
Streetlghts, 10%
Tubelights, 13%
Aircon, 1%
Lamps, 47%
Market share by product category in EESL tenders in FY16 (INR23.5b)
Others, 36%
Streetlights, 26%
Airconditioner, 0%
Fans, 0%
Lamps, 37%
Source: Company, MOSL
Lighting – LED lamps, streetlights and tube lights
LED lamps (9W) at INR5b (INR8.3b in FY16) was the largest category in 1HFY17.
Phillips was the market leader (38% share), followed by Compact Lamps (20%),
NTL Electronics (17%), Crompton Greaves (10%) and Wipro (7%).
The top five players accounted for 92% of the market in 1HFY17. Phillips
managed to maintain its leadership position due to a tender for 50m units of 9W
LED bulbs (INR1.9b at INR38/unit) that it won in Aug-16. This is the lowest price
ever tendered for 9W LED lamps, and since no other company was willing to
match this price, the entire order was awarded to Phillips.
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Exhibit 2: LED lamps market share in EESL (INR5b) in 1HFY17
Surya Roshni, 2%
Wipro, 7%
HQ Lamps, 4%
Greaves, 10%
Others, 1%
Phillips, 38%
Compact Lamps,
NTL Electronics
India Ltd., 17%
Source: Company, MOSL
Exhibit 3: LED lamps market share in EESL (INR8.3b) in FY16
Fiem Industries,
Wipro, 6%
National Small
Electric, 3%
HPL Electric &
Power, 7%
Electicals, 7%
Lamps, 8%
Greaves, 11%
Source: Company, MOSL
HQ Lamps, 12%
Phillips, 13%
Osram, 8%
Surya Roshni, 11%
According to media reports, EESL procured and distributed ~90m LED lamps in
FY16, which implies that average procurement price in that year was
down from the initial INR300/unit. As we highlight below,
procurement price for EESL tenders in Aug-16 had come down to INR38/piece in
case of the order awarded to Phillips (retail price at INR350).
Exhibit 4: LED price movement over past two years in EESL and retail market
LED bulbs offer in
tender (m)
EESL price per
Source: EESL, MOSL Research
We do highlight that competitive intensity has reduced from earlier years since
there is a domestic manufacturing/assembly clause introduced by EESL to
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ensure that complete imports from China are not supplied by manufacturers
and that the products can be replaced/serviced during the three-year warranty
period. To illustrate, Syska cannot participate in EESL tenders since its products
are completely imported from China.
Our interactions with management indicate that EESL’s aim is to converge retail
prices of LED (9W) with CFL (18/20W). Retail price is INR200-250/unit for LED
and INR80-120/unit for CFL, which implies that there is still some time to go
before their retail prices converge, and EESL is likely to remain in the market by
Exhibit 5: Retail prices of 9W LED bulbs continue to be more than double of EESL prices
Name of company
Moser Baer
Crompton Greaves
Price/unit (INR)
Source: Flipkart, MOSL
Exhibit 6: Retail price of 20W LED tube lights much higher than INR140 procured by EESL
Name of company
eco Element
Noble Spira
Crompton Greaves
Price/unit (INR)
Source: Flipkart, MOSL
Streetlights – competitive intensity lower than lamps
As seen in the case of LED lamps, LED streetlight prices have dropped from
INR137/W in Jan-14 to INR85/W currently. However, this price fall is lower than
that in case of LEDs and is reflective of lower competitive intensity in this
segment – the top 5 players accounted for ~94% of the market in 1HFY17 (65%
in FY16).
Most lighting industry players participated in the bids for streetlights. We
highlight that Havells had 5% share in 1HFY17 (13% share in streetlights orders
in FY16) but did not participate in lamp tenders – its participation in streetlights
is via Promptec (acquired last year), which operates primarily in the LED
streetlights category.
