KONE has agreed to acquire the front-line elevator business of Bharat Bijlee Limited (BBL), one of India's leading electrical engineering companies, and thereby significantly strengthen its position on the Indian elevator and escalator market.
Given the country’s increasing prosperity and urbanization, India is expected to be one of the most significant growth areas in the elevator and escalator business. The integration of BBL's elevator operations into KONE India will raise KONE's market share in India to nearly 30%.
Today, BBL has a maintenance portfolio of about 5,000 units and sells some 800 new elevators annually. BBL's elevator business recorded net sales of nearly EUR 12 million in the fiscal year ending 31 March, 2004 and employed 460 people.
KONE has had operations in India since 1991. In addition to a nationwide service network, operations include a global R&D center specialized in software development and production for the local market.
The finalization of the agreement requires approval of the appropriate Indian authorities.
Director, Secretary to the Board of Directors
Senior vice president, Corporate Communications & IR
For further information, please contact:
Klaus Cawén, Executive Vice President, phone: +358 (0)204 75 4492
KONE is a global service and engineering company that specializes in moving people and goods. It comprises two divisions: KONE Elevators & Escalators and Kone Cargotec. KONE Elevators & Escalators sells, manufactures, installs, maintains and modernizes elevators and escalators, and services automatic building doors. Kone Cargotec supplies products and services to facilitate moving and loading cargo. KONE's B shares are listed on the Helsinki Exchanges.