Finland-based elevator and escalator major Kone Corporation will set up its second manufacturing plant in India in Tamil Nadu and add another 100 engineers in its R&D facility.
Kone Corporation President and CEO, Henrik Ehrnrooth, told newspersons on Thursday that the plant in Tamil Nadu will be the second largest after the one in China. “We are investing increasingly in India. Our R&D centre is an important hub for us,” he said. Kone’s first plant is also based in Tamil Nadu.
He said during the first half of the current calendar year, the industry’s growth showed a negative trend but during the second half, it is expected to do well.
“The market will improve once the new reforms kick in and housing demand is expected to increase,” Ehrnrooth said
Note ban impact
Amit Gossain, Managing Director for Kone in India, said demonetisation was a bit of a dampener, but after some time, the money supply got better and with lower interest rates, the need for housing will grow. He also pointed out that the commercial space has not been affected as much as housing during the last six months.
Ehrnrooth said internet of things (IoT) has changed the perception of customers because of its huge benefits for them. He said the company has launched 24X7 connected services in a few countries.
For Kone Corporation, India is the second largest market globally after China. Its leads the market in both China and India. Its market share of 50,000 units per year in India is about 20 per cent.