Italian tractor maker to invest 38 mn euro in TN

Italy-based Same Deutz-Fahr Group (SDF), a manufacturer of tractor and agriculture machinery, is planning to invest around Euro 38 million (Rs 250 crore) in its facility at Ranipet in Tamil Nadu.

Of this, it would raise around Euro 15 million from the International Finance Corporation.

The proposed investment is to support the expansion of manufacturing operations, including machine modernisation and refurbishment, and setting up of a research and development (R&D) and testing centre at the existing industrial buildings, according to its project document. Company officials were not available for comment.

“To keep up with increasing demand, the company is undertaking a project to increase its tractor production, aligning itself with European methods and standards, and restructure its balance sheet to sustain long-term growth,” stated the document.

SDF’s strategy is to make India as the engine manufacturing centre for all its manufacturing facilities in the group, align company’s production with European emission standards, and growth in the domestic as well as export markets that cover neighbouring countries Turkey and east Africa, the document stated. Same India’s facility, which is in a well-developed industrial area close to Ranipet and Vellore towns, approximately 120 km from Chennai, has been in operation for the past 10 years.

IFC’s investment in SDF’s Indian subsidiary was expected to play a catalyst role in  broadening its relationships with Indian financial institutions for financing of its distribution network and retail customers, it added.