— S.L. Narayanan, Country Head, Akai Energy India Ltd
Akai Energy India Ltd, the energy arm of Akai, is already one of India's leading players in the batteries segment nationwide. The company is also in the process of launching other energy products like CFL, LED and lanterns. S.L. Narayanan told Sandeep Menezes that the company is looking at an investment of Rs.200 crore within next two years in India.

What are the recent trends in Indian market for batteries?
It is growing at a clip of 15 to 20 per cent per year. The size of the market is around Rs.1,800 to Rs.2,000 crore and with its growing middle class population we foresee better growth and increase in per capita consumption of batteries and energy products in India. It is also heartening to note that the bulk of the sales happen through the organized channel.

What is the market share of unorganized segment in Indian batteries market? Will the market share of organized segment (like Akai & others) expand in near future?
The unorganized segment contributes only around 12-15 per cent and we see the share of the organized sector going up even further.

With many energy products available in the market are Indian consumers aware about energy efficient products?
Yes, Indian consumers are increasingly becoming aware both about energy efficient products and the value proposition that energy efficient products offer. This is one of the reasons for Akai bringing the entire basket of energy products to Indian consumers. In the last couple of years the market has seen growth rates of around 20 per cent with regard to energy efficient products like dry batteries, Led torches, CFL bulbs and lanterns.

What is the current scenario in Indian market for LED products and CFL lamps?
It is a growing segment and put together has a combined market value of Rs.1,500-1,800 crore with a growth rate of 25-30 per cent in the last two years. We expect even better growth rates in the future.

Do you think energy efficient products are higher priced than conventional products? When will the prices come down?
We cannot say energy efficient products are always priced higher compared to conventional products. There can be some instances of higher prices but that will change with increasing consumer awareness. Greater demand will help to bring down prices over a period of time with economies of scale kicking in. One must also remember that even at higher prices energy efficient products make sense because of savings in energy consumption and lower operating costs.

CFL, LED products have higher initial capex. Will it find wide penetration in a developing nations like India?
Capex is only one aspect of it; running costs is the other more important cost. The savings in energy savings and operating costs in case of these products are so significant that the difference in capex costs does not matter much. Indian consumers, thanks also to the media, are waking up to this reality and we will see demand for these products increasing consistently.

How much market share is Akai Energy targeting in the LED, CFL category?
The focus is on achieving 7 per cent market share with regard to Akai batteries and we are in parallel working on launching LED & CFL segments of Akai energy products into the Indian market very soon. Initially we will be looking at a 5 -7% market share for LED and CFL products.

What is Akai Energy India's future business strategy? Our strategy to begin with is to ensure that our products are easily available to our consumers. We have an unparalleled network of 1,200 channel partners just in the nine states that we have launched. Akai is a respected brand in the world of energy products and a good distribution means half the job is accomplished. We will also bank on energy saving products to help us garner greater share of the energy products market. Our range of eco-friendly batteries (that are free of mercury and cadmium) will also help.

What is Akai Energy's future growth, expansion plans? How much will Akai Energy invest to implement its expansion plans?
We are looking at a share of 7 per cent of the batteries market to begin with. We are also simultaneously launching other energy products like CFL, LED and lanterns. Akai is looking at an investment of Rs.200 crore in the next two years.

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