Ashok Leyland, the flagship of the Hinduja Group, and John Deere Construction & Forestry Company today announced the completion of all legal formalities for the formation of the joint venture company – Ashok Leyland John Deere Construction Equipment Pvt Ltd.
A press release from the company said the joint venture will initially manufacture backhoes and wheel loaders and will market backhoes, wheel loaders and excavators in India and abroad.
The range will be expanded to include a full-line of construction equipment. Pilot production will commence in October 2010 and serial production by January 2011, at a manufacturing facility to be situated near Chennai.
Ashok Leyland will bring to the table its expertise and pan-India distribution network, while John Deere will provide its technical know-how and vast experience in the construction equipment business.
The construction equipment industry in India is estimated at $2.5 billion, growing 20 per cent annually.
This new range of construction equipment will complement Ashok Leyland’s range of commercial vehicles such as tippers, cement bulkers and tip-trailers.
Source: The Hindu Businessline