Escorts Kubota, a leading tractor manufacturer, has unveiled a major expansion plan involving a ₹4,500 crore investment in a new greenfield manufacturing hub located in Uttar Pradesh. This strategic move aims to bolster the company’s production capabilities and position it for anticipated growth in the coming years.
The substantial investment will be made in phases, covering various aspects including land acquisition and infrastructure development. The new facility is projected to significantly enhance Escorts Kubota’s production capacity, with an anticipated annual revenue exceeding ₹10,000 crore once fully operational. The project is also expected to generate over 14,000 direct and indirect employment opportunities, reflecting a substantial boost to the local job market. The company plans to acquire between 250 and 300 acres of land for this ambitious project. This land will facilitate the expansion of production capabilities for both tractors and engines, addressing the company’s future growth needs. The development of the facility will begin in 2028, with an initial phase of construction set to utilise a portion of the acquired land. The remaining area will be reserved for future expansion, ensuring that the facility can 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, along with internal accruals. This financial strategy is designed to enhance Escorts Kubota’s production capacity both within India and on a global scale. The investment not only aims to strengthen the company’s competitive position in the market but also to support its long-term growth objectives. This significant investment 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 is set to reinforce its market leadership and support the ongoing development of India’s manufacturing capabilities.
