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JUDY MARKS, CHAIR, PRESIDENT & CEO OF THE $14.2 BILLION OTIS WORLDWIDE CORPORATION, EXPLAINS WHY THE TARGET OF 90% LOCALISATION MAKES SENSE IN INDIA.

Fortune India

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October 2024

JUDY MARS, CHAIR, PRESIDENT & CEO, OTIS WORLDWIDE CORP. ON LOCALISATION IN INDIA.

- EVIN JOHN

JUDY MARKS, CHAIR, PRESIDENT & CEO OF THE $14.2 BILLION OTIS WORLDWIDE CORPORATION, EXPLAINS WHY THE TARGET OF 90% LOCALISATION MAKES SENSE IN INDIA.

MANAGING CRISES

How has 170-year-old Otis navigated economic downturns like the 2008 global financial crisis and the recent Covid pandemic?

Otis’ resilience lies in its service-driven business model. The service business, accounting for 60% revenue and 90% profit globally, ensures continuity and reliability during crises. We made a commitment to our people that even if sale of new equipment slowed, service business will give us the base(1). It did during the 2008 global financial crisis as well as Covid.

How are developed markets, particularly U.S. and Europe, faring?

Factors like interest rates and inflation have impacted the real estate industry in U.S. In Europe, Spain and Italy are progressing well, while Germany and France have slowed down. Middle East is showing high demand for new equipment(2). The service market is vibrant globally.

There is talk of a possible recession in U.S. How can that impact your business?

It is not clear whether U.S. will be hit by a recession. However, historically, the service business has thrived during slowdowns because maintenance is critical for safety. It has grown every quarter since Otis spun off from the parent firm, United Technologies, in April 2020.

Does the company start generating service revenue immediately after installation?

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