US-headquartered Otis will start manufacturing escalators in India from next year as it expects demand to rise due to rapid urbanisation and modernisation of railway stations, a top company official said.
"We will start manufacturing escalators next year. It will be manufactured in our Bengaluru facility. By 2020 we see modernisation of railway stations, tier II and III cities are growing in population and this can bring in more next decade infrastructure growth, retail segment growth.
The company is bullish on India and plans to indigenise its products over a period of time.
"Otis has great confidence and belief in India. Over a period we will indigenise most of the products. Right now we have 40 per cent global components and about 60 per cent Indian components. In 2012, it was other way round. Our goal is to get into total indigenisation. We are expanding the range of products manufactured," he said.
The Indian elevator industry is the second largest market after China, with an estimated 49,000 units in a year, growing at 6-7 per cent annually.
Around 75 per cent of the market is residential. About 80 per cent of market is of speed of 1 metre per second and below.
"Due to GST implementation and RERA, this year I think the market will be flat. The projects have slowed down and it should pick up next year," Joseph said, adding that the company is eyeing a growth of 19 per cent this year on the back of new product launches.
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