Mitsubishi Elevator commissions new plant near Bengalaru

The Rs 183 crore unit will manufacture 5,000 lifts a year in the first phase; firm to achive 70% indigenisation with this plant

Mitsubishi Elevator India, a subsidiary of Mitsubishi Electric, Japan, has commissioned a new plant at Vemgal near Bengaluru. The company has invested Rs 183 crore in the unit.

Spread over 89,000 square metres, the facility has a floor space of 25,400 sq m and manufacturing capacity of 5,000 units a year in the first phase, with capability to expand production in the future. The first elevator is scheduled to be delivered in December 2016.

The rollout of elevators will directly cater to the emerging elevator market, which is now the world's second largest after China.

The company has the space and means to double the production capacity. It will produce Nexiez-Lite elevator model targeting low- to mid-rise buildings in the commercial, office, malls and resident segments.

Currently, Mitsubishi caters to the Indian market by importing elevators from Thailand. The new factory will have an indigenisation level of 70 per cent, while traction and controllers will come from abroad.

"Last year, Mitsubishi sold 1,100 elevators in India. In the first year (2017-18), we will sell one-and-a-half times more than what we sold last year. It would take at least four to five years to ramp up our production to 5,000 units," said Mitsubishi Elevator India Deputy Managing Director S Venkatagiri.

"By producing this product locally, we expect to strength the product competitiveness in terms of price and cut down on delivery time. Special emphasis will be laid on the efficient integration of sales, manufacturing, installation and maintenance," he added.

The facility at Vemgal will roll out a new series of products and will be company's 14th manufacturing unit worldwide. The other units has so far beem supplying elevators, escalators and moving walks in 93 countries worldwide.

Last year, the Indian market accounted for 50,000 units. The Indian market is growing by five to six per cent per annum, while Mitsubishi has overtaken market growth, he said.

Mitsubishi Elevator India said that the new facility will strengthed product competitiveness in terms of price and cut down on delivery time by focusing on its Nexiez-Lite elevator model for low to mid-rise buildings in the Indian market.