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Exhibit 7: EESL streetlight orders in 1HFY17
Electrical, 8%
Havells, 5%
Orient Electric, 7%
Eon Electric
Limited, 2%
HPL Electric &
Power Ltd, 1%
Source: EESL
BVG India Pvt Ltd,
BVG India, a Pune-based unlisted player, won order for 165,000 LED streetlights
in Goa for USD12m (INR775m); it had the highest share in orders at 74% in
1HFY17. Other key players winning orders were Florida Electrical and Orient
Exhibit 8: Market share in streetlights with EESL in FY16 (INR6b)
Surya Roshni, 4%
Greaves, 6%
National Small
Electric, 8%
Bajaj Electricals,
HPL Electric &
Power Ltd, 10%
EON Electric, 15%
Others, 6%
Phillips, 4%
Fiem Industries,
Havells Limited,
MIC Electronics,
Source: MOSL, EESL
Tube lights – major focus area for EESL with target to procure 200m in FY17
EESL has started procurement for tube lights (20W LED) from Q1FY17, aiming to
procure 50m during the course of the year. It has been able to procure tube
lights at INR140/unit and sell those to customers at INR200/unit (incl. taxes and
other charges) v/s retail price of INR600/unit.
Exhibit 9: Retail price of 20W LED tube lights
Name of company
Eo Element
Noble Spira
Crompton Greaves
Source: Flipkart, MOSL
EESL procured 10m tube lights for INR1.38b in 1HFY17. This started from
2QFY17 with the first tender awarded at INR140/tube light. Including taxes,
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price to customers is INR220/unit v/s retail price of INR500-600/unit. The
distribution of tube lights is expected to start from October-16.
Exhibit 10: EESL market share in tube lights (20W LED)
Surya Roshini Ltd.
Compact Lamps Pvt Ltf
Crompton Greaves
H.Q. Lamps
Source: MOSL, EESL
Exhibit 11: EESL accounting for 28% of LED market in India in CY15/FY16
LED lamps procured by EESL
Streetlights procured by EESL
LED market size in India
% of total LED market
Fans – 5-star-rated fans lead the way
EESL started procurement of BEE 5-star-rated fans in 4QFY16, which has further
picked up pace since 1QFY17. EESL has been able to procure fans at INR700-
955/unit from Usha International, which comes up to ~INR1,100-1,200/unit at
retail level for end-consumers. This compares very favorably with ~INR1,500-
1,700/unit price at which these fans are currently available at major online
Exhibit 12: Market share in EESL fan procurement in 1QFY17 (INR760m)
Orient Electric,
Marc Enterprises,
Greaves, 23%
Surya Roshni, 28%
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Exhibit 13: Retail price of 5-star-rated fans v/s EESL procurement price of INR1,000-1,100
Name of company
Orient Smart Saver 50
Crompton HS Plus 48
Havells ES 50
Bajaj Electricals 50 Isi
Activa Aspira 5 star
Usha 5 star Technix
Crompton BEE 5 star
Air conditioners – 5-star-rated air conditioners the preferred mode
EESL also initiated procurement of air conditioners on pilot basis in FY16, with
orders being won by Voltas, Hitachi and Carrier. Hitachi with one order worth
INR9.2m had 72% market share in FY16. EESL placed orders worth INR87m in
1HFY17, with Voltas winning a bulk of this (97% share for supply of 5-star-rated
air conditioners to the central government building in New Delhi).
Exhibit 14: EESL air conditioner orders at INR87m in 1HFY17
Source: EESL, MOSL
Exhibit 15: Air conditioner market share in FY16 (INR12.8m)
Voltas, 9%
Carrier, 19%
Hitachi, 72%
Source: EESL, MOSL
In terms of pricing, Carrier has supplied 1.5-ton 5-star-rated air conditioners for
INR42,877 v/s retail price of INR45,000/unit, which is not materially different.
However, this was for the supply of only five units – as volumes of procurement
go up, prices would trend downward.
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Pumps – aim to replace 21m inefficient agricultural pumps
EESL has recently started procurement of pumps, with the first tender being
awarded to M/S Aquasab Engineering for a contract value of INR1.38m. EESL
aims to replace 200m electric pumps with energy-efficient 5-star-rated pumps.
There are 21m electrified pumps in India, which are used for agriculture and
consume 92.33BUs energy every year (~18-20% of total electricity consumption
in India). At present, farmers get electricity either free or at very low cost (free
or INR1-1.5/unit) and thus are not interested in improving efficiency of pumps.
