Focus Lighting & Fixtures Ltd Management Discussions.


The Indian lighting industry is currently witnessing strong growth. The replacement of basic and inefficient incandescent, halogen, fluorescent lamps with modern LED lights will reduce electricity consumption. According to a report by ELCOMA, the lighting industry is expected to reduce energy consumption for lighting from the 18% (2018) of total power consumption to 13% by 2020 by introducing more energy efficient products and working more closely with the government to execute various schemes and awareness programmes.

Smart lighting is an innovative technology that is replacing with more efficient LED lights and sensors for energy conservation. As India is a one of the countries having the largest consumers of electricity, it has been witnessing an increasing electricity demand-supply gap. This has resulted in regular power shortages and blackouts across the country. As a result, the government is playing an active role in replacing the current lighting sector with more energy efficient products.

Apart from reducing energy consumption and cutting electricity costs, smart lighting also offers numerous other advantages to end users. Smart Lighting replaces switches and push-buttons with motion sensors which can automatically switch the lights on and off when the consumer enters or leaves a room. Moreover, smart light bulbs use LEDs that can be adjusted using a smart phone so that it can change color according to the users requirements and can also be switched on and off from a remote location. It can also help in dimming light which can save huge energy and cost.

Some of the other major factors driving the smart light market in India include increasing affordability of smart lights, technological advancements, development of various smart cities, increasing awareness levels, etc. Smart lights appear on a short list of technologies beginning to appear on many buyers must-have lists because of its ability to improve security and comfort and cut electricity costs, according to Market Watch. Smart light can also help to introduce human centric lighting, effects of light on human health.


According to the latest research report of LED inside, during 2018 to 2023, LED lighting market fiscale will gradually increase. LED lighting market fiscale will reach USD 56.6 billion in 2023. CAGR during 2018 to 2023 will be 9%.

European LED lighting market fiscale continuously expands, to the tune of USD 8.292 billion in 2018, with an annual growth of 9.5% and a penetration rate over 50%. In this market, lighting fixtures for commercial lighting have the greatest growth momentum, such as spotlight, lament lamp and decorative lamps.

American lighting manufacturers all achieved good revenue performance in 1H18, which mainly came from American market. Cost of lighting products is expected to transfer to consumers due to the impact of US-China Trade War and rising raw material price.

The unit prices in the Japanese market are higher. Besides, due to the rebound of Japans economy and the impact of 2020 Tokyo Olympics, the growth of Japanese market will remain.

Southeast Asia is gradually developing into a dynamic LED lighting market due to the rapid growth of local economy, infrastructure investment and population, the demand for lighting is massive.

The penetration of LED lighting in the Middle East and Africa market is rapidly increasing, and the market potential in the future is still expected.


Three major opportunities will become the revenue growth momentum for lighting manufacturers. One is lighting demand stimulated by 2020 Tokyo Olympics. The other is that the requirements of high-end lighting market is likely to rise as DLC V5.0 improves quality of light and luminous efficiency. Last but not the least, lighting manufacturers expand cross-industry to create business opportunities, which can be seen in architectural smart lighting, human centric lighting, horticultural lighting, fishing lighting, special lighting and so on.


Focus Lighting And Fixtures Limited (FLFL), incorporated on August 11, 2005, is a decade old Company engaged in manufacturing and trading of led lights and fixtures. FLFL currently provide vide range of verticals i.e. retail industry, Office & home lighting and hospitality lighting. Our comprehension of lighting technology, the influence it can have on the viewer and the techno-aesthetic requirement of the market has enticed us to develop lighting solutions with a trouble-free service life to achieve optimum lighting parameters such as luminous intensity, maintenance-freindliness and freedom from glare. The new technology of luminaires has been designed and developed by the nest product designers from Germany, proficient in the field of lighting design; supported by a proficient team of Indian Professionals. FLFL has also taken initiative to have in-house product designers.

In order to have a more balanced growth in manufacturing as well as trading of led lights and fixtures, greater emphasis is put to promote new products and technology. By doing so, the quantum of manufacturing and trading activities would be increased whereby we can cater to more organised business.

We are focusing on technology, IoT, performance and safety which is a prime concern due to recent events like re in Kamala Mills Compound, Mumbai and Coaching Class in Takshashila Arcade, Surat.

Further plans of horizontal expansion would be pursued by the management to take consolidated advantage of cost and resources, thereby providing the required fiscale to the existing business.

Our key assets i.e. Human resources is being acquired and retained in order to ensure that smooth functioning of business. Inorganic growth of business is also something which the management is keen to pursue in days to come.


Overview of Revenue & Expenditure

(Rs. in Lakhs)

Particulars As at March 31
2019 2018 2017 2016 2015
Revenue from Operations 12,101.93 9,222.59 7,138.16 6,082.92 4,126.60
Increase/Decrease in % 31.22 29.20 17.35 47.41 NA
Other Income 73.25 40.45 56.48 9.34 97.76
Increase/Decrease in % 81.11 (28.39) 504.71 (90.45) NA
Profit After Tax 975.57 596.12 401.60 291.71 108.98
Increase/Decrease in % 63.65 48.44 37.67 167.67 NA

The following is the Income mix in terms of value of total income of our Company for sale of products and Profit After Tax:

(Rs. in Lakhs)
Sr. No. Financial Year Trading Manufacturing Profit After Tax
1. 2018-19 6,565.14 5,536.79 975.57
2. 2017-18 6,460.33 2,762.27 596.12
3. 2016-17 7,138.16 - 401.60
4. 2015-16 6,082.92 - 291.71
5. 2014-15 4,126.60 - 108.98


• Proven track record of over a decade indicates our companys ability to survive business cycle.

