* Osram says sees only modest revenue growth in H1
* Says considering split of Lamps & Components business
* Says traditional lamp sales continuing decline
* Shares down 3.6 percent, at bottom of MDAX index (Adds detail on Lamps & Components business, outlook, share price)
FRANKFURT, April 1 (Reuters) - German lighting maker Osram Licht AG said its 2014 growth target had become more challenging and it would revamp its biggest business in an attempt to keep up with a rapid shift to new technologies.
In an investor presentation published on Tuesday, Osram said it would split its Lamps & Components business, which accounts for about half of its sales, into one focused on traditional lamps and another concentrating on light-emitting diodes (LEDs).
Its shares fell 3.6 percent to 45.38 euros by 0739 GMT, making it the biggest decliner on Germany's mid-cap MDAX index .
Osram, the world's No.2 lighting maker after Philips , is already deep in a restructuring that includes thousands of job cuts as it scrambles to adjust to the shift from traditional light bulbs to newer technologies like LEDs.
Demand for traditional lamps has been shrinking, pushing down revenues at Osram's Lamps & Components business by 7.4 percent in its fiscal first quarter to the end of December. Osram said on Tuesday that the first two months of its second quarter had indicated a continued decline.
Osram still sees group revenue growth in its current financial year exceeding global economic growth, estimated at about 3 percent for 2014, but said in the presentation that the increase would be only modest in the first half of its year. (Reporting by Maria Sheahan; editing by Jonathan Gould and Tom Pfeiffer)