The Taiwan subsidiary of Otis Worldwide Corporation OTIS has acquired Jardine Schindler Lifts Limited (Taiwan) from the Jardine Schindler Group.

This buyout will strengthen the company’s position in the Taiwan market with the expanded customer reach and operational capacity of Jardine Schindler Lifts. Otis is optimistic about introducing its products and service offerings, including the recently launched Otis ONE platform and the connected Gen3 elevators, to the new customer base.

This strategic transaction, a milestone for Otis, will enable it to better serve the region and its customers.

Other Growth Initiatives of OTIS

Apart from inorganic growth strategies, Otis also focuses on organic ways of fostering its growth. The primary organic growth strategy is innovation. The company seems to be invested in seeking innovation opportunities and capitalizing on them for its upcoming prospects.

Otis invested $144 million in R&D in 2023. Furthermore, during the first six months of 2024, it invested $75 million in R&D, up 5.6% year over year. The year-over-year increase in R&D investments showcases the company’s intent focus on amalgamating recent technologies into its products to stay well-positioned in the market.

As of 2023-end, it had 11 R&D centers and 17 factories across the world, primarily in China, India, Japan, France, Germany, Spain and the United States. These centers are strategically placed to enable the efficient development of engineering solutions. Also, the company’s approximately 1,200 global engineers focus intently on digital initiatives, software, design user interfaces and experience.

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Shares of this leading manufacturer of elevators, escalators and moving walkways have gained 2.5% in the year-to-date period compared with the Zacks Building Products - Miscellaneous industry’s 9.2% growth. Although the company’s shares have underperformed the industry, it intends to continue innovating and expanding the digital ecosystem and undergo inorganic initiatives to foster its prospects in the upcoming period.

OTIS’ Zacks Rank & Key Picks

Otis Worldwide currently carries a Zacks Rank #3 (Hold).

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