New Holland Plans Rs 175cr Plant In Up
New Holland Tractors (India) Ltd, the wholly owned arm of the Dutch farm machinery giant, will invest Rs 175 crore to set up its first plant in the country at Greater Noida in Uttar Pradesh.
The company will initially manufacture tractors in the range of 35-75 horse power (HP) at the facility under the Ford brand name and will later manufacture other farm machinery like combine harvesters in the country.
The first tractor is expected to roll out in 1998 and the company aims to capture 50 per cent of the tractor market in seven years. New Holland India, which has received a 12-year tax exemption from the state government, plans to produce 12,000 tractors a year. The company did not reveal the price of its tractors but said it would be relevant and affordable.
The New Holland group is the world leader in agricultural tractor sales and commands more than 20 per cent of the world market. The company had earlier a joint venture with Escorts to manufacture tractors in the country, which became a 100 per cent company of Escorts after the Dutch company offloaded its stake in favour of the Nandas.
The New Holland president and chief executive officer Umberto Quadrino said the Dutch company views India as critical to its long-term growth.