Finland-headquartered KONE Corporation, one of the world’s largest elevator and escalator makers, is betting on India’s ageing lift infrastructure to drive its next phase of growth. With an estimated installed base of nearly one million elevators and a growing need for upgrades, the company sees significant opportunities in modernisation and retrofit solutions alongside new installations.
In an interview with businessline, Philippe Delorme, President and CEO of KONE Corporation, discussed India’s growth prospects, technology-led retrofit solutions, expansion plans beyond metros, investment priorities and the proposed acquisition of TK Elevator.
Edited excerpts:
India’s estimated one-million-lift installed base presents a substantial modernisation opportunity. How is KONE approaching this market?
India is still a relatively young elevator market, but we are beginning to see demand for modernising equipment installed earlier. We are at the beginning of this opportunity. We have developed a solution that can modernise an elevator in one week. By simplifying and standardising the process, we can complete essential upgrades much faster.
For a six- to 10-storey residential building with a single elevator, shutting it down for five weeks is difficult, particularly for elderly residents or those with mobility challenges. We are seeing encouraging traction for this offering.
When will the one-week modernisation programme be launched in India?
We intend to introduce it in the coming weeks. Our ambition is to complete suitable projects in one week, particularly in buildings of up to about 10 floors. Not every installation will qualify, but we want to achieve this wherever technically feasible.
KONE has invested around ₹450 crore in its Sriperumbudur manufacturing facility near Chennai. What further investments are planned through FY2030?
India is a manufacturing centre for the world. Sriperumbudur is one of our four principal manufacturing locations globally. The plant primarily serves India, but we also want to increase our export capacity.
India has been an important market for us, particularly over the past decade. Manufacturing, technology and innovation remain central to our development here.
When do you expect the proposed €29.4-billion acquisition of TK Elevator to close, and what would it mean for India?
We have announced our intention to combine with TK Elevator, but the transaction has not closed. Regulatory approvals are required in India, Europe and the US. We believe the conditions are right, but the authorities must give their approval.
We are planning for a closing in 2027, potentially towards the latter part of the year. Until then, we continue to compete with TK Elevator. TK Elevator has operations in India, and we would look at combining those operations if the transaction receives the necessary approvals.
KONE has held roughly 25 per cent of India’s elevator market for several years. Could the acquisition help it capture a larger share?
We do not comment on market-share figures for individual countries. We are one of the leaders in India and aim for leadership. Our differentiation comes from safety, customer satisfaction and innovation. These have driven our development in India and will continue to guide us.
Beyond the major metros, where do you see the strongest growth opportunities?
We are well established in high-rise and mid-rise buildings in major cities. We also see opportunities in the next 20 cities, where we have expanded our geographical presence, particularly in low-rise and mid-rise developments.
Residential construction remains a major driver. Buildings are becoming taller, increasing demand for higher-speed elevators.
Are you developing products for emerging segments such as luxury villas and data centres?
We see opportunities across residential segments, from high-rise developments in Mumbai to individual villas. We have introduced Villa 100 for premium residential properties and are seeing encouraging demand.
What is KONE’s single biggest priority over the next five years?
Digital transformation. It is something we cannot afford to miss. Digital technology helps us improve safety, predict maintenance requirements and deliver a better customer experience. Our new Digital Experience Center in Pune is an important milestone in demonstrating these capabilities to customers.