The second largest elevator market in the world, India offers immensepotential for growth for companies that are willing to invest in innovation andoffer newer technologies. thyssenkrupp has been instrumental in transformingthe global elevator industry, and are making rapid inroads into the Indianmarket, with technologically advanced elevators and escalators. As a Fortune 500 German companywith above 200 years of engineering history, ‘safety’ has always been top focusfor the company.

“Our long termbusiness strategy is to continue growing by offering ingenious, customized andenergy efficient mobility solutions,” says Manish Mehan, CEO, thyssenkruppElevator (India), in an email interview with EPC&I.

“thyssenkrupp istransforming the global elevator industry, improving existing products anddelivering game-changing solutions to make urban mobility more efficient,comfortable and sustainable.” 

• Manish Mehan, CEO, thyssenkrupp Elevator (India).

   

   

  Let me start offby ascertaining your views on the Elevators and Escalators market in thecountry today.

  The Indian elevatorand escalator industry is currently pegged at `10,000-crore and is further expected to growat 7.0 per cent annually. Traditionally, residential elevators segment has beenthe largest contributor to the industry having 70 per cent of the market share.This segment has accelerated the overall industry growth and it continues towitness increasing demand from tier 2 and tier 3 cities.

  Today, residentialsegment is largely dominated by global elevator MNC’s and a couple of domesticplayers by targeting low-rise and mid-rise elevator business in smaller towns.

   

  If you were toput a rough number to it, how many units have been sold by the industry overthe past year?

  The Indian marketis the second largest market in the world for the elevator industry followingChina. The market size is typically measured depending on how many units ofelevators are sold. We estimate the elevator market size to be 55,000+ units. Indianescalator market is estimated at about 1,800 units/annum. Within that, our share in both these segments wouldbe in the range of 7-8 per cent.

   

  Are you alsopresent in home elevator market, and not just in passenger elevator market?

  We provide ourcustomers with home elevators that make their day-to-day living better. Themarket for home elevators, though small now, is growing rapidly fuelled by the ‘necessity-health’factor, changing lifestyles and increasing demand for villas andpremium/designer apartments.

   

  Would you throwlight on your regional presence, and growth?

  We have establishedan extensive network of six Zone Offices, 25 branches, and 73 Service andResponse Centres to serve all our customers 24/7/365-days even at the remotestlocations. In terms of regional share, the Western and Northern regions of thecountry are the largest revenue contributors for us.

  Most elevators inIndia, about 60 per cent, continue to be sold in the major Tier 1 cities.However, with strong growth in Tier 2/3 cities, such as Vizag, Indore,Coimbatore, Bhubaneswar, and Kochi, to name a few, this ratio will change.While Tier 1 cities will have more high-rise and high-speed elevators, Tier 2/3cities are expected to have a higher growth rate in the number of elevators.

  We can see a clearupward trend in T2, T3 and T4 cities and our objective is to harness thisgrowth to achieve a double digit growth for ourselves.

   

  What are the keydecisions that you need to take as a manufacturer to grab a larger share of themarket pie?

  Our long termbusiness strategy is to continue growing by offering ingenious, customized andenergy efficient mobility solutions. We are also determined to strengthen ourMaintenance and Service business. At the same time, we are committed toinvesting continuously in our employees through comprehensive trainingprogrammes on new manufacturing, installation and maintenance processes inorder to increase elevators’ in-service reliability and safety.

  thyssenkruppworldwide invests significant resources in R&D activities to provide thecustomers with the latest equipment. Our design and engineering team works inclose co-ordination with our global business units thereby continuouslyupgrading technology and products in line with international standards focusingon innovative solutions also incorporating client feedbacks received fromseveral installations in the country.

  We have also set-upa new state-of-the-art multi-purpose facility (MPF), built on 84,000 squaremetres of land with an investment of about `300-cr. at Chakan, Pune. This facility includesmanufacturing and logistics centre, customer showroom-cum-experience centre,training centre, and R&D centre. It is designed for an initial capacity ofmanufacturing 6,000 elevator units, extendable to over 10,000 units in theforeseeable future.

