OTIS: Rapid Urbanization is Expanding Elevator & Escalator Market

"Population in India's cities is growing at a rapid pace which is driving the increased need for housing and infrastructure. To support this growth and urbanization, the elevator industry is playing an important role and also expanding its market day-by-day. According to the Industry experts, the Indian segment for elevators is expected to grow to 70,000 units per year by 2017," says, Otis' Managing Director, Mr. Sebi Joseph in an interview with Maria R.

What is your overview of the elevators & escalators segment in India in view of the new Government's focus on Infrastructure development that include the proposal for 100 smart cities, modern transport infrastructure facilities, etc. across the country?
According to a report from The McKinsey Global Institute, by 2008 India's cities were already home to 340 million people, roughly 30% of the country's population. By 2030 India's cities are expected to grow to 590 million people or 40% of the population. The Indian government's announcement to set up 100 new smart cities is, in a sense, recognition of this mega-trend.

As urbanization drives the increased need for housing and infrastructure, the elevator industry will play an important role in supporting that growth. Industry sources state that the Indian segment for elevators is expected to grow to 70,000 units per year by 2017.

How do you view Otis' landmark win for supplying 670 elevators and escalators to the Hyderabad Metro Rail project which is one of the largest single contracts in the history of the Indian elevator and escalator industry?
Otis is proud to have won the elevators and escalators contract for Hyderabad Metro Rail Project by L&T Metro Rail (Hyderabad) Limited (LTMRHL). Through the contract, Otis will supply and install 670 elevators and escalators, including 260 Gen2® Premier elevators and 410 units of 520 NPE escalators, which will be installed in more than 65 metro stations, workshops and other buildings at depots. Otis will also maintain the units for 10 years after the warranty period.

This win affirms Otis' position as a major vertical transportation supplier to metro systems worldwide. Our experience with the Taipei Metro System, Shanghai Metro Line 6, Singapore East-West Metro Line, Tianjin Subway, Beijing South Railway Station, etc., will all help in delivering the best solutions for this prestigious project.

This is a landmark win for Otis as it is one of the largest single contracts in the history of the Indian elevator and escalator industry. We are extremely delighted to collaborate with LTMRHL on a project that was considered one of the top 100 strategic global infrastructure projects by the Global Infrastructure Leadership Forum in New York.

Could you please tell us about the technology of Gen2® Premier model of elevators and 520 NPE model of escalators?
The Gen2® Premier elevator system combines the benefits of energy efficiency and environmental responsibility along with Otis' longtime emphasis on passenger safety and comfort. This equipment includes the innovative Gen2® flat belt system that replaces conventional steel ropes. The Gen2® Premier machine's compact size eliminates the need for a machine room. This system also consists of the PULSE™ belt-monitoring system, which electronically monitors the status of the belt 24/7, 365 days a year. Gen2® elevators, equipped with the energy-conserving technology of Otis' ReGen® drives, are capable of reducing energy usage by up to 75% when compared with conventional systems with non-regenerative drives. ReGen drives reduce energy usage by capturing the energy normally dissipated as heat during braking and feeding this energy back into the building's internal electrical grid for use by other building systems, such as adjacent elevators and lighting.

The 520 NPE escalators cater to public transport and heavy traffic environments by offering exceptional safety, reliability and service-friendly design. Interfaces for remote monitoring and control enhance safety in operation.

Would you like to discuss any other green or smart technology which has been introduced by OTIS recently?
Otis has come up with a new elevator from the Gen2 range titled, Switch. The Gen2 Switch is an easy to install, single-phase battery operated, elevator system that will be a boon to parts of India that suffer from frequent power cuts. Under normal running mode, the single-phase power supply charges a pack of batteries, which in turn supplies power to the elevator motor. In the event of a power failure, the battery pack continues to operate the elevator for up to 100 trips, eliminating the inconveniences of a power outage. It's also simpler as it uses 230 volts single-phase power supply instead of conventional three-phase 400 volts power supply, thus making it "Plug & Go." Its environmentally sustainable design coupled with its compatibility with alternative energy sources like solar panels makes it truly sustainable. This is the latest and biggest innovation from the Gen2 range that is geared towards efficiency whilst providing environmentally responsible features and benefits.

Elevators demand for small size individual projects of around 3-4 storey buildings are generally taken over by low-cost countries' products. What marketing strategies are you adopting to capture the share of this fast growing segment where price is a big concern?
The residential segment accounts for a large share of the elevator industry. For low rises, we have and are working continually on developing a range of indigenous solutions that will be specifically designed for, and targeted at this segment.

Could you brief us about your recently expanded and modernized Bangalore facility and its impact on your offerings? A word about your India specific R & D Wing.
The current factory at Bangalore is being expanded to more than triple the size it was and will double in production capacity. It will include one of India's tallest test towers. We are currently pursuing the Indian Green Building Council's Gold Certification for our Bangalore factory. In addition we are also investing in engineering resources and capabilities.

What is your view on the Indian safety standards for elevators and escalators?
India does not have a national regulatory body that defines safety standards for elevator manufacturers. While there are standards issued by the Bureau of India Standards, these serve as guidelines and are only mandatory in the states of Haryana and Tamil Nadu. In addition, 10 states have enacted their own Lift Act and Rules, but these are mandatory in those states only.

Industry bodies like the Bureau of Indian Standards are trying to change this by driving mandatory safety standards for the elevator and escalator industry and seeking cooperation from the states. At Otis, safety is fundamental to everything we do and we are supportive of industry efforts to raise awareness on the importance of adopting such standards.

Awareness of the masses is also crucial. Otis actively works with Elevator Escalator Safety Foundation (EESF), a non-profit organization, to conduct workshops on elevator safety in schools, housing societies and corporations. So far our workshops have reached out more than 23,000 students across India.