Mitsubishi Electric to invest Rs 180 crore for elevator plant

Mitsubishi Electric to invest Rs 180 crore for elevator plant

Mitsubishi Electric to invest Rs 180 crore for elevator plant
Mitsubishi Electric aims to invest Rs 180 crore to set up an elevator plant in Vemagal, Kolar district.

In an email interview, Mitsubishi Electric India Managing Director Makoto Kitai said, “Mitsubishi Electric is working to open an elevator plant near Bengaluru in this financial year. It targets to quintuple shipment volume by taking advantage of lower costs and shorter lead times. The company plans to invest around Rs 180 crore.”

On production capacity, Kitai said, “It will have an annual production capacity of 5,000 units. The site will be spread across 89,000 square metres of land with floor space of 26,400 square metres. The product development will be reinforced with an elevator test tower, about 41 metres high, and field-training centre for installation and maintenance work on the premises of the new factory.” 

Economic growth

“We give importance to India, and the country is expected to show significant economic growth in future compared with North America, Europe or Japan. Also, India’s elevator and escalator market, which has grown in step with the country’s rapid economic development, is now the world’s second largest, next to China,” Kitai added. 

The annual demand rose to 47,000 units last year, and is expected to continue growing. The company expects a high level of growth due to increasing investment by the state-owned railway operator and metro rail plans in 19 cities.

In 1995, Mitsubishi Electric began selling elevators through local distributors. In August 2012, it established a company in Chennai to reinforce sales, installations and maintenance, and in April 2014, Mitsubishi Electric launched the NEXIEZ-LITE elevator model for low-to-mid-rise buildings in the India’s market. 

Kitai said, “By producing locally, Mitsubishi Electric expects to strengthen product competitiveness in terms of price and delivery time, focusing especially on its NEXIEZ-LITE model. A special emphasis will be placed on the efficient integration of sales, manufacturing, installation and maintenance.” 

Mitsubishi Electric spent ¥202.9 billion in R&D (consolidated) for the last FY ended March 31, 2016, and this is 4.6% of the consolidated net sales of the last financial year. The company has one R&D centre in Pune, which develops factory automation products for India.