John Deere to expand capacity in India

John Deere, a manufacturer of agricultural, construction, and forestry machinery, is looking to keep pace with the growing demand of agricultural machinery in India

December 19, 2018

Agriculture, encompassing activities related to land cultivation, livestock farming, forestry and fishery, is a critical component of the Indian economy

The US-based company had sold 100,000 tractors in 2018, with 70 per cent of the demand coming from local market and the rest from exports

The agricultural sector has been rejuvenated with India’s growing participation in agri supply chains marked by food parks, cold chains and market expansion

John Deere operates tractor and electronics systems manufacturing in Pune, Maharashtra; Dewas, Madhya Pradesh, harvester manufacturing in Sirhind, Punjab

John Deere is looking to expand its engine capacity in India to keep pace with the growing demand for industrial machinery, according to a report by Financial Express on December 19, citing Satish Nadiger, managing director of John Deere India. The US-based company primarily supplies tractors in the Indian market and currently has production capacity of around 132,000. However, the local engine production capacity was reported at 100,000, which John Deere is aiming to bring at par with its vehicle output. The company had sold 100,000 tractors in 2018, with 70 per cent of the demand coming from local market and the rest from exports, according to Mr Nadiger.

In order to claim a bigger share of the vast Indian market, John Deere is eyeing the small tractor segment that has seen the strongest demand. Agriculture, encompassing activities related to land cultivation, livestock farming, forestry and fishery, is a critical component of the Indian economy. While the agricultural sector’s contribution to national income has dropped to around 17.5 per cent owing to the emergence of modern tertiary industries, it continues to be India’s largest employer. Hence, the agricultural sector has also been rejuvenated with India’s growing participation in agri supply chains marked by food parks, cold chains and export market expansion.

Owing to the activity John Deere has recorded company growth of 35 per cent with a market expansion of 3.5 per cent. The company’s export from India has also grown with the 55-75 HP range going to the US. John Deere has been operating in India for two decades when it started with 50-55 HP tractors. The company operates tractor manufacturing plants in Pune, Maharashtra; Dewas, Madhya Pradesh, harvester manufacturing in Sirhind, Punjab, along with a electronics system manufacturing in Pune. John Deere also operates an Engineering and Technology Centre in Pune and a Parts Distribution Centre in Nagpur. Its tractor portfolio has expanded from 39 Hp to 110 HP.

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