KONE opens new facility with an investment of Rs 450 crore in Chennai
The new facility was built with an investment of Rs 450 crore, employing around 600 people
"We have emission standards for vehicles but nothing for lifts," said Amit Gossain, MD of KONE Elevator India at the inauguration of the Finnish company's new facility for elevators in SIPCOT Industrial Park, Pillaipakkam in Sriperumbudur near Chennai.
He went on to say that the company has urged the government to look into the Lifts Act to ensure that minimum standards are met.
"There is a need for standards to be set," he said. "We have urged the government to look into the Elevators and Lifts Act. Some states don't have Lift Acts and there is a need for them as apart from the standards for safety, lifts need to be replaced or modernised periodically... For instance the elevators with collapsible doors was not safe as your hand could get stuck. KONE has completely discontinued manufacturing that kind of elevator."
KONE Elevators India is a wholly owned subsidiary of KONE Corporation which is a leading name in the elevator and escalator industry. Its new facility was built with an investment of Rs 450 crore, employing around 600 people.
The company said it was poised to ride the wave of urbanisation in the country with its new plant that is spread across 50,000 square metres, making it the largest in the region.
Though the new plant will majorly focus on the Indian market, KONE will be exporting to neighbouring countries like Nepal, Bhutan, Bangladesh and Sri Lanka. India is the second-largest market for the company, following China.
"With the Indian economy growing, increased urbanisation and projects like affordable housing, we see fantastic opportunities," said Henrik Ehrnrooth, president and CEO of KONE Corporation. "India currently contributes 3% to the 8.5 billion euros global revenue. The expanded facility will help KONE cater better to our customers as well as meeting the demands for a growing elevator market here in India and neighbouring countries."
The company said it has strong footing when it comes to projects like the Smart City initiative. However, when it comes to projects like the metro rail projects, Gossain said that while KONE Elevators does bid, it has not been able to make as many inroads.
He went on to say that the company has witnessed a growth of 5-8% as it has been one thing after the other with demonisation, GST and then the Real Estate (Regulation and Development) Act, 2016 (RERA). He did mention that RERA has been good for the consumer and that he believed real estate had bottomed out and the market would begin to pick up. In turn, he said KONE too would benefit.