  Having approximately75 per cent manufacturing localization at present, the opening of the Punefactory will enable the company to significantly expand in the region andsupport the increasing growth of the Indian construction sector, driven bystrong urbanization.

   

  Elevators todayoffer greater sophistication in features. Would you throw light on the samethat you offer the Indian market?

  Today, customersare considering elevators which are aesthetically advanced and intelligent rather than just ameans of travel. Understanding this need and requirement, we have designedelevators which are not only elegant and sophisticated but also smart intechnology.

  Having said that,thyssenkrupp is transforming the global elevator industry, improving existingproducts and delivering game-changing solutions to make urban mobility moreefficient, comfortable and sustainable. For example, we’ve re-imagined theelevator, 160 years after its invention, by replacing its ropes with linearmotors. In the process, we’ve opened the door to new possibilities – in alldirections!

   

  Would you throwlight on the use of new technologies in your machines, such as sensors, etc?

  We use the latesttechnology in our products to make them more environment friendly.

  thyssenkruppElevator has developed sustainable, eco-friendly products and solutions thatprove themselves through high energy-efficiency and reliable performance overthe long term.

  As compared toconventional elevator control systems, our Destination Selection Control (DSC)system increases passenger handling capacity by up to 30 per cent, minimisespassenger travel times to their destination and reduces crowding in liftlobbies. DSC also allows for much more flexibility in elevator grouping, liftcore layouts and overall building design. It can be applied to new buildingsand existing elevator groups, allowing additional passenger carrying capacityand reducing waiting and journey times without any major engineering work tothe building.

  In addition todeploying permanent magnet synchronous (PMS), gearless traction machines, whichconsume up to 50 per cent less energy than conventional geared machines; ourhigh-rise and high-speed elevators developed for smart cities can be equippedwith a regenerative drive feature, which feeds energy back into the building’spower grid during the motor’s generative mode (when the car is lightly loadedand moving up, or heavily loaded and moving down). Adding the regenerativefeature can reduce energy consumption of the elevator by up to 50 per cent.

  Other energy-savingmeasures include the extensive use of LEDs in elevator cabs and escalators,which can offer up to 80 per cent energy savings, while providing the sameluminance as traditional lights and a lifetime 10 times longer. LED lights alsoemit low heat and minimal radiation.

  Some additional avenues for increasing the energy efficiency are:

• Energy-efficient controller (measuring load and energy recovery).

• Energy-saving operational modes (e.g., speed reduction, sleep mode, ‘stopand go’)

1. Standby functions (e.g., learning function for optimal use)

2. Switch-off functions

3. Optimized motor dimensions tailored for the application

   Talking aboutEscalators, several energy savings approaches are available. With low trafficor long periods of no traffic, stop-and-go operation is a possibility.

   An option that ispopular in Europe and Asia is to slow the elevator down when no passengersare present. Installing variable speed drives or use of variable voltage motorcontrollers can result in energy savings of 15 to 40 per cent. This alternativeis useful with medium traffic.

   Regenerativebraking can be employed on heavily used down escalators and finally, LEDlight sources can be installed for skirt guard, comb, and rail lighting. Lightingimprovements alone can result in 1,600 to 2,000 kWh/year of energy savings.

   We, at thyssenkrupp,have pioneered a significant advancement in mobility solutions by inventing newtechnologies, such as:

   TWIN: TheTWIN elevator system consists of two cabs that operate in the same shaftindependent of each other. Both cabs operate under the same intelligent groupcontrol system and are equipped with an innovative quadruple redundancy safetysystem. It uses less energy while transporting up to 40 percent more passengersthan conventional elevators.

