NEW DELHI, Sep 13: Wipro Consumer Care & Lighting is aiming to be among the top three companies in the lighting segment by FY2024-25-end, growing faster than the industry average despite challenges related to inflation and low rural consumer demand, a company official said.
The company, part of Wipro Enterprises, entered into the home appliances segment more than a year ago, with the launch of the products into the mid to premium segment.
Currently, its appliances are an online exclusive brand, available on e-commerce channels, however, it has plans to go offline also, said Sanjay Gupta, Senior Vice President, Consumer Lighting & Switches at Wipro Consumer Care & Lighting.
In FY 2022-23, Wipro’s Lighting business achieved a remarkable double-digit growth, crossing Rs 1,000 crore revenue.
When asked about the growth, Gupta told PTI: “Moving forward, we are confident in our ability to outpace industry growth rates, despite encountering some demand-side challenges in the B2C Lighting segment.”
“To sustain this momentum, we have established ambitious growth targets, aiming to secure a spot among the top three players in the Lighting industry by the close of the fiscal year 2025,” he added.
Wipro’s lighting business is divided into two segments B2C and B2B — contributing 60 and 40 per cent, respectively — in the top line.
According to Gupta, there has been a slowdown in the demand for the last one year in the B2C business because of inflation and other factors.
“However B2B business is doing very well because of the new infrastructure projects. B2C, which grew very well after the Covid, is now seeing some slowdown because of the pricing and demand slowdown from rural,” he said, adding, “However overall we are doing well.”
In the B2B business, Wipro Lighting is present in segments such as commercial lighting, street lighting, industrial lighting and providing home lighting solutions under the B2C segment.
“In the domain of home and office solutions, we excel in providing a diverse range of products catering to both the B2C and B2B segments. Our extensive portfolio encompasses lighting, modular switches, office chairs, and more recently, Indoor Air Quality Solutions and small home appliances,” he said.
On foray into the home appliances business, Gupta said its entry into the segment has yielded promising results.
“We are currently testing waters. We are selling through online platforms such as Amazon, Flipkart etc.,” he said.
There is a lot of synergy between the retail trade of home appliances and lighting business as it mostly uses the same retail channels. Most of the retailers selling lighting products in the country also sell home appliances.
Wipro has a line-up of home appliances which includes electric irons, electric kettles, egg boilers, pop-up toasters, sandwich makers, induction cooktops, and mixer grinders.
In small home appliances, it is now competing with traditional makers such as Bajaj Electricals, TTK Prestige, Crompton Greaves Consumer Electricals, Orient Electric, Philips, Havells and new companies such as Surya Roshini which has also jumped into the segment.
When asked about any expansion of the segment towards larger products such as water geysers or compressor-based cooling products, Gupta said: “We would be restricted to small home appliances as of now.”
The company would continue innovation for the segment, providing products which will add value to the consumers.
“We have made products which are differentiated and add value to the same products, which others are selling,” Gupta added.
According to Gupta, this small home appliances segment is under-penetrated and has space for growth.
In the home lighting segment, the company is solidifying its smart lighting business as the leader in the B2C Smart Lighting market.
“Our Smart Lighting range encompasses an array of products, including Smart Bulbs, Smart Battens, Smart Sockets, and Smart Downlights,” he said.
Wipro Consumer Care and Lighting, which is a part of Azim Premji-led Wipro Enterprises, has crossed the milestone of Rs 10,000 crore in overall sales in FY23. It operates in the FMCG and lighting business. PTI
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