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With infrastructure development and growth in the real estate industry, the market for elevators and escalators is on an upward spiral. According to industry experts, all metros and upcoming cities with an urban population of over one million, are growing markets for elevators and escalators. The Indian elevator industry is growing at a rate of 15 per cent to 20 per cent year-on-year with about 30,000 elevators and escalators sold per year. Residential buildings and commercial establishments like shopping malls and call centres along with infrastructure projects like airports and metro railways are driving this growth. However, one fact that needs to be kept in mind is the safety aspect of elevators and escalators. With an increasing number of malls and high-rises coming up in Tier-II and Tier-III cities, one needs to ascertain if the market is ready to ride these high-end contraptions. The Bombay Lift Rules of 1958 mandate that every lift be inspected once in six months. However, the Public Works Department is often unable to undertake even one inspection in a year. While there are a total of 71,742 elevators across Maharashtra, the total number of PWD lift inspectors is not more that 50. “It takes about three hours to inspect a single elevator in an average 25-storey building. It is not humanly possible for the PWD to ensure the safety of every elevator in the state on a regular basis,” says TAK Mathews, member of the International Association of Elevator Engineers and of the National Association of Vertical Transportation Professionals (USA).
Mega Elevator Opportunities in India – Curtain Raiser
Rajah Venkatraman (Fortune Consultants Ltd., Asia)
Another logical prophecy – “There is great explosion waiting to happen in elevator industry in India”. The prediction of sudden spiraling of demand explosion and such requirements driving the opportunities for the elevator industry is detailed in given with full statistical data. The ways of working in India is explained to the benefit of industry people to participate in such golden opportunities. Category: Issue 6/2008 Posted by: Editor Reviewed Statistics for Elevator demand: for new buildings and existing buildings (due to reasons) and types of Elevator/ components requirements Supply opportunities to meet demand: For major/ minor / component / replacement / maintenance players Arrangements – by
people now know Dubai from the “Burj Dubai” the “World’s tallest tower” in the making. Analysis of elevator Requirement There is logical reasoning of the huge elevator requirement that is happening in India. It is actually very different. comparatively the elevators also reflect the high class. offices. This is not so much need driven by the local population. Hence. may be laced with expensive material and probably splendor splashed on the elevators and elevator lobbies. The different sectors of elevatorings industry can use this opportunity to be part of this happening. In a place like Dubai the elevators may have very high speeds.000! (Projected). Most of the buildings are limited to low rise only. Population in 1991 was around 843 million and in 2001 it is around 1. the costing for these. Sometimes. In India it is considered absolutely as the basic mode of transport to take you up to your floor.300. There is a constant requirement to feed these buildings hotels.000. Population the major factor The huge population is making it a basic necessity for buildings to go vertical and hence requiring elevators. labour structure. But for the population existing (and increasing in folds) it is necessary to add numerous tall buildings for living. The ways to set up an establishment is also explained and also the approximate costs of the industry explained for the benefit of the industry people eyeing this opportunity. They are basic necessities. (This is the single most important reason). Lots of people have told that India gives a “Humbling Effect” looking at the difficulties of people like “Human drawn carriages” carrying people (with men running like horses). Hence people always consider that similar scenario exist. Either attracting as overseas homes for expatriates or fancy Hotels for visitors/tourists.manufacturing/ Distribution from overseas arrangement governmental regulation. holiday homes with continued occupancy for the future which depends on the capable governance (as seen carried out efficiently). India is very close to Dubai . Actually most of the things in India are not luxury if you look at it from humanitarian or human rights point of view. The requirement is partly as per the regular development scenario and this can be multiplied many folds if the suitable supply is effected according to the needs of the masses.150 million and in a few years in 2011 1. in the older building the apartments on higher floors cost less due to the various difficulties like elevators etc. High rise buildings are a small percentage of the buildings. In the elevator industry. also as the land area is limited with large coastal areas. not being very convenient. People know India from history. In Dubai the population of citizens or original sons of the soil is very low. the support structure. The huge numbers of buildings planned are mainly to cater to the expatriates visitors. People would climb many floors on their apartments since they could not afford even the cheapest elevator. And there is a huge amount of construction happening in Dubai and large numbers of elevators are being provided. .
it is approximately distributed as follows: We can work on the urban population of approximately 350 million people.Projected Total Population of India. . from these projections.
