Ashok Leyland has signalled its entry into the fast-growing construction equipment business with the commercial launch of its maiden product, the 435 backhoe loader, in a joint manufacturing association with the globally renowned and nearly 175-year-old John Deere.
The product, rolled out of the brand new state-of-the-art Gummudipoondi facility of Ashok Leyland John Deere Construction Equipment Company, will be marketed under ‘Leyland Deere' brand.
Addressing a press conference here on Tuesday, V. Sumantran, Chairman of the joint venture company, said the product was re-engineered and re-oriented for Indian customers. Asserting that the launch of its maiden product “is the start of an important chapter”, he said the approach of the joint venture was oriented towards meeting the customer needs, bringing in all relevant innovations in technology and providing reliability and dependability.
He said the product was designed and structured in such a way to bring about a significant saving in the cost of ownership for the customers.
To a question, he said an investment of over Rs.200 crore had gone into the first phase of production. This investment would go up further as the joint venture geared up to churn out second and third products from the assembly line.
The first phase of the project, he said, would last till March 2012. He hinted at a capacity of 10,000 units in the initial phase. He expected the joint venture to come out with its second product in 2013.
Leyland Deere 435 backhoe loader is powered by Ashok Leyland engine from the H series platform. It has a power shift transmission and a cabin with larger space and higher visibility. “It will also be supported by an innovative customer care package,” says a release.
