Deere & Co, the world's biggest maker of agricultural equipment today said that it will invest around $100 million (Rs450 crore) to build a new farm tractor manufacturing plant in India and expand the capacity of its existing plant in Pune, Maharashtra.

The new factory will build small agricultural tractors for the Indian market as well as for export to other countries. The Illinois-based company said that it has yet to finalise the location for the new plant.

Deere said the action will better position the company to pursue the considerable growth projected for the Indian tractor market.

"John Deere will continue to pursue opportunities to grow in our core businesses of agriculture and construction equipment around the world," said Samuel Allen, chairman and CEO of Deere. "We have been successful in growing our tractor market share in India and will invest to continue that success."

Deere has a long history with the Indian agricultural market, including sales of equipment in India for nearly 60 years. John Deere India has been the largest exporter of agricultural machinery from India for the past 5 years. John Deere tractors made in India are now sold in 70 countries.

In September 2010, the $23-billion tractor manufacturer had announced that it would build a factory for grain harvesting equipment and a John Deere Water facility built in early 2010.