Haryana-based Action Construction Equipment (ACE) has won a Rs 200 crore contract from Ghana for setting up of a plant to make tractors, backhoe loaders and agricultural implements.
The manufacturing unit which is expected to be completed by FY24 will have an installed capacity of 4500 tractors, 600 backhoes, 600 agricultural equipment and 300 tipping trailers annually, the company's top leadership said.
The company’s management in an investor call said the project which will be owned and operated by Government of Ghana involves designing, engineering, commissioning of assembly supply lines and supply of plant and machinery for the manufacturing in addition to transferring the technical know how, establishing best in class manufacturing processes and quality control system, along with the training of engineers and technicians for future operations. From FY25 onwards, the revenue potential from the plant is anywhere between Rs 150- 400 crore based on the capacity that is being set up, the company added.
Ghana, which is primarily dependent upon agriculture and mining, hardly has any manufacturing industry of its own and consequently everything is imported from western countries. With the government now pushing to set up its own manufacturing industry across the sectors, there has been demand for setting up of tractor and construction equipment backhoe loader manufacturing plants as it gets used there in reasonable numbers. " Apart from that, It is also reasonably keen on making them in Ghana and supplying to their neighbouring countries also," the management added in their call.
ACE, which has eight manufacturing plants and an R&D centre in Faridabad boasts of having a capacity of 12,000 construction equipment numbers and 9000 tractors annually. The company's portfolio is divided into four main categories- construction equipment, road construction equipment, earth moving machinery and agricultural equipment.