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With India’s cities growing at a fast pace, there is a demand for modern and future-proof vertical mobility solutions that are safe, efficient and equipped with smart connected technology. Otis India aims to support this need and urbanisation of India in a way that is smart, sustainable and scalable, says Sebi Joseph, President of Otis India, in an interaction with ET Digital. He adds that Otis also understands the challenges associated with respect to tier-2 and tier-3 cities and creates tailored solutions at scale to meet customer expectations.
Edited excerpts: The Economic Times (ET): How is India placed in terms of manufacturing, installation and servicing of elevators and escalators? How have things changed over the years? Sebi Joseph (SJ): It is an exciting time for the elevator and escalator industry in India. Over the past few decades, the industry has experienced significant growth and transformation. It has served as a critical enabler of India’s urban future.
The country is now the second-largest market for elevators and escalators globally, trailing only China. At the core of the evolving demand has been India’s rapid urbanisation. The growth in public infrastructure projects such as metros, airports and rail, private sector developments — both residential and commercial — is increasing the demand for vertical mobility solutions.
Elevators and escalators are integral to moving people smoothly and safely through our growing cities. That is increasing demand for new equipment and also for the service and maintenance that’s vital for continued safe and efficient operation. And as older elevators and escalators reach the stage where it’s more economical to replace than repair them (typically after 20 years), modernisation activity will increase too.
Today, customers are seeking modern and future-proof vertical mobility solutions that are safe, efficient and increasingly equipped with smart connected technology. ET: India is among the largest elevator and escalator markets globally. How has Otis assisted in this journey so far? SJ: India is a strategic market for Otis.
We have been a key part of the Indian elevator and escalator sector since 1892 — the year of our first Otis installation in India. We have been innovative with vertical mobility solutions, and our Otis team in India has doubled orders in the last two years. In India, we foster efficient manufacturing, research and development, innovation and export capabilities.
With the help of our Bengaluru manufacturing facility and our lead design centre, we cater to over 90% of our local demand in India and have successfully launched over 25 products in both new equipment and modernisation segments for the Indian and export markets. Marketing Digital marketing - Wordpress Website Development By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert View Program Finance Financial Literacy i.e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Office Productivity Microsoft Word Mastery: From Beginner to Expert By - CA Raj K Agrawal, Chartered Accountant View Program Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Intermediate C++ Skills: Master Pointers, Structures and File Stream By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrow's Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd.
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We previously expanded the capabilities of our Bengaluru manufacturing facility to support the export of elevators and escalators to Southeast Asia and Middle East. We are now planning for further expansion, which contributes to robust local manufacturing and supports the local supply chain. ET: How does the company plan on supporting India in overtaking China in this segment? SJ: India is the second-largest market for elevators and escalators, and it is still expanding.
We expect that population growth and increasing urbanisation will sustain the demand in India. We aim to expand exports from our Bengaluru manufacturing facility to additional markets. Our industry supports India’s urbanisation in a way that is smart, sustainable and scalable.
At Otis India, our approach focuses on supporting the country’s growth while fostering innovation, localised manufacturing and supply chain capabilities, increasing local expertise, and long-term value creation, ultimately supporting India to be a global leader in the elevator and escalator space. We aim to expand our product portfolio by launching more products to cater to the evolving demand. ET: In an industry where steel and heavy machinery dominate, how is Otis working to reduce the carbon footprint of its products and operations in the country? SJ: Otis is committed to ESG in support of our business strategy.
In our sustainability efforts, we are committed to drive positive change within Otis and beyond, throughout our value chain to pave the way for a more sustainable future. We continue to identify opportunities to manage our impact on the environment, while aligning our products and services with our stakeholders’ expectations and aspirations for sustainable buildings and infrastructure, and preservation of the environment. In our 2023 ESG report, we reported that by measuring and managing the environmental impact of our products and operations and by increasing our renewable energy use, Otis globally has reduced absolute Scope 1 and Scope 2 emissions by 12% and absolute Scope 3 emissions by 5%, both from a 2021 baseline.
In India, three of our Otis office locations now procure green energy, with 51% of their total energy consumption coming from renewable sources. ET: Tier 2 and tier 3 cities represent huge growth potential, but they come with infrastructure challenges. What has been your experience working in these areas, and how do you see this landscape evolving? SJ: While major metropolitans like Mumbai, Delhi-NCR and Bengaluru continue to be the largest markets due to a high concentration of tall buildings and commercial spaces, tier-2 and tier-3 cities have been emerging as important centres, driven by urban expansion, infrastructural development, rising disposable incomes, and government-backed affordable housing and smart cities projects.
There can be specific challenges as locations urbanise, such as less developed infrastructure, inconsistent power supply, slow adoption of smart solutions, and more price-sensitivity. At Otis, we understand these challenges and create tailored solutions at scale to meet customer expectations. The segment in tier-2 and tier-3 cities is evolving into a dynamic market that, with the right innovations and localised strategies, will become a major contributor to India’s elevator and escalator industry growth.
The future of this segment lies in balancing affordability with technological innovation. ET: What are your future plans in India? SJ: India is a key growth region. With rapid urbanisation, ambitious infrastructure projects, a dynamic real estate sector, and one of the fastest-growing markets for elevators and escalators, there are robust opportunities, and Otis is key to shaping the future of vertical mobility in India’s urban future.
Increasing our manufacturing capacity at Bengaluru will help Otis meet the growing residential, commercial and infrastructure demand for elevators and escalators in India and expand coverage into more cities in the country, including tier-2 and tier-3 cities, as well as supporting expansion to additional markets with innovative vertical mobility solutions. Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024.
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