   MAX: MAX is a game-changingpredictive and pre-emptive service solution that extends remote monitoringcapabilities to dramatically increase current availability levels of existingand new elevators. Utilizing the power of Microsoft Azure Internet of Things(IoT) technology, MAX makes it possible for an elevator to ‘tell’ servicetechnicians its real needs, including real-time identification of repairs,component replacements, and proactive system maintenance.

   ACCEL: The unique transportation systemoffers high capacities and high speeds for short distances, with no waitingtimes for passengers and low implementation costs. Passengers step onto theACCEL at normal walking speeds, accelerate smoothly up to 7.2 km/h, or even 12km/h for passengers who continue walking on the pallet band, and thendecelerate to normal speed when leaving the system. ACCEL generates timesavings of 70 per cent.

   MULTI: MULTI is the world’s firstrope-free elevator that moves multiple cars in a single shaft vertically andhorizontally, and reduces elevators’ footprint by up to 50 per cent whileincreasing passenger throughput by at least much.

    

   Increasingtechnology, while largely beneficial to the users, also increases the cost ofservicing. Do you see that as an impediment factor?

   We don’t see asignificant difference in the maintenance cost due to introduction of new technologiesin the elevator industry. In fact, the benefits outweigh cost difference.

    

   As a company, doyou also manufacture the components used in the elevator/escalator, or do yousource them locally?

   Most of thecritical parts we make in our factory, while some parts are outsourced as well.Escalators are imported from our China-based factories.

    

   What are theother pain points for leading manufacturers such as you?

   Every market hasits own challenges. Factors, such as shortage of skilled manpower andtechnology, slow development of urban infrastructure, land-related issues, andprolonged regulatory process for clearances are some of the key challengesfaced by the Indian market.

    

   To what extentdo the fluctuating prices of raw materials and of currencies put a pressure onyour margins?

   To a manufacturer,managing raw material costs remains a top priority. In a fluctuatingenvironment, it is no surprise that manufacturers continue to be concernedabout coping with any such price change/ reform.

   In times of ahighly volatile and changing market, any pressure, especially those involvingraw material can greatly impact the achievement of the company. What makes thispossible is the way these costs are managed. Companies that are able to masterthe management of raw materials can improve their business operations and itssupply chain effectively.

    

   An importantpoint that is not being addressed as much as it should in the country is thelack of safety certifications of the equipment and regulations. How are you, asa leading industry player, addressing this issue?

   Certainpre-required norms are to be considered and arranged for before theinstallation of an elevator. To begin with, the first step is to acquireapprovals from the government for a license for the installation of anelevator. These approvals are, however, dependent upon important factors suchas an authorized contractor maintaining the lift.

   Apart from this,there are several post-installation tests performed to ensure the safety of itsusers. Only once the approvals go through is when the owner needs to engage anelevator manufacturer certified under the ‘company of electrical and mechanicalengineers’ in the state. Post this, the lift is inspected by a lift inspector toensure its quality and safety.

   However, the onlyglitch out here is that only ten states in the country issue these licenses toanswer your question on the issues undertaken by us as a brand.

   As a Fortune 500German company with above 200 years of engineering history, ‘safety’ no matterfor our employees, our customers, or end users, has always been our focus. Wehave high safety guidelines in all steps of the value chain, including R&D,operation, manufacturing, installation.

    

   Lastly, howpositive are you of the future growth potential that the country offers?

   Rapid urbanisationshall drive the demand for elevators and escalator in the mega cities, regionsand corridors in India. Having said that, it has been projected India’s urbanpopulation is most likely to be about 600 million in 2030, up from only 340million in 2008.

   We have 53 citiesnow with a population of a million and this is set to increase to 68 cities by2030. Further, India is expected to have 25 mega cities with a population ofover eight million and four mega regions, each with a population of over 15million by 2025. Density of a city is directly proportional to the height ofthe buildings and this leads to overall infrastructure development.

   With the citiesgrowing and taller residential and commercial structures coming up, we see ageneral development in the overall infrastructure in the cities. All thisbrings with it a wider market base to cater to for its horizontal and verticalmobility.