Kone elevators gets a lift

If real estate development is booming, one of the ancillary industries that’s benefiting from this surge is elevators. The sector is dominated by a clutch of multinational players, including Otis, Schindler, Mitsubishi, Thyssen—and Kone, whose Indian subsidiary, Kone Elevators India, claims to be top dog in the business. “Each time I come to India I find the local office expanding,” offers Pekka Kemppainen, President & CEO, Kone Elevators Asia Pacific Operations.

In October 2006, Kone had increased its India capacity by 2,000 units, taking it to 6,000. By March, it was in expansion mode once again, going up by another 1,000. Now, with a monthly capacity of 580 against an industry demand of 1,700 per month in the country, it can corner a 30 per cent share from its existing 27 per cent. The industry is currently growing at between 12 and 14 per cent, while Kone says it is growing at 17 per cent in terms of volumes.

The company is not talking numbers though, thanks to Finnish regulations (Kone is a Finland-headquartered company), but if the organised industry is indeed just 21,000 elevators a year, Kone would likely have the largest manufacturing base in the country. With the manufacturing capacity stretched at 90 per cent utilisation, the Finnish heads Matti Alahuhta, President & CEO, Kone Corporation, and Kemppainen are mulling yet another expansion, though this has not been firmly decided.

If Kone is today in a position to claim leadership, it’s thanks in the main to the rapid strides it has taken in the institutional market— its customers include the Tatas, Larsen & Toubro, Reliance, Motorola, Microsoft, ITC, Radisson, Hyatt, DLF, Hiranandani, Purvankara, ISRO, and the Delhi Metro. The company also installs escalators where needed—these are being sourced from its China arm for now. There’s also a shift taking place with Kone moving from mere suppliers to total solution providers. “Earlier we just supplied them, but now we discuss traffic flows, expected loads, interiors, lighting comfort, because the dynamics and expectations have changed,’’ says A. Sankarakrishnan, Managing Director, Kone India.

Kone has also set up a global software development centre, developing embedded system software for lift applications for the parent company. An R&D centre has also been put up, to look into design and aesthetics, keeping the Asian market in mind. The company currently exports small numbers to Nepal, Bangladesh, Thailand and Singapore.

— Nitya Varadarajan