Indian operation to maintain high double-digit growth: KONE India MD

KONE Elevators India, a subsidiary of the Finnish multinational corporation KONE Corporation, on Wednesday said that it will continue to grow at a high double-digit rate in India, despite cost pressures, as demand from the residential and infrastructure sectors remain robust.

The company has also announced the expansion of its Kolkata office, which serves the eastern region and export markets in Nepal, Bangladesh and Bhutan.

"In 2022, we had grown strong by over 15 per cent and the growth trajectory will continue as India's growth remains strong. We aim to grow between 15-17 per cent in the current fiscal year," KONE India MD Amit Gossain said.

He noted that the company's market share is currently at 25 per cent in the segment it operates, and that new technology-backed products and services will help push the market share further.

Gossain expressed optimism about the Indian market, saying that it is the second largest market after China in Asia and that KONE has a presence in 60 countries worldwide.

He acknowledged that there has been a cost increase between 20-30 per cent depending on the products, leading to margin pressure.

As it is a closely held multinational company, Gossain did not disclose India's turnover or profitability. He, however, noted that input costs had not reduced significantly, but the company was able to pass them to its customers.

New product lines incorporating the latest technologies and aesthetics will be developed to stay above the curve, according to the managing director.

Speaking about the eastern region, the managing director said, "Kolkata is an important market for us, and we are excited to expand our presence here. With our new office and the increased workforce, we aim to provide even better services to our customers and strengthen our relationships with them.

The company is committed to provide innovative and sustainable solutions that meet the evolving needs of the customers, Gossain said.

The investment in an expanded office space is aimed at providing better amenities for employees, enhancing the customer experience, and elevating the brand image, officials said.

KONE has a good presence in East India with offices in Kolkata, Siliguri, Guwahati, Patna, Ranchi and Bhubaneshwar.