Hyderabad: India’s elevator market is estimated at $1.1 billion and is growing at a rate of 4 per cent year-on-year. There has been some slowdown due to demonetisation, GST, liquidity crunch in real estate sector in the past years. However, there is a slow pick up now, with construction sites coming up and maintenance activity beginning. The government can lend its support to the industry and in a quarter, there could be recovery once the pandemic subsides, says an industry expert.
Otis India president Sebi Joseph who is also chairman of Vertical Transportation Division, Indian Electrical and Electronics Manufacturers’ Association (IEEMA), told Telangana Today, “India is the second-largest market in the world after China, in terms of the number of units. However, there is a vast difference in the size of both markets. India has been growing at a rate of 4 per cent year-on-year, primarily driven by the residential sector, which accounts for 70-75 per cent, while the commercial and infrastructure account for the rest.”
The abrupt lockdown due to Covid-19 has resulted in a sudden drop in the real estate activity. The real estate sector contributes eight per cent of the country’s GDP and is among the largest job creators. The elevator industry is viewed as the tail-end of the realty sector.
He added, “Since the real estate is impacted, the elevator sector may also see some impact. But, since the elevator is the spine of the building and an essential component of real estate, demand could pick up. The residential sector may see temporary lull but should see quick momentum once the recovery starts.”
Otis as a company sees growth opportunities in airports and metro rail projects, as the Indian government will push infrastructure investments. Also, India will see growth as more tier-2 and tier-3 cities will emerge in the coming years. The company has a manufacturing facility in Bengaluru to cater to the growing demand.
“Otis is growing at a rate of 15 per cent with a portfolio of about one lakh units. The company’s growth will be above the industry growth,” Joseph informed.
The company has made 12 new launches in the last 5-6 years in the residential sector. More innovations will happen on the digital front. “We are looking at personalising the elevator experience. We have products for every price point including for the affordable housing. We have also launched a pilot of the service transformation in cities such as Pune and Delhi, where mechanics are given iPhones and they measure the health of the elevator and share it with the customer for better building management and plan repairs ahead,” he added.
The company believes that the urbanisation continues to drive the elevator demand in India as more and more cities will emerge, needing and creating additional infrastructure.
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