### **Overview** Action Construction Equipment Ltd (ACE), founded in 1995 by Mr. Vijay Agarwal, is one of India’s leading and most diversified construction equipment manufacturers. The company has established itself as a global force with operations in India and over 37 countries across the Middle East, Africa, Asia, Latin America, and Europe. ACE is positioned as the **world’s largest manufacturer of Pick & Carry Cranes**, with over **63% market share in domestic mobile cranes** and **60% in tower cranes**, cementing its leadership in the Indian CE market. The company serves a diversified base across infrastructure, construction, manufacturing, logistics, agriculture, and defense, reflecting its robust counter-cyclical business model aimed at long-term sustainability and growth. --- ### **Strong Market Position & Diversified Portfolio** - **Leadership in Key Segments**: ACE dominates India's Pick & Carry, mobile, and tower crane markets, while also emerging as a key player in backhoe loaders, forklifts, tractors, harvesters, telehandlers, and aerial work platforms (AWPs). - **Product Range**: - *Cranes*: Pick & Carry, Crawler, Truck-Mounted, Tower, Lorry Loaders, Piling Cranes. - *Construction Equipment*: Backhoe Loaders, Motor Graders, Vibratory Rollers. - *Material Handling*: Forklifts (diesel, electric, LPG), Warehousing Equipment, Reach Stackers. - *Agriculture Equipment*: Tractors (including specialized orchard models), Track Harvesters, Rotovators. - *New Segments*: Aerial Work Platforms, Electric Cranes, Telehandlers, Special Defense Equipment. - **Revenue Mix (Approx.)**: - Manufacturing & Logistics: **45%** - Infrastructure: **35%** - Real Estate: **13%** - Agriculture: **7%** This diversified exposure helps insulate the company from sector-specific volatility. --- ### **Strategic Growth Drivers** #### 1. **Defense Sector Expansion** - In May and August 2025, ACE secured its **largest-ever order** from the **Ministry of Defence**—**1,121 rough terrain forklifts (telehandlers)** valued at **₹420 crores**, with partial revenue recognition in FY25. - The equipment, developed under **'Make in India' and 'Atmanirbhar Bharat'**, showcases ACE’s strong R&D and indigenous manufacturing capabilities. - ACE expects defense to contribute **~5% of total revenue** in the medium term, with further large orders anticipated. - The company has also developed and tested **special-purpose telehandlers, 4x4 tractors with military attachments**, and **missile-handling cranes** for the Indian Army. #### 2. **International Expansion & Export Growth** - ACE is aggressively expanding its global footprint: - Exports to **37 countries**, with focused strategies in **Europe, Africa, SAARC, Middle East, and Latin America**. - Launched the **Forma Range of Tractors**, **'Phantom 4x4' Backhoe Loader**, and **2–4 ton Telehandlers** specifically for international markets. - Secured **new dealer partnerships in Europe**, particularly for orchard tractors. - Products are **BS-V / CEV Stage V compliant**, enabling access to regulated European and developed markets. - Aims to increase export contribution to **10–15% of total revenue** within 2–3 years. - Participated in major global events like **Bauma Munich** and plans to attend **Agritechnica** to boost global visibility and dealer network. #### 3. **Ghana Assembly Plant Project** - ACE is setting up a **tractor and construction equipment assembly plant in Ghana** under a **$24.98 million (₹200 crores)** contract with the Government of Ghana, funded by India’s EXIM Bank. - The plant will have annual capacity to produce: - 4,500 tractors - 600 backhoe loaders - 6,000 agricultural implements - Expected to generate **₹150–400 crores in annual revenue from FY25 onward**, with high margins (~15%) due to technical know-how transfer. --- ### **Innovation & R&D** - **Dedicated R&D Centers** in Ballabhgarh (Faridabad) and Dudhola (Palwal), focusing on: - Customized product development - Emission compliance (BS-V, CEV) - Electric mobility (EVs, lithium-ion batteries) - Smart features (wireless hydraulics, ARAI approval, digital controls) - **Key Innovations**: - **India’s first fully electric mobile crane** – ready for market launch upon final CMVR guidelines. - **India’s largest 180-ton crawler crane** (launched 2023) – a milestone in indigenous heavy equipment. - **Self-propelled Aerial Work Platforms (21m, 27m, expanding to 40m+)** – first mover in India. - **NXP Series multi-activity cranes**: Combine pick & carry with slew or lift functions at **50–70% lower cost** than conventional alternatives. - **Special defense equipment**: RTFLT telehandlers, low-silhouette cranes, 60-ton missile-handling cranes. --- ### **Manufacturing & Capacity** - **Facilities**: State-of-the-art plants in **NCR, Haryana (100+ acres)** with: - Annual capacity: **~17,400 units** of construction equipment and **9,000 tractors** - High automation and digitalized manufacturing systems - **Excess Capacity**: Current utilization allows growth up to **₹5,000–5,100 crores** in revenue with minimal capex. - **Future Expansion**: - Land acquired: **~138 acres** total (including 80 acres for future expansion). - New manufacturing plant to be set up from FY26 with **₹100 crore investment**, expected to add **₹1,500 crores in revenue**. - Historically, **₹1 of capex generates ₹8–9 in revenue**, indicating high capital efficiency. --- ### **Strategic Partnerships & JV** - **Kato Works Co. Ltd (Japan) Joint Venture**: - 50:50 JV to manufacture **medium and large cranes (up to 200 tons)** in India. - Aims to serve growing domestic demand and reduce reliance on imported Chinese cranes. - Long-term vision includes **all-terrain cranes** and **exports** from India. - Positioned as a **"game-changer"** in the heavy crane segment. --- ### **Sustainability & Electrification** - **Electric Mobility Leadership**: - Launched **India’s first electric mobile crane** and **lithium-ion battery-powered forklift**. - Early orders from ESG-focused clients; awaiting regulatory clarity for mass commercial rollout. - Emission Compliance: - BS-V/CEV Stage V upgrades across product lines. - CRDI engines developed for tractors (60–110 HP) to meet future norms. --- ### **Sales, Service & Ecosystem Support** - **Service Network**: One of the **widest in India** with: - **125+ sales and service locations** - **13 regional offices** - 24-hour repair turnaround promise - **Finance Partnerships**: Tie-ups with **SBI, PNB, IndusInd, Cholamandalam, Magma, Sundaram, Adani Finance** to ease customer financing. - **Dealer Network Expansion**: Aggressively expanding in **Iraq, Sudan, Ethiopia, Tunisia, Myanmar, CIS** countries. --- ### **Competitive Positioning** - **Advantages**: - **Price competitiveness** vs. European/American brands - **Higher value, safety, and tech** vs. Chinese brands - **Localized customization**, service support, and reliability - **No direct competition** in Pick & Carry segment from German/Chinese players. - **Anti-dumping relief in progress**: DGTR investigation into **unfairly priced Chinese imports** may improve margins.