Osram bets on green lamps to grow in the country
Valor Econômico
OSRAM, the light division of the Siemens group, intends to grow above two digits in Brazil in 2010, nearly 12%, a market considered strategic for the German multinational. The expansion in the country, as already occurs in countries of the European Union, will come with the replacement of the traditional incandescent light bulbs for the so-called "green", more energy saving technologies: the fluorescent light bulbs and those of the new generation, known as light-emitting diodes (or LED). The global market for lighting has operations of nearly € 22 billion (data of 2008). The expectation is that the sales of new generation led lamps get to € 12.6 billion in 2012, compared to the € 4.6 billion in 2008, when the decision was taken in the EU.
The fluorescent light bulbs are more efficient than the incandescent ones and their life gets to more than ten thousand hours of use, and they can get to 20 thousand hours, compared to the durability of nearly one thousand hours of the incandescent light bulbs. Besides, they generate savings of 80% on energy on the traditional light bulbs. The led light bulbs last nearly 25 thousand hours and are 25% more efficient than the fluorescent bulbs, informs the company. The fluorescent options cost 4 times more than the traditional ones whereas the LED bulbs are up to 20 times more expensive than the conventional ones.
With global earnings at nearly € 4 billion, the emerging countries are responsible for 32% of the earnings of the group. With the global financial crisis, the group decided to reposition its strategy for the emerging countries. Brazil, in this context, is seen as a leader in Latin America. In the country, the production of Osram is concentrated at the group's plant installed in Osasco, in the Metropolitan Area of São Paulo. This plant produces the traditional incandescent light bulbs, which will lose market, and the fluorescent light bulbs. This plant operates at 80% of its capacity and should focus on the production of innovation of the company in the near future, according to Goetzeler. The LED light bulbs of the company sold in the country are imported. "We have no plans to put up a new plant in Brazil yet. Nevertheless, there are studies to bring products with innovation to this plant", he said.
The Brazilian plant is already the export base for the Osram products in Latin America. However, the appreciation of the Real in relation to the US Dollar has limited the shipments, according to Goetzeler. The domestic market, according to the Executive, should consume much of the production of Osram. The company does not disclose their numbers of production and earnings in Brazil.
The German group Osram informed it allocates nearly 6.6% of its global earnings on research for technological innovation, in centers in Germany and in the United States. For the LED lighting segment, the company entered into a joint venture with Traxon. The company also seeks to advance in lighting markets that are not restricted to households and offices. The company is evaluating opportunities, such as the FIFA Soccer World CupTM and the Summer Olympic Games. The car sector is another important segment for the lighting sector. According to Goetzeler, the more accelerated market expansion of energy-saving light bulbs should occur in a mid-term, in no more than two years.