Escorts, a leading engineering conglomerate has announced a new joint venture (JV) with Japan’s biggest and a world’s leading mobile crane manufacturer, Tadano Group to manufacture rough terrain cranes and truck mounted cranes. The partners will initially make a investment of Rs 60 crore.
Escorts says that the JV will strengthen its technology leadership and market presence in the material handling equipment space. The partnership aims to leverage the cost effective frugal Indian engineering excellence of Escorts and world leading Japanese technology from Tadano to cater to an expanding market for heavier capacity and efficient truck and RT cranes and sophisticated truck mounted and rough terrain cranes in the 20 to 80 tonnage category. The company will setup a dedicated manufacturing plant with focus on R&D and selling directly in market.
The 51:49 JV between Tadano and Escorts respectively will enable both partners to optimise their current and future capabilities in the segment globally. It will aim to take leading position in the high tonnage crane segment in medium to long term.
Nikhil Nanda, chairman and managing director, Escorts, said, "Escorts vision has always been to bring the world's best to India and take India's best to the world. The new joint venture with Tadano Group is a step towards catering to market demand for smarter, safer and bigger mechanised infrastructure solutions in the higher tonnage category. We are confident that the joint venture will enable us to tap the opportunity market segments and reinforce our leadership in construction equipment space."
Koichi Tadano, president and CEO, Tadano, Japan, said, "We are pleased to announce our partnership with Escorts group. 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 safe, efficient and quality products and smarter construction technology."
The agreement was signed by Nikhil Nanda and Koichi Tadano, and the production by the joint venture is expected to commence at Faridabad in the third quarter of this financial year itself. The product offering will find a ready market with big construction companies servicing oil refineries, metro rail projects, smart city construction, solar power projects and alike.
Tadano was established in 1948 and has played a leading role in lifting equipment industry since development of first hydraulic crane in Japan.