German mobility solutions major Thyssenkrupp today opened a Rs 360-crore elevator and escalators manufacturing facility here making it the fourth plant globally.
The 20,000 sqm facility at Chakan is its first in the country and the fourth globally, after the one at home and two in China, and has a capacity to do 6,000 units a year which can be scaled up to 10,000 units in the second phase, which it hopes to achieve over the next three years.
"India is the third market after Germany and China where the company has a manufacturing facility for elevators," Oilver Burkhard, member of the executive board of Thyssenkrupp AG said, adding in China the company has two plants and the Pune plant will source all critical components from there.
The facility also has an R&D centre, which will be serving the German giant's global markets as well as a training centre and employs around 300 now, which will be scaled up as and when demand grows.
When asked about plans for local sourcing, Bukhard said, the objective is to have 95 per cent local components. At present it sources around 70 per cent.
Thyssenkrupp elevators enjoy around 7 per cent market share in the around Rs 9,000-crore or the 55,000 units per annum domestic market which the fastest growing in the world and the second largest after china and is growing at 10-12 percent per annum.
The market is dominated by MNCs like Otis, Kone Mitsubishi and Schindler besides many local companies.
The company already serves Bangladesh and Nepal from the facility and may look at serving more markets in the Saarc region later, its India chief executive Ravi Kirpalani said.
Thyssenkrupp Elevator entered India in 2002 and has done two acquisitions in the space -- CSE a while Delhi-based Birla group entity in 2002 and Mumbai-based Kare Elevators in 2006, which has an assembly line at Bhiwandi near Mumbai.
With the launch of the Pune facility, Thyssenkrupp will shift its assembly lines in Bhiwandi and Delhi to the new plant, Kirpalani told PTI.
It employs around 2,300 across its 27 regional business centres across the country.
Bharat Vishnani, managing director of Thyssenkrupp Elevator India, said the company expects faster growth with the focus on smart cities and faster urbanisation, which will get a boost with the introduction of the GST and the realty regulator Rera.
Despite the low volume, India is the second largest elevator market in the world ahead of the us and after China, which is way ahead with 5.5 lakh units a year, it said.
When asked the labour unrest in his home market due to planned revamp of its steel business and if it will have any impact on the India business, Burkhard, who is also the group chief human resources officer, answered in the negative.
"What is happening in Europe will have no impact on our India plans and the opening of this world class manufacturing facility is a step forward in that direction," he said.
He further said "whether we like it or not, the European steel industry has to consolidate. Our talks with the Tatas are in this regard. We, at the same time, are also talking to two other companies. But, finally who will merge with who is not finalised yet."
Peter Allaart, EVP, global manufacturing, Thyssenkrupp Elevator, said the new facility was done in 18-months time.
Thyssenkrupp India employs aroiund 6,500 people and had around Rs 7,500 crore in revenues in the year to September 30, 2016. It began its India journey way back in 1860 and is the third largest market for the group in Asia-Pacific with 10 operating units.
Disclaimer: No Business Standard Journalist was involved in creation of this content
