We aim to achieve tech-driven growth on multiple dimensions: Nikhil Gupta

Signify India (earlier known as Philips Lighting) is one of the world leaders in the lighting industry. Signify is often known for their energy efficient lighting products, systems and services which enables its customers to enjoy a superior quality of light, make people’s lives safer and more comfortable, businesses more productive and cities more livable.

With 2020 sales of EUR 6.5 billion, approximately 39,000 employees and a presence in over 70 countries, Signify promises to unlock the extraordinary potential of light for brighter lives and a better world.

In conversation with Adgully, Nikhil Gupta, Head of Marketing, Commercial Operations and CSR, Signify India, speaks at length about Signify’s journey, how Signify is leveraging innovation to maintain a competitive edge in the market, aims and strategies for improving profitability in the coming years and more.

Could you elaborate on Signify’s journey as it evolves into a technology company while carrying forward the legacy of Philips Lighting?

Signify has always been a technology company. Since 1891 we’ve been pioneering breakthroughs in lighting and our track record in innovation is strong. We continue to transform ourselves in a transforming industry that has seen multiple waves of transformation, from incandescent to CFLs to LEDs. We’re now seeing the latest wave with the shift to LED integrated luminaires and systems, marked by stronger growth in connectivity and data services. The landscape of our industry is also transforming through acquisitions and consolidation and new entrants.

To position ourselves for success, we continue to invest heavily in R&D to stay at the forefront of technological developments. With LEDs being digital, our lights can connect to networks so that they can be controlled remotely and provide information on their performance. Sensors embedded in our luminaires can also acquire data from the environment around them. Data from our lights can link to apps, devices and people, redefining what lighting can do.

In line with the digitalisation of our products, we are also digitalizing our processes and creating connectable offers. For example, we are using the predictive power of Artificial Intelligence for products, systems and services, and digitalising our supply chain. All of this requires operations and workforce skills to evolve drastically and rapidly.

What is Signify’s go-to-market strategy, and how does the company leverage innovation to maintain a competitive edge in the market?

Signify’s strategy is centered around delivering smart, connected lighting solutions that enhance people’s lives while ensuring cost and energy efficiency. In India, our business is equally split between our consumer and professional lighting business. We have an enviable distribution network that is leveraged to make our products reach end consumers and we also work closely with our professional customers to supply lighting for multiple applications. We also have a significant presence in the home lighting market with more than 250 exclusive branded stores known as Philips Smart Light Hubs across India, that enable customers to get a first-hand experience of our decorative home lighting range.

Innovation is at the core of Signify’s competitive advantage. We continuously invest in research and development to drive advancements in lighting technology. Our focus on innovation enables us to introduce cutting-edge products and solutions that set us apart from our competitors. We leverage Internet-based solutions to stay smart and connected, that enable us to analyze data points generated by our in-built technology. This allows us to optimize lighting systems for maximum efficiency and deliver tailored solutions that meet our customers’ unique needs.

One such product is our Philips Smart WiFi lighting range with WiZ technology, which has gained significant traction in the Indian market due to its advanced features and economical pricing. It enables consumers to experience the benefits of smart lighting without compromising on quality or functionality.

What factors do you believe are driving the increased adoption of innovative and advanced technology-based products and services in the lighting industry?

With the advent of Internet of Things (IoT) technology, lighting solutions have become more intelligent, efficient, and convenient. Some of the factors driving the increased adoption of such products include the increasing demand and awareness about energy efficient solutions, a heightened need for convenience and well-being and an appetite for data analytics and insights about energy usage.

The country’s rapid urbanization and infrastructure development have created a growing demand for LED lighting solutions. The Indian government’s focus on promoting energy-efficient lighting solutions through initiatives such as the Unnat Jyoti by Affordable LEDs for All (UJALA) scheme drove mass scale adoption of LEDs in the country. In the next phase of this growth, the government is eyeing digital technologies that can further enhance energy efficiency across road lighting, public buildings and infrastructure. Buildings consume a huge amount of energy, a substantial part of which is towards lighting. We have noticed that both private and public buildings are now increasingly adopting smart building technologies that enable energy savings through usage of sensors and connected devices. These technologies also provide a large amount of data insights and analytics, that can enable further energy optimisation and efficiency.

In homes, connected lighting offers both convenience and enhanced well-being. As we now spend more time at home, it becomes important to choose lights that are optimal for both work and relaxation. Connected lights can mimic natural lighting to support our body’s circadian rhythm. They are colour tunable and can be adjusted to cool white tones to boost productivity during daytime and warm tones to induce rest and sleep in the evening hours. They can also be controlled remotely from anywhere in the world. This need for convenience, increasing disposable incomes and willingness to allocate more budgets towards interior design have created opportunities for connected home lighting solutions.

In the context of Signify’s growth as a technology-focused company, how does the company attract and retain the right talent to drive its innovations and strategies forward?

Signify’s growth as a technology-focused company is driven by its ability to attract and retain top talent. We recognize that our success depends on the expertise and dedication of our employees. To attract the right talent, we have implemented several strategies. Firstly, we have established a strong employer brand that highlights Signify’s commitment to innovation, sustainability, diversity and equity and creating a brighter and a better world. This is helping us attract individuals who are passionate about making a positive impact in the world.

Secondly, we actively engage with educational institutions and industry forums to identify emerging talent and provide them with opportunities to grow and develop their skills. We offer internships, apprenticeships, and training programs that enable young professionals to gain hands-on experience in cutting-edge lighting technologies.

To retain talent, we foster a culture of continuous learning and development, providing our employees with access to training programs, mentorship opportunities, and career advancement pathways. We encourage a collaborative work environment that values diversity and inclusion, and by creating a supportive and inclusive workplace, we ensure that our employees feel valued and motivated to contribute their best.

What can we expect in Signify’s next phase of growth, and what are the company's aims and strategies for improving profitability in the coming years? 

Signify’s next phase of growth is focused on strengthening its leadership in connected digital lighting and expanding into systems and services. We aim to achieve technology-driven growth on multiple dimensions, with sustainability remaining at the heart of everything we do. We will also seek to address some of the world's pressing challenges such as climate action, food availability, safety and security and health and well-being with our lighting solutions.

We are confident that we will improve profitability because we see a lot of opportunities for improvement in the near future. We are already seeing cost reductions in logistics and components, driven by increased volumes and cooling down of commodity prices.

While the current recessionary environment will have some impact on our top line growth in the short term, we are confident that the steps we are taking will address this challenge and enable us to further accelerate the pace of growth in the future. We will continue investing in R&D, our people and systems to increase our innovation pipeline in the future and maintain our market leadership.