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Arkel India invests INR 100 crore in new Vadodara plant to manufacture advanced lift control systems

#Taxation & Finance News#Industrial#India#Gujarat#Vadodara
Last Updated : 3rd Mar, 2026
Synopsis

Arkel India has invested INR 100 crore in establishing a new advanced manufacturing facility for lift electronic and control systems in Savli-Manjusar, Vadodara district of Gujarat, aimed at bolstering domestic production and reducing reliance on imports. The single-shift plant covers about 1,35,000 sq ft and, once operational, will have an annual production capacity of around 36,000 units, including automated PCB assembly and integrated lift control systems suited to machine-room (MR), machine-room-less (MRL) and slim panel applications. The facility aligns product standards with Indian regulatory norms and positions India as a potential export base for select Asia-Pacific markets. The move follows the January 2025 acquisition of Turkey-based Arkel by Sweden-headquartered Innovalift AB and is expected to generate direct and indirect jobs, including apprenticeships with technical institutes. The plant caters to the rapidly growing elevator market driven by urbanisation and infrastructure expansion.

Arkel India has inaugurated a new manufacturing facility in the GIDC Estate, Savli-Manjusar near Vadodara, marking a strategic shift from marketing to full-scale production of advanced lift electronic systems in India. The first phase of the plant was established with an investment of INR 100 crore, according to company statements and industry disclosures released in the past week.


The facility, spread over approximately 1,35,000 sq ft, is equipped to produce comprehensive lift control systems, including machine room (MR), machine room-less (MRL) and slim panel control solutions, along with automated printed circuit board (PCB) assembly lines. Designed for a single-shift operation, the manufacturing unit has an annual capacity to turn out around 36,000 units, positioning it as one of the country's few dedicated elevators-electronics production plants.

Arkel's expansion reflects a broader industry effort to reduce import dependence for critical elevator components and align production with Indian regulatory requirements, particularly compliance with the IS-17900 standard for lifts. The facility also features advanced manufacturing controls, such as climate-controlled production environments and electrostatic discharge management systems, which are essential for electronics assembly.

The investment follows the acquisition of Turkey-based Arkel by Sweden-headquartered Innovalift AB in January 2025, signalling a renewed focus on leveraging India as both a domestic production hub and a potential export base for select Asia-Pacific markets. Company officials have indicated that the plant will cater to demand from high-rise residential and commercial developments, hospitals, transit hubs, retail centres and other infrastructure projects where advanced lift control technologies are critical.

Beyond manufacturing, Arkel India plans to foster skill development by collaborating with industrial training institutes, polytechnics and engineering colleges to support apprenticeships and upskilling, contributing to broader employment generation in the region. The facility's launch underscores the growing importance of domestic electronics manufacturing within infrastructure supply chains and highlights Gujarat's appeal as an investment destination for industrial and high-technology production.

Industry observers note that India's elevator market buoyed by rapid urbanisation, Smart Cities initiatives, housing development under government schemes and major infrastructure expansion remains one of the fastest-growing globally, supporting demand for sophisticated control systems and related technologies.

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