Deere Breaks Ground on New Tractor Factory in India

Deere & Company officials broke ground today on the company's second tractor factory in India, announcing the facility will be constructed in Dewas, which is located northeast of Indore, the largest city in the state of Madhya Pradesh.

Also this week, Deere inaugurated John Deere's first factory in India that will build combines for harvesting. Construction of the factory began in October 2010 and full production is expected to begin later this month at the factory located in Sirhind, which is west of Chandigarh.

The new tractor factory in Dewas will build small agricultural tractors sold in India and for export to other nearby markets. In early 2011, Deere originally announced plans to expand its manufacturing capacity in India with the construction of the new tractor facility but had not announced the location until today's ceremony.

"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," said Samuel R. Allen, chairman and chief executive officer of Deere & Company. "John Deere is committed to helping customers in India and around the world to increase their productivity and to prosper."

Deere is investing $80 million to build the factory in Dewas and could eventually add as many as 1,000 employees at that location. Officials said the new factory also enhances opportunities for ancillary industries to develop as suppliers.

"The state of Madhya Pradesh is not only a strategic location, but also a friendly place to do business," said David C. Everitt, president of Deere's Worldwide Agriculture & Turf Division. "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."

"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."

Ranjit Nair, managing director of John Deere India, said, "Deere's success around the world is built on meeting customer needs. We are committed in India to help enterprising farmers improve their productivity and become part of the solution to meet the world's dramatically increasing need for agricultural production."

Concerning the new factory for harvesting equipment, Mark von Pentz, president of Deere's Worldwide Agriculture & Turf Division, said, "Customers in India have found John Deere tractors to be valuable tools and we are confident that harvesting equipment will also provide opportunities for Indian farmers to enhance their success in agriculture."

Punjab is considered the largest market for combines in India because of its leadership as a producer of grain and other commodities. Deere said the factory could eventually employ as many as 300 workers.

Deere has a long history with the Indian agricultural market, including sales of equipment in India approximately 60 years ago. Later, John Deere created a joint venture in 1997 in India and fully acquired the joint venture in 2005. In addition, Deere opened a technology and engineering center in Pune in 2005 and is involved in a joint venture with Ashok-Leyland to build construction machinery. Deere also inaugurated a John Deere Water facility in Baroda, India in early 2010.