John Deere’s Indian factory is leading to an increased export to the US

Mumbai: John Deere, the farm equipment manufacturing giant from the US is finally getting to reap benefits from its decision to use its Indian manufacturing plant to manufacture tractors for its home country. It has also made it simpler for the company to size up its competitors from India who have also made a way in the American market.

The Indian manufacturing facilities of the company John Deere deal in manufacturing and production of comparatively low priced and lower powered tractors around 35 to 75 horsepower. Such tractors are great for the not-so-large cultivators or for those individuals who consider farming as a hobby.

As per Mr. Satish Nadiger, MD, John Deere, India, around 50% of the total exports is made to the US. The company is filling in the total portfolio for its customers based in America.

These tractors comprise a fraction of the portfolio for the 182 years old company with $37 billion revenue.  It is a rising trend wherein US is ranked as the second largest export market for vehicles manufactured in India, after Mexico.

Some of the well-known luxury brands like Ford and German car manufacturer Mercedes are the leading exporters from India to the US.

Around 30% of the production volume in India is exported by John Deere to more than 110 countries across the world, as per Nadiger in an interview.  John Deere India has a manufacturing capacity of 1.32 lakh units per year at its tractor manufacturing plants in Pune and Dewas.  At John Deere’s India technology centre in Pune, technical teams support the product development for platforms across the world.

Last year, the company manufactured 1 lakh tractors and successfully managed to sell around 98,000 of them. The operations started in India by John Deere as a joint venture with Larsen & Turbo in 1998. However, L&T made an exit from the venture in the year 2006, whereas John Deere continues to be in business and holds a significant 9% of the share in the total tractor market in India.

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