U.S.-based farm equipment manufacturer Deere & Co (collectively called John Deere) on Wednesday said it would invest around $100 million (about Rs.450 crore) to set up a new tractor factory in the country, besides expanding capacity of its existing plant in Pune.
“We have identified six geographical regions across the globe as key areas of growth and India is one of them. We see tremendous opportunities here…India will make substantial contributions to our sales and revenues,” Deere & Co Chairman and CEO Samuel R. Allen told journalists here.
Informing that the company produced a total of 50,000 units in 2010 from India, Mr. Allen said: “We expect to double that with the fresh investments…the new plant is expected to be operational by the end of 2012.” Last year, the company sold 35,000 tractors in India and exported 15,000 were exported. John Deere currently has about eight per cent of the Indian tractor market, which stood at 4.4-lakh units in 2010.
According to Deere & Co President (Agriculture and Turf Division) Davis C. Everitt, “the new plant will produce smaller tractors below the 50 horse power range that would be sold in India as well as overseas markets.” John Deere tractors made in India are exported to 70 countries across the world. While Deere & Co currently has a turnover of around $25 billion globally, it is expecting to double it in the next eight years.
