Otis sells Mumbai unit to United White

Elevator major Otis has disposed off its Kandivili plant in Mumbai to United White Metal at an undisclosed price.

The company said that the move was a part of its ongoing effort to rationalise manufacturing operations and streamline its overall business in India.

"We examined various alternatives where the interest of both the workmen and the company could be met in an equitable manner. Our review concluded that the transfer of the factory undertaking as a going concern was the best option for all stakeholders," said Ashok Malhotra, managing director of Otis India.

Otis still has a plant at Bangalore. As per the terms of the agreements all workers at the Kandivili unit will be offered employment in United White Metal.

The company also said that the sale will in no affect delivery of supplies to the company's customers. The company has also said that the sale will in no way affect delivery of supplies to the company's customers in the country.

Otis Elevator Company is wholly owned subsidiary of United Technologies Corporation and is the world's largest company in the manufacture, sale and service of elevators, escalators, shuttle systems and moving walkways.

The United Technologies group acquired control of Otis Elevators after it first bought out the 24 per cent stake held by the Mahindra group a few years back. Subsequently, it made open offers as per the Sebi guidelines.