Escorts Kubota plans to begin commercial construction of a new tractor manufacturing facility near Jewar airport in Uttar Pradesh early in the next financial year, with an initial capacity of 60,000 tractors and scope to expand production to 100,000 units.
The greenfield plant is expected to take around two and a half years to complete, according to Bharat Madan, chief financial officer of Escorts Kubota Ltd. Madan told PTI that construction of the facility would begin in the next year, with the first phase designed to add 60,000 tractors to the company’s production capacity.
The proposed plant will be located near Jewar airport, placing the project within one of Uttar Pradesh’s emerging airport-linked development areas. The company has not disclosed the investment value, land area, workforce requirement or the specific construction schedule beyond the expected two-to-two-and-a-half-year completion period in the information available.
The capacity addition comes as Escorts Kubota’s tractor business is operating at an average utilisation level of about 80-85 per cent. Production utilisation reached nearly 90 per cent during the high-season quarter, indicating that the company is planning additional manufacturing capacity while its existing operations are already working at relatively high levels during periods of stronger demand.
Madan said the new facility would support the company’s plans to expand production and address future growth opportunities. The first phase would provide 60,000 units of capacity, while the overall plant could eventually be scaled up to 100,000 tractors.
The company is also reporting growth in businesses outside tractors. Construction equipment volumes increased 53 per cent during the September quarter, while the harvesters and transplanters business grew by 20-30 per cent. The engine business recorded double-digit growth during the year, according to Madan.
The performance of these segments contrasts with near-term pressure on tractor demand. Madan attributed the weakness to uneven monsoon conditions, the El Nino effect and elevated input costs. He said water scarcity in paddy-growing states such as Telangana, Karnataka and Maharashtra was affecting demand prospects. Jharkhand and Chhattisgarh were also expected to remain under pressure.
Madan said tractor demand could begin recovering from the second quarter of the next financial year, covering July to September 2027, if the monsoon is normal. He also expects the company’s financial performance to start recovering from the fourth quarter, with margins likely to return to normal levels next year.
The proposed facility will therefore be developed while the company is balancing longer-term manufacturing expansion against short-term changes in farm-sector demand. The next stated milestone is the start of commercial construction early in the next financial year, followed by an expected completion period of approximately two and a half years.
