• Production to start as scheduled from October 2010
• Manufacturing facility near Chennai
CHENNAI: July, 2009: Ashok Leyland, the flagship of the Hinduja Group, and John Deere Construction & Forestry Company announced today the 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 backhoes, wheel loaders and excavators 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 situated near Chennai.
As the second largest commercial vehicle manufacturer in the country, Ashok Leyland brings to the table its expertise and broad, pan-India distribution network while John Deere will provide its technical know-how and vast experience in the construction equipment business. John Deere is the world’s largest manufacturer of equipment for agriculture and forestry and a major supplier for construction and lawn and turf care.
The US $ 2.5 billion Indian construction equipment industry has been on a growth trajectory and envisages 20% year-on-year growth over the next 5 years.
This 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.
John Deere (Deere & Company — NYSE: DE) is a world leader in providing advanced products and services for agriculture, forestry, construction, lawn and turf care, landscaping and irrigation. John Deere also provides financial services worldwide and manufactures and markets engines used in heavy equipment. Since it was founded in 1837, the company has extended its heritage of integrity, quality, commitment and innovation around the globe.
The Hinduja Group is an investment and banking group with a diversified global portfolio of holdings across the manufacturing services and banking sectors. The Group, founded by Shri P.D. Hinduja in 1914, has activities across three core areas: Investment Banking, International Trading and Global Investments. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance, Infrastructure, Project Development, Chemicals & Agri business, Energy, Real Estate and Healthcare. The Hinduja Group also supports charitable and philanthropic activities across the world through the Hinduja Foundation.
Ashok Leyland is the flagship of the Hinduja Group and a leading manufacturer of commercial vehicles in India with 08-09 turnover of US $ 1.3 billion. With six manufacturing locations at Chennai, Hosur (three plants), Alwar and Bhandara, the Company has a production capacity of 100,000 vehicles. Ashok Leyland has associate companies in the Czech Republic and the UAE and joint ventures in Sri Lanka and Bangladesh, besides exports to over 20 countries worldwide.
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