John Deere India has emerged as one of the largest tractor exporters from India. Source: The Financial Express
The company, a subsidiary of Deere & Company, exported 24,000 tractors made in India during the last fiscal year. The company exports to 110 countries.
Deere & Company is sourcing the lower HP tractors from India to address the demand for these tractor across the world, Satish Nadiger, MD and CEO of John Deere India, said.
Tractors made in India have been exported for the last 13 years, he said.
The company has exported 200,000 tractors made in India to date.
John Deere started exporting from India when the off take in the domestic markets did not grow as anticipated.
The company used the capacity to export but since then it has emerged as a significant business for the company.
John Deere came to India in 1997 in a JV with L&T India and fully acquired the company in 2005.
John Deere started operations with a range of high HP tractors, which is a smaller segment of the tractor market.
The company has capacity to make 70,000 tractors in Pune and 50,000 units in Dewas plant which was established two years ago.
The company used its capacity to export and now India has become an important manufacturing centre for the parent company, Mr Nadiger said.
The company manufactured 55,000 tractors last year and of this 44% of the units were exported. This include above 50 HP as well as below 50 HP tractors.
There is a cost advantage of manufacturing in India and this would be around 20% to 25%, he said.