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06.11.2013

VADIM DADYKA: ATOMSVET HAS OPENED A WINDOW INTO EUROPE

VADIM DADYKA - Director General of AtomSvet, LLC and Member of JSC Management Company “FNK GROUP Board of Directors.

During his professional career Vadim Dadyka successfully completed a number of major projects in the field of metallurgy and heavy engineering. He occupied leading positions at the enterprises, JSC Metalloinvest, and OJSC Uralmashzavod and has been recently appointed Director General of Management Company FNK-Management, LLC. Vadim Dadyka is one of the founders of the AtomSvet project and is responsible for its integrated development in the markets of Russia, CIS and foreign countries.

Nowadays the demand for LED lighting is actively growing. In Russia the greatest interest in LED lighting is seen in the industrial sector. According to experts, we are starting to move well ahead of other countries in the world as far as the share of industrial LED lighting is concerned. Market members, however, continue to debate, make projections and talk about the market outlooks. Vadim Dadyka, Director General of AtomSvet, shared his opinion about the present and near future of the LED lighting market with the magazine staff.

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— Let me know your opinion, Mr. Dadyka. Has a demand for industrial lighting changed during this year? Ifso, howandwhy?

— In general, we dare to say that fundamental changes in the LED technology market of have not happened. The demand for LED lighting is growing, by the way, not only in Russia. I think this is due to the promotion of LED products. For the customer LEDs are gradually becoming common products. We notice the growing demand for industrial lighting: including enterprises with difficult operating conditions, as well as facilities where explosion-proof lighting units are required. Enterprises do not face the question of whether to buy or not to buy LED lighting fixtures any more; it is just the issue of the price. The demand for quality domestic products has increased, despite higher prices than the Chinese products. Customers understand that LED lighting is a kind of investment that is to be justified. The market began to present tougher requirements both to manufacturers and suppliers, as well as to the manufactured products.

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The steady improvement of the qualitative characteristics of LEDs is also worth emphasizing, namely: growth of luminous efficiency, emergence of new solutions and original projects (one can now speak about some flexibility and exchangeability, for example, of old boards for new). The quality of products from many manufacturers has also significantly improved.

Last year a considerable increase in the demand for main-line LED lighting was expected. What can you say about it?

Yes, therereallywere such expectations. This is mainly due to the fact that in 2012 many manufacturers released a number of new products for street lighting. In the framework of the implementation of the state programmes concerning upgrading of the outdoor lighting a number of projects involving the use of LED lighting were completed. I think it is too early to speak of global modernization in this sector, although satisfactory progress has been already made. The main thing is financial support by the government which is responsible for all streets and roads. I think we could expect a stable growth of projects on the street LED lighting as early as 2014.

Mr. Dadyka, atthebeginningofourinterviewyoumentionedthatthe demandforChineseproductshas decreased. Does AtomSvet, as a national manufacturer, experience any competition from the Chinese products?

Certainly, we do. Unfortunately, one can't avoid it, since the Russian LED lighting market is just beginning to gain momentum. It is obvious that the Chinese products cannot compete with the quality domestic goods.

The competition, which we mostly encounter, is not even from the Chinese manufacturers but from the companies that position themselves as Russian but, in fact, are the suppliers of the Chinese products or use LEDs and other components made in China in their lighting fixtures. Yes, this lighting is much cheaper. But before buying this type of lighting one should think twice – what will happen afterwards? Payback is absolutely out of the question. In the future one will have to invest a lot more money in maintenance, if not in replacement, of the Chinese equipment.

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Today many people know about the poor quality of the Chinese lighting fixtures from their own experience – it is great that the number of wise customers is growing.

What could you say are the main problems of the Russian lighting market? Are there solutions to these problems?

The answer stems from what I said earlier. The main problem is the presence in our market of a large amount of low-quality “cottage industry” production. This significantly undermines the reputation of all LED lighting manufacturers. I think there can be only one solution in this situation – introduction and tightening of various requirements for the certificates which confirm the quality of the products manufactured for the Russian lighting market. By the way, speaking of AtomSvet, the year 2013 was truly momentous for us. We were recognized as the only Russian holders of GS and CE certificates for the industrial LED fixtures, which testify to the high quality, reliability, and safety of our products. In October this year AtomSvet completed certification of their products in compliance with the safety requirements of the European directives (CE). The certificate confirms that all our lighting fitments meet the security requirements stipulated by the Public Health Code and Environment Protection Act in Europe, and allows free circulation of our products in the EU (more than 27 countries). Thus, AtomSvet was the first of the national LED lighting manufacturers to open a window into Europe. According to analysts, no more than 10% of all the Russian lighting companies could confirm the compliance of their manufactured products with the CE requirements. Most of them focus on the domestic market, preferring to certify their production only in compliance with the standard GOST R and technical regulations.

