Sujana Energy Limited (SE), part of $1.3 billion Sujana Group, declared that it has inked a strategic partnership deal with Japanese Nichia Corporation in order to formulate technology for energy-efficient lighting products in the country.

Under the deal, Sujana will make investment of around $5 million to make LED (light-emitting diode) lighting products for homes, offices and streets at its plant located in Madhapur.

Nichia Corp will provide LEDs whereas Sujana will design the products. Sujana will shortly launch maximum energy-saving street lights, indoor lighting products such as LED bulbs and solar LED lantern in the market.

The sales will commenced in September 2010 and the company is eyeing sales worth Rs 20 to 25 crore in 2010-11.

Mr. C. Hari Kiran, managing director, Sujana Energy said, "We are targeting top-line growth of Rs. 500 crore in the first three years of operations. The bottom-line growth is expected to be 20 to 30 percent. Sujana is focusing on LED bulbs, which will replace incandescent bulb, saving 50 to 60 percent of electricity. "The LED products, though two times costlier than the normal lighting, will be strong and reliable. They will have 15 years of life if used for five to six hours every day."

Mr. Hari Kiran added that the Indian lighting market is fragmented but light replacement market is estimated at $1 billion.

India, which is confronting acute shortage of electricity on the one hand and "dark region" on the other, LED lighting is the cost as well as energy efficient means of lighting.

Under the Solar Power Mission itself the government plans to convert 60 Indian cities to total solar powered cities, making for an opportunity of almost Rs. 1,800 million for LED lighting equipment alone.

Makoto Takenaka, managing director of Nichia Chemical Pte Ltd stated, "Although competition is extremely high in the Indian market, I believe, this collaboration between Sujana and Nichia will be a breakthrough for expanding LED lighting and display." (With Inputs from Agencies)