1. Thyssenkrupp opens its 4th plant globally in Pune

Thyssenkrupp opens its 4th plant globally in Pune

Thyssenkrupp, the German mobility solutions major inaugurated it’s multi-purpose facility for elevators and escalators on Friday in the Chakan industrial area in Pune. This is the company’s fourth plant globally.

By: | New Delhi | Published: May 13, 2017 5:03 AM
The 360-crore plant which employs around 200 people is designed for an initial capacity of manufacturing 6,000 elevator units that could be ramped upto to 10,000 in a couple of years. (Reuters)

Thyssenkrupp, the German mobility solutions major inaugurated it’s multi-purpose facility for elevators and escalators on Friday in the Chakan industrial area in Pune. This is the company’s fourth plant globally.

The 360-crore plant which employs around 200 people is designed for an initial capacity of manufacturing 6,000 elevator units that could be ramped upto to 10,000 in a couple of years. “India is the third market after Germany and China where the company has a manufacturing facility for elevators,” Oilver Burkhard, member of the executive board of Thyssenkrupp AG said, adding in China the company has two plants and the Pune plant will source all critical components from there. The facility also has an R&D centre, which will be serving the German company’s global markets as well as a training centre. The unit employs around 300 people now and the number will be scaled up as and when demand grows.

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On plans for local sourcing, Bukhard said, the objective is to have 95% local components. At present it sources around 70 %. Thyssenkrupp Elevator enjoys around 7 % market share in around `9,000-crore or the 55,000 units per annum domestic market, which is the fastest growing in the world and the second largest after China and is growing at 10-12% per annum. Although the Chakan (Pune) plant will majorly focus on the Indian market, Thyssenkrupp will be exporting small volumes to Nepal and Bangladesh. Asked to comment on the labour unrest in the company’s home market because of the planned revamp of its steel business, Burkhard, who is also the group chief human resources officer, said that what was happening in Europe “will have no impact on our India plans”.

Thyssenkrupp Elevator entered India in 2002 and has done two acquisitions in the space — CSE a Delhi-based Birla group entity in 2002 and Mumbai-based Kare Elevators in 2006, which has an assembly line at Bhiwandi near Mumbai. With the launch of the Pune facility, Thyssenkrupp will shift its assembly lines from Bhiwandi and Delhi to the new plant. Bharat Vishnani, MD, Thyssenkrupp Elevator India, said the company expects faster growth with the focus on smart cities and faster urbanisation, which will get a boost with the introduction of the GST and the realty regulator RERA.

Peter Allaart, EVP, global manufacturing, Thyssenkrupp Elevator, said the new facility was completed in a span of 18-months. Ravi Kirpalani, CEO, Thyssenkrupp India said that the Indian arm registered revenues close to `3,700 crore for all its business verticals at the end of December, 2016, growing at 4% year-on-year. “We are also looking at sourcing raw materials from India for our global markets. We have started in a small way and are evaluating the opportunities,” Kirpalani said. Thyssenkrupp India employs around 6,500 people and had approximately `7,500 crore in revenue till September 30, 2016. It began its India journey way back in 1860 and is the third largest in the market in Asia-Pacific with 10 operating units.

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