Construction Industry News
Farm and construction equipment maker Escorts on Monday entered into a joint venture with Japans Tadano Ltd, to manufacture high capacity mobile cranes in India.
While Tadano Ltd will own 51 per cent stake in the joint venture company, Escorts will hold the remaining.
Initially, the companies will invest Rs 60 crore and will have a dedicated manufacturing plant with a focus on R&D and for selling directly in the market, as per an investor presentation by Escorts Ltd.
While Tadano will contribute through its global technology of connected machines, Escorts will bring along its Indian market understanding and brand reach.
We are confident that the joint venture will enable us to tap the opportunity market segments and reinforce our leadership in construction equipment space, said Nikhil Nanda, Chairman and Managing Director, Escorts Ltd.
The product category will range from 20 to 80 Ton high end category like rough terrain cranes and truck cranes and will be used in sectors such as railways, oil and gas industry, mining, power and roads and bridges.
The JV will initially cater to the Indian market and will later explore the potential export markets.
The manufacturing for the Indian market will start from the third quarter of the ongoing fiscal.
Koichi Tadano, President and CEO, Tadano Ltd, Japan, said, Escorts has a strong technology legacy and diversified portfolio in construction equipment market and Tadano has a proven global technology and together we will cater to India and other growing economies which require safer, efficient and quality products and smarter construction technology.
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