AJAY SHARMA
- May 5, 2020
- 8 min read

LED Light Manufacturing | Small Business Plan

Updated: Apr 18

Are you looking for LED light Manufacturing Business? Here you get a detailed business plan for LED manufacturing

LED stands for light emitting diode, it is a semiconductor, when current pass through this semiconductor it emits the light, LED gaining huge popularity day by day, LED lights are available in different colors, and range varies from 2700k to 6500k.

The LED bulb is having most Lumen efficiency of 110 lumens per watt, therefore, LED bulb consumes low electricity and give bright light as an output compare to CFL, traditional bulb, and tube lights

LED bulbs have a great life which is around 50000 to 80000 burning hours

LED products have great demand in domestic as well as international market, anyone can start LED bulb manufacturing business by an individual or in a group, and LED light Manufacturing is a highly profitable business with low capital investment.

1Potential of LED light Manufacturing Business

The plus point to using LED bulb; LED bulb are consumed low electricity about 0.6 watt and produce bright light as output; maintenance cost of the LED bulb is around 1/10th of that traditional bulb

Low consumption and high output leads to electricity savings; LED bulb save up to 50% of electric energy as compared to other light sources

The durability of the LED bulb is also more as compared to a normal bulb; also the price of the LED bulb is low as compared to CFL and tube lights

Therefore people are moving toward the use of LED bulbs

LED bulb with solar power input is one of the best combinations to minimize the electric power consumption, this is efficient and green energy lightning source available nowadays

LED bulb marker will grow 25% annually to reach 25 billion in 2022; hence LED Bulb Manufacturing has a huge business opportunity.

Registrations & Licenses for LED Manufacturing Business

LED light manufacturing business required some license and registration from government authorities, documentation depend in a pattern of LED light bulb you are processing or manufacturing

#1) Registration of Firm: You may start the small to medium business either a Proprietorship or Partnership Firm.

If you are starting this business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

#2) Bureau of Energy Efficiency Certification: LED bulb manufacturing plant the energy generation industries so you need to apply for Bureau of Energy Efficiency Certification

#3) GST Registration: apply for GST number which is compulsory for every business owner after the GST rule is applied.

#4) Trade License: Obtain tread licenses from local authorities

#5) Pollution Certificate: LED bulb manufacturing industry deal with some hazardous element that the cause pollution, therefore, it is mandatory to get NOC from Pollution Control Board

#6) MSME/SSI Registration: Register for Udyog aadhar and MSME registration that will help you to get the facility and benefits from the government

#7) Trade Mark: Secure your business brand with tread mark.

#8) IEC code: for export of the LED light bulb you need to apply for IEC code.

#3 Area Required For LED Business (Location)

Location plays an important role in every manufacturing business

It is advisable to start LED Bulb Manufacturing Business in the industrial area because LED light manufacturing unit demand specific space for the manufacturing process

While selecting the location you make sure that they are must be accessible by transportation also the raw material supplier should be made to the location

The area also includes a storage room, packaging unit, and office operation; you can start LED light Manufacturing unit with 500 sq ft area

It is advisable to divide the area location into three compartments one is for processing unit (280 sq ft), second compartment as a storage room (93 sq ft) where you can store the raw material as well as the LED bulb components

The last compartment is for assembly and testing (185 sq ft) of the LED light bulb

Complete all the paperwork related to the location; also ensure that the location of your LED light manufacturing unit fulfills the rules and regulations that mention by government requirement for energy producing industries

#4 Raw Material Required for LED Business

Raw material required 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

#5 Machinery Required for LED Light Manufacturing

The LED light manufacturing process is complex, before starting unit you need to get basic knowledge and skills that required operating the production unit

It is advisable to have a detailed business plane which will help you in get information about the machinery and there working

There are certain machinery are available for the LED light manufacturing you have to select the machinery according to specific types of LED you want to produce in the production unit

List of machine required for LED light manufacturing

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

Apart from the heavy working machinery, you need some minor equipment for LED manufacturing

Continuity tester
Digital multi-meter
LCR meter
Lux meter
Oscilloscope
Packaging machine
Sealing machine
Small drilling machine
Soldering machine

As per the particular kind of LED, you should need source the assembling innovative technology. For the most part, a portion of the Govt. associations gives the assembling innovative technology to the specific measure of expenses. Be that as it may, it is fitting to get the innovative technology from the reliable sources.

Related Business Ideas:

#6 LED Light Manufacturing Process

1 Making semiconductor wafer

1. Initially semiconductor wafer is made, the composite material like GaAs, GaP, etc are determined by the color of LED being manufacture.

The crystalline semiconductor is developed in high temperature and high-pressure chamber.

Gallium, arsenic, and/or phosphor are purified and mixed together in high temperature and high-pressure chamber.

