The joint venture will be having an initial investment of 60 crore (est. USD 8.5 million) and a dedicated manufacturing plant with a focus on R&D. These products are targeted at India’s domestic market, as per the investor presentation by Escorts Ltd.
Tadano will be contributing by tapping its global technologies from various countries and Escort will be providing market understanding as well as branding reach for India’s market.
They will be pushing out rough terrain and truck cranes ranging from 20 to 80-ton capacity class for the market sectors such as railways development, oil & gas, mining, energy and infrastructure sectors.
Although the joint venture is currently focusing on India’s domestic market, they will explore the potential in export markets in the future.
Speaking on the occasion, Nikhil Nanda, Chairman and Managing Directo of Escorts Ltd, 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 Ltd, 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.”
Production is expected to commence at Faridabad, Haryana, India in the third quarter of 2018.