Leading elevator firm Kone is bullish on growth prospects in the Indian market, one of its principal growth countries. The company expects its manufacturing-cum-service expansion and launch of digitally enabled products to gain an edge over the competition.
The Finnish firm expects growing urbanisation to drive the expansion of the major cities and development of new industrial corridors. It will augur well for the growth of the elevator market.
India is the second largest elevator and escalator market with annual volumes of 45,000-50,000 units.
President & CEO of Kone Corporation, Henrik Ehrnrooth, who was in Chennai recently, indicated that while Chinese market was slowing down, India to gain more attention over the decade or so. He pointed out that apart from new orders, existing customers would also provide some business opportunity by way of new service contracts.
The company is setting up a new factory at Pillaipakkam near Chennai to double its capacity given a favourable market outlook. It is expected to commission operations in a couple of years.
Kone is also keen to ride the growing digital flavour across product segments in India. It is presently working on rolling out connected-elevators and escalators, which could be remotely managed. These type of elevators will be launched in India in the next two years.
Kone’s market share is estimated at 20 per cent in the Indian elevator and escalator market.