Empowering progress. Driving growth.
IKIO Lighting Limited embarked on a new and exciting chapter in this
financial year by becoming a publicly listed company and brought in growth capital to
propel the Company in its strategic initiatives.
THE MACRO OVERVIEW
The Indian economy is experiencing robust growth, driven by reforms,
strong private consumption, digitalisation, and government push on building
infrastructure. With a GDP growth of 8.2% in FY 2023-24, the country is well-positioned to
become a $5 Trillion economy by FY 2027-28 and become the third-largest economy in the
world.
Coming to the LED Lighting market in India, the overall market
continues to provide strong growth opportunities to players. Home improvement, which falls
squarely in the discretionary spend basket, has seen strong momentum, especially around
the festive season. High-end premium lighting, especially, is seeing a strong growth
trajectory and as a key partner to India's leading LED lighting solutions company,
IKIO is well-placed to capitalise on the opportunity.
ELECTRIFYING INDIA'S ELECTRONIC MARKET GROWTH
The Government of India's vision of Make in India, Make for the
World, supported by various schemes and incentives, has contributed to the development of
India as an alternative manufacturer to China.
As a result of the ‘China+1' strategy, which promotes supply
chain diversification, global and domestic players have developed a robust electronic
ecosystem, and the government has provided substantial incentives and schemes to support
the industry. Moreover, import substitution, supply chain realignment and advancements in
component manufacturing are reducing lead times and increasing efficiency.
The Indian electronics consumption market is flourishing across several
key segments. The LED lighting industry has seen significant growth due to government
initiatives, energy efficiency regulations and reduced prices, making India increasingly
cost- competitive compared to China. OEMs are seeking new ways to innovate products and
transitioning from plain vanilla contract manufacturing to Original Design Manufacturing.
MANUFACTURING AND INNOVATION
Our manufacturing operations serve as a cornerstone of our business
strategy. Strategically located, we operate five facilities: one situated in the SIDCUL
Haridwar Industrial Park in Uttarakhand and four in Noida within the National Capital
Region.
As you know, one of the objectives for doing the IPO, was the
investment in a new facility in Noida, we have completed Block I of ~2 Lakh sq ft, out of
the total greenfield project of ~5 Lakh sq ft. We will manufacture LED Home Lighting,
Solar Panel & Systems and other New Product Lines. This facility is aimed at enhancing
our export business and for new product development in the domestic market and is expected
to enhance the pace of growth for the Company.
In alignment with our commitment to offering comprehensive product
solutions and enhancing supply chain efficiency to boost margins, we have vertically
integrated our major manufacturing processes. This includes establishing in-house
capabilities to produce all mechanical components internally, ensuring greater control and
quality throughout our operations.
Our dedicated R&D department is at the forefront of product
innovation, specialising in product design, tool and mould design, electronic circuit
design and prototype development. Operating independently, our R&D team creates
original ODM designs and validates OEM designs provided by customers.
We transform these designs into market-ready products through iterative
improvement, selection of optimal raw materials and rigorous testing of trial products to
ensure superior quality and performance.
~2 Lakh sq ft
Completed development out of the total greenfield project of ~5 Lakh sq
ft
DIVERSIFICATION AND GROWTH
We have diversified our product portfolio with the addition of two new
categories: hearables, featuring TWS earphones and wearables, including smartwatches. In
our Product Display segment, we have made substantial strides by entering the Gulf market
for exports. In the US, alongside our established RV business, we have initiated supply to
Energy Services Companies (ESCOs) with industrial and solar products.
WAY FORWARD
Your company's performance in the year under review was largely
flat due to muted industry demand, mainly exports. ODM Lighting Solutions' revenues
remained largely flat. The Product Display business continued to grow by double digits.
Although Energy Solution & Others faced inventory pile-ups, inventory clearances for
RV products in the USA gradually increased. However, the future looks promising and we are
confident in the robust platform we have built to deliver substantial value to our
stakeholders over the medium to long term.
I extend sincere thanks to our dedicated employees for their
commitment, relentless enthusiasm and pursuit of excellence. With ongoing support from our
shareholders, clients, business partners and the Government of India, I am confident that
IKIO Lighting will forge ahead, achieving even greater success in the future.
| Warmly, |
| Hardeep Singh |
| Chairman & Managing Director |