Ashok Leyland - John Deere JV launch delayed

Commercial production of backhoes expected to start later this year

Backhoes will be the first machines to roll-off the production line
Backhoes will be the first machines to roll-off the production line

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Commercial production at the Indian joint-venture between Ashok Leyland and US giant John Deere will not start until the first quarter of the 2011-12 fiscal year.

The companies have announced that backhoes will lead production at the manufacturing unit at Gummidipoondi near the Indian city of Chennai which was set up last October.

The Ashok Leyland - John Deere JV had first planned its launch in March this year but it has been deferred to first quarter of 2011-12 fiscal.

Though the total investment on the new venture have not been disclosed, Ashok Leyland has previously indicated it could be valued at Rs 50 crore (US$1.1 million).

John Deere has added that: “The first product to be manufactured at the plant will be the backhoes, followed by four-wheel-drive loaders. The commercial production is expected to start in the first half of 2011.”

It is estimated that excavators account for 51 percent, followed by backhoes with 26 percent share in the Indian earth moving equipment segment. Other equipment and loaders contribute to 18 percent and five percent of the entire market. While the new plant is expected to supply the Indian market, has reported that the plant could be used as an export location for “competitive products to other markets”.

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