‘There is a chance for LED lights producers to become exporters’

R ajiv Gupta, managing director, KCSAD LED Lights India Pvt Ltd, a leading LED lights manufacturing unit situated in Leather Complex, Jalandhar, believes that the lockdown has taught important lessons to the industry and it is time for manufacturers as well as dealers to become self-reliant in all aspects. In an interview with Avneet Kaur, he talks about the challenges being faced by MSMEs in the current scenario and plans to refurbish the industry in the near future. Here are the excerpts…

How has the lockdown impacted the industry?

Like any other industry, the domestic lighting industry has also suffered huge losses in the past two months. Even though the industry has now resumed its operations, we are not able to manufacture lights as we are facing a shortage of electronic components, including chips from China, Japan and Korea. The demand supply equation is not working and seems like it will take at least six to eight months to get back on track.

Workers are an asset of any industry. How are you dealing with them?

We have a workforce of over 120-150 employees and without them, the industry cannot run. Moreover, a majority of the labourers working with me are skilled who have knowledge of electronic components. Thus, I cannot afford to lose them. I arranged a pass for myself from the administration during the curfew to reach to my employees to provide them ration. I have also paid full salaries to them. Now, I have also arranged auto-rickshaws to ferry them from their place to the factory.

Will the current crisis increase the prices of LED lights?

While manufacturing an LED light in India, over 60 per cent of the components, which are mechanical in nature, are sourced locally. Around 40 per cent, which are called electronic drivers, including chips, are imported from foreign countries, especially China. These are in short supply as of now. Thus, 8 to 10 per cent impact on the prices is expected as we are seeing supply constraints.

What lessons have you learnt from the present scenario?

Well, the lighting industry is completely dependent on China, Korea and Japan for raw material. Even if some dealers have these components at present, they are based in Delhi and Mumbai where Covid-19 cases are on the rise. Although we have started operations, we are not able to reach the final stage of manufacturing due to the supply constraints. Thus, we need to be self-reliant now in terms of manufacturing of components and other required raw material so that the industry does not suffer in future.

Do you consider the current crisis a challenge or an opportunity?

It is a challenge as well an opportunity. The government's support to industries has always been negligible. I believe the industries are more determined to fight back. The current crisis is a chance for light manufacturers to become leading exporters. I have once again set new goals and analysed my strengths and weaknesses. This will help me in the longer run.

What is the role of the government?

We are not getting any revenue right now, but we still have to pay fixed expenditures such as electricity charges, loan instalments and salaries. If not debts, the government can at least defer loan instalments, waive bank interest and give relaxation in other compliance such as GST and custom duty.