2. Liquid encapsulation: The components are liquefied and press together and then they are forced into solution. To keep them from escaping in the chamber they are covered with the layer of boron oxide which seals them this process is called as liquid encapsulation.

After the element is mixed well and form a uniform solution. A rod is dipped into the solution and pulled out from chamber slowly. While pulling solution cools and forms a long crystalline ingot of GaAs, GaP, or GaAsP.

3. Wafer polishing: the boule is sliced into thin (approximately 10 mils) wafers of semiconductor.

Wafers are polished until its surface became smooth so wafers can rapidly accept more layers of a semiconductor on the surface.

4. Cleaning of wafer: manufactured wafers are cleaned through rigorous chemical and ultrasonic process using various solvents; this process removes the organic matters that may settle on the polished wafer surface.

This cleaning process will give the better LED.

2 Adding epitaxial layers

5. The layers of semiconducting crystal are manufacture on the surface of a polished clean wafer this process is called Liquid Phase Epitaxy (LPE).

In this technique, semiconducting layers that have same crystalline orientation are deposited on the wafer.The layered wafer rest on the graphite slide which pushed channel under of molten liquid

Different dopants are added in the melt to creating a layer of material with various electronic densities, the deposition of layers became continues wafer’s crystal structure.

Liquid Phase Epitaxy (LPE) creates a uniform layer of material which is several microns thick.

6. After adding several layers it is mandatory to add additional dopants to alter the characteristics of diodes for efficiency and color.

Once additional doping is done wafer is again placed in a high-pressure furnace were it in a gaseous atmosphere containing the dopants like nitrogen or zinc ammonium; Nitrogen is added to the top layer of the diode to make the yellow or green light

Adding metal contacts

7. Introduce metal contact: Metal contact is introduced on the wafer.

The contact pattern depends on the design stage and diode combination (whether it is singular or combines).

Contact pattern is reproduced in photoresist resist which is a light-sensitive compound, the light-sensitive compound is distributing over the surface of the wafer. The photoresist resist is hardened by a brief at low temperature around 100oC.

The pattern is duplicated on photoresist placing it over the layered wafer and exposing the resist with ultraviolet light.

The exposed area of photoresist resist is washed with the developer and unexposed area is covered with the semiconducting layers.

8. Contact metals is evaporated in another high-temperature vacuum-sealed chamber and filled in the exposed area

The contact metal will stick to the exposed area of semiconductor wafer and photoresist can then be washed away with acetone.In result only metal contacts are remaining on the semiconductor wafer.

An additional layer of metal will add on the back side of wafers according to final mounting scheme for the LED.

Deposited metal undergoes an annealing process where the wafer is heated for several hours in the furnace with an inert atmosphere of hydrogen or nitrogen flowing through it; during this process, the bond between the metal and the semiconductor become stronger.

9. A single 2-inch wafer created in this way will have a similar pattern repeated up to 6000 times on it; this gives an indication of the extent of the completed diodes.

The diodes are cut by cleaving or sawing method, each segment cut from the wafer is known as the die which is a difficult process having lots of error.

Splitting or cutting results in far less than 6000 total useable LEDs and is one of the greatest difficulties in constraining generation expenses of semiconductor gadgets.

3 Mounting and packaging

10. Individual dies are mounted on the approximate package; it mounted on two metal leads of two inches long.

The back of the wafer is coated with metal lead to form an electrical contact with lead it rests on. A thin gold wire is soldered to other lead and ware bonded to pattern contact on the surface of dies.

In wire bonding, the finish of the wire is pushed down on the contact metal with a fine needle. The gold is sufficiently delicate to twist and adhere to a like metal surface.

11. Finally, the entire assembly is sealed with plastic, the wire and dies are hung inside the mold that shaped according to an optical requirement of package.

Mold is filled with epoxy or liquid plastic and package is completed.

#7 Where to sell LED Products

Local market (retail market)

You can target the local electronics shops to sell your LED light bulb.

Wholesale market

You can sell your LED bulb at wholesale market of your city.

Online market

B2B Websites:

Alibaba
Indiamart
Tradeindia
Exportersindia

etc. where you can sell your product on bulk orders.

B2C Websites:

Amazon
Flipkart
Snapdeal
Bigbasket

etc. where you can sell your product directly to the customer.

Export market

You can export your LED bulb to other countries; you just need IEC code which is required for the exportation and off course a good marketing network.

Brand and Uniqueness

You can promote your product with both traditional and online promoting strategies

Distribution network and Retailer is a best promotional option for this type of business, also consider the b2b and industrial selling option, you can explore the export opportunity for LED bulb

Join the local business association related to the energy production industry, tread fares are a great place to promote your LED light manufacturing brand

Create your own website; you can post a blog on your website that helps you to connect with customers

You can sell your product by using social media.

Call More Detail to setup LED or EMS Factory Setup-7905266294