The Dutch electronics major Philips NV is drawing a blueprint to ramp up its presence in the automotive lighting division in India. The Indian arm of the Amsterdam-based diversified technology firm, which has already made a strategic foothold in the passenger vehicle and two-wheeler segments, is now ramping up its presence in the commercial vehicle segment.
Strategically, Philips India is banking on its next-generation automotive lighting solutions like High Intensity Discharge (HID) / Xenon and Light-Emitting Diode (LED) lamps to give consumers a better value proposition and experience. It may be recalled that the company started selling automotive lights nearly a decade back, beginning with halogens for cars and bikes, and eventually expanding its product lines that cater to all segments.
In order to get enlightened about the development, MOTORINDIA interacted with Mr. Rajiv Khosla, Business Head-Automotive Lighting, Philips India Ltd. He stated: “We have been market leaders in terms of bringing in innovative products. We cater to all segments like two-wheelers, passenger vehicles and commercial vehicles. So we deal in conventional halogen lamps for all of them. This is for all categories such as headlamps, tail-lamps, and signalling lamps. We are focusing on Xenon lamps and LEDs in the market. In the last two-three years, commercial vehicle is one segment which has taken a giant leap when it comes to adopting modern technologies. We are more into innovations and have come up with bulbs which are more energy efficient, stylish, etc. From that perspective, Philips’ share is pretty significant. In the next couple of years, this is a segment which will grow by leaps and bounds. We are supplying to all the CV makers in the country like Tata Motors, Mahindra Trucks and Buses Ltd., Ashok Leyland, Volvo-Eicher, etc. From halogens, we are moving to LEDs and Xenon. I think there is a big change happening in commercial vehicles.”
Philips India works closely with their Tier-I automotive lighting suppliers like Lumax, India Japan Lighting (IJL), Fiem, Varroc, Minda, etc. Exuding confidence about its avant-garde technology, Mr. Khosla said: “Customers in this (CV) segment benefit from our in-depth technical expertise and experience in worldwide automotive manufacturing applications. One of the USPs of our products are they are sturdy, vibration-resistant and temperature-resistant. Furthermore, we are also a leader in LED technology and offer LED products for a wide range of applications. It makes sense for them (end buyers) too as they have to travel for long distances and are looking for durable lights. Moreover, there is a transition happening in the CV industry too for a long time. For example, in the bus segment, people are looking for style and aesthetics. Moreover, globally conceptualised vehicles are coming in. So we are seeing a big improvement in the needs of commercial vehicle buyers/users.”
Mr. Khosla was previously working with Carnation Auto, India’s largest independent multi-brand auto sales and service network floated by ex-Maruti MD, Mr. Jagdish Khattar.
Meanwhile, Philips India is quite overwhelmed by the response to the X-tremeVision replacement lamp that provides 100 per cent additional light output as compared to standard lamp, thus ensuring the safest night-time driving experience. “With its extremely high light output, X-tremeVision helps motorists see oncoming vehicles, pedestrians and obstacles better and earlier, helping prevent accidents on the road. Also, by ensuring maximum visibility, X-tremeVision prevents the stress, anxiety and fatigue people often feel while driving at night with not enough light. But right now it is catering to passenger and utility vehicle segments only. The product is doing very well and has gone beyond our expectations. With some modifications, we can also sell it to the fleet owners. Going forward, we are gearing up to roll out air purifiers for passenger vehicles to begin with”, he observed.
Talking about the distribution network, Mr. Khosla asserted that Philips India has a fairly robust base that covers the entire country. “We have grown significantly over the last few years and have around more than 100 distributors. Through our distributors, we cover about 10,000 outlets. We also have accessory retail outlets and are retailing our products at about 1,000 such shops,” said Mr. Khosla. Philips is also studying the feasibility of locally produced automotive lighting solutions in India.
When queried on the same, Mr. Khosla noted: “We are running high capacity lines in China, Germany France, Poland, etc. In terms of manufacturing locally, there are some discussions going on. Our basic objective is to offer value-for-money products to our customers. With the new government in place, manufacturing (in India) does look like an exciting option for us. We are still evaluating its feasibility.”
The Dutch multinational giant, which is clocking roughly Rs. 3,000 crores from its overall lighting business, is aiming to post Rs. 300-400 crores from the automotive lighting division by 2015-16. Without getting into the specifics, Mr. Khosla maintained: “I would say we are looking at a huge amount of growth and in the next four years. We are looking at doubling our turnover. In two years, we would be definitely earning well over Rs. 300 crores. We are looking at growth in all the verticals, i.e., OEM, aftermarket and OES space. We are seeing a huge amount of growth in the LED space too. From a revenue perspective, we are on a very high growth arena at this point of time. The Indian market is also going to grow and we are going to outgrow it. We expect the automotive sector to grow in double digits. We are also looking at intensifying our distribution network in the aftermarket. So we see a 2X growth there.”
Royal Philips Electronics of the Netherlands is a diversified health and well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions based on fundamental customer insights and the brand promise of “sense and simplicity”.
Headquartered in the Netherlands, Philips employs 119,000 employees in more than 60 countries worldwide. With sales of €25+ billion, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare.