The country's second largest truck maker Ashok Leyland and the US-headquartered John Deere Construction and Forestry Company Monday announced floating of a 50:50 equal stake joint venture company to manufacture and market earthmoving equipments.
The company Ashok Leyland John Deere Construction Equipment Private Limited will initially make backhoe and wheel loaders and will set up a plant near here, a company release said.
The pilot production is expected to start from Oct 2010 and full fledged production by Jan 2011.
The statement does not specify the new company's financial and production capabilities.
The new company combines Ashok Leyland's expertise and broad pan-India distribution network with John Deere's 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.
The $2.5 billion Indian construction equipment industry has been on a growth trajectory and forecasts 20 percent year-on-year growth for next 5 years.