Average efficiency level of inefficient non-star-rated pumps is in the range of
25%-30%, while efficiency level of star-rated energy-efficient pump sets (5HP) is
40%-45%. The savings potential by mere replacement of inefficient pumps with
star-rated pumps is estimated at 20-25%.
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Energy Efficiency Services Limited
An opportunity and a threat for light electricals industry
EESL is a government-owned company (jointly controlled by NTPC, PGCIL, PFC
and REC), which has taken the lead to reduce energy consumption by
introducing demand-side management (DSM) measures. This is primarily done
via replacement of inefficient appliances with star-rated energy-efficient ones.
Its initiatives span across:
a. LED lamps, streetlights, tube lights
b. BEE 5 star-rated fans
c. BEE 5 star-rated air conditioners
d. Energy-efficient agricultural pumps
DSM measures are part of the National Mission for Energy Efficiency
Enhancement(NMEEE) launched by the Ministry of Power with an aim to save
~INR585b, primarily via efficient electricity consumption by end-consumers. We
highlight below the targets set for replacement of lights, fans, air conditioners
and pumps by 2019/20.
Exhibit 16: Demand-side management measures
770m LED bulbs and 35m streetlights
20m agricultural pumps
**160m fans and 1.8m air conditioners
Benefit (INR b)
Source: MOP, MOSL, Company, **EESL targets 44m fans
To put this into perspective, annual market volumes for lamps (ICL plus CFL)
stand at 1,261m, while the government intends to replace all ICLs (770m annual
sales) with LEDs. According to EESL, it has already distributed ~150m LEDs and
aims to complete distribution of 770m LEDs over the next three years. Of its
target to distribute 35m streetlights, 1.14m is already distributed. It has recently
started tendering for LED tube lights, fans and air conditioners.
Exhibit 17: EESL targeted volumes vs. achievement till Aug-16
LED lamps
LED streetlights
Air conditioners
Target (m)
Met (m)
Exhibit 18: Annual volumes of key product categories in India
Lamps – ICL, CFL,(ex LED)
Tube lights
Agricultural pumps**
Air Conditioners
Volumes (m)
Source: MOSL, Industry, ** for pumps this is the installed base of electrical agri pumps
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Fans could be most impacted; pumps to follow, in our view.
We believe the
impact on air conditioners would be the least, as even if EESL meets its target of
distributing 1.8m air conditioners over three years, this would be ~10-12% of
the annual market and may not cause a major disruption in the market.
However, in the case of fans where the target is to distribute 44m units, annual
procurement by EESL would equal to 15m units or ~30% of the annual market
size of fans in India and could cause a fall in the retail prices. For pumps,
primarily the existing inefficient pumps are targeted, which could drive
replacement demand. However, since aesthetics and features would not be a
differentiator, this would also negatively impact pumps pricing.
EESL has started procurement of LED lamps from Jan-14, when procurement
price stood at INR310/unit and retail price at INR599/unit. In its latest tender in
Aug-2016, procurement price had dropped to INR38, while retail price had
dropped to INR200-350. Similarly, in case of LED streetlights, the price has
dropped from INR137/W to INR85/W.
Exhibit 19: LED lamps price movement over past two years in EESL and retail market
LED bulbs offer in
tender (m)
EESL price per
Source: EESL, MOSL Research
EESL – an opportunity as it accelerates replacement demand and provides
new distribution channel to light electricals players
Initiatives taken by EESL to replace inefficient products (lamps, streetlights, fans,
air conditioners and pumps) would lead to higher market growth as EESL
facilitates an additional channel to reach end consumers. More importantly,
it is
tapping replacement demand rather than catering to new demand for these
products, thus accelerating growth in these segments.
The government’s drive
to replace ICLs with LEDs has led to explosive growth in LEDs, with sales growing
from INR8.5b in CY11 to INR51b in CY15. On the flip side, since LED lamps last
longer (6-7 years) than traditional ICLs (~1 year), the replacement cycle would
get prolonged.
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Exhibit 20: Growth in lighting segment in CY14-16 driven by LEDs
Lighting market(INRm)
Exhibit 21: Sharp jump in LED sales, driven by government initiatives under EESL
LED sales(INR m)
It helps companies fill in spare capacity and achieve economies of scale in
production. This helps recover fixed costs over a larger number of units and
reduce costs which are passed on to EESL. More importantly, our discussion
with companies indicates that participating companies would provide their no-
frills model in EESL tenders while keeping premium models and features to be
sold through the traditional distributor/retailer network.
