Deere & Company has announced that it will increase its capacity to build agricultural tractors in India. Deere said this will better position the company to pursue the considerable growth projected for the Indian tractor market.

The company will invest approximately $100 million to build a new factory and expand its current tractor facility in Pune. The new factory will build small agricultural tractors sold in India and for export to other countries.

"We have been successful in growing our tractor market share in India and will invest to continue that success." said Samuel R Allen, chairman and chief executive officer of Deere & Company.

The announcement follows other investments Deere has made in India, including breaking ground in September 2010 to build a factory for grain harvesting equipment and inaugurating a John Deere Water facility in early 2010.

In addition, Deere opened a technology and engineering centre in Pune in 2005 and is involved in a joint venture with Ashok-Leyland – a technology leader in India's commercial vehicle industry – to build construction machinery.

Deere has a long history with the Indian agricultural market, including sales of equipment in India approximately 60 years ago. John Deere India has been the largest exporter of agricultural machinery from India for the past five years. John Deere tractors made in India are now sold in 70 countries.