Leyland Deere, a joint venture of the flagship Hinduja group company, Ashok Leyland Limited and US construction equipment major, John Deere, is developing their second important product for launch in India-the four-wheel drive wheel loader useful for coal handling and rail wagon applications.

“We will take some more time for the launch of this second strategic offering into the Indian market from the Gummidipoondi manufacturing facility located about 50 km from Chennai. The first product announced in November 2011 at Excon is now being produced and deliveries have commenced,” Mr. P. Ravi Shankar, Chief Executive Officer of Leyland Deere, said.

Addressing a press conference here on Tuesday after the announcement of launch of their versatile Backhoe loader developed by the venture to suit Indian conditions, Mr. Ravi Shankar said that the response has been extremely encouraging with more than 20 orders with Automotive Manufacturers alone, their dealer for three locations in Andhra Pradesh.

“We expect to take the product pan-India by next fiscal. From a dealership network of about 22 now, we will have 62 dealers in South alone by April,” Mr. C. Anand, Vice President-Sales, Leyland Deere, said.

The venture has planned three lines, first of which is ready with a capacity to manufacture about 8,000 to 9,000 units per annum. Initially, the focus is on backhoe loaders.

The construction and mining industries are focusing on improving productivity. This is possible by using quality construction equipment. The construction equipment industry is projected to grow by about 15 to 25 per cent per annum offering scope for growth, he said.

“The general slowdown is a matter of concern for infrastructure and construction equipment companies. But we are sure this phase will pass off and momentum is likely to be back creating fresh demand for construction equipment,” Mr. Ravi Shankar said.

The company also sees the possibility of offering other products from the Ashok Leyland stable which compliment the construction segment, Mr. Rajiv M. Sanghvi, Executive Director of Automotive Manufacturers, said.

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