Optogan, a Russian-based producer, and Royal Philips Electronics, a supplier of innovative lighting solutions, declared that they have entered into a joint venture agreement in order to strengthen their position in the booming LED road lighting market in Russia.
Exchange of Joint Venture agreement between Maxim Odnoblyudov, CEO of Optogan Group(Left) and Arjan de Jongste, CEO Philips Russia (right).
Philips will have 51% of ownership in the new company, while Optogan will own 49%. The joint venture’s financial details are yet to be revealed. Through this joint venture, the advanced LED road lighting solutions and international quality standards of Philips will be integrated with Optogan’s innovative solutions and LED knowledge that provide details about local market demands exiting in this field. Products designed and developed by the joint venture will be commercialized in Russian customs union with Kazakhstan and Belarus and within the Russian Federation.
This joint-venture agreement between Philips and Optogan intends developing a local LED industry, thereby benefitting the Russian government’s energy efficiency initiatives. LED street and road lighting can cut down energy utilization by up to 80%, contributing to conservation in maintenance costs and service. The bright light generates enhanced visibility that can lead to improvement in road safety, thus ensuring security.
According to the CEO Philips Russia and CIS, Arjan de Jongste, following the achievement of joint venture with Optogan, the company can establish its position in the Russian outdoor lighting market. In addition, the partnership will enable Philips to promote revolutionary lighting solutions in Russia.
Road lighting in Russia is a booming market segment and is known for its rapid growth in LED segments. It is anticipated that the share of LED will attain 50% by 2015.