How to Begin LED Lighting Manufacturing Business

LED stands for light-emitting device. Nowadays LED lighting is becoming well-known day by day. LED lights come in a range of colors ranging from 2700K to 6500K that are light, dark, yellow, mild yellow or ultra white. The process of establishing the full-scale production of LED lights requires an enormous factory with certainly a difficult manufacturing process. But, anyone is able to start an LED light assembly unit to be a small or small-scale manufacturing unit.

The main benefit that LED lights possess is its lower power consumption. LEDs can be found with the highest efficiency in Lumens of 110 Lum/Watt, compared to 65-80 Lum/Watt for CFL and FLT, 45 Lum/Watt for Mercury vapour and 75 Lum/Watt of metal halide, or 94 Lum/Watt for Sodium Vapour. The life expectancy of the current white LED lamps is between 50,000 and 80,000 burn hours, as opposed to 5000-10000 hours of CFL and FLT, 18000 hours of the T5 lamp. It can also last 5000 hours for Mercury Vapour and 8000 hours of Metal Halide, and 8000 hours of HPSV lamp.

Do you think that the LED Light Manufacturing Business Profitable?

The cost of maintenance and electricity over the life-span for LED lights is about 1/10th that of standard bulbs. LED Home Lights can be constructed to consume around 0.6 Watts and are identical in brightness to an incandescent light bulb of 25 Watt bulb as well as an 11 Watt CFL lamp, with around 90% energy savings. If all bulbs are replaced with LED lighting, it will help save 50% of energy and consume 5 million units of energy per year.

LED street light using solar panels are the most effective option to reduce the electrical power usage from hydroelectric power stations that are currently accessible. It allows you to distribute the enormous amount of power produced by the hydroelectric power plant this way. This is the most energy efficient and sustainable lighting option currently available. Many states in India take on LED lighting projects extensively. Thus, it opens an enormous commercial opportunity for the local LED sector.

With all the advantages and possibilities, LED is sure to perform well in major markets like India. This is why LED light manufacturing is an investment opportunity that can yield profits for entrepreneurs who are just starting out.

Here are the 7 steps to Begin an LED Light Manufacturing Company

1. Find out about the various types of LED Lights and Applications

There's a broad selection of different kinds of LED bulbs as well as their uses in everyday life. If you're a novice you should choose a particular area and focus on making it profitable. The most well-known types and their uses are as follows:

Led Bulbs for Showrooms Malls, houses, offices Hospitals, Hotels Rural areas, restaurants

LED Deco Bulb for houses Hotels, Offices restaurants, Decoration and Testing Labs

LED Candle Bulb Light Bulb LED for Offices, houses, hotels Restaurants, Decoration Test Labs

The LED tube light is for Showrooms Offices & Bank, Conference rooms, malls, departmental boutiques and stores Warehouses, Industrial sheds Warehouses, Parking Houses

Led Spot Lights: Showrooms Offices Conference rooms, malls, Restaurants, Hotels and Hotels

LED Down Light: Offices Malls, houses, hospitals and laboratories, hotels & Restaurants

The LED panel light is for Offices & conference Rooms, Hotels & Restaurants, Showrooms & Malls, Hospital & Laboratories

LED Hi-Bay Light Factories, Sheds, Airport Concourse, Exhibitions, Railway sheds, Warehouses

LED Flood Light for Building Facades Architectural lighting, commercial lighting, monuments, wall washing light, railway marshaling yards Warehouses

LED Street Light (Solar): Street lightning in towns, cities, and villages

LED Garden Lighting: Farmhouses, housing and hospital compounds, amusement/ Water parks Hotel, Banquet, Marriage lawns, Parks & Gardens, Residential Blocks

Led Solar Lantern Rural houses, Compound lights Lights for camping, Emergency light

2. Develop a Business Plan

The process of starting an LED Light Manufacturing plant will require a significant investment. This means that you will require money to set up the business. Therefore, drafting an elaborate business plan is essential. It is suggested to employ an experienced plan consultant who is knowledgeable in the LED industry to complete the task with the consultant. The most important chapters to be included in the LED Light manufacturing plan document include:

The initial and ongoing costs and the recurring ones

Name of Your Business

Industry Analysis

Customers You Are Targeting

Pricing Plan

Manpower Recruitment Plan

Marketing Plan

3. Set up the money

The initial cost for starting an LED Light manufacturing company will be around Rs. 5 Cr. to Rs. 10 Cr. If you are able to arrange the funds on your own it is not necessary to solicit the funds from startup investors or banks.

If you are short of funds, you must solicit funds from financial lenders. In this case, your business plan is the most important document since investors will all ask for it first. We have an article on the top kinds of business loans available for new businesses to know more.

4. LED Light Manufacturing Business Registration

The first thing to do is you'll require various licenses and registrations from the authorities of the government. It all depends on the manufacturing method and the kind of LED light you're making,

Registration of a company with ROC

Get a Trade License from the Municipal authority

Udyog Aadhaar MSME Registration

BIS Certification

Bureau of Energy Efficiency Certification

ANO from Pollution Control Board

GST Registration

5. Get the LED Light Manufacturing Machines & Tools

The LED light manufacturing process is complicated. Basic knowledge and skills are essential to start any unit operation. It's not easy to define the entire machinery. You must select equipment based on the kind of LED you wish to make and also the raw material. A few of the most common equipment are

Machine for assembly of LED PCBs

Machine for assembly of LED lights

High-speed LED mounting machine

Machine for mounting SMD LED chips

Candlelight assembly machine

Machine for assembling LED tube lights

When you are beginning the manufacturing of LED lights it is recommended to prepare a comprehensive business plan or plan of action. This will assist you to get information on areas that are required, the LED wholesale Price in India investment and working capital investment and financial analysis such as breakdown-even points and the ROI.

6. Select a Proper Location

It is essential to pick a site of the manufacturing plant for led lights near to the local market. It is suggested to locate an area that is close to a city or town, so that the costs associated with sourcing and shipping final products are reduced. The farther away the greater will be logistical costs, which can eat into your net profit return.

7. Develop a Marketing Strategy

It is vital to establish a reliable system of wholesalers, distributors and major retailers so that the lights you have made are easily sold. Additionally, it's essential to establish your own online identity. Make a website, and when possible, create an online store that sells your products on the internet. Also , make sure you take appropriate marketing steps to ensure that information regarding the products you sell with led bulbs is distributed to potential customers.