Ashok Leyland, the flagship of the Hinduja Group in India, has signed an agreement for a joint venture with John Deere, for manufacturing and marketing of construction equipment. The JV seeks to commence production by early 2010 and will initially roll out Backhoes and Four-wheel-drive Loaders. The range will 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.

The 50:50 JV will 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 is the world’s largest manufacturer of equipment for agriculture and forestry and a major equipment supplier for construction and lawn and turf care.

The JV will build a manufacturing facility in India and is currently evaluating site locations.

Executive comments:

Mr. R Seshasayee, Managing Director, Ashok Leyland “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. We are happy that in John Deere, we have a technology leader with an impressive portfolio of proven and popular products, to partner us in this venture.”

Mr. Samuel R. Allen, President, Worldwide Construction and Forestry Division, John Deere “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. India is an important market and Ashok Leyland is a knowledgeable partner with strengths in brand recognition, quality manufacturing, distribution and loyal dealerships.”

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