MUMBAI: Prime Minister Narendra Modi’s vision for ‘Make In India’ is slowly but steadily gaining momentum.

With an aim to strengthen local competitiveness and expand business in India, Mitsubishi Electric Corporation’s Indian arm Mitsubishi Elevator India will build a factory in Bangalore.

The company is looking at investing close to Rs 1.83 billion (approx. 3.45 billion Japanese yen) to set up the factory, which will be in operation by July 2016. The factory will have production capacity of 5,000 units annually.

India’s elevator and escalator market, which has grown in step with the country’s rapid economic development, is now the world’s second largest, next to China. Annual demand rose to 47,000 units in 2014 and is expected to continue growing. In 1995, Mitsubishi Electric began selling elevators through local distributors. In August 2012, it established a company in Chennai to reinforce sales, installations and maintenance, and in April 2014, Mitsubishi Electric launched the NEXIEZ-LITE elevator model for low- to mid-rise buildings in the India’s market.

Bangalore has seen an increasing number of enterprises in fields including the IT industry setting up operations. By producing locally, Mitsubishi Electric expects to strengthen product competitiveness in terms of price and delivery time, focusing especially on its NEXIEZ-LITE model. A special emphasis will be placed on the efficient integration of sales, manufacturing, installation and maintenance.

The site area of the factory is 89,000 square meters, with floor space of 25,400 square meters.