German multinational ThyssenKrupp recently opened up a new multi-purpose facility for the elevator industry at Chakan, Pune. It will include manufacturing of elevators, facilities for training and will also act as a distribution centre. This new 20,000 sq m facility at an investment of INR3.60 billion will have the capacity to manufacture 6,000 elevator units with plans to increase to 10,000 units over the next two years.

(Source: The Hindu Business Line, 12 May 2017)

Colliers Research View

In line with the ‘Make In India’ initiative by the government a number of manufacturing companies are showing keen interest in India fuelling the demand for industrial properties in cities such as Pune, Hyderabad, Bangalore, NCR and Chennai. The industrial and manufacturing sector in Pune has been growing exponentially with the presence of companies like Tata Motors, Mercedez-Benz, Cooper Standard, TomTom, etc. SAIL and ArcelorMittal are also planning to set up an auto grade steel plant at Chakan. We expect many other industries to set up their base along the outskirts of Pune at locations like Chakan and Ranjangaon. According to newswires, Kia Motors, a subsidiary of Hyundai Motor, has also signed a memorandum of understanding with the Andhra Pradesh government recently to build a manufacturing facility in the state. With an investment plan of more than USD2 billion in the state, the company is likely to generate over 10,000 direct and indirect jobs in India.