Notsolongago, AtomSvetreceivedtheGAZPROMSERTcertificateandbecamethesoleholderofthequalitycertificateaccordingtothestandardGSonindustrialLED lighting fixtures. GS marking certifies that the marked products are safe, of high quality and easy to use. This quality mark is recognized among consumers, producers and distributors in the EU countries and far abroad. To guarantee the quality of LED lighting produced by the AtomSvet, a production quality audit was performed, with examination of key assembly stages, etc.

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During the validity of the certificate (over the period of 5 years) a number of annual compliance audits of the production are to be performed in order to guarantee consistency of the company's product quality. All audits at AtomSvet were performed by the German certifying authority TUV SUD GmbH – by the way, one of the most demanding as far as the issues of product certification are concerned.

Furthermore, in addition to the certification of products, the company conducted an audit of the quality management system in accordance with the international standard ISO 9001:2008. This standard contains the universal requirements for all spheres of production, but when implemented by experts it is possible to optimize the system for a particular company. The distinctive feature of this type of certification is that it covers assessment of the production process and company management rather than product quality. This means the improved efficiency of all business procedures in the company and contributes to their integration in order to achieve the strategic targets challenging the company. AtomSvet belongs to those few manufacturers of LED lighting equipment that have implemented the ISO 9001 quality management system.

It seems to me, what really matters in our highly competitive market is assessment of products’ compliance with the international standards. Obtaining international certificates ensures competitive advantages and contributes to the stable position of the company in the market.

Mr.Dadyka, AtomSvet deals with manufacture of lighting for industrial purposes. What new has happened this year among the developments of the company?

Yes, in 2013 AtomSvet announced the introduction of a new generation of the industrial LED lighting. The main difference from our previous lighting is availability of a remote or removable power supply unit. It contributes to easy maintenance. The improved heat removal system can significantly extend the already long service life of LED lighting. The modular design of lighting fixtures allows them to be assembled with due regard to the customer’s needs, which makes them the most practical and flexible. The principle of maximum reduction of optical losses was initially selected by AtomSvet as the most promising. Thus, it was implemented in the entire product line including new developments. We use optical systems of the combined type, involving lens and safety glass, which can significantly reduce the optical losses and achieve high optical efficiency.

AtomSvet is always in search of the most optimal solutions – this is the main principle of the company. The AtomSvet manufacturing plant of LED lighting fixtures uses materials and components that are subjected to control both when delivered to the warehouse and while entering production.

One of the ideas which has been pushed, supported by the government, is implementation of the projects on modernization of lighting by means of energy service contracts. Does AtomSvet implement such projects? Are they in great demand?

Energy service is, of course, a good idea and deserves proper attention. Though in Russia it is not so popular as in the West. In addition, there are alternatives to energy service contracts, namely, leasing and credit. What instrument for attracting financing to choose depends on the particular project. If electricity tariffs are high and use of LED fixtures is to be increased, it is worth carrying out modernization at one’s own expense by means of leasing or loan. If the customer does not want to divert his own funds, it is better to use an energy service contract.

Energy service contracts have a number of advantages:

- energy audit, the savings calculation, design, supply of LED lighting, installation (i.e. all the work on lighting modernization) are carried out at the expense of the energy service company;

- the customer pays for the modernization from his savings as a percentage of the achieved economy;

- the customer is guaranteed energy costs reduction, since the energy service company receives payment merely from energy savings.

In Russia there are already several companies that offer similar energy-saving solutions. AtomSvet is one of them. Such contracts are of great importance for industrial enterprises and they can apply not only to the implementation of major projects.

In general, the programme of energy saving in the systems of indoor and outdoor lighting provides considerable savings, reduces power consumption and releases u capacity. Will you agree, that the proceeds can be spent, for example, on business development?

How do you sell your products? Do you practise direct sales or develop your own dealer network? What is the way you promote your production?

Since AtomSvet operates in the B2B sector, we pay a great deal of attention to the development of a dealer network. Nevertheless, our sales department is working on the development of direct relations with our clients for really large projects. For the product promotion we use PR and advertising campaigns. We prepare a lot of analytical materials for different industrial media, deal with online promotion, and participate in specialized exhibitions both in Moscow and the regions. To be well informed about the latest developments and market trends, AtomSvet specialists regularly visit Russian and foreign exhibitions, take part in seminars and conferences on lighting equipment.

What do you think is going to happen to the LED lighting equipment market in the years to come?

I think that LED lighting is going to get an increasing share in the lighting equipment market. Sudden jumps in certain segments are not expected, but we can see a steady increase in demand. AtomSvet plans to boost production and sales volumes, expand its product line, but the main target is to enter the European LED lighting market.

Thank you for the interview!

Source: The Lumen Magazine
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