ACE and KATO WORKS establish ACE KATO joint venture to strengthen construction equipment technology and manufacturing!
Action Construction Equipment Limited has entered into a strategic partnership with Japan-based KATO WORKS CO., LTD to establish a new joint venture company named ACE KATO Private Limited. The agreement, signed on March 11, 2026, marks an important collaboration aimed at combining advanced Japanese engineering expertise with India’s growing construction equipment manufacturing capabilities.
The newly formed company will bring together KATO WORKS’ globally recognized strengths in technology, product design and engineering with ACE’s established manufacturing infrastructure, supply chain network and strong market presence in India. Through this partnership, the two companies aim to develop advanced construction equipment solutions that offer improved performance, reliability and cost efficiency.
The collaboration comes at a time when demand for construction and infrastructure equipment is increasing rapidly in India and several emerging markets. Governments across the world are investing heavily in infrastructure development, transportation networks, industrial corridors and urban expansion projects. These initiatives are driving the need for modern construction equipment that delivers higher productivity, durability and operational efficiency.
Under the terms of the agreement, both companies will hold equal ownership in the joint venture, each maintaining a 50 percent stake in ACE KATO Private Limited. At present, neither company holds any shareholding in the other, making the joint venture a new collaborative platform designed to leverage the strengths of both organizations.
The company has been officially incorporated under the provisions of the Companies Act following approval from the Ministry of Corporate Affairs on March 11, 2026. ACE KATO Private Limited has been established with an initial authorized share capital of ₹1,000,000, while the paid-up share capital at the time of incorporation is ₹500,000, divided into equity shares with a face value of ₹10 each.
The governance structure of the joint venture has been designed to ensure equal representation and balanced decision-making between the partners. Both ACE and KATO will nominate two directors each to the board of the new company. Certain strategic decisions and operational matters will fall under specific reserved categories that require mutual approval, ensuring that both partners remain actively involved in guiding the company’s long-term direction.
The agreement also includes a lock-in period of ten years from the date of incorporation of the joint venture. This provision highlights the long-term commitment of both companies and reflects their intention to build a stable and sustainable business partnership focused on innovation, manufacturing excellence and global market expansion.
Through ACE KATO Private Limited, the partners aim to accelerate product innovation while improving manufacturing efficiency and cost competitiveness. By leveraging ACE’s strong domestic manufacturing base and distribution network together with KATO WORKS’ engineering expertise and technological leadership, the joint venture plans to develop high-performance construction equipment that can serve both Indian and international markets.
The formation of the new joint venture represents a significant step toward strengthening technological capabilities in India’s construction equipment sector. As infrastructure development continues to expand across India and other developing economies, the collaboration between ACE and KATO is expected to play an important role in delivering advanced machinery solutions that support large-scale construction and industrial projects worldwide.
