US firm buys out Shirke from JV

US-based cranes manufacturer, Manitowoc Co Inc, has bought out the equity stake of the BG Shirke family in its joint venture Shirke Construction Equipment.

The $2.9-billion Manitowoc has set up Potain India to continue the manufacturing of tower cranes that was being done by the joint venture (JV) company.

Potain India will manufacture tower cranes with capacities ranging from 5 tonne with 50 metre jib length to 25 tonne with 80 metre jib capacity.

R Badarinarayan, managing director and chief executive officer, Potain India, said the company's decision to set up operations on its own was in accordance with the group strategy to manufacture products as close to customers as possible. The JV has so far supplied close to 500 tower cranes in India.

Badarinarayan said the company was extremely optimistic about the progress in India's infrastructure sector, and saw a major opportunity for itself in the local market.

It is planning to open a new Manitowoc crane care centre in India as a post-sales service operation.

Badarinarayan declined to disclose the value of the stake sale deal or the size of Shirke Construction Equipment.

Raman Joshi, sales director (Asia Pacific), Manitowoc, said the company might consider using its India facilities for manufacturing components required by the group globally.