How to Start LED Light manufacturing business
Introduction
Are you thinking about starting the LED light Manufacturing Business? Here you will get a comprehensive business plan for LED manufacturing. LED refers to a light-emitting diode, it is a semiconductor material, when the current pass through this type of semiconductor it emits the light, LED is attaining huge popularity currently, LED lights are available in various colors, and the voltage range varies from 2700k – 6500k.
The LED bulb is having high Lumen efficiency of 110 lumens per watt, thus, the LED bulb consumes low power and gives bright light as an output compares to CFL or traditional bulb, and even tube lights. LED bulbs have a great shell life which is about 50000 – 80000 burning hours. Now, let’s get into the LED Light manufacturing business in India.
A step-by-step guide to LED Light manufacturing business in India
LED products are having a high requirement in the domestic as well as international market, anyone can begin LED bulb manufacturing business by an individual or in a group, and LED light Manufacturing is a greatly profitable business that too with less financial capital.
Market potential of LED Light manufacturing business
The advantages of using an LED bulb; LED bulb consumes low power of about 0.6 watts and produce bright light while using; the maintenance cost of the LED bulb is about 1/10th of that traditional bulb. Low consumption and high output will thereby save electricity; the LED bulb will save up to 50% of electric energy when compared to other light sources. The durability of the LED bulb is even more when compared to a normal bulb; also the cost of the LED bulb is low as compared to CFL and tube lights
Therefore people are shifting toward the use of LED bulbs. LED bulb with solar power input is one of the best opportunity to minimize power consumption, this is indeed an efficient and green energy lightning source available currently. LED bulb marker will grow 25% every year and could reach 25 billion in 2022; hence LED Bulb manufacturing venture is having great business potential.
Registrations, licenses, and permissions required for starting LED Light manufacturing business in India
LED light manufacturing business needs few license and registration from government authorities, the process, and paperwork is based on the pattern of LED light bulb you are planning to manufacture.
Registration of Firm: You may begin the small to medium business either in the form of Proprietorship or Partnership Firm.
If you are starting the venture as a Single Person Company, then you should register your firm as a proprietorship.
For a Partnership firm, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).
Bureau of Energy Efficiency Certification: LED bulb manufacturing plants are categorized as the energy generation industries so you should get the certification from the Bureau of Energy Efficiency.
GST Registration: It is essential to get the GST number for your firm which is compulsory for every business owner after the GST rule has started.
Trade License: It is also important to have Trade licenses from local authorities.
Pollution Certificate: LED bulb manufacturing industry must use some hazardous element that will cause pollution, therefore, it is obligatory to get NOC from the PCB-Pollution Control Board.
MSME/SSI Registration: Register for Udyog aadhar and MSME registration that aid to avail the schemes and benefits from the government.
Trade Mark: It is good to have the Trade Mark for your business brand.
IEC code: When you plan to export the LED light bulb, it is important to get the IEC code.
Area or location required to start LED Light manufacturing business
Location is a very essential aspect in any manufacturing business and LED Manufacturing is not an exception.
- It is suggested to start LED Bulb Manufacturing Business in the industrial region because the LED light manufacturing unit requires specific space for the manufacturing process.
- While choosing the location ensure that they are easily accessible by transportation also the raw material supplier can deliver it to that place.
- The area also should have a packaging unit, storage room, and space for an office purpose; you can begin an LED light Manufacturing unit if you get a 500 sq. ft. area
- It is recommended to divide the area location into three segments; one goes for the processing unit (280 sq. ft.), second is required as a storage room (93 sq. ft.) where you can stock the raw material as well as the LED bulb materials.
- The last segment is for assembly and testing of the LED light bulb which could be around 185 sq. ft. Complete all the documentation related to the location; also take care that the region of your LED light manufacturing unit fulfills the laws and regulations which are posed by the government for energy-producing industries
Raw materials required to start LED Light manufacturing business
The raw materials needed for LED light manufacturing (for the 10W LED-based system)
- Connecting wire
- Heat-sink devices
- LED chips
- Metallic cap holder
- Miscellaneous parts
- Packaging material
- Plastic body
- Rectifier circuit with filter
- Reflector plastic glass
- Soldering flux
Machinery required for starting LED Light Manufacturing Business
- The LED light manufacturing process is a compound process and thus before starting the unit you must gain the basic knowledge and skills that are needed while operating the manufacturing unit.
- It is recommended to have a detailed business plan which will allow you to get the information about the machinery and their working instructions.
- There is particular machinery needed for the LED light manufacturing so you should select the machinery as per the type of LED you want to produce in the production unit.
List of machinery needed for LED Light manufacturing business
- Candlelight assembly machine for LED
- High speed LED mounting machine
- LED chip SMD mounting machine
- LED lights assembly machine
- LED PCB assembly machine
- LED tube light assembly machine
Besides these heavy working machinery, you need some minor apparatus for LED manufacturing
- Continuity tester
- Digital multi-meter
- LCR meter
- Lux meter
- Oscilloscope
- Packaging machine
- Sealing machine
- Small drilling machine
- Soldering machine
Depending on the LED type, you should source the assembling pioneering technology. For the most part, a segment of the Government associations will help in assembling innovative technology up to a specific measure of expenses.
