Escorts Ltd, a leading engineering conglomerate today announced that it has executed the business transfer agreement for transferring the existing RT Crane Business of the company to its Japanese JV partner Tadano.
In August 2018, the partners formed a new joint venture (JV), where Tadano Group would manufacture rough terrain cranes and truck mounted cranes, for an initial investment of Rs 60 crore.
Escorts Ltd had said that the JV will strengthen its technology leadership and market presence in the material handling equipment space. The partnership aimed 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.
With today's announcement Escorts Ltd will transfer its existing RT Crane business to the JV as a going concern on a slump sale basis for Rs 35 crore.