• Experienced Management and Motivated Team comprising of personnel having technical, operational and business development experience.

• The Company offers a range of focus lights which includes recessed adjustable spotlights, recessed downlights, surface mounted spotlights, surface-mounted / suspended downlights, system based spotlights / wallwasher, track-mounted spotlights, etc. The range of Products that Company offers makes the Company a complete solution provider for all kind of retail lightings.

• Functional parameters of the Company such as assisting in planning and designing of lighting structure and monitoring the execution of the designs and installations provide improved efficiency and customer satisfaction

• Professionally-managed Company with qualified and skilled employee base.


The Companys ability to foresee and manage business risks is crucial in its efforts to achieve favourable results. While management is positive about the Companys long term outlook, it is subject to a few risks and uncertainties, as discussed below.

Economic Risk

Global economic and political factors that are beyond our control, influence forecasts and directly affect performance. These factors include interest rates, rates of economic growth, fiscal and monetary policies of governments, inflation, deflation, foreign exchange fluctuations, customers credit availability, fluctuations in commodities markets, customers debt levels, unemployment trends and other matters that influence customers confidence, spending and tourism. As your Companys revenues are highly dependent on customers need for retail lightings solutions; an economic slowdown or other factors that affect the economic health of the nation or those retail industries, or any other impact on the growth of such industries, may affect your business.

Competition Risk

Attractive growth opportunities exist in the lighting and fixtures industry, especially with the Governments efforts of bring various schemes for power saving and awareness programmes. This may increase the number of players operating in the industry. This risk will increase when more players wiol come for a share in the same pie. Like in most other sectors, opportunity brings with itself competition. We face different levels of competition in each sector, from domestic as well as multinational companies. Intense competition in the market for lighting and fixtures could affect our pricing, which could reduce our share of business from clients and decrease our revenues. Notwithstanding these challenges, backed by its industry leading experience in the lighting sector, the Company is con dent of meeting present and future competition. However, your Company has established strong brand goodwill with customers and a strong foothold in retail lighting. We have built deep relationship with key customer accounts and as a result are able to obtain competitive commercial terms and operational advantages. We also counter this risk with the quality of our offerings, our customer-centric approach and our ability to innovate customer specific solutions/ products and aggressive go-to-market strategy, disciplined and time bound project executions, coupled with prudent financial and human resources management.

Liability Risk

This risk refers to our liability arising from any damage to technology, equipment, Office premises, life and third parties which may adversely affect our business. The Company attempts to mitigate this risk through contractual obligations and insurance policies.

Regulatory Risk

If we are unable to obtain required approvals and licenses in a timely manner, our business and operations may be adversely affected. We require certain approvals, licenses, registrations and permissions for setting up business operations in new geographies. We may encounter delays in obtaining these requisite approvals, or may not be able to obtain such approvals at all, which may have an adverse effect on our revenues. However, the Government has come up with various scheme in the lighting sector and as all industry predictions suggest that this will be the trend in the future as well and given our own experience in obtaining such permissions, we do not expect this risk to affect us materially in the coming years.

Labour risk

The timely availability of skilled and technical personnel is one of the key industry challenges. The Company maintains healthy and motivating work environment through various measures. This has helped it recruit and retain skilled workforce and, in turn, complete the deliveries in time.


Your Company has undertaken employees development initiatives, which have very positive impact on the morale and team spirit of the employees. The Company has continued to give special attention to human resources and overall development. The total number of people employed as on March 31, 2019 are 126.

The company has also recruited highly qualified and skilled professionals, to help in the growth and functioning of the company. Your management feels proud to state that there were no instances of strikes, lockouts or any other action on part of the employees that affected the functioning of the Company. It is noteworthy that there is no Employee Union within the organization.


Focus Lighting And Fixtures Limited (FLFL) maintains adequate internal control systems including internal financial control systems, which provide, among other things, reasonable assurance of recording the transactions of its operations in all material aspects. This system also protects against Significant misuse or loss of Company assets. FLFL has a strong and independent internal audit function. The Internal Auditor reports directly to the Chairman of the Audit Committee. Periodic audits by the professionally qualified, technical and financial personnel of the internal audit function ensure that the Companys internal control systems are adequate and are complied with.


This Annual Report contains certain forward-looking statements, and may contain certain projections. These forward-looking statements generally can be identified by words or phrases such as “aim”, “anticipate”, “believe”, “expect”, “estimate”, “intend”, “objective”, “plan”, “project”, “will”, “will continue”, “will pursue”, “seek to” or other words or phrases of similar import. Similarly, statements that describe strategies, objectives, plans or goals are also forward-looking statements. or materially from those expressed or implied. Important developments that could affect the Companys operations include Significant changes in political and economic environment in India, volatility in the prices of major raw materials and its availability, tax laws, exchange rate fluctuations, interest and other costs. All forward-looking statements and projections are subject to risks, uncertainties and assumptions. Actual results might differ substantiall By their nature, certain market risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a result, actual gains or losses could materially differ from those that have been estimated. Forward looking statements and projections reflect current views as of the date hereof and are not a guarantee of future performance or returns to investors. These statements and projections are based on certain beliefs and assumptions, which in turn are based on currently available information.

Although the Company believes the assumptions upon which these forward-looking statements and projections are based which are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking statements and projections based on these assumptions could be incorrect. The Company and their respective affiliates/ advisors does not have any obligation to update or otherwise revise any statements reflecting circumstances arising after the date hereof or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

There can be no assurance that the expectations reflected in the forward-looking statements and projections will prove to be correct. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and projections and not to regard such statements to be a guarantee or assurance of the Companys future performance or returns to investors.