Ashok Leyland, India's second largest commercial vehicle maker today signed a joint venture agreement with John Deere for manufacturing and marketing of construction equipment's. John Deere is one of the world's leading provider of products in the agriculture and construction sector.
According to a release sent by Ashok Leyland to the Bombay Stock Exchange (BSE), the JV will seek 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.
Its products will also be exported to markets of both the respective players internationally.
The 50:50 joint venture will bring together Ashok Leyland's expertise in the automotive sector, it's marketing and distribution strength and John Deere's technical know-how and experience in the construction equipment business.
The JV is will set up a facility in India and is currently evaluating site locations.
