We have been on an aggressive growth front over the past five years
Equipment

We have been on an aggressive growth front over the past five years

Dr V Sumantran, Chairman, Ashok Leyland John Deere Construction Equipment Company Ltd,  and Executive Vice-Chairman, Hinduja Automotive

Here are two strong partners: one backed by its advanced technical knowhow and vast experience in the global construction equipment space, and the other lending in-depth knowledge of the Indian market and proven expertise in manufacturing, sourcing and distribution. John Deere and Ashok Leyland, the flagship of the Hinduja Group, enter the rapidly growing Indian construction equipment business through their 50:50 JV with the launch of their first product, the 435 backhoe loader; their products will be marketed under the brand Leyland Deere. Shriyal Sethumadhavan delves further into this product as she speaks to Dr V Sumantran, Chairman, Ashok Leyland John Deere Construction Equipment Company Ltd, and Executive Vice-Chairman, Hinduja Automotive.

It took you over two years to introduce your first product. Why?
First, considering the cost structure in India, we realised our products had to be localised. And second, to be a strong player, you have to consider unique market requirements. For instance, while planning the backhoe loader, we realised the requirement of an engine that would be extremely tolerant to fuel conditions across the country; we used Ashok Leyland engines. Also, the cabinet in American vehicles is too small for the Indian requirement, so we designed a completely new cabinet. Last, being fuel-efficient was extremely important here. While the original concept machine performed better than required, it also consumed a great deal of fuel. So, we changed the entire layout ­- the pump, hydraulics, cylinders, even the buckets were designed differently to scoop the earth with better clearing and cutting of the ground. Redesigning and welding along with testing the product consumed a considerable amount of time. And, undoubtedly, it was worth the time spent.

What is this product's USP?
First, it is most reliable, tough, sturdy, and unbreakable - based on the brand values of John Deere and Ashok Leyland. Second, it offers a low operating cost and is tuned to Indian conditions.

Have you outsourced any parts?
Of course, there are certain parts that are outsourced. The cabin itself has been outsourced from a supplier in Chennai.

Any training facilities on offer?
Part of our investment plan for the plant was a training centre. Through this centre, we offer a standard training kit where operators and technicians spend a week to understand the machine; it can be dismantled and put together. Also, they are ex­posed to all the services and terminologies used.

How did this JV come about?
Initially, Ashok Leyland's focus was to be a leading commercial player. But eventually, we felt the need to strategise and branch out to multiple sectors. So, we tapped the defence sector, building a reputation of being the largest defence truck provider. We signed acquisitions overseas, a JV with Nissan, and then eventually decided to enter the construction equipment sector. Having said that, we wanted to introduce a full line of products and contemporary technologies instead of just launching one product initially and another, four to five years later. This was at the time when John Deere was seeking opportunities in India. We realised that both companies had a similar outlook - strict government standards, focus on products, engineering - and offered complementary skills. And, we realised that together we could hit the market much stronger than any one of us could alone.

What is Ashok Leyland's reach?
We have been on an aggressive growth front over the past five years. So, initially we were operating in six plants across India. Then, we established a plant in Ras Al Khaimah in Dubai for buses. Further, we acquired a Czech company, Avia, and a bus company in UK called Optare. Then, along with Nissan, we initiated operations for light commercial vehicles, and now we have stepped into this JV with John Deere.

What is your 'Vision 2012'?
I believe our company's profile will look up in 2012; this is also true for the overall industry.

To share your views on these interviews, write in at feedback@ASAPPmedia.com

Dr V Sumantran, Chairman, Ashok Leyland John Deere Construction Equipment Company Ltd,  and Executive Vice-Chairman, Hinduja AutomotiveHere are two strong partners: one backed by its advanced technical knowhow and vast experience in the global construction equipment space, and the other lending in-depth knowledge of the Indian market and proven expertise in manufacturing, sourcing and distribution. John Deere and Ashok Leyland, the flagship of the Hinduja Group, enter the rapidly growing Indian construction equipment business through their 50:50 JV with the launch of their first product, the 435 backhoe loader; their products will be marketed under the brand Leyland Deere. Shriyal Sethumadhavan delves further into this product as she speaks to Dr V Sumantran, Chairman, Ashok Leyland John Deere Construction Equipment Company Ltd, and Executive Vice-Chairman, Hinduja Automotive.It took you over two years to introduce your first product. Why?First, considering the cost structure in India, we realised our products had to be localised. And second, to be a strong player, you have to consider unique market requirements. For instance, while planning the backhoe loader, we realised the requirement of an engine that would be extremely tolerant to fuel conditions across the country; we used Ashok Leyland engines. Also, the cabinet in American vehicles is too small for the Indian requirement, so we designed a completely new cabinet. Last, being fuel-efficient was extremely important here. While the original concept machine performed better than required, it also consumed a great deal of fuel. So, we changed the entire layout ­- the pump, hydraulics, cylinders, even the buckets were designed differently to scoop the earth with better clearing and cutting of the ground. Redesigning and welding along with testing the product consumed a considerable amount of time. And, undoubtedly, it was worth the time spent.What is this product's USP?First, it is most reliable, tough, sturdy, and unbreakable - based on the brand values of John Deere and Ashok Leyland. Second, it offers a low operating cost and is tuned to Indian conditions.Have you outsourced any parts?Of course, there are certain parts that are outsourced. The cabin itself has been outsourced from a supplier in Chennai.Any training facilities on offer?Part of our investment plan for the plant was a training centre. Through this centre, we offer a standard training kit where operators and technicians spend a week to understand the machine; it can be dismantled and put together. Also, they are ex­posed to all the services and terminologies used.How did this JV come about?Initially, Ashok Leyland's focus was to be a leading commercial player. But eventually, we felt the need to strategise and branch out to multiple sectors. So, we tapped the defence sector, building a reputation of being the largest defence truck provider. We signed acquisitions overseas, a JV with Nissan, and then eventually decided to enter the construction equipment sector. Having said that, we wanted to introduce a full line of products and contemporary technologies instead of just launching one product initially and another, four to five years later. This was at the time when John Deere was seeking opportunities in India. We realised that both companies had a similar outlook - strict government standards, focus on products, engineering - and offered complementary skills. And, we realised that together we could hit the market much stronger than any one of us could alone.What is Ashok Leyland's reach?We have been on an aggressive growth front over the past five years. So, initially we were operating in six plants across India. Then, we established a plant in Ras Al Khaimah in Dubai for buses. Further, we acquired a Czech company, Avia, and a bus company in UK called Optare. Then, along with Nissan, we initiated operations for light commercial vehicles, and now we have stepped into this JV with John Deere.What is your 'Vision 2012'?I believe our company's profile will look up in 2012; this is also true for the overall industry.To share your views on these interviews, write in at feedback@ASAPPmedia.com

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