John Deere′s India plant helps drive exports

American farm equipment maker John Deere′s strategy to use its Indian subsidiary to make tractors for its home base seems to be paying off. John Deere′s Indian unit manufactures relatively less expensive and low-powered 55 to 75 horsepower tractors for the US market that cater to small-holding cultivators and hobby farmers. Satish Nadiger, MD, John Deere India, said: “About 50 per cent of our tractor exports go to the US... We are filling in the overall portfolio that John Deere has for the customers in the US.” These tractors make a small portion of the 182-year old, $37 billion company's portfolio in the US. This is in line with the emerging trend of the US becoming the second largest export market for vehicles manufactured in India after Mexico. Companies such as Ford, along with German Luxury carmaker Mercedes, are some notable manufacturers exporting to the US from India. John Deere India exports around 30 per cent of its production volume to more than 110 countries around the world, Nadiger said. The company has an installed manufacturing capacity of 1.32 lakh units a year at its tractor manufacturing plants at Pune and Dewas. At its technology centre in Pune, products are developed for the local market as well for some other countries.