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In an open bid for the India government’s procurement of LED light bulbs, Philips has quoted as low as INR38 (US$0.57) for a 9W light bulb (equivalent to a 60W incandescent bulb), 30.8% lower than the procurement price of INR54.9 at the last open bid held in March 2016, according to industry sources.
India plans to replace residential lighting and street lamps in 100 cities with LED fixtures by March 2019 and thus will procure 200 million LED light bulbs via open bids in 2016, the sources said.
India aims to progressively reduce procurement price from INR300 in third-quarter 2015 to INR44 eventually, the sources noted. As prices for LED devices recently rebounded, procurement price for an LED light bulb was expected to drop to the target of INR44 in fourth-quarter 2016, the sources indicated. However, Philips has already offered INR38 in order to win procurement of 50 million LED light bulbs, the sources noted.
China-based LED packaging service providers, such as MLS, and Taiwan-based LED epitaxial wafer and chip makers, such as Epistar, have cooperated to export LED devices for being assembled into light bulbs in India and then cooperated with India-based assembling partners to compete in the open bid,s the sources indicated. As Philips has quoted so low a price, it will be difficult for them to compete with Philips, the sources noted.
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