Key facts
- Escorts Kubota is expanding its manufacturing capacity with a new plant in Uttar Pradesh, India.
- The initial phase will add capacity for 60,000 tractors and 15,000 construction equipment units annually.
- The investment for the first phase is approximately ₹2,000 crore, with a total planned investment of ₹4,500 crore.
- The company aims to increase exports to Europe, Africa, and North America from India.
- The new plant is intended to be one of Kubota Group's largest global manufacturing sites.
Escorts Kubota, the joint venture between Japan's Kubota Corporation and India's Escorts, is undertaking a significant expansion of its manufacturing capabilities in Uttar Pradesh, India. The company is constructing a new greenfield plant, which is set to become one of Kubota Group's largest manufacturing sites globally.
The initial phase of the project involves an investment of approximately ₹2,000 crore and will add an annual production capacity of up to 60,000 tractors and 15,000 construction equipment units. The total planned investment for the facility could reach ₹4,500 crore. This expansion is driven by Escorts Kubota's strategy to significantly increase exports of its farm and construction equipment to markets in Europe, Africa, and North America.
Kubota President Shingo Hanada emphasized the importance of India's tractor market, the largest globally, and the competitive cost advantages it offers. The new plant will produce a range of products, including tractors, farm implements, construction equipment, and engines, catering to both domestic and international demand. Furthermore, India is being considered as a sourcing base for components for Kubota's manufacturing operations in Japan and the United States.
Escorts Kubota Chairman and Managing Director Nikhil Nanda highlighted the significant growth potential in India's farm mechanisation sector, which currently stands at 40-45%, compared to around 90% in the US and Japan. While the commercial start date for the first phase is yet to be finalized, the company intends to proceed aggressively with its expansion plans.