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Elevators and escalators major Johnson Lifts is on a consolidation mode as it seeks to expand into Tier III towns and rural parts of the country.
The company, which competes with several multinational players, commands over 22 per cent share of the organised lift market. The country’s lifts and escalators industry is worth ₹11,000 crore, with lifts accounting for about ₹10,000 crore. The sector is growing at about 10 per cent and the company expects to close the year with a growth of 15 per cent; it is eyeing 20 per cent growth next year.
The company, which has provided its solutions to 12 Metro projects and 27 airports and installed over 800 plus elevators in railway stations, expects further upside to its business as the country is expected to see a surge in infrastructure investments.
Despite the entry of MNCs into the Indian market, Johnson Lifts continues to be No. 1 in India, manufacturing over 12,000 units annually.
“There has been a significant growth in opportunities owing to major urban infrastructure development programmes. The opportunities have attracted many multinational players, bringing in stiff competition along with it. However, Johnson Lifts retains No. 1 position with a 22% market share,” said Albert Dhiraviyam, Country Head–Marketing. “In 2009, Johnson Lifts clocked a turnover of ₹419 crore, with 5,200 units; in 2019, it crossed ₹2,000 crore, delivering 12,000 plus,” said Albert Dhiraviyam.
Capacity expansion
From two factories in 2009, Johnson Lifts has expanded to four factories in 2019 with a combined facility output of 16,000 lifts per annum. “Foreseeing the growth in lift requirements and the need for heavy-duty escalators, a new integrated, fully automated lift factory is now ready for production at a 1.4 lakh sq facility at Sengadu in Tamil Nadu. This factory will be able to produce an additional 6,000 lifts per annum. Also, an additional line for heavy-duty escalators has been installed at the factory in Oragadam in Tamil Nadu. This new line will be able to produce 600 escalators per annum,” he said.
“The Metro Rail and the Railways have awarded us the contracts worth ₹673 crore to manufacture and install 828 escalators and 365 lifts for stations in Mumbai, Kolkata and Bengaluru. For the upcoming inter terminal airport project in Chennai, we are to install 50 escalators, 41 lifts and 12 moving walks,” said P Chaitanya, General Manager.
The company, which launched high-speed lifts and villa lifts in Telangana, expects this to be one of the growth drivers. It expects Telangana and Andhra Pradesh to contribute about ₹200 crore to its turnover.
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