Action Construction Equipment Limited (ACE), one of India’s leading manufacturers of construction and material handling equipment, has entered into an Investment and Shareholders Agreement with Japan-based KATO WORKS CO, LTD to establish a joint venture company named ACE KATO Private Limited. The agreement was executed on March 11, 2026, marking a strategic collaboration between the two companies aimed at strengthening their capabilities in the construction equipment sector.
The newly formed entity will bring together KATO’s globally recognised strengths in technology, design and engineering with ACE’s well-established manufacturing infrastructure and operational footprint in India. Through this partnership, the companies aim to enhance product performance, improve cost efficiency and develop equipment solutions that meet evolving market requirements.
The collaboration is expected to enable the partners to capitalise on growth opportunities across both domestic and international markets. By combining complementary capabilities, the joint venture intends to accelerate innovation and deliver products that are competitive in terms of quality, reliability and overall value.
Currently, neither ACE nor KATO holds any shareholding in the other company. Following completion of the closing formalities specified under the agreement, both partners will hold equal ownership in the joint venture, each maintaining a 50 percent stake in ACE KATO Private Limited.
The joint venture has been incorporated under the provisions of the Companies Act after receiving approval from the Ministry of Corporate Affairs on March 11, 2026. The company has been established with an initial authorised share capital of ₹1,000,000, while the initial paid-up share capital will be ₹500,000, divided into equity shares with a face value of ₹10 each.
The governance structure of the new company has been designed to ensure balanced representation from both partners. Under the terms of the agreement, ACE and KATO will each nominate two directors to the board of ACE KATO Private Limited. Certain strategic and operational decisions will fall under a set of reserved matters that require approvals in accordance with provisions outlined in the shareholders agreement.
In addition, the agreement includes a lock-in period of ten years from the date of incorporation of the joint venture company. This provision reflects the long-term commitment of both organisations to the partnership and underscores their intention to build a stable and sustainable business presence through the collaboration.
The formation of ACE KATO Private Limited represents an important step in strengthening technological capabilities within India’s construction equipment industry. With infrastructure development and industrial growth continuing to drive demand for advanced machinery, the joint venture is positioned to address emerging requirements with technologically advanced and cost-effective solutions. By leveraging ACE’s established manufacturing facilities and distribution network, alongside KATO’s expertise in product engineering and innovation, the partnership aims to expand its reach and strengthen competitiveness in global markets.
Action Construction Equipment Limited (ACE) is among India’s leading manufacturers of construction and material handling equipment. The company produces a wide range of products including cranes, loaders, forklifts and agricultural machinery. ACE operates manufacturing facilities in Haryana, India, and serves customers across multiple sectors including infrastructure, construction, logistics and agriculture.
