Lighting group sees dazzling potential

Developing digital and intelligent lighting products and comprehensive lighting solutions will be of key significance for Ledvance, a global lighting provider based in Germany, to expand its market presence in China, according to a senior company executive.

"Lighting is getting smart in the future. From traditional to digital and then intelligent, we will continue to invest in the area of producing more intelligent LED products to meet the local growing market demand from China," said Thomas Dreier, vice-president and global head of research and development of Ledvance.

Ledvance, which emerged from the general lighting business of Osram, currently offers advanced LED lamps, standardized LED luminaries, intelligent, networked smart home and building lighting solutions and traditional light sources.

According to Dreier, Ledvance earned 1.9 billion euros ($2.1 billion) in sales last year, most of which were generated in the Chinese market, which is significant given that Osram and Ledvance had already developed strong positions in premier markets like Europe and the United States in the past.

"China is the single biggest lighting market globally. Consequently, China and the entire Asia-Pacific region is of ever-growing importance for us," said Deier.

Early in March, Ledvance was sold to a Chinese investment consortium consisting of strategic investor IDG Capital, LED packaging manufacturer MLS Co, Ltd and Yiwu State-owned Assets Operation Center, which provides financing and capital management for the State-owned companies in Yiwu city.

"The business of traditional lamps will continue to decline. However, over the next couple of years the LED lamp business, especially the intelligent lighting business, will enjoy nice growth globally," said Josef Martin, Ledvance's Asia-Pacific chief executive officer.

Ledvance currently has a strong presence in manufacturing traditional lighting products, with an international distribution competence, with around 50 sales offices in more than 120 countries, according to Martin.

"The cooperation works very well for us and the Chinese investors. With Ledvance's global sales network and brand, we will see market expansion in emerging markets like China," Martin added.

According to Lin Jiliang, executive general manager of MLS Co, Ledvance is set to become one of the top three lighting companies globally in three years, with the help of input from the Chinese investment consortium.

Ledvance and MLS will combine their individual strengths to expand their positions as global leaders in the lighting industry, Lin added.

"Through MSL, Ledvance will gain access to cost-efficient LED components for its products and will be able to expand its market presence in China," he said.