Kone Elevator India, the subsidiary of Kone Corporation of Finland, plans to invest in a second manufacturing facility near Chennai.
Mr Neeraj Sharma, Managing Director, Kone India, said the company has acquired land for the project about 35 km from Chennai on the Bangalore highway, in an industrial estate. India is the second largest market globally for elevators with China at the top.
However, in keeping with the policies of the multinational company he declined to share the investment plans for now. India is among the fastest growing markets with an annual demand of about 35,000-40,000 elevators across housing, commercial and infrastructure space. The residential segment is the largest driver of demand and the rapid urbanisation is driving the market.
The expansion will be needed as existing capacity at the first unit, an integrated 8.5-acre facility at Ayanambakkam, on the outskirts of Chennai is being fully tapped. By 2014 the details of the expansion will be finalised.
Kone has over 3,000 employees including 250 engineers in R&D at the Integrated Technology and Engineering Centre.
Mr Sharma was addressing media persons at a “people flow day” organised by the company to get feedback from elevators users on enhancing accessibility and people movement. This year's focus to ensure better access to disabled persons and enhancing user comfort. Over 900 Kone employees in 30 countries are participating in this exercise with 135 employees in India collecting data from 17 cities.