Indiabulls Group is venturing into LED lighting business in the country. This will be the business conglomerate’s first venture outside finance and services sector.
The new venture has been branded as ‘IB LED’, with formal launch expected in a couple of days. The formal launch follows an internal soft launch and a couple of customer installations as part of the soft launch.
“The group’s growth during the last 17 years has evolved around service business, but now it has decided to venture into product business. LED is the first move into the product business and we will initially cater to the B2B professional LED lighting needs in the country,” Partha Banik, President, IB LED, business told BusinessLine.
This means the company will initially target lighting requirements of commercial offices, building, shopping malls, warehouses, showrooms and infrastructure sectors, while IB LED will move to B2C segments later.
Indiabulls Group – with presence across real estate, infrastructure, housing finance and securities – has a net worth of ₹19,800 crore ($3 billion) as of March 31, 2016. The combined market capitalisation of its companies stood at ₹48,847 crore ($7.6 billion) on March 31, 2017. Indiabulls Group has entered into a tie-up with a manufacturer, which has production facilities in Maharashtra and Karnataka.
“We are utilising a co-manufacturer’s facility,” Banik said. The companies will jointly manufacture LED luminaires (LED light fittings), automation for lighting, streetlights, flood lights and outdoor lighting solutions for smart cities.
The investment for IB LED is happening in phases, Banik said, declining to provide a number.
As part of its introductory offer, the company will offer its solutions at zero upfront cost, and billing will be done only after customers generate savings in electricity bill over the next two years after installation.