Uniform distribution pattern of requirements The map shows uniform distribution of population and the country has progressed also uniformly as explained.600 Euros).000 ($2. The whole world in looking in surprise at what has been made available to the common Indian “Welcome to India!” “Understand Indian Needs!” “Tycoon Ratan Tata. unveiled no frills Nano at the Geneva Auto Show. the population and importance is distributed. Pondicherry..These states in turn have 3 or 4 satellite cities of importance. Trichy. Due to historical importance of many cities almost all the cities are having uniform developments.100.500. Hence. 1. For example in Tamil Nadu – Chennai. A decade ago the author (Raj) in a presentation had mentioned that India required a different type of car to suit the masses. Madurai. which may have low population but have large tourism interest and hence have developed well. the 70-year-old who heads the tea-to-steel Tata group. Now it is a reality. Tuticorin all equipped with airports. There are smaller like Goa. Coimbatore. major hotels. Tata touts the Nano as the World’s cheapest car at just Rs. aimed at Indians hoping to trade up from a motorcycle to four . manufacturing/ tourism/trading/computers and other industries Mega elevator opportunities in India – curtain raiser Need of the indian masses We have to take a leaf out of the auto industry. Chandigarh etc.
There is a huge population that is desperate to handle their basic needs. People would travel on top of the trains / buses to reach their destination (Figure 3 & 4). As can be seen from pictures which speak for themselves. They need elevators. Now if there is an elevator solution to these masses then it will be received with prompt acceptance like it is probably happening for “Nano ”. It is not the comforts it is the need to “manage” or “reach”. .wheels. They need cars but need not have all the frills. This is actually the need of the masses. no electric windows and no power steering” was quoted in the news. The basic model has no air conditioning. not necessary to have frills again. In India large masses require help. That is why when people are in a much enviable situation and still complain they should probably visit and see the troubles taken by these masses (with even cheer on their faces often!) it would for sure give “Humbling Effect” to say “we are a lot better off”.
These deluxe villas are potential for providing economical home lifts. 5 % of the villas can be considered top end with 2 floors and above.5 million families live in apartments (100 families per apartments buildings is 42.e. over 21. The second category is again additional potential. safe elevators (like no frills airline) and this is a large opportunity area additionally.Residential Building Approximately 350 M people are expected to be in the urban environments. These would be High end apartments requiring elevators like in any other part of the world. But Smaller Hotels/Ordinary office again (supplement to residential buildings) would provide lifts if found to be economical (no frills as mentioned earlier).000 buildings of which above 5 % require elevators i.250 buildings). The low end apartments. This can also be considered potential area for providing lifts. Hotels/Offices Building Additionally Hotels / High End office (supplement to residential buildings) would have elevators being “A” Class. 350 M people with 7 person in each family 50 million families.5 million villas. the balance 90 %. has the potential to be converted to “building with elevators” and this would depend upon the provision of economical no frill.000 deluxe villas. 42. that is 375. 15 % of them stay in villas and that is: 7. .5 million/100 = 425.
