IFC lends 10 mn euro to Same Deutz-Fahr for Indian operations

NEW DELHI: IFC, a member of the World Bank Group, is investing 10 million euro (about Rs 68 crore) in the Indian arm of Italian farm equipment producer Same Deutz-Fahr to help the company expand its operations.

IFC's loan will support the upgrade of Same Deutz-Fahr's existing plant in India, and help the company design tractors suited to the requirements of Indian farmers, IFC said in a statement.

"The use of agricultural machinery will help to achieve higher output per acre of land, which has been low in India," IFC Director for South Asia Thomas Davenport said.

"The project will help boost farmers' income, and also promote small businesses that service farm equipment," Davenport added.

As a low-cost manufacturing base and logistics center for the region, the facility will produce tractors and engines for local, as well as international markets.

"Collaborating with IFC at this early stage of expansion will help us in emerging markets," Same Deutz-Fahr Chief Executive Officer Lodovico Bussolati said.

Agriculture accounts for 15 per cent of India's GDP, even though half of the country's population works in the sector.

India is second to China in agricultural production and second to the US in arable land, but lags substantially in using modern techniques.

"Agriculture is primary for social and economic development in these markets, and it is also a key goal for our group," Same Deutz-Fahr's Bussolati added.