Deere & Co. has started construction for its second tractor plant in India, at Dewas, in central Indian state of Madhya Pradesh. It’s an $80-million project that is only part of Deere’s expansion program in that country. Moline, Ill.-based Deere is the world’s largest manufacturer of farming equipment, and aims to serve rising demand for tractors and similar machines in India, where mechanized agriculture is comparatively rare. India’s government has lately worked to address the matter by increasing farm loans.
"This is an ideal location for our second tractor manufacturing facility in India because of its proximity to our farm equipment customers, as well as the cooperation of the government leadership," according to David C. Everitt, president of Deere's Worldwide Agriculture & Turf Division.
The new plant will build 60-hp tractors customized, beginning in 2013, for the Indian market and for export to other countries in the region.
"John Deere products have been well accepted by customers in India and our investment in this new factory is a direct result of that success," stated chairman Samuel R. Allen. "John Deere is committed to helping customers in India and around the world to increase their productivity and to prosper."
Earlier this week Deere also inaugurated its first combine assembly plant in India, at Sirhind, in the Punjab. That northwestern state is among India’s largest markets for grain and other commodities.
Last year Deere outlined a $100-million plan to increase capacity for tractors and harvesters in India, where its products have been marketed for about 60 years. It has been manufacturing there since 1997, and opened a technology and engineering center in Pune in 2005. It has a joint venture with Ashok-Leyland to build construction machinery. And, Deere started a John Deere Water operation in Baroda, India, in 2010.
"Farm mechanization is very important for India," Everitt said, "The placement of our new factory in Madhya Pradesh allows farmers in this key region to access technological expertise that will help them improve crop yields."