LED Light manufacturing process
Making semiconductor wafer
1. In the first step, a semiconductor wafer is prepared, the composite materials like GaAs, GaP, etc are selected on the basis of the color of the LED that is being manufactured.
The crystalline semiconductor is made at high temperatures and using a high-pressure chamber.
Gallium, arsenic, and/or phosphor are purified and mixed using conditions that need high temperature and high-pressure.
2. Liquid encapsulation: The components are liquefied and pressed together and then they are forced into solution. To prevent their escape from the chamber they are covered using a layer of boron oxide which blocks it and this method is called liquid encapsulation.
After the element is mixed properly and form a uniform solution. A rod is dipped into the solution and taken out from the chamber gently. While pulling solution is cooled and it forms a long crystalline ingot of GaP, GaAs, or GaAsP.
3. Wafer polishing: The boule is sliced into thin (around 10 mils) wafers of the semiconductor.
Wafers are polished properly so that their surface becomes smooth so that the wafers can rapidly accept more layers of a semiconductor on the surface.
4. Cleaning of wafer: Manufactured wafers are cleaned using rigorous chemicals and an ultrasonic process that will have various solvents; this process cleans the organic matters that may be present on the polished wafer surface.
This cleaning process will provide a better LED.
Adding epitaxial layers
5. The layers of semiconducting crystals are developed on the surface of a polished clean wafer in a process popular as LPE-Liquid Phase Epitaxy.
In this method, semiconducting layers that have the same crystalline orientation are added to the wafer. The layered wafer is placed on the graphite slide and then pushed into the channel of molten liquid.
Different dopants are included in the melt to prepare a layer of material with various electronic densities, and after the deposition of layers, it will provide a continuous wafer’s crystal structure.
Liquid Phase Epitaxy (LPE) will manufacture a uniform layer of material which is several microns hard and thick.
6. After adding many layers it is important to add additional dopants to change the characteristics of diodes for efficiency and color.
Once additional doping is done wafer is again kept in a high-pressure furnace that has a gaseous atmosphere with dopants such as nitrogen or zinc ammonium; Nitrogen is added at the top layer of the diode so that we can get the yellow or green light.
7. Introduce metal contact: Metal contact is added to the wafer.
The contact pattern is based on the design stage and diode combination (whether it is singular or combines).
Contact pattern is reproduced in photoresist which is a light-sensitive material, the light-sensitive compound is distributed over the surface of the wafer. The photoresist resist is made strong using a low temperature around 100oC.
The pattern is duplicated on photoresist keeping it over the layered wafer and exposing the resist by ultraviolet light.
The exposed area of photoresist resist is cleaned with the developer and the unexposed area is enclosed with the semiconducting layers.
8. Contact metals are dispersed in another high-temperature vacuum-sealed chamber and filled in the exposed area.
The contact metal will adhere to the exposed area of the semiconductor wafer and the photoresist can then be washed using acetone. This will result in the presence of metal contacts on the semiconductor wafer.
An additional layer of metal will be added on the backside of the wafers according to the final mounting scheme for the LED.
The deposited metal undergoes an annealing step where the wafer is heated for many hours in the furnace with having hydrogen or nitrogen flowing through it; during this step, the bond between the metal and the semiconductor is hardened.
9. A single 2-inch wafer produced in this way will have a similar pattern repeated up to 6000 times on it; this gives an idea of the extent of the completed diodes.
The diodes are cut by cleaving or sawing method, each segment cut from the wafer is called the die which is a difficult process and has many errors.
Mounting and packaging
10. Individual dies are mounted on the estimated package; it is mounted on two metal leads with two inches in length.
The back of the wafer is coated with metal lead to an electrical contact with a lead that will rests on.
In wire bonding, the finish of the wire is pushed down on the contact metal using a fine needle. The gold is appropriately delicate to twist and attach to a like metal surface.
11. Finally, the entire assembly is sealed using plastic, the wire and dies are suspended inside the mold that is shaped according to an optical need of the package.
12. Mold is filled with liquid plastic or epoxy and then it is packed.
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Where to sell LEDs
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- Local market (retail market)
- You can focus on the local electronics stores to sell your LED light bulb.
- Wholesale market
- You can sell your LED bulb at the wholesale market of your city.
How to promote your product in online market
B2B Websites: Register your business on B2B websites such as Alibaba, Exportersindia, Indiamart
Tradeindia, etc. where you can sell your product and even get bulk orders.
B2C Websites: Even you can register your business on B2C websites for example Amazon
Flipkart, Snapdeal, Bigbasket, etc. where you can sell your product simply to the customer.
Export market
You can export your LED bulb to other regions; you should acquire the IEC code which is needed for the exportation and off course good marketing connectivity.
Brand and Uniqueness
- You can advertise your product with both traditional and using online promoting methodologies.
- Distribution network and Retailer is the best advertising option for this type of business, also consider the b2b and industrial selling possibility, you can plan for the export of LED bulb.
- Join the local business association associated with the energy production industry, tread fares are great areas to promote your LED light manufacturing unit.
- Plan for your own website; you may even post a blog on your website that will aid you to connect with customers.
- You can even sell your product in this century by the ultimate tool that is through social media.