Japanese construction equipment manufacturer Kato Works has revealed details about its equity investment and shareholding ratio in a new joint venture (JV) to be set up in India with Action Construction Equipment (ACE).
The board of directors resolved the details at a meeting held on February 13, 2026.
Kato Works will invest Rs 1,000 crore ($11 million) in the joint entity, which will focus on manufacturing heavy cranes for domestic and international markets.
The total capital of the new company, called ACE KATO, will be Rs 2,000 crore, divided equally between Kato Works and ACE, each with a 50% stake.
The joint venture is scheduled to begin operations in April 2026, following the execution of investment and shareholder agreements with ACE in March 2026.
The base of operations will be located in the Indian state of Haryana.
Production at the facility will include truck cranes, crawler cranes and rough terrain cranes, targeting demand across India as well as export markets.
Kato Works stated that one of its main strategies under its three-year medium-term management plan, which begins in the fiscal year ending March 31, 2026, is to drive growth through effective investments and expand overseas sales.
Establishing a business presence in India aligns with this approach, given the scale of demand in the region.
The company also plans to transfer its patented technologies to the joint venture “to improve product competitiveness in terms of performance and cost, and expand into new markets such as Asia and the Middle East.”
Kato Works further commented that it would continue preparations to launch the joint venture after signing today’s investment agreement.
“Following the signing of the investment agreement resolved today, we will proceed with preparations to establish the joint venture and will endeavor to build a solid business foundation to ensure the continued growth of this initiative as a key driver of our medium and long-term earnings,” the company said.
Kato Works anticipates that the impact on its consolidated financial results will be minimal. However, the company will disclose any significant effects as necessary. More information on the joint venture will be released as discussions with ACE progress.
“Kato Works and ACE Set Capital Contribution Conditions for Indian Joint Venture” was originally created and published by World Construction Network, a brand owned by GlobalData.
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