Ashok Leyland and John Deere Construction & Forestry Company have announced completion of all legal formalities for the formation of the joint venture company, Ashok Leyland John Deere Construction Equipment Private Ltd. The definitive agreement to form the 50:50 joint venture was first announced in September 2008.
The joint venture will initially manufacture backhoes and wheel loaders and will market them in India and abroad. The range will subsequently be expanded to include a full line of construction equipment. Pilot production will commence, as scheduled, from October 2010 and serial production by January 2011 at a manufacturing facility to be located near Chennai.
As the second largest commercial vehicle manufacturer in the country, Ashok Leyland brings its expertise and broad, pan-India distribution network, while John Deere, the world’s largest manufacturer of equipment for agriculture and forestry, will provide its technical know-how and vast experience in the construction equipment business.
The $2.5 billion Indian construction equipment industry has been on a growth trajectory and envisages 20 per cent year-on-year growth over the next five years.
The joint venture will initially manufacture backhoes and wheel loaders and will market them in India and abroad. The range will subsequently be expanded to include a full line of construction equipment. Pilot production will commence, as scheduled, from October 2010 and serial production by January 2011 at a manufacturing facility to be located near Chennai.
As the second largest commercial vehicle manufacturer in the country, Ashok Leyland brings its expertise and broad, pan-India distribution network, while John Deere, the world’s largest manufacturer of equipment for agriculture and forestry, will provide its technical know-how and vast experience in the construction equipment business.
The $2.5 billion Indian construction equipment industry has been on a growth trajectory and envisages 20 per cent year-on-year growth over the next five years.
The new range of construction equipment will complement Ashok Leyland’s range of commercial vehicles like tippers, cement bulkers and tip-trailers, underscoring the close synergies that exist between the two businesses.
