Escorts Kubota To Invest ₹2,000 Crore In New Manufacturing Plant In Uttar Pradesh

New Delhi: Farm and construction equipment maker Escorts Kubota on Wednesday announced a Rs 2,000 crore investment to set up a new manufacturing plant in YEIDA industrial area, Uttar Pradesh.

The plant to be developed across 154 acres at Sector 10, Gautam Buddha Nagar, in the industrial area of the Yamuna Expressway Industrial Development Authority (YEIDA), will be one of the largest manufacturing facilities for its promoter Kubota Group across the globe, the company said in a regulatory filing.

The new plant will be developed in phases with total indicative investment outlay of over Rs 2,000 crore. It will manufacture tractors, farm implements, construction equipment and engines, and will cater to both domestic and global markets, it added.

As part of the phased expansion, there will be capacity expansion of up to 60,000 tractors and 15,000 construction equipment units per annum in the first phase, along with supporting infrastructure and allied facilities, the company said.

The project will be funded from the proceeds of the earlier preferential issue of shares to Kubota Corporation and from internal accruals, it added.

"India is one of the world's largest and fastest growing tractor markets, and it plays a significant role in Kubota's growth strategy for the year 2030," Kubota Corporation President and Representative Director, CEO, Shingo Hanada said.

He further said,"This greenfield facility and its scale reflect the role we expect India to play. India is no longer only a market for Kubota. It is becoming a manufacturing and engineering hub for Kubota globally." The project is aligned with Kubota Corporation's mid-term business plan 2030, which identifies India as one of the group's growth drivers. The plan also sets out the intent to build a global hub for affordable manufacturing in India, the company said.

Escorts Kubota has an existing manufacturing capacity of approximately 1,70,000 tractors and 10,000 construction equipment units per annum, it added.

Escorts Kubota CMD Nikhil Nanda said Escorts began in 1944 with a simple conviction, that Indian farmers and builders deserve machinery built with the same rigour as anywhere in the world.

"This is one of the largest investments we have made in our own manufacturing capacity, and a defining moment in that journey. The plant will serve farmers and construction contractors across India and global markets, while strengthening the country's position as a manufacturing hub for the world," he added.

Escorts Kubota Ltd Deputy Managing Director, Akira Kato said the new facility will be an integrated manufacturing campus with machining, assembly, testing, engines and a mother warehouse for spare parts sitting on a single site.

"We are embedding the Kubota production system, automation and digital quality control from day one, along with energy-efficient utilities and rigorous safety standards," he added.

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