eEnergy Group (AIM: EAAS) has signed an exclusive OEM partnership with Venture Lighting Europe Limited ("VLE") to provide eLight-branded LED technology.
From its Leicestershire-based manufacturing facility, VLE will provide eLight, the group’s “Light-as-a-Service" (“LaaS”) business, with this LED technology on exclusive terms.
The group’s eLight project manages the switch to cheaper, more efficient LED lighting for schools and businesses for a fixed monthly service fee to avoid any costly upfront payments.
eEnergy, which operates in the UK and Ireland, said the partnership will grant eLight its own vertically integrated supply chain and technology to meet its own specific requirements.
Chosen after a tender process which included some of Europe's leading OEM manufacturers, with a 35-year heritage, VLE forms part of Advanced Lighting Technologies, a US-based group which has 600 employees and an annual revenue of over $130m.
eEnergy believes an integrated supply chain for eLight will maximise operating efficiencies and is a significant market differentiator. In particular, it will hold dedicated stock lines for eLight, ‘significantly’ reducing the time that it takes to complete installation projects.
eEnergy said improved economics as a result of the partnership will help the group maintain or improve margins by enabling eLight to subsidise the cost of finance within its LaaS proposals, increasing the conversion rate of customers from proposal to signed contract.
Shares in eEnergy have increased by 20% since late September 2020 and opened this morning 5.08% higher to 7.75p following the news.
An integrated supply chain will also help support the future roll out of the eLight App, an app which allows a client proposal to be automatically generated directly from data capture.
eEnergy believes the app, which grants third-party electrical contractors the ability to offer eLight’s LaaS solution to the SME market, will create a whole new market opportunity.
One of the ‘key reasons’ the Group selected Venture Lighting was because of its UK manufacturing and warehousing facility which is located in Castle Donington, Leicestershire.
Using technology manufactured in the UK ‘dramatically reduces the carbon footprint of eLight's projects, as well as protecting its supply chain from any adverse effects of Brexit.’
In addition, as well as supporting the expansion of both businesses, the partnership is expected to lead to potential new jobs at Venture Lighting's facilities in Castle Donington.
Harvey Sinclair, CEO of eEnergy, who believes the partnership with Venture Lighting will help drive profitable growth for the Company, said:
“This exciting agreement ensures we can deliver schools and businesses the highest-quality LED lighting more efficiently, saving them time, money and cutting their carbon footprint.”
He added, “By buying directly from the manufacturer, we are not only speeding up installation times and reducing our costs, we are also able to offer our customers an even more compelling means of financing the upgrade to LED.”
"Our partnership will combine the resources and capabilities of both our organisations, to provide tailored lighting solutions, that deliver optimal value for their clients, through eLight's innovative EEaaS model,” commented Phil Croker, Managing Director of VLE.
"From the outset of our trading relationship, there have been clear synergies with both our values and passion, to deliver sustainable solutions for the sectors we both serve. Together we can really help these key sectors move the needle on energy and carbon reduction commitments, whilst enhancing the quality of lighting within critical applications,” he added.
Follow News & Updates from eEnergy Group here: