John Deere will enhance its business pursuits in India by constructing a new tractor-manufacturing factory and expanding another plant that currently is in operation, the company announced on Wednesday.
"John Deere will continue to pursue opportunities to grow in our core businesses of agriculture and construction equipment around the world," according to Samuel R. Allen, chairman and chief executive officer of Deere. "We have been successful in growing our tractor market share in India and will invest to continue that success."
The $100 million investment in the subcontinent will ease the world agricultural equipment leader's penetration into a tractor market that is rapidly growing. Though no location for the new plant has been cited, the existing plant in Pune will increase its involvement in manufacturing construction machinery.
The move further solidifies the Deere-India relationship that is about 60 years old and growing.
"India will be an important contributor as the world works to meet the growing demand globally for food production," Allen said. "For Deere to maintain and expand its leadership role, we must be active in many economies around the world. Our focus is on customers whose work is linked to the land and we believe that we enhance our ability to serve these customers by manufacturing in or near where they use the products."
Deere-India relations to further solidify with $100m investment
India represents a fertile market for Deere's business interests, which is why the company announced it will invest $100 million in expanding in the subcontinent.