As part of its diversification plan, Hinduja group's flagship company Ashok Leyland has entered into collaboration with the US based agriculture equipment manufacturer, John Deere for manufacturing and marketing of construction equipment.
The 50:50 JV would bring help to initially roll out Backhoes and four-wheel-drive Loaders. The JV would go on stream by 2010. The Backhoes is a fastest growing segment in the country with a market size of 23,000 units and is expected to grow by 20 per cent every year.
The $ 24-billion John Deere is present in India through a 100 per cent subsidiary in Pune, which manufactures tractors primarily for exports. It is currently the largest tractor exporter from India and sells the India-made tractors in over 60 countries.