However, the South Korean chaebol is definitely considering India as an outsourcing base for its some of it components, Hyundai Elevator Co president and chief executive officer YM Baik said.

With the IMF conditionalities in operation, Baik said the company was unable to pick up an equity stake in Kinetic Transportation Products Ltd at the moment.

Hyundai Elevator Co has a technical partnership with the Kinetic Engineering Ltd-promoted Kinetic Transportation Products Ltd. Baik was in Pune recently for the ground breaking ceremony for the Kinetic Transportation factory at Takwe on the Pune-Mumbai road.

However, Hyundai will source its global needs from India if they met international price and quality standards, Baik said. He ruled out Hyundai Elevator transferring some of its product lines to India at this stage, although he reiterated its commitment to infusing technology in the joint venture.

Kinetic Transportation, which will manufacture elevators, escalators and auto parking systems, has so far been importing CKDs for the elevators which it has been assembling and adding some manufactured components. The investment for the plant and machinery over the next five years is estimated to be Rs 30 crore.

For the Takwe plant to be viable, it will have to manufacture a `minimum' of 1,000 elevators and 200 escalators annually, Baik said. Construction is expected to be completed in a year's time.

Kinetic Transportation, which began assembling and selling elevators and escalators a year ago, has so far installed 100 elevators with orders in hand for another 200.

Kinetic group chairman Arun Firodia said it was essential that they indigenise fast keeping in mind the high level of import duties and the rupee fluctuation.