EESL – threat of lower retail prices due to increased procurement
The street is worried about the impact of lower prices on margins as EESL starts
bulk procurement of fans, air conditioners and tube lights. There are fears that a
similar price fall may be seen for these product categories, as has been
witnessed in the case of LED lamps and streetlights. We present below our
LED lamps:
The price fall in case of LED lamps has been steep, with prices
down to INR38/unit in August, ‘16 from INR300/unit as of Jan-14. However,
this has come as a result of
higher procurement volumes, with EESL
procuring ~90m lamps in FY16 itself and planning to procure another 150m
in FY17; and
a significant fall in prices of LEDs globally. We highlight that
Bajaj in its recent analyst concall mentioned that it was becoming very
selective in bids with EESL – pricing had come off substantially and it was
not profitable for them to take orders any longer. This is in contrast to FY16,
when ~60-70% of lighting sales were from EESL orders. In our view, LED
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prices seem to have bottomed out and will likely remain at same levels or
increase as players realize that it is not profitable to supply at current prices.
BEE 5 star-rated fans:
As per the EESL website, it has been able to procure
fans at a price of INR780-955/unit from Usha International, which would
come to ~INR1,100-1,200/unit at the retail level for end consumers
(inclusive of taxes and duties). This compares to ~INR1,500-1,700/unit price
at which these fans are currently available at major online websites.
However, in case of EESL tenders, manufacturers are able to: a) save on
distributor and retailer margins (~15-20% of sales) and b) provide in bulk
and thus enjoy economies of scale in manufacturing. Since Q1FY17, EESL has
stepped up its procurement of fans, with a target to distribute 44m 5 star-
rated fans till FY19. Assuming EESL is successful in this, it would need to
distribute ~15m fans each year, which would equal to 30% of the market.
Moreover, as volumes increase, so would the likely downward pressure on
prices. In our view, given the aggressive targets for fans, this category could
be the most impacted by EESL’s procurement.
c. BEE 5 star-rated air conditioners:
We believe the impact on air conditioners
would be the least, as even if EESL meets its target of distributing 1.8m air
conditioners over three years (FY17-19), this would be ~10-12% of the
annual market and thus may not cause a major disruption in the market.
More importantly, air conditioners need regular servicing since they have an
average life of 8-10 years. This, in turn, would help weed out non-serious
players in the bidding process. Our discussion with companies indicates that
they would offer no-frills model to EESL, which would be different from the
ones sold via regular trade and thus help avoid cannibalization of sales.
has already put in place minimum service center requirements to weed
out non serious players from the fray.
d. BEE 5 star-rated pumps:
There are 21m electrified pumps in India, which are
used for agriculture and consume 92BUs of energy every year (~18-20% of
electricity consumption of India). EESL targets to replace these inefficient
pumps with 5 star-rated pumps, which are 30% more efficient. EESL
provides a robust distribution channel for light electricals companies to
distribute products across villages. In case of pumps, replacement demand
could see a boost as the targeted market is primarily existing inefficient
pumps. However, since aesthetics and features would not be a
differentiator, this would negatively impact pumps pricing.
