01.08.2011

ACE profits up 40%

Haryana -based Action Construction Equipment (ACE), India’s leading mobile crane, material handling and construction equipment manufacturer has reported operating income up 65 percent at Rs.215.05 crores (£29.7 million) in the first quarter of 2011, compared to Rs.130.54 crores (£18 million)
in the same period last year. Profits are reported at Rs. 111.6 million a jump of 40 percent.

ACE says that it has a current monthly production capacity of 800 cranes, 300 material handlers/construction equipment and 500 tractors. It can also manufacture 240 tower cranes and 40 crawler cranes per year.

The company has invested in its manufacturing facilities to increase capacity. Its new crane manufacturing plant was operational in May. The company plans further spending to increase its offices and products including cranes and components at new manufacturing facility in Kashipur and expansion of its tower and crawler crane manufacturing capacity.

Executive director Sorab Agarwal said: “We are pleased to announce that our company top line has grown by 65 percent, despite negative sentiment in the market and we are seeing strong traction from the infrastructure and industry segment which accounts for nearly 85 percent of our sales revenue. Our management will continue to make efforts to further improve our leadership position in the mobile cranes and tower cranes segment and continue to grow in our other newly added product category.”

It is also reported that the company is looking at two acquisitions – one in India and one in China to expand its product portfolio. It is thought the Chinese acquisition would give it a better technology to produce its existing products at a lower cost while the local company will help it enter a new product line.