Otis India continues to remain committed for growth in India.

- Sebi Joseph

President, Otis India

How do you assess the growth journey and success of Otis in India?

Otis began its journey in India with the installation of its first elevator at Raj Bhawan, Kolkata in 1892. The company later set up a base in the country in 1953 and built its first manufacturing facility in 1971. Today, the company has its sole state-of-the-art manufacturing facility in India at Bengaluru. The facility is equipped with a test tower, mechanical and electrical test labs, high-end equipment and is staffed with a strong engineering team to meet stringent Otis safety, quality and reliability standards. Additionally, Otis has the largest maintenance portfolio in the industry and in India, our field service professionals keep the critical infrastructure in check.

The company introduced Otis' flagship Gen2^® technology, which revolutionized the industry with a smoother, quieter and more environmentally responsible option. Localization too has been an active part of the Otis growth story in India with technology that is best suited to the local customers and environment. Most recently, Otis India introduced IoT and digitalization to bring increased efficiency and transparency to the service business. Over the last decade or so, Otis has won orders from many prestigious companies and projects including the Statue of Unity, World Trade Center Chennai, Hyderabad Metro, Delhi Metro, Hyderabad International airport, Bengaluru International Airport and Bengaluru Metro.

What are the prevailing market trends in the elevator & escalator market in India?

Since 2016, the Indian real estate segment has faced some challenges that resulted in a consolidation among builders, and leading builders and top brands have grown significantly.

In the latter half of 2021 and in 2022, there is a revival of the real estate market led by the residential segment. This was majorly driven by a combination of pent-up demand, government support in stamp duty reduction, low interest rates and discounts from builders to reduce housing inventory levels. However, the higher cost of raw materials has led to the builders increasing their housing prices.

In the recent past, we saw a trend amongst developers to install larger elevator cabs to follow the COVID protocols. Furthermore, the elevator and the escalator industry was already riding on the back of digitalization and in my opinion, the trend is going to continue moving forward. That aside, India is a fast-growing country with high-residential projects and strong push towards Make in India, as a result of government issued tender projects, which is bound to fuel the need for elevators and escalators in the long run.

Which are the emerging demand segments for elevators and escalators in India? How are you re-aligning with the new business areas?

In India, we see potential growth segment for elevators and escalators from Tier II & III cities as a result of infrastructural and affordable housing push from the government. At Otis India, we have a 'City View' program to improve the penetration in the regional areas of the country. To make our foothold strong pan India, we are launching entry level, locally manufactured products for the affordable housing segment.

What are the new products and service innovations undertaken the company?

The modern Indian customer is now paying more attention than ever to elevator aesthetics and digitalization, in addition to safety, reliability, comfort and sustainability. Customers are looking for softer edges, etchings, patterns, unusual colors, materials and textures. Therefore, we have released and are continuously working on a new range of aesthetic designs around the world. Otis India too, has launched its Gen2^® Ambiance elevator cab aesthetics range for Gen2 elevators. The design leverages a combination of materials, forms, textures and patterns to form a look that allows one to differentiate an Otis elevator from any other. Using the company's Otis Create feature, customers can visualize their elevator design and curate the look they prefer.

Innovation is at the core of Otis India and therefore we have launched a digital portal so customers can now book an order for a Gen2® Prime elevator entirely online. Using the company's online portal, customers can customize their order, get a live quote, and book their elevators from their mobile phones or laptops. Otis India, like much of the world, operates on a digital-first basis. So, we created this system to best meet our customers' needs - especially our customers in Tier-1 and Tier-2 cities. Our objective is to make elevator purchases as easy as buying an appliance.

Going forward, Otis will soon personalize service experience in India with the launch of our Otis ONE IoT solution, planned for Q3.

This will be followed by the launch of Gen3 elevator platform to meet the current needs and future expectations of an increasingly connected digital world through IoT, sensors and machine learning.

How is the company focusing on Make in India for India and for the world market?

At Otis, we see value in localizing elevators and escalators in India. Otis serves over 90 per cent of its India elevator and escalator demand through its manufacturing facility in Bengaluru. This facility manufactures some of Otis' globally recognized products, the Gen2^® range of elevators, Link™ commercial escalators and Gen2 Arise™ high rise units, while customizing it in accordance with the needs of the India market. This competence is a key driver for our export strategy. Currently, we are exporting to Southeast Asia, Middle East markets and will expand to other countries.

What is your outlook on the elevator & escalator industry?

As in other parts of the world, we see mega-trends of rapid urbanization, a growing middle class, and increased digitalization as contributors to growth in the elevator and escalator industry. The 'Passenger Experience' part of elevator technology is evolving rapidly. During COVID, we launched touchless technologies that leverage passengers' smartphones. This year the industry will take it a notch up and focus on audio connection to elevators with Otis ONE™ IoT. The idea is to enable a two-way voice network. It means that in the event of an emergency, the passengers can speak to the helpline and the engineering team through a voice device. Going forward, we plan to provide a video connection to the elevator.

What is your growth strategy and targets?

India is one of the largest elevator markets in the world and Otis India continues to remain committed for growth in India. For the future, our strategy remains consistent - Product localization and competitiveness, innovation, sales & field efficiency, and digitalization. We will continue to remain focused on being customer and employee centric.

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