Deere seals Indian joint venture
By Chris Sleight14 July 2009
Deere has reached legal close on the joint venture it announced in September with Ashok Leyland to manufacture construction equipment in India.
The new 50:50 venture, Ashok Leyland John Deere Construction Equipment Company Pvt Ltd will begin by manufacturing backhoe loaders and wheeled loaders for sale in India and the wider region. The two companies say it is their intention to provide a full range of equipment in future years. The factory is expected to be located near Chennai, with the first machines being produced towards the end of next year.
The equipment will be distributed by Ashok Leyland's dealer network. Ashok Leyland is part of the Hinduja Group and is a major player in India's on-highway truck market.
The original agreement was to form a joint venture was signed in September by Samuel R. Allen, who at the time was head of the company's construction and forestry equipment business. He has since been promoted to CEO of the company.
Mr Allen said, "This action enhances 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, distribution, quality manufacturing, and loyal employees and dealers."