May 14, 2015
Mitsubishi Corporation Announces New Elevator Plant for India
Joint Venture to Start Production in World’s Second Largest New Elevator Market
Mitsubishi Corporation (MC) and Mitsubishi Electric Corporation (MELCO) are setting up a new plant in India at MELCO subsidiary Mitsubishi Elevator India Private Limited (IMEC) to start manufacturing of elevators for the Indian market. The move is expected to enhance competitiveness in what is now considered to be the world’s second largest new elevator and escalator market¹ and contribute to their target of achieving 5,000 units per year in sales in India by FY2020.
The escalator and elevator market in India is growing rapidly in keeping with the country’s rapid economic growth. With demand reaching 47,000 units for newly constructed buildings in 2014, India is now the world’s second largest market for new escalators and elevators, following China, and demand is expected to see continued growth. MC’s elevator business in India dates back to 1995, when it started to support a local sales agent. In 2012, MC and MELCO established an elevator distribution joint venture company in Chennai in the state of Tamil Nadu in order to strengthen its business base for sales, installation and maintenance. The joint venture has been expanding its business with the introduction the “NEXIEZ-LITE”, a new product developed for low- and mid-rise buildings.
The establishment of this new production plant in Bengaluru, in Southern of India, which is home to a number of IT companies, will not only enable IMEC to localize the manufacture of elevator products, particularly the NEXIEZ-LITE, but will also serve to strengthen the competitiveness of MELCO products in terms of price and lead time. It will also contribute to business expansion, based on a streamlined structure for production, sales, installment and maintenance. IMEC is also planning to construct 41-meter high elevator test tower and a field training center for installment and maintenance in an effort to enhance the capacity of engineers, all with the aim of improving the quality and reliability MELCO’s products and services and further boosting customer satisfaction.
As its escalator and elevator market continues to grow, India stands to be positioned as one of the world’s most important markets in this business. Through the construction of this new plant and additional shares acquired in IMEC in March of this year, MC will continue to strengthen its business foundations as a strong competitor in the escalator and elevator business in India.
1. As of May 2015, based on MELCO research.
Outline of New Plant
Location : Bengaluru, Karnataka, India
Area : 89,000 m²
Total Building Area : 25,400 m²
Purpose : Manufacture of elevators equipment
Production Start Date : July 2016
Production Capacity : Up to 5,000 units / year
Investment Amount : 1,833 mil INR (approx. 3,450 mil JPY)
Number of Employees : Approx. 200 (at start of operations)
Related Facilities : 41-meter high elevator test tower; field training center
Company Name : Mitsubishi Elevator India Private Limited*
Business : Manufacture, sale, installation and maintenance of Mitsubishi elevators and escalators
Location : Chennai, Tamil Nadu, India
Representative : Masahito Endo, President and CEO
Investment Ratio : Mitsubishi Electric Corporation, 45.5%; Mitsubishi Electric Building Techno-Service Co., Ltd., 5%;
Mitsubishi Electric India Private Limited, 4.5%; Mitsubishi Corporation, 45%
Capital : 1,089 mil INR (approx. 2,050 mil JPY)
Date Established : August 2012
Number of Employees : Approx. 1,000 (as at the end of March 2015)
* The company name was changed from “Mitsubishi Elevator ETA India Private Limited” to “Mitsubishi Elevator India Private Limited” when IMEC became a 100% Mitsubishi-owned company in April 2015.
Inquiry RecipientMitsubishi Corporation
Telephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705