Escorts enters into JV with Japan’s Tadano

Japan’s biggest mobile crane manufacturer Tadano and construction and farm equipment producer Escorts have entered into a JV to manufacture higher capacity mobile cranes in the 20-80 tonnage category. The venture with Tadano marks a step toward meeting market demand for safer, smarter and bigger equipment for infrastructure solutions in the higher tonnage category. The venture will be called Tadano Escorts India, wherein Escorts will have a 49 per cent stake and Tadano will enjoy 51 per cent share of the company. Rs 600 million will be invested for the JV, the production for which is likely to start in Q3 of the current fiscal. The industry, which is growing at 15-20 per cent, has a market for 250-300 machines per year in India. The JV, to come up near Escorts’ existing Faridabad factory, will manufacture rough terrain cranes and truck mounted cranes, in order to consolidate Escorts’ leadership in the material handling equipment sector. The venture will look to tap into the growing market of construction companies developing railways, metro projects, smart city construction, solar power projects, projects in oil and gas industry, roads and bridges in the country. Tadano already has an established global technology and Escorts boasts a strong technology legacy, along with a dominance in the construction equipment market. Tadano is selling its products in India – manufactured in Japan and Germany – since 2012.