are also mushroom ing will also require large number of elevators and escalators. Hence. Now the same type of apartment would cost around 100.These are in addition to the residential units as all the working population has to be housed in offices buildings and have to be housed during travels (largely business and occasional holidays). shopping complexes. So as more apartments taken. Very insignificant numbers. etc. Expansion of Retail Trade Lots of airports.000 $ each and the elevators would cost as much as three apartments. Airports.000 $ each (due to increase in land cost) and the basic elevators would cost about 1/3 the price of one apartment for a small sized building. about 8. Local Regulation In quite a few cases the governments have also made it mandatory to have elevators for buildings of about 4 floors & more. MRTS. It is also noted that Houseless Population is 1. so more elevators required. the apartments have to necessarily have elevators. hence goes to confirm all others are housed! Other factors influencing more elevator requirements Relative Prices The necessity is the key word in India and with time there have been some consolation to be able to provide elevators in apartment buildings. 8 % is children below 3 years. Hire Purchase Earlier.900. For example. if the apartments would cost about 10. Other Elevator Dependants Looking at the growing population of older aged Indians.5 % population is in the Senior Citizen category in the others about 9 % of total population is having medical constraints or handicapped (apart from Senior Citizens). than traveling to their distant rural town homes. Government Subsidies The Government suppliers electronics/ easing on elevator prices while the cost of petroleum products is going up (relatively). Elevators also help to make the building go more higher. years ago. widely. it makes it possible to possess the apartments. With the hire purchase and mortgage systems which have only now been well established.000. This makes the (nearer) urban vertical housing (apartments) a stronger proposal. crowded joint family homes are breaking down into more single family homes in apartments. a person can never save to get to the market price. Preferred Investment . Hence. Hence now the provision for elevators has become a very small component in the building and is immediately accepted. The cities are getting modern and more sophisticated. theatres. The cost of elevators has not increased much over the years.
Hence. maintenance and other factors. High speed elevators to serve upper exclusive floors and pent houses would be important in such Class “A” buildings. low rise and mid rise is the generally preferred requirement of buildings and the elevators required would also fall in the category. for example. there is a cream which would use a good class of elevators and using zoning/VIP service etc. The type of buildings and location of buildings largely influence the decision on type of elevators. elevators would bear the brunt of such situations. . But if you live at the low end and stay at the pent house it does not attract any attention. The elevator provision / maintenance if not done properly it will be badly affecting the building on day to day basis. Type of elevator requirement The taller towers are normally considered as a difficult proposition to handle from civic. But the large majority would not be too much concerned about the higher speeds or fanciful elevators but treat it as a mode of transport. “Pent house” concept is only driven by the location. if the building management is not good or if the residents do not cooperate in taking care of maintenance commitments and then the whole support system fails. However. Comfort Levels In the modern world.In other areas of investment there have been huge collapses like in share/stock markets which have driven people towards presently more safer form of investments in real estate and hence more need for buildings and hence elevators. However. compared to old times and comfort levels of individuals are also increasing and hence they would have the elevator than walk up the building of 3 floors or above. to cater to the elite residents at the top of the building. Hence. Most of the other cities it is not need driven to have tall towers. Type of elevators would also depend upon type of buildings. Hence. For example in Mumbai the high end would stay at Malabar Hills or Nariman point places like that and then a pent house in that area would be considered as icing on the cake. to accommodate the huge population requirement it is considered as an economic optimization to go upwards as the cost of land gets higher. is a city with much less land area (and having to reclaim land from the sea) there is a tendency to have taller towers. Hence. The pent houses are also not the fancy as each city has upper crust of the society living in certain areas and other areas are just about ordinary. presently large number of buildings are planned between 3 and 10 floors in the urban area. Of course Mumbai.
Establishment set up for meeting the elevator Setting Up Arrangements for Elevators Supply. Indian support structure is also useful due to good computer skills for Company needs. availability of internationally cheaper industrial lands etc. Feasibility of Public participation in company funding also exists. Morris etc. Possible Supports It is very much preferred to have locally accessible company more than on overseas based company (This is well understood from the fact Suzuki. Hyundai. Fiat. Costing on local support infrastructure . This will be useful for import/export activities of the company. who are not market leaders in the Global auto industry have hit unbelievable sales volume in India due to the fact that they setup shops in India). Close Proximity Sea access in all directions to farther countries and well connected central position by air from East and the West.
