Lift off: TN bets big on elevators

Time of India

2 hours ago

Tamil Nadu has a proven expertise in automobile, electronics, and textiles manufacturing. It has parallelly emerged as a frontrunner in the production of elevators as well. Manufacturers in the state fulfil more than 30% of the demand for elevators in India, which is the second-largest market for elevators and escalators after China.
India requires 80,000-85,000 elevators a year. Currently, the market is growing at the rate of 10%-15% YoY, which opens a huge opportunity for the state.
TN is home to top MNCs including KONE, Fujitec, and homegrown Johnson Lifts. These companies have established their R&D facilities here too. Several small and medium players are operating in Chennai and Coimbatore. As the largest manufacturer, Made in Tamil Nadu elevators are exported to different countries.
With the bureau of Indian standards (BIS) mandating the new lift code (IS 17900-1 & 2) to enhance safety features effective from the end of the year (CY2025), exports could see an upswing as elevators must be manufactured as per European standards.
Manufacturers say the state can be a 'global player' if steps are taken to build components locally to reduce dependence on China.
TN had an early mover advantage in this space since the 1960s, thanks to a strong industrial ecosystem in regions such as Chennai.
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The city-headquartered Johnson Lifts, the largest manufacturer of elevators and escalators in India, has some of its installations at the new parliament house, statue of unity, Pamban bridge in Rameswaram, besides metro and railway stations and airports. A pioneer in the sector, the more than six decades old company recorded a turnover of `3,000cr in FY25 out of the `13,000cr revenue of organised elevator players in the country.
About 80% of its demand is from the residential segment.
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Yohan K John, director, Johnson Lifts says around 25,000- 26,000 elevators are produced a year in TN. "Better manpower is a reason for the state being a hub," he added. With four facilities including three around Chennai and one in Nagpur, the company is investing `250 crore over the next 3-4 years to expand its R&D. The facility coming up at Sengadu in Kancheepuram district will have a new test tower to test high speed elevators exceeding 4 metres a second.
Johnson has presence in 11 countries across the Middle East, Africa, and South Asia — including standout projects such as Skywalk Tower Nepal.
Finnish firm KONE, whose India operations is based in Chennai, has developed the world's largest passenger elevator with a capacity to carry 235 people at the Jio world centre in Mumbai. In a span of four decades, it has emerged as a leading player, wherein one out of every four lifts used in India is made by KONE.
In 2019, KONE Elevators India, a fully owned subsidiary of the Finnish KONE Corporation, opened its new plant at Sriperumbudur. Later, a 72-metre tall R&D elevator test facility was developed at an investment of `100 crore and inaugurated in 2023. Last year, it forayed into escalator manufacturing. The production unit also exports to Bangladesh, Bhutan, Nepal and Sri Lanka. "This is the largest factory for the industry in south and south-east Asia for elevators and escalators," said Amit Gossain, MD, KONE India.
"These elevators require a lot of steel. For us to be competitive, the steel should be priced right. When we export a product (made using imported steel), the govt should offer some subsidy so that we are more competitive globally," he added.
Another city-based manufacturer, Nibav Home Lifts has five manufacturing units, with the largest facility becoming operational at Irungattukottai last year. Founded in 2019, the company is focused on home lifts for private residential use.
It exports to about nine countries including the UAE, Malaysia, the US, Canada. Vimal Babu, founder-CEO, said, "The presence of industrial zones with plug-and-play facilities has helped manufacturers scale faster and reduce time-to-market.
Simplifying regulatory frameworks and enhancing export facilitation can improve global competitiveness," he said.
Kannan Joseph, MD, Cooper Elevators tells us, "Component manufacturing is the need of the hour for SMEs to expand. Key components including guide rails, cables, and drives are being largely imported from China as we have only a few companies in this segment in India. So, the TN govt must support component manufacturing by creating a facility. This will make us self-sufficient," he said. State industries secretary V Arun Roy said, "The sector will be supported.
Mechanical and electronics manufacturers can avail of schemes for component manufacturing."
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