Action Construction Equipment Limited has executed an investment and shareholders agreement with KATO WORKS CO., LTD., Japan to establish a joint venture company named ACE KATO Private Limited. The agreement was executed on 11 March 2026.
The joint venture will combine KATO’s technology, design, and engineering capabilities with ACE’s manufacturing base and operational presence in India. According to the filing, the collaboration aims to improve product competitiveness through enhancements in performance and cost efficiency while enabling the partners to address growth opportunities in domestic and international markets.
ACE and KATO currently do not hold any shareholding in each other. Upon completion of the closing actions stipulated under the agreement, both companies will hold 50 percent shareholding in the joint venture company.
The initial authorised share capital of the company is set at INR 1 million, while the initial paid-up share capital will be INR 500,000, divided into equity shares with a face value of INR 10 each.
Under the terms of the agreement, ACE and KATO will each have the right to nominate two directors to the board of the joint venture company. Certain matters reserved for the board will require approvals in accordance with provisions specified in the shareholders agreement.
The agreement also includes a lock-in period of 10 years from the date of incorporation of the joint venture company. The joint venture company has been incorporated under the name ACE KATO Private Limited on 11 March 2026 following approval from the Ministry of Corporate Affairs.
Action Construction Equipment Limited manufactures construction and material handling equipment including cranes, loaders, forklifts, and agricultural machinery, with manufacturing operations in Haryana, India.
