KATO WORKS CO. is a global construction equipment manufacturer of mobile cranes, excavators and other equipments.

The two companies plan to sign a formal contract as soon as they reach an agreement on the terms.

The joint venture (JV) intends to produce medium and large sized cranes (mainly truck cranes, crawler cranes and rough terrain cranes) for the growing Indian market.

In the future, the JV also plans to utilize the technology which will be cultivated in the company's development and introduce wide range of value-added products for exports to other countries from India.

"Going forward, we will proceed with preparations with KATO to establish the joint venture and strive to establish a business foundation so that the business will grow steadily as a pillar of our medium- to long term growth strategy," Action Construction Equipment said in a statement.

Action Construction Equipment (ACE) is an established and reputed brand with a significant presence across diversified sectors like construction, infrastructure, manufacturing, logistics and agriculture.

The company's consolidated net profit surged to Rs 98.44 crore in the quarter ended March 2024 as against Rs 47.65 crore during the previous quarter ended March 2023. Sales rose 36.17% to Rs 835.84 crore in Q4 FY24 as compared with Q4 FY23.

The scrip rose 0.54% to currently trade at Rs 1520.75 on the BSE.