Action Construction Equipment (ACE), India’s leading material handling and construction equipment manufacturing company and the largest crane manufacturing company in the world, has joined hands with Doosan Corporation, a Korean multinational conglomerate, to represent their ‘Industrial Vehicle’- MHE Segment in India. This is a strategic move for both the partners to secure a majority market share in India.
Doosan Corporation, a Fortune 500 company, is one of the first foreign MHE brands to foray in India. It had its supremacy established through its technologically advanced and innovative products. The brand is popular for its reliability and dependability, whereas ACE is the Indian brand grown with the core philosophy of offering ‘reliable product at reasonable price and supported by prompt services’. ACE will represent Doosan premium MHE in India, besides its own range for the mass market. In Indian MHE market, 75-80 per cent represents mass market and the remaining 20-25 per cent is premium segment.
The economic growth in India in the past couple of years has attracted many multinational companies (MNCs) to establish their presence in India. These global brands and certain Indian industry segments have affinity towards high performance premium products. This premium segment contributes to around 20-25 per cent of the current MHE business, which is mainly taken by imported European and Japanese brands.
The current market for the premium MHE segment in India is competitive with the presence of these global brands. But ACE is bullish on gaining a good market share in this segment as Chetan Gole, CEO (Forklifts Vertical), ACE, says, “In the cranes market, we are number one with 70 per cent market share, which is a similar market. In the forklift market, we started from scratch 10 years back and today we are one of the leaders. We have a good scope and have the potential to do well in the premium segment as well.”
The new joint initiative will help Doosan regain and consolidate its market share by using the wide spread ACE network of more than 100 dealers for sales and service support across India and ACE gets a pie of the premium segment, thereby increasing its market share further. So it is a win-win strategy for both the partners. This new partnership of Doosan in India with ACE is expected to streamline and support the existing customers and infuse new energy and confidence in Doosan brand in India, making them leaders in India in the premium segment.