Embracing the Future

KONE Elevator India Managing Director Amit Gossain (AG) talks to your author (SSP) about his outlook for India and how the OEM’s new facilities are helping meet demand.

Photos courtesy of KONE Elevator India

SSP: KONE recently inaugurated a manufacturing facility for elevators in Tamil Nadu. What was the overall investment, and what are the project details?

AG: Our new facility is in SIPCOT Information Technology (IT) Industrial Park, Pillaipakkam, Sriperumbudur, near Chennai. The facility was built at an investment of INR4.5 billion (US$62.6 million) and is designed for capacity based on demand. The factory is equipped with the latest technology in production. The largest in India and South Asia, the facility has been designed and built using strategies aimed at improving performance across all the metrics that matter most: energy savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality and stewardship of resources. 

SSP: How will this impact the company’s bottom line, and to which markets does the facility cater?

AG: This facility will support the growth of India and neighboring countries, as it will produce world-class elevators. To start, it will cater to India, Nepal, Bhutan, Bangladesh and Sri Lanka, followed by additional export markets. The plant meets all global standards and is capable of catering to the market needs of any country.

SSP: KONE India has also introduced Vastu Shastra-compliant elevators. How were they conceptualized and what parameters were involved? Do you feel such concepts will significantly influence purchase decisions of customers in a country like India?

AG: The I Mono and I Mini offerings are based on the concept of the five elements (earth, air, water, fire and sky) inspired by Vastu Shastra in terms of aesthetics. I MonoSpace® is a machine-room-less elevator for low- and mid-rise applications traveling at 1.6 m/s, up to 90 m. KONE I MiniSpace™ is a compact machine-room elevator for low- and mid-rise buildings moving at 1.75 m/s, up to 90 m. Both have a maximum passenger capacity of 15.

The company remains focused on innovation and is very optimistic about the Indian market. While designing its products for this market, the company provides a unique mix of global expertise and Indian requirements. Vastu Shastra is an ancient Indian practice. Most Indians believe in it and look for Vastu-based solutions when buying homes, land and products.

SSP: An extension of KONE’s India Technology and Engineering Center (ITEC) was recently set up in Pune. What are its implications for the company and the elevator industry overall? Were there any specific reasons for selecting Pune?

AG: An extension of the ITEC operating in Chennai, the new ITEC in Pune will further strengthen our capabilities and competencies in digital services and enterprise IT. Its operations will revolve around enterprise monitoring, service management for IT solutions and digital development competencies for smart People Flow solutions. Co-creation with startups and technology partners will be a big part of the ITEC.

Pune, due to the presence of several well-known educational institutions, has emerged as a major educational hub in recent years, with nearly half the international students in the country studying there. Research institutes for IT, education, management and training attract students and professionals from India and overseas.

SSP: KONE India has focused on leveraging the Internet of Things (IoT). What are the key decision drivers, and how do you see this benefiting not just the VT industry, but real estate development?

AG: At KONE, we leverage IoT by using real-time data and analytics as preventive maintenance gets smarter. It also means improving the customer experience through real-time transparency. For users, it means a better, personalized experience through the whole elevator and escalator journey, from access to destination. We have a history of innovation in areas like technology, safety and eco-efficiency. At KONE, we adopt a digital culture, and, with customers and partners, co-create new products and services. It is an area in which we intend to lead. Another aspect of digitalization is the potential to improve speed and efficiency, and our ITECs and manufacturing units bring innovations closer to customers, getting new services and solutions to the market faster.

SSP: What are your expectations for the government to introduce more stringent norms and regulations for the elevator industry?

AG: Safety is extremely important when operating and using elevators and escalators. Over time, the organized players in the industry have defined and implemented stringent codes to help ensure the safety of their products, and that equipment is maintained and inspected according to their respective codes. It’s time the government brings uniform guidelines across the country for elevator and escalator safety norms. Global companies and many Indian companies follow strict safety norms as per a country’s cultural sensitivity. However, there are unorganized players that don’t necessarily meet any criteria, as there are no uniform norms. At KONE, we have global policies, processes and guidelines in place to enable our business activities, including subcontractor operations, to be organized and conducted in a structured and globally harmonized way.

SSP: How do you see the recent announcement by Finance Minister Nirmala Sitharaman to grant INR250 billion (US$3.48 billion) for completing stalled real-estate projects impacting the elevator industry?

AG: It’s a step in the right direction and a welcome move that should help create a positive sentiment in the real estate sector — one of the major contributors to the Indian economy. It will have a positive multiplier effect on numerous ancillary industries. This is a signal that Real Estate Regulatory Authority-registered projects will need to be completed on time. These funds will help pending real estate projects, further boosting job creation in the sector and the more than 250 ancillary industries dependent on it. It clearly shows the willingness of the government to come forward and help developers, builders, supporting industries and, finally, the consumers/homebuyers.

SSP: Do you see an increase in infrastructure projects like metros and airports driving demand for elevators and escalators?

AG: With the growth in infrastructure and the construction industry, we are confident the elevator and escalator market will also grow. The rate of growth will depend on the rate at which the government takes action, as well as the economic situation globally and in India. Advancements in the infrastructure and construction industries will augment the growth in the elevator and escalator market.

SSP: How would you quantify the overall Indian market for elevators and escalators? What are your expectations for its performance in 2020 and beyond?

AG: The Indian elevator and escalator market is at about 50,000 units of new equipment sold. The scope of growth for the vertical-transportation business is bound to increase in 2020 and beyond, with many houses required with the government’s focus on housing for all, urbanization and an increase in commercial buildings. Currently, there is a general slowdown, but I feel it’s short-lived, as India needs growth, and all future policies of government are aimed at achieving that growth.

At KONE, we are positive about this growth and continue to invest in products, services and facilities to meet  growing demand.

SSP: What is KONE’s vision of the importance of India in overall operations?

AG: India, the second-largest elevator and escalator market after China, is a very important country for us, given the various initiatives taken by the government to boost housing and infrastructure. KONE enjoys a more than 20% market share in India and envisages it growing in line with the growth of the industry. The main growth driver is rapid urbanization of the country. With initiatives announced by the government, like housing for all by 2022, we expect a number of residential projects to come onboard in the next three to five years. This provides a huge scope for our business. To meet growing demand, we have set up this factory with increased manufacturing capacity. We also significantly invest in R&D and provide trained manpower.