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Industry News

Busy Week For Deere in India

January 12, 2012

Deere & Co. officials broke ground 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 that factory began in October 2010 and full production is expected to begin later this month. That facility is 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 now.

Deere is investing $80 million to build the factory in Dewas and could eventually add as many as 1000 employees at that location. Officials said the new factory also enhances opportunities for ancillary industries to develop as suppliers.

"Farm mechanization is very important for India," David C. Everitt, president of Deere's Worldwide Agriculture & Turf Division. "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."

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.

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