Commercial and housing elevator business growing fast in Eastern and NE India

Ankur Bhattacharya ; Kolkata, 12 February : In spite of the year long downturn in the the Real Estate sector in Eastern India,the demand for commercial and residential elevators in the region remained ‘stable’ to encourage India’s largest elevator manufacturer to further expand its business in both Eastern and North Eastern India as well as in to neighbouring Bangladesh, Nepal and Bhutan in a big way.

‘We do not consider the demand for elevators in Eastern and North Eastern India was shrinking by any mean’,said Amit Gossain,Managing Director of Kone Elevator India,the wholly owned subsidiary of Helsinki headquartered ‘Kone Global Limited’ with an annual turnover of 10 billion Euro.

Speaking here this afternoon during his brief visit to the city, Gossain claimed that in spite of the current slowdown of some sectors like the automobiles industry,the demand for housing both for commercial and residential purposes had been growing steadily across the country including in Eastern and the North Eastern regions and that too in smaller cities and towns as well as in major cities like Kolkata, Bhubaneswar, Guwahati and Siliguri.

He said in response to the Prime minister’s Awas Yojona for all,hundreds , if not thousands, of new multi-storied buildings were coming up in every corner of the country, particularly in Eastern India, generating more business for modern elevators including those of Kone Elevators, India’s largest and the most sophisticated supplier of the product .

Citing the example of installing state of the art Kone elevators in the country’s tallest building – The 42 – in Kolkata recently, Gossain said it was also the fastest automatic lift in the country with a speed of travelling up and down every five metres in one second.

Replying to queries about the current scenario of India’s Rs 2.5 crores worth of elevator industry producing around 50,000 units every year,Gossain said though the current market share of Kone Elevator India was hovering around 6 per cent since last year,they hoped to bounce back into the higher growth trajectory of around 10 per cent within the next couple of years after expanding their business volume in Eastern and North Eastern India besides those in Bangladesh, Bhutan and Nepal within the next few months.

Accordingly were planning to set up 7 to 8 new fully automatic service centres in the regions to cater to the increasing demand form customers even from the smaller cities and towns of Nepal and Bhutan,Gossain said and claimed that as the largest supplier of elevators, they had been enjoying a share of over 25 per cent of both the commercial and housing sectors in this region.
In order to meet the higher demand Kone had inversted Rs 450 crores for setting up a new green field plant near Chennai last year after acquiring another unit nearby a few years ago, he said adding that two most modern Research and Development centres had also been installed in Hyderabad and Pune recently creating job opportunities for about 1,000 youths to add to the present number of 5,000 employees.