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MACHINIST - CNH Global NV Acquires Full Ownership of L&T-CASE JV and it's Pithampur plant

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Home arrow News arrow Mergers and Acquisitions arrow CNH Global NV Acquires Full Ownership of L&T-CASE JV and it's Pithampur plant

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CNH Global NV Acquires Full Ownership of L&T-CASE JV and it's Pithampur plant
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Written by Vivek   
Friday, 01 April 2011

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Mumbai: CNH Global NV has acquired full ownership of L&T - CASE Equipment Private Limited, an unconsolidated joint venture established in 1999 with Larsen & Toubro Limited to manufacture and sell construction and building equipment in India. The new company will take the name Case New Holland Construction Equipment India Private Limited.

The company operates a production facility in Pithampur in Madhya Pradesh and a distribution network of 56 dealers and 144 outlets.

The Pithampur facility currently builds backhoe loaders and vibratory compactors; the complex is spread over 40 acres and occupies over 28,000 sqm of covered area. It is equipped with state-of-the-art facilities, such as high precision laser and cutting machines, welding robots, CNC machine tools, a new automated powder coating system and a variable speed assembly line. The factory holds ISO 9001 certification for design and manufacture of construction and road building equipment and ISO 14001 certification for environmental management.

As it is integrated into the CNH manufacturing network, the Pithampur plant will introduce the World Class Manufacturing methodologies to bring it in line with CNH Production System and Quality Standards. The company plans to continue to invest in its Case construction equipment product offering and strengthen the sales network to meet the needs of construction businesses in the important local and export markets.

The company currently employs more than 600 people in India.

"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. 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," said Harold Boyanovsky, President and CEO CNH Global NV.

Case New Holland Construction Equipment India Pvt Ltd joins CNH's existing agricultural equipment base, New Holland Fiat India Pvt Ltd, located in Greater Noida where it manufactures tractors, transmissions, engines and 4 wheel drive axles for CNH's agricultural and construction equipment brands.

"Our decision to exit the JV is part of our ongoing portfolio review and streamlining process. We have an excellent relationship with our partner, and wish them all success in India," said J P Nayak, Member of L&T Board and President.

With this investment, CNH confirms its commitment to a strong manufacturing base for its construction equipment business at the Pithampur plant.

 
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