<span class="htext1"> Market Transformation:</span> CFL & Incandescent Bulbs

The beginning of this decade saw a new form of lamp - the compact fluorescent or CFL which competed head-on with the fluorescent lamps and incandescent bulbs

Market Size of CFL in 1999: Rs 12.5 crore

Market Size of CFL in 2009: Rs 1,100 crore

Market size of Incandescent Bulbs in 1999: Rs 280 crore

Market size of Incandescent Bulbs in 2009: Rs 420 crore

Fluorescent tubes - tubelights - have been present in the Indian market for decades now. But the humble incandescent has proved to be more popular. One of the reasons, why the incandescent bulbs were preferred over the fluorescent tubes was the difference in price between the two. The other disadvantage with the fluorescent tube was that it needed accessories such as a ballast (or choke as it is called), a starter and a frame. Besides, these tubes were not effective in areas where the voltage was low.

The beginning of this decade saw a new form of lamp - the compact fluorescent or CFL. These competed head-on with the fluorescent lamps - as they did not need any accessory - and incandescent bulbs. Also, a CFL was equally effective in areas with low voltage power supply. It took some time for this new category to pick up as the price difference with the bulbs and fluorescent tubes was as high as - in some cases - 20 times. The normal price range for a CFL ranges from Rs 120 to Rs 240 depending on the wattage. An incandescent bulb, on the other hand, is available at Rs 12. But most of the brands in CFL come with a one-year guarantee.

With the growing popularity of CFLs, and the invasion of cheap Chinese products in the market, existing Indian brands were also forced to bring down the prices fuelling its growth. People also realised that the average life span of a CFL was much higher and it consumed less electricity. With the increase in the price of electricity, many people in the cities and town preferred to switch to CFL as it has a energy saving potential of 80 per cent.

In the last 10 years, the market for CFL grew from Rs 12.5 crore in 1999 to Rs 1,100 crore in 2009. But the incandescent bulb is far away from being completely wiped out. Its market has grown from Rs 280 crore to Rs 420 crore in the last decade.

Interestingly, incandescent bulb brands have also entered CFLs. In the last 10 years, these brands have promoted the CFL bulbs aggressively while the incandescent bulb has taken a back seat. Besides, the government itself is promoting the use of CFL - all government buildings have been asked to switch to CFLs. The government has also reduced the central excise and other taxes on CFLs bringing the price down further. As part of various governement schemes in states such as Andhra Pradesh, Haryana and Himachal Pradesh, the starting price for a CFL is as low as Rs 15.