Originally a battery maker, Indian manufacturer Eveready is transiting into the LED lighting market recently with the aim of acquiring at least 10% market shares, according to a Business Standard report.

According to the company Directing Manager Amritanshu Khaitan, the lighting industry holds great opportunities. The Indian government projects by 2020 the LED market will be worth INR 200 billion (US $3.01 billion), he added.

Eveready is vying for 5% to 10% of the LED market share.

The company’s strategy in the LED industry is adopting a similar outsourcing strategy as its flashlight manufacturing model. This is completely different from the battery industry’s in-house manufacturing.

Battery is still the most profitable business for the company. Batteries and flashlights contributed for nearly 100% of the company’s profits till last year. Lighting was at breakeven last year, but has become profitable now. Company margins improved because of the company’s entry in the LED industry.

The company has received an approval in principle for the Qualified Institutional Placement (QIP) of INR 1.2 billion, but will still require additional funds to pay off debt and for part of its lighting business investments. Its debt is around INR 2 billion, and the company aims to become debt free by next year.

The next step after LEDs is strengthening electrical distribution networks, where the company will look into other products in the segment. In the long run the company aims to develop a portfolio similar to those of Philips and Havells.