Thyssenkrupp inaugurates its multi-purpose elevator facility in Chakan
Thyssenkrupp, the German steel to submarine manufacturer inaugurated their multi-purpose facility for elevators in the Chakan industrial area in Pune as it prepares to ride on the wave of urbanisation in the country.
Built at an investment of Rs 360 crore and employing around 200 people , the industrial facility is designed for an initial capacity of manufacturing 6000 elevator units, extendable to 10,000 in the course of the next two years.The facility is called a multi-purpose one as it will also have a distribution centre and training facilities apart from the manufacturing of elevators.
thyssenkrupp currently has a market share of around 7% in the Indian market for elevators which stands at 55,000 units and is valued at Rs 9000 crore. With PM Narendra Modi’s thrust on the development of smart cities, India is the second largest market for elevators after China and is growing at the fastest clip. The opening of the facility is also a major step in the direction of achieving 95% localisation in manufacturing.
Though the Chakan plant will majorly focus on the Indian market, thyssenkrupp will be exporting small volumes to Nepal and Bangladesh also.
“India continues to be an important market for us also because all our business verticals are present in the country which is quite unique,”Oliver Burkhard, member of the executive board and chief human resources officer, thyssenkrupp AG, said at the press conference.
The German company which started as a steel producer has now evolved into a capital goods company with products and services ranging from electrical steel to automotive components, to industrial construction services, ship building and aerospace. Ravi Kirpalani, CEO, thyssenkrupp India said that the Indian arm registered revenues close to Rs 3700 crore for all its business verticals at the end of December, 2016, growing at 4% year-on-year. “We are also looking at sourcing raw materials from India for our global markets. We have started in a small way and are evaluating the opportunities,”Kirpalani said.
thyssenkrupp will be offering a slew of technology-backed elevator systems for residential as well as commercial projects in the years to come. “India’s 2017 Union Budget has given infrastructure status to affordable housing, which will improve resource allocation and facilitate higher investments in this sector. In line with the government’s aim to provide housing for all by 2022, it will create 20 million new urban housing units and 30 million rural homes,”Bharat Vishnani, MD, thyssenkrupp Elevator India, said at the launch. Talking to ET about the order book , Vishnani said, “We have many orders coming through. The most recent has been the Lodha apartments coming up in Cuffe Parade in Mumbai.”
“The Indian elevator market is of significant importance to Thussenkrupp. The consistent growth of India’ realty sector has been gaining attention worldwide and Thyssenkrupp is perfectly poised to support this market growth. The decision to develop the new state-of-the art manufacturing facility of global standards is a step forward in that direction,” Burkhard, said.
Thyssenkrupp currently has a 6.5% to 7% market share in the Indian elevator market which stands at 55,000 units.