CNH buys out Indian joint venture

CNH, the parent of Case and New Holland, has deepened its footprint in India with the buyout of Larsen & Toubro's (L&T) stake in the two companies' backhoe loader and compactor manufacturing joint venture.

The L&T-Case joint venture includes a production facility in Pithampur in Madhya Pradesh, with products sold through a network of 56 dealers and 144 outlets.

CNH said it would rename the business Case New Holland Construction Equipment India, adding that it planned to continue to invest in its equipment offering and strengthen its sales network in the country.

"This is an important step in our long term commitment to consolidate our construction equipment business in India and in other export markets and to develop a manufacturing base in India fully integrated in the CNH worldwide industrial footprint," CNH Global president and CEO Harold Boyanovsky said.

"The Pithampur plant will be in a position to make the most of the opportunities for growth that the sector offers today and in the future," Mr Boyanovsky added.

The 28000 m² Pithampur facility currently builds backhoe loaders and vibratory compactors. The new, wholly-owned business joins CNH's agricultural equipment base in India, New Holland Fiat India, located in Greater Noida.

Mr J P Nayak, president of L&T said the company's decision to exit the joint venture was part of an ongoing portfolio review and streamlining process.

"We have an excellent relationship with our partner, and wish them all success in India," Mr Nayak added.