United Technologies Corporation (UTC), a US-based $54.3-billion heating and cooling systems, elevators, automation and fire and security systems major, is in the process of ramping up its Otis elevator and escalator capacity at its Bangalore plant.
“The expansion is already on. The capacity here was 5,000 units in 2010. We will be doubling it in the next two years,” Zubin Irani, senior managing director (India region, commercial companies), told mediapersons.
The new 27,500-square metre manufacturing facility is being built conforming to the Leadership in Energy and Environment Design (LEED) Gold standards. The expanded factory will enable Otis India to more effectively serve the domestic elevator market. The domestic elevator and escalator market was 31,000 units last year and is expected to grow to about 70,000 units in the next three to four years.
“With almost 300 million population expected to move to cities in the next three-four years that is going to drive significant demand for homes, building and office spaces and retail malls. We are looking at introducing new products, specifically designed for the Indian markets, announcements pertaining to which will be made shortly,” he said.
On the company’s merger and acquisition strategy, Irani said UTC, which spends around $3.5 billion on research and development every year globally, was already active in scouting for target companies. “We have done at last five acquisitions in India in the last couple of years. This year too, we have a good pipeline and are optimistic that we will have a good progress there. Capital is not a constraint but the question is more about getting a strategic fit and the right price point,” he said.
Irani said UTC was expecting revenues from India to touch $2.5 billion by 2015, from the present $500 million.
