Escorts Kubota to invest Rs 4,500 crore in new manufacturing plant expansion

Escorts Kubota's substantial investment signals a robust commitment to growth and innovation in the farm and construction equipment sector.

Escorts Kubota announced ambitious investment plans of up to Rs 4,500 crore over the next three to four years to establish a state-of-the-art manufacturing plant. The company is currently engaged in discussions with the Rajasthan Government regarding Ghiloth, a potential site for this greenfield project, aiming to double its domestic tractor production capacity to 3.4 lakh units annually. Additionally, it plans to introduce new engine and construction equipment lines in phases.

Land procurement, estimated to cost between Rs 400 crore and Rs 450 crore, is expected to commence this year, with construction slated to begin by the end of the current financial year. Escorts Kubota’s primary manufacturing plant is situated in Faridabad.

Presently, the company possesses a total annual tractor production capacity of 1.7 lakh units, while its engine production capacity stands at 1.5 lakh units annually, with Kubota engines currently being imported. The anticipated capital expenditure for FY25 is approximately Rs 300 crore, reflecting the company’s steadfast commitment to growth and innovation.

Following a successful FY24 characterised by market share gains, Escorts Kubota is positioned to surpass industry growth projections for FY25. Despite forecasts indicating mid-single-digit growth for the sector, with demand expected to accelerate in the latter half of the fiscal year, the company remains poised to exceed expectations and consolidate its position in the competitive market landscape.

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