Bullish about growth in the real estate sector in the coming years, German elevator maker ThyssenKrupp has set up a manufacturing facility in Maharashtra and is eyeing up to 13 per cent market share by financial year 2019-20.
ThyssenKrupp India has invested Rs 300 crore to set up the elevator manufacturing facility in Pune which will have a production capacity of 6,000 units in the first phase which will be increased to 10,000 units by financial year 2019-20.
"Though the overall sentiment in the real estate sector has slowed down, we are seeing activities in tier-II and tier-III markets.
"These are the potential markets we are tapping where there is significant demand for our products," ThyssenKrupp Elevator India Managing Director Bharat Vishnani told reporters here today.
He said the elevator market is likely to grow at 11.2 per cent year-on-year to 95,000 units by financial year 2018-19 and the company, which currently enjoys a six per cent share, will witness a double digit growth of up to 13 per cent by financial year 2019-20.
"With the government focused on building 100 smart cities, including new housing complexes, airports, malls, railway stations and harbours, we are expecting to see a significant increase in demand for mobility solutions in India," Vishnani said.
ThyssenKrupp India CEO Michael Thiemann said, "India has ushered in a paradigm shift with its ambitious vision 'Make in India' to boost the local manufacturing sector and uplift the economy.
"We are eager to participate in this growth by investing ahead of the curve and support the rapid urbanisation in the country through locally manufactured, high-end technology engineering solutions."
India has some of fastest-growing urban areas in the world and by 2020, the country will have 58 urban agglomerations.
"There has been a vast increase in the number of high-rise buildings constructed in the country, and with efficient mobility as a key factor in buildings that scale new heights, it is no surprise that India is also the fastest growing elevator market in the world.
"In view of these elements, we are seizing the moment and focusing on localising its production in the country," he added.
Vishnani further said the facility will not only cater to the domestic market but will also meet the demands of Bangladesh and MENA (Middle East and North Africa) region.
"To better cater to local demand, we also plan to introduce new elevator and escalator products which are innovative and fully-adjusted to Indian market requirements," he added.
