Action Construction Equipment (ACE) and KATO Works, a crane and machinery manufacturer based in Japan, have established a joint venture (JV) company, ACE KATO Pvt. Ltd, to produce high-capacity cranes in India for both domestic and international markets.
Both companies will hold an equal stake in the JV.
The JV will focus on manufacturing crawler cranes, truck cranes, and rough terrain cranes, targeting sectors such as infrastructure, mining, energy, ports, metro rail and heavy industry.
It has set up an 11-acre factory in Haryana, backed by a planned investment of approximately Rs2bn ($21m).
This investment covers the development of manufacturing infrastructure, production systems, technology integration and new product development.
ACE KATO intends to make additional investments in phases, aiming to increase production capacity and further build up its manufacturing capabilities as demand rises.
According to the JV structure, KATO will provide leadership in product engineering, design and technology.
ACE will manage the responsibilities for manufacturing, sourcing, and local component procurement.
The initial product focus will be on truck, crawler, and rough terrain cranes, with further crane models set to follow in later phases.
The companies expect increased local sourcing of components through ACE’s supplier network to drive manufacturing efficiency, reduce production costs, and improve supply-chain resilience, while maintaining standards associated with KATO’s engineering.
ACE executive director Sorab Agarwal said: “ACE KATO Pvt. Ltd. marks a defining milestone in ACE’s growth journey and reinforces our long-term commitment to strengthening India’s construction equipment manufacturing ecosystem.
“By partnering with KATO, we are combining globally proven Japanese technology with India’s manufacturing strengths to create a world-class platform for high-capacity crane manufacturing.”
The JV aims to combine Japanese engineering with Indian manufacturing and gradual localisation, with an eventual objective of supporting expanding infrastructure requirements and enhancing India’s presence in the international construction equipment industry.
