How to Start LED Light Manufacturing Business

How to Start LED Light Manufacturing Business

LED light products are currently so popular globally that small to large businesses are taking an interest in them. However, starting a full-scale LED manufacturing business requires larger operations and complex production. If you’re also planning to start a LED manufacturing business, you’re at the right place.

LED or Light Emitting Diode is a semiconductor through which current passes and emits light. LED lights are available in various colors from 2700k-6500k in blue, red, ultra while, mild yellow, dark etc.

Further, LEDs are preferable due to their high power consumption. Its luminance efficiency is 110 lum/watt causing brighter light than conventional bulbs or CFL. Additionally, an LED light can burn for 50,000-80,000 hours comparing to others.

Keep reading the article to get more details about why and how to start LED light manufacturing business.

How To Start LED Light Manufacturing Business?

Here is the step-by-step guideline to start your LED light manufacturing company.

  1. Understand Market Potential

LED businesses surely have an incredible market potential and profit. It’s because maintenance cost and total electricity requirement are lesser than 1/10th of traditional bulbs.

For instance, LED home lights consume about 0.6 Watt and almost equal to 11 Watt CFL lamps or 25 Watt incandescent bulbs while saving 90% of energy. So, if all bulbs are replaced by LEDs, consumers can save up to 50% energy and 5 billion power unit yearly.

Therefore, start understanding the market demand and make a business plan accordingly. Additionally, identify target audiences and competitors before proceeding.

  1. Find Application Areas

LED lights have a wide range of applications. You need to decide which one to work on and consequently, start manufacturing. Here are some examples:

  • LED bulbs: houses, malls, hospitals, hotels etc.
  • LED tube light: office, showrooms, industrial shade, warehouses etc.
  • LED spotlight: conference room, hotel, restaurants etc.
  • LED solar lantern: emergency vehicle light like in Europe, police, fire or State Emergency Service use blue LED lights as warning signal on their vehicles. Similarly, in the UK, they use red LEDs in emergencies.
  1. Business Registration

After defining a specific application area, it’s time to register the LED light manufacturing business. Here is the process:

  • Company registration whether as LLC or ROC.
  • Bureau of Energy Efficiency Certification.
  • Obtain a trade license.
  • GST registration.
  • BIS certification.
  • Udyog Aadhaar MSME registration.
  • NOC from Pollution Control Board.
  • Apply for a trademark.
  1. Raw Materials

Every business requires raw material to begin manufacturing. LED light business is also no exception. You need the following materials supply:

  • Heat-sink devices.
  • Connecting wires.
  • LED chips.
  • Plastic body.
  • Metallic cap holder.
  • Reflector plastic glass.
  • Rectifier circuit with filter.
  • Soldering flux.
  • Packaging materials.
  • Miscellaneous parts.
  1. Machinery Equipment

Besides raw materials, you need heavy machinery to start an LED light business. LED manufacturing is itself a complex process. That’s why you need skills and basic knowledge for initiating a unit operation.

However, the machines you’ll select depend on what type of LED you’re producing. Some common major machines are:

  • LED PCB assembly machine.
  • LED chip SMD mounting machine.
  • High-speed LED mounting machine.
  • LED tube light assembly machine.
  • Candlelight assembly machine.
  • LED lights assembly machine.

Apart from these, there are some minor equipments.

  • Digital multimeter.
  • Lux meter.
  • LCR meter.
  • Small drilling machine.
  • Packaging machine.
  • Continuity tester.
  •  Sealing machine.
  • Oscilloscope.
  • Soldering machine.
  1. Acquire Manufacturing Technology

In addition, you need to procure the assembly innovative technology. Some part you can get from government associations to the certain expenses. Though it’s advisable to acquire the manufacturing technology from reliable sources.

  1. Decide Market To Sell

Have you decided yet where to sell the LED lights? After manufacturing, it’s important to decide the potential market and take action subsequently. You have few options available such as,

  • Local market: You can sell the LED product in the local wholesale markets.
  • Online market: If you choose online marketing, you’ll get huge exposure. You can register the business on B2B websites like Tradeindia, Alibaba, Indiamart etc. Or else, register on B2C websites like Bigbasket, Flipkart, Amazon etc. 
  • Company Website: How about you create a company website? Thus, you can communicate and sell products directly to the customers.
  • Export Market: Export LED lights to the international market.

Conclusion

The LED manufacturing business may sound complex but once you have a detailed project plan, it becomes easier. Making a proper business strategy is most important to conduct any business.

Further, LED lights are in high demand in both domestic and international markets. People prefer LEDs due to their reduced energy consumption and increased brightness. Therefore, you may have a chance to earn a good profit.

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