Escorts Kubota Ltd is preparing for significant expansion in Uttar Pradesh with a major investment proposal valued at Rs 4,500 crore. The company has initiated plans to acquire around 250-300 acre of land in the state for the development of a new greenfield manufacturing facility.
This strategic move is aimed at increasing the company’s production capacity to align with its growth ambitions, both in the domestic and global markets. The new facility will enhance the existing capacities of tractor and engine manufacturing, as well as reserve additional space for future expansion needs.
The project, which is set to commence implementation in phases from 2028, marks a substantial step forward for Escorts Kubota as it seeks to bolster its market position. The company’s current manufacturing capacity stands at 1.7 lakh units, including a significant contribution from its joint venture, Escorts Kubota India Pvt Ltd. However, with a capacity utilisation of 66 per cent during the previous year, the company is looking ahead to meet the rising demand anticipated in the coming years.
Escorts Kubota’s investment in Uttar Pradesh is not just about expanding manufacturing; it is also expected to have a broader economic impact. The company anticipates that the new facility will generate significant employment opportunities, directly and indirectly supporting over 14,000 jobs when operating at full capacity. Additionally, the annual production revenue from this expansion is projected to exceed Rs 10,000 crore.
The financial resources for this ambitious project will be drawn from internal accruals and funds previously raised through a preferential issue of shares to Kubota Corporation, Japan. As Escorts Kubota finalizes the details of this project, the expansion reflects the company’s commitment to long-term growth and its vision of scaling up to meet future market demands.