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John Deere India to increase tractor production, manufacture harvesters Print E-mail
Written by Krishna Kumar, Arjun   
Wednesday, 27 April 2011
Bangalore/ Chennai: John Deere India is planning to set up a new tractor facility, most probably be in Central India. Currently, the company is in the process of identifying land.

The company has also invested in a grain harvester unit in Patiala and a micro-irrigation equipment unit in Vadodara. Construction is going on at the 7 acre facility in Patiala. It is expected to start production in April 2012. The facility will initially manufacture W70 range of 100 HP combined harvesters.

In January, company Group Chairman and CEO Samuel R Allen had announced investments USD 100 million (about Rs 450 crore) to set up a new tractor facility in India, besides ramping up their existing plant in Pune.

John Deere India Managing Director and CEO Ranjit Nair said 80 per cent (~ Rs 360 crore) of the investments would go towards setting up the new tractor facility while 20 per cent would go in for expanding their Pune facility. The capacity at the Pune facility will be increased by 50 percent.

The factory at Sanaswadi manufactures it's 5000 series tractors for the domestic and export markets. It is currently manufacturing 12 models in the 5000 series of tractors in India - ranging from 35 HP to 89 HP. The plant has a capacity to produce 60,000 tractors per annum. Last year the company produced 35,000 tractors for the domestic market and 15,000 tractors for the export market.

Spread across 112 acres, the factory has a total built up area of around 50,000 sq.meters.  Manufacturing is carried out at three interlinked factories - Transmission, Engine and Vehicle assembly.

It's largest export market is America followed by Mexico and South East Asia. It exports to nearly 70 countries. The new tractor will also be exported in the future.

The company is currently importing the 89 HP tractor as the volumes are small.

The new tractor is almost 100 percent localized. It was completely made in India for the Indian market - from concept to production. The company's technical centre in Pune, which employs nearly 2000 specialists, played a major role in the design of this tractor.

The company has a 9 percent market share overall. In 2010 the company sold it's 100,000th tractor in the domestic market.

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