Escorts Kubota Invests ₹4500 Crore in Uttar Pradesh

Escorts Kubota, a prominent player in the Indian tractor manufacturing industry, has unveiled ambitious expansion plans that involve a substantial investment of ₹4500 crore in a new greenfield manufacturing hub located in Uttar Pradesh. This strategic move is aimed at bolstering the company’s production capabilities and positioning it for future growth in the Indian market.

The investment will be made in phases, covering land acquisition, infrastructure development, and other essential components of the project. The new facility is expected to significantly enhance Escorts Kubota’s production capacity, with an anticipated annual revenue exceeding ₹10,000 crore upon completion. Moreover, the project is projected to generate over 14,000 direct and indirect employment opportunities, providing a substantial boost to the local job market. To accommodate this ambitious project, Escorts Kubota plans to acquire between 250 and 300 acres of land. This land will be utilized to expand production capabilities for both tractors and engines, ensuring that the company can meet the growing demand for its products.

The development of the facility is slated to commence in 2028, with an initial phase of construction utilizing a portion of the acquired land. The remaining area will be reserved for future expansion, allowing the company to scale its operations as needed. Funding for the new manufacturing hub will be sourced from the proceeds of a previous issue of preferential shares to Kubota Corporation of Japan, as well as internal accruals. This strategic approach will provide Escorts Kubota with the necessary financial resources to strengthen its production capacity both domestically and globally.

The investment in the new manufacturing facility underscores Escorts Kubota’s commitment to expanding its operational footprint and driving innovation within the agricultural machinery sector. By establishing this state-of-the-art facility, the company aims to reinforce its market leadership and contribute to the ongoing development of India’s manufacturing capabilities. This significant investment is a testament to Escorts Kubota’s confidence in the Indian market and its long-term growth prospects.