Business

Kone Elevator opens ₹450-crore facility

From left, Henrik Ehrnrooth, Pekka Haavisto, Minister for Foreign Affairs of Finland and Amit Gossain

From left, Henrik Ehrnrooth, Pekka Haavisto, Minister for Foreign Affairs of Finland and Amit Gossain   | Photo Credit: Bijoy Ghosh

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The new unit will cater to domestic and export markets

Finland-based Kone Corporation has established a ₹450-crore facility near Chennai to make escalators and elevators.

The new unit of Kone Elevator India, a wholly owned subsidiary of Kone Corporation, was inaugurated by the Tamil Nadu Governor Banwarilal Purohit.

Spread over 50,000 sq.metre, the new facility would cater to India, countries in West Asia, South East Asia as well as Nepal, Bhutan, Bangladesh and Sri Lanka, said Henrik Ehrnrooth, president and CEO, Kone Corporation.

Briefing the media, Amit Gossain, MD, Kone Elevator India, said that the company closed its earlier plant in Chennai and shifted the operations to the current location at Pillaipakkam.

Almost 80% of the components would be produced locally. The company would also step up global exports.

Asked about the production capacity, Mr. Gossain said that a majority of production would be meant for use in domestic market and rest would be exported.

Meet growing demand

“It [the new unit] is the largest facility in India, South and South East Asia. We have set up this unit with increased manufacturing facility to meet the growing demand,” he said.

On the Kone Elevator India’s contribution, Mr. Ehrnrooth said that India accounted for about 3% of Kone Corporation’s top-line.

The group as a whole logged 8% growth and had a order book size of €8.5 billion.

Mentioning that the economic slowdown had impacted their growth, Mr. Gossain said the India unit had been posting single digit growth.

Residential projects accounted for 70% of the business followed by commercial establishments, hotels and hospitals.

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Printable version | Dec 6, 2019 11:14:53 PM | https://www.thehindu.com/business/kone-elevator-opens-450-crore-facility/article29891290.ece

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