address. Get the memorandum and articles of association vetted by the Registrar and printed Company name approval must be done electronically. one of which is duly stamped. Make an application to the Superintendent of Stamps or an authorized bank requesting for stamping of the Memorandum of Association and Articles of Association The application should be accompanied by the following: (i) Unsigned copies of the Memorandum of Association and Articles of Association (ii) Payment receipt. – The concerned authority verifyes all the documents and. allocates a permanent DIN. The Superintendent returns the copies. father’s name. the Memorandum of Association and Article of Association together with miscellaneous documents have to be fi led within six months of the approval. and embossed. the same is required to be signed by the promoters of the Company including commencing with the name and description. . Ensure that the copies submitted to the Superintendent of Stamps or to the bank for stamping are unsigned and no promoter or subscriber has written anything on it by hand. upon approval.The procedure to set up office for establishment Obtain director identification number (DIN) For that obtain the provisional DIN by filing application Form DIN-1 online. evidencing the payment of the requisite stamp duty. Obtain digital signature certificate To obtain a Class-II Digital Signature Certificate. signed. After signing the documents are to be dated. Present name of company for approval to the Registrar of Companies (ROC). Once the Memorandum and articles of association of Company have been stamped. and the number of shares subscribed for in their own handwriting which is duly witnessed. occupation. company directors submit the prescribed application form along with proof of identity and proof of address to authorized agencies. The application signed and sent for approval along with proof of identity and proof of address. Once a name is approved.
or voter identity or ration card. The ROC will then scrutinize the documents filed by the company and if necessary. the elevator industry should take up this challenge and use this opportunity favorably. passport. Hence. • • • • • • Obtaining a tax account number for income taxes deducted at source Registering for Shops and Establishment Act. evidencing the name of approval – Copy of challan evidencing the fee with respect to above mentioned forms – Power of attorney from the subscribers for in favor of any person for making corrections on their behalf in the documents and papers filed for registration. the authorized person will on intimation make the necessary corrections under his initials. Also adapting to the underlying demand by providing solution with elevators for the masses the elevator volumes can go up many folds as there is a basic need. Acknowledgements Thanks to my daughter Sneha for assisting on this paper and to my guide and advisor Jim Fortune . it processes the papers in order of their receipt . each person is required to quote his permanent account number (PAN) for tax payment and tax deduction account number (TAN) for depositing tax deducted at source. These documents in addition to their online uploading are also to be fi led in original with the ROC. Once the documents are uploaded and confirmation of payment of fee is received from the Bank by the ROC. Other Procedures include the following • • Obtaining a company seal for use Obtaining Permanent account number Under the Income Tax Act. That authorized person will be provided the obtain the certificate of incorporation of the company from the office of the ROC. evidencing the address proof of the company Form-1A.Certificate of incorporation Copy of Form 32 along with the consent letters of the Directors of the Company. 1961. 1948 Registering for Value Added Tax (VAT) before the Sales Tax Officer of the ward in which the Company is located Registering for profession tax Registering with Employees’ Provident Fund Organization Registering with ESIC (Medical insurance) Conclusion Various scenarios have been presented to highlight why there will be large requirement of elevators. application and declaration for incorporating of a Company and printed on non judicial stamp paper – Form 18. The company can commence its business on getting incorporation certificate from ROC. who are appointed therein – Form 1. This must be on non judicial stamped paper – Identification of the subscribers by way of copy of driving license. The setting up of companies is also very clearly explained in procedure and the support systems are also seen as more favorable.
in Asia with offices in Dubai.References Census of India. This paper was presented at ELEVCON Thessaloniki 2008. He underwent a course at the reputed Indian Institute of Management and a Course in International relationship at the Bombay University. Lustig. Abu Dhabi and India. edited by A. News from KT. GN & AFP etc. He is a graduate of Engineering from the reputed Indian Institute of Technology. the International Congress on Vertical Transportation Technologies and first published in IAEE book “Elevator Technology 17”. It is a reprint with permission from The International Association of Elevator Engineers iaee . He had started in the elevators industry with Otis in the Mid 70’s then worked with Mitsubishi. Biographical Details Rajah Venkatraman is the Director of Fortune Consultants Ltd.
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