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Updated: June 3, 2014 23:44 IST

Kone bets big on residential housing sector

Ramnath Subbu
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Henrik Ehrnrooth
The Hindu Henrik Ehrnrooth

The company is setting up a new facility adjacent to its existing Chennai unit exclusively for elevators

Kone Corporation, the world’s second largest elevator manufacturer, is confident about the growth prospects for the domestic residential housing sector and expects rapid urbanisation to continue to drive its growth.

“The growth drivers in India are urbanisation and a middle income consumer group, which is growing in number and require more apartment,’’ Henrik Ehrnrooth, President and CEO, Kone Corporation, said in an interaction with this correspondent.

The 6.9-billion euro company, headquartered out of Finland, delivered 120,000 elevators globally in 2013 and Mr. Ehrnrooth estimated the Indian market to be 40,000 plus elevators annually.

Kone has grown from a small outfit to the second largest player globally and has established strong market positions and captured market share in key growth markets like China, India, the Middle East and Asia Pacific.

“We are the market leader in China, India and several key growth markets,’’ the Kone CEO said adding, “we offer the most energy efficient products, good service and our products have high reliability.’’

While most of the standard products offered by Kone in India are made at its Chennai facility, the products for high-rises are imported from Finland or China. It also makes escalators which account for 10 per cent of the size of the elevator market.

Kone is setting up a new facility adjacent to its existing Chennai unit exclusively for elevators. The existing facility caters to domestic demand but Mr. Ehrnrooth said, “the new facility which will come on stream in a couple of years, will cater to our future growth and also have export capabilities.’’

Neeraj Sharma, Managing Director, Kone Elevator India, has been promoted to join the executive board from September 1. He will take over from Noud Veeger, now Executive Vice President, Area Director Asia-Pacific & Middle East, who will head the central and north European business.

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