New Delhi, India, July 10, 2012—
IFC, a member of the World Bank Group, is investing €10 million in the Indian arm of Italian farm equipment producer SAME DEUTZ-FAHR , helping the company expand its operations and improving India’s agricultural productivity by providing modern agribusiness equipment.
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. 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,” said Lodovico Bussolati, Chief Executive Officer of SAME DEUTZ-FAHR. “Agriculture is primary for social and economic development in these markets, and it is also a key goal for our group.”
Agriculture accounts for 15 percent 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 U.S. in arable land, but lags substantially in using modern techniques. The Indian government is trying to increase farm mechanization by supporting farmers through various incentive mechanisms.
“The use of agricultural machinery will help to achieve higher output per acre of land, which has been low in India,” said Thomas Davenport, IFC Director for South Asia. “The project will help boost farmers’ income, and also promote small businesses that service farm equipment.
About IFC
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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About SAME DEUTZ-FAHR Group
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