In your views share with us your assessment on the opportunities the year offered for Elevator and Escalator Industry.
The Government of India has given a massive push to the infrastructure sector by allocating Rs. 4.56 lakh crore (US$ 63.20 billion) for the sector. Advancements in the infrastructure and construction industry would augment the growth in elevators and escalators market. I expect the real estate and construction sector to rise in response to the initiatives taken by the government to ease liquidity issues in the market such as, housing finance companies to be regulated by RBI, investment of about Rs. 4.83 lakh crore sanctioned under PMAY (Urban) and public sector banks proposed to be further provided Rs. 70,000 crore of capital to boost credit, amongst others.
With this growth in real estate, we are confident that elevator & escalator market will also grow and the rate of growth will be dependent on the rate at which government takes action as well as the economic situation both globally, and in India. With this background though the start has been slow with low single-digit growth rate this year, if the economy picks up and liquidity issues are resolved, we expect the future growth rate will be much higher.
Give us an assessment on the demand-supply scenario.
The demand supply gap remains as elevators and escalators players in the market continue to invest for the future, for instance, this year KONE has made a large investment by setting up the state-of-the-art, largest elevator manufacturing facility located in SIPCOT Industrial Park, Pillaipakkam, Sriperumbudur near Chennai. The new facility is built at an investment of Rs. 450 crore and is designed for a capacity based on demand. As mentioned above with the liquidity issue being resolved and government taking a lot of initiatives to boost the economy, particularly a lot of actions in the real estate sector, we do expect growth to happen in the real estate sector in the next 12-18 months.
Currently the speed at which urbanization is taking place in India, the scope of growth for the vertical transportation business is bound to increase. The need for cities going vertical has become a necessity. At the same time, maintaining the equipment is of prime importance to ensure smooth ride comfort and end user safety. This means that the opportunity for the service of the equipment is quite high and as the installed base expands, so will the service business of Elevators &Escalators companies in India.
Which has been the major demand puller for the Elevator and Escalator Industry in the year 2019?
Due to the office expansion in India and many global players entering the Indian market due to ease of doing business in India, commercial realty, especially the office space and rental market, is going well and has grown due to long-term investors and increase in demand. Residential sector due to many reasons, is slow. However, owing to initiatives taken by the government to ease liquidity issues in the market and urbanisation that is bound to happen, this segment will also grow in the future. The current ratio of equipment sold in residential market is close to 65-70% while the rest is commercial, retail and infrastructure.
Tell us about your recent tech-upgrades and new product launches?
KONE continues to invest in new technologies to deliver innovative solutions and services and offer products that make life simple and comfortable. Our innovative KONE UltraRope® elevator hoisting technology eliminates disadvantages of much heavier traditional steel ropes, and enables elevator travel heights of up to 1,000 meters. Another innovation highlight is KONE People Flow Intelligence solutions, which makes navigation through buildings ever smoother and smarter.
One of our recent breakthrough innovations include KONE CareTM 24/7 IoT Connected Services which uses cutting edge technologies to bring safety, transparency and predictability to services for elevators and escalators, preventing faults before they happen and monitoring equipment in real time.
Our recent offering the U series elevator is designed to make the vertical journeys of mid-range urban buildings more convenient with an increased travel speed of 2.5 m/s while delivering excellent ride comfort, maximum smoothness and utmost safety making every ride uplifting and memorable. The offering is available in nine precious themes in 26 car designs that radiate timeless appeal and endless fascination offering you freedom of choice. The following Navaratna themes, Moon Light, Lava Lustre, Forest Gleam, Ocean Flare, Golden Twilight, Crimson Spark, Streak Shine, Aqua Sparkle and Celestial Shimmer are designed to captivate minds and souls with their play of light and classical charm that suit building interiors in all segments.
What are your expectations from Excon 2019 and the opportunities brought along with it? Are you planning any product launches?
At EXCON, we are participating in the Artificial Intelligence Pavilion where we will showcase our cutting-edge solutions and experience centre, and how we use AI and IoT to deliver the best People Flow experience. Visitors can experience our newest innovation, KONE CareTM 24x7 Connected Services recently launched in India. In collaboration with the recognized leader in cognitive computing, IBM Watson, this is yet another breakthrough innovation that will result in fewer faults, faster repairs and real peace of mind for the customers and users. Visit our stall at Hall 4, Lower Level, Artificial Intelligence Pavilion to know more.
What will be your selling point/strategy of display in Excon 2019?
Artificial Intelligence and Internet of Things (IoT) are going to revolutionize the way we live. Over the years, Internet of Things has revolutionised our world and IoT Innovations from India are helping greater presence. Disruptive technology trends such as machine learning, artificial intelligence, augmented reality, quantum computing, blockchain technology will shape the world and the future. A huge contribution to these advancements goes to the rapid developments in the IoT sector. The technology supporting IoT is growing at a fast pace.
Talking about the strategy of display, innovation has been one of the most significant elements of KONE and there is always a lot of focus on research and development. While designing our products for the Indian market, we provide a unique mix of global expertise and Indian requirements. At KONE, ‘connected’ means using real-time data and analytics as preventive maintenance gets smarter. It also means improving customer experience through real-time transparency. Or it can mean sustainable, smart buildings making better use of energy and resources. For users, it means a better, personalized experience through the whole elevator and escalator journey, from access to destination. We have a long and successful history of innovation in areas like technology, safety, and eco-efficiency. At KONE, we adopt a ‘digital culture’, and co-create new products or services together with customers and partners and it is an area where we intend to lead. Another aspect of digitalization is the potential to improve speed and efficiency, and our Technology & Engineering Centres and manufacturing units bring innovations closer to customers, and get new services and solutions faster into the market.
@EPC World Media