Escorts Inks Joint Venture With Japan’s Tadano For High Capacity Mobile Cranes
Farm and construction equipment maker Escorts Ltd. today said that it's setting up a joint venture with Japan’s Tadano Ltd. to manufacture rough terrain and truck mounted cranes in the country.
“The venture with Tadano Group is a step towards catering to the market demand for smarter, safer and bigger mechanised infrastructure solutions in the higher tonnage category,” Chairman and Managing Director Nikhil Nanda 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.”
Tadano, which is Japan’s largest mobile crane manufacturer, would hold 51 percent stake in the venture, with Escorts chipping in with the rest 49 percent. The venture would cater to an expanding market in the 20-80 tonnage category. Production is expected to commence at Faridabad in the third quarter of this financial year itself, Nanda said.
Tadano President and Chief Executive Officer Koichi Tadano said the venture would initially focus on the domestic market and later could look at exporting to other markets.
The rough terrain and truck mounted cranes cater to big construction companies servicing oil refineries, metro rail projects, smart city construction, solar power projects and ports among others.
Shares of Escorts closed flat at Rs 891 on the BSE.