Feasibility Study - LED Lighting Assembly Facility in Saudi Arabia
— Written 2024 —
In-depth feasibility study for establishing an LED lighting assembly facility in Saudi Arabia, including market research, technical design, and financial projections. This study focused on downlights, 60x60 panels, LED bulbs, and GU10 for indoor lighting applications, with the goal of meeting local demand, reducing import delays, and offering competitive pricing
Objective & Story
In late 2023, I partnered with a team to explore a new venture in Saudi Arabia: an LED lighting assembly facility. Our goal was to meet the rising demand for quick, locally produced lighting solutions, in line with the Saudi Vision 2030 and the country's booming real estate sector. With Saudi Arabia preparing to host the 2034 World Cup, we identified a predictable market surge in commercial projects, making it an opportune time to enter the market. Over the next 6 months, I led the market feasibility study and contributed significantly to both the technical and financial evaluations of the project.
Key Learnings
Market Adaptability: Shifting focus from wholesalers to retailers mid-study allowed us to target smaller, more flexible customer segments with higher profit margins and quicker turnover. This taught me the importance of staying agile and responsive to market conditions.
Technical Expertise: I gained significant insights into setting up a localized assembly facility. Understanding the logistics, procurement, and scalability challenges of assembling products like GU10 bulbs and LED panels in Saudi Arabia sharpened my problem-solving skills in technical operations.
Financial Planning: Developing advanced financial models helped me understand how to manage costs (capital investment of 1M SAR) and maximize profit margins (25-30%) while navigating tight budgets and ensuring project sustainability. I learned to adapt financial forecasts based on real-world market feedback and technical constraints.
Strategic Alignment with Saudi Vision 2030: This project was pivotal in aligning our business model with Saudi Vision 2030 by contributing to local manufacturing and employment growth, and understanding how national policy impacts market demand.
Collaboration Across Functions: I honed my ability to work cross-functionally, balancing the market analysis, technical feasibility, and financial strategy effectively while collaborating with my partners to build a cohesive business plan.
Vendor Communication: managing communication with Chinese vendors became a crucial aspect of ensuring the technical feasibility of the project. This involved sourcing manufacturing lines for the LED lighting assembly, negotiating terms, and ensuring cost-effectiveness while maintaining high-quality standards.
P.S. Here are sample images from the project work files.