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Takeaways from meeting with Energy Efficiency Services Limited
We recently met with the senior management team at Energy Efficiency Services
Limited to understand the distribution plans over next three years. Key highlights
from our meeting:
Ambitious targets across lamps, fans, pumps and streetlights
EESL has a target to distribute
770m LED lamps, 35m streetlights, 44m fans,
1.8m air conditioners and 21m pumps
over the next 3 years ending FY19. EESL
works under the deemed savings model where the savings is shared with the
discoms and Urban Local Bodies
Focus is on a)Retail - LED lamps, Tube lights, Fans, Super-efficient A/C’s,
- Pumps, Streetlights, Building Efficiency
the products via e procurement
and have distribution agencies set up
kiosks for selling to customer. The distribution agency is paid on the basis of
each unit sold. An awareness agency is also appointed to create awareness of
the campaign
Building in minimum service center requirement for vendors in case of tenders
for fans, AC's to ensure product gets serviced post warranty; will reduce
Exhibit 22: EESL investment plans over next 5 years
Source: EESL, MOSL
Exhibit 23: EESL investment plans by product category
Capex/investment by product category
Residential - Lamps, Tube lights Fans, Air conditioners
Source: EESL, MOSL
LED lamps – aim to bring parity between CFL (18W) and LED (9W) pricing
150m bulbs distributed till date with 90m in FY16 and target is to do 150m in
FY17. Another 100m lamps to be sold via the traditional channel
Aim is to converge retail price of LED (9W) with CFL(18W). Retail price of LED is
INR200-350/unit while a CFL retails at INR100-120/unit. Will step out of the
market once prices converge
Have a domestic assembly clause so imports from China cannot be given by
vendors - Syska which completely imports has never participated in the EESL
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The LED lamp programme is on in 17 states and prices are down by 85% to
INR55/unit. 87% of bulbs are bought on upfront payment while balance is
bought on EMI basis where EESL appoints collection agents
2-10 lamps are given per household, EESL works on a cost plus model where it e-
procures the bulbs, adds taxes, awareness costs, distribution costs and ROE, 2.5
year warranty is provided on the bulbs
Recent tender for 500m lamps has seen the lowest price of INR38/unit by
Phillips as L1 in this bid. However, no other manufacturer had been willing to
match this price and Phillips has got the order for the 500m units.
Tube lights – increased focus from Q117 onwards
Focusing on LED tube lights post LED lamps; procured tube lights for
INR180/unit. Will sell to
consumer for INR230/unit vs. the INR600/unit in the
retail market
Target is to sell 50m tube lights in FY17 – we highlight that the CY15 sales of
FTL’s in India stood at 245m
Streetlights – slow off take initially but now gathering pace
Under UJALA, target to replace 35m streetlight and 9b units of annual power
consumption can be saved. Already done 1.2m across 153ULB's across the
No upfront cost for the ULB; EESL takes care of installation, commissioning and
maintenance. It has a back to back contract with the manufacturer for the same
for 7 years
** Savings is calculated upfront for the no. of lights being replaced; smart app to
monitor street lights usage and also to switch them on/off from the mobile
Pumps – targeted savings of INR200b annually with replacement of 21m pumps
BEE 5 star rated pumps are given free to the farmer and the savings for the
discoms(30% more efficient) is shared with EESL
Target is to procure and distribute 1.26m pumps over 2 years for
INR57b(annual market for pumps is 3m) and eventually replace 21m electrified
pumps in the country which are inefficient
Replacement of 21m electrified pumps would save 173b unit of power and
INR200b of state subsidy which is given to farmers (30% of INR640b subsidy
given each year)
Implementation is difficult but EESL doing 3 things: a)Tie up local electrician to
promote 5 star rated pumps, b) Free maintenance for 5 years vs. current
INR2000-3000/year so the farmer saves INR15000, c)Smart app to control the
pump and EESL can also monitor usage
Fans – EESL to step up procurement in FY17; procurement price down to
INR780/unit and retail at INR1000/unit
Recently procured 1m 5 star rated fans for INR780/unit which would retail at
INR1,000/unit vs. INR1800/unit in the channel
Target is to procure 2m fans in FY17 and eventually procure 44m fans till FY19
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Engage with the industry to procure 5 star rated fans which are not sold much
currently; eventually once acceptance from the consumers, have mandatory BEE
star rating for fans as currently rating is voluntary.
Not looking at BLDC fans - were able to procure these for INR1800/unit and final
price to consumer would be INR2300/unit vs. 5 star rated fan which is at
INR1000/unit; given only a 15W differential, going with 5 star rated fans
Air Conditioners – EESL to start procurement from FY18 onwards
in A/C procurement only from FY18 onwards
- would not want to invest
their own money but tie up with banks, credit card to offer EMI scheme to
customers, risk is higher since value per unit is much higher
Initial focus is on the institutional market - Central Public Works Department,
State PWD's, Bank ATM's
Looking to procure super-efficient inverter A/C with rating of 4.5 vs. the current
3.5; implies 30% more savings
Consumers not to be given an option
of which brand to buy
- will get only one
option at the kiosk set up for sales
21 October 2016


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