Chennai, Sept 30 (UNI) Ashok Leyland, the flagship company of the Hinduja Group in India, has signed an agreement for a Joint Venture(JV) with John Deere, for manufacturing and marketing of construction equipment.
Talking to newspersons here today, R Seshasayee, Managing Director, Ashok Leyland said, the JV seeks to commence production by early 2010 and would initially roll out backhoes and four-wheel-drive loaders.
The range would subsequently be expanded to include a full line of construction equipment. "Beyond India, the largest backhoe market in the world in 2007, the products will be exported to both Ashok Leyland and John Deere markets", he added.
Mr Seshasayee said the 50:50 joint venture would bring together Ashok Leyland's expertise in the automotive sector, their marketing and distribution strength and John Deere's technical know-how and vast experience in the business of construction equipment.
John Deere was the world's largest manufacturer of equipment for agriculture and forestry and a major equipment supplier for construction and lawn and turf care.
The venture would build a manufacturing facility in India and was currently evaluating site locations, he said.
"With this JV, we realise our foray into a new and adjacent vertical as part of Ashok Leyland's diversification plans. We see huge synergies between this business and our existing one of commercial vehicles, in terms of aggregates, parts and distribution network", Mr Seshasayee said.
Samuel R Allen, President, Worldwide Construction and Forestry Division, John Deere said "In Ashok Leyland, we have found an ideal partner with a shared vision. This action enhances John Deere's growth of the construction equipment business outside of North America".
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