Escorts Kubota Limited, as per their Mid-Term Business Plan (MTBP), has announced that the Company proposes to purchase land in Ghiloth, Rajasthan, for the establishment of an Integrated Greenfield Manufacturing Facility, the company on Wednesday announced through an exchange filing.
Existing Capacity
Escorts Kubota Limited currently has a capacity of 1.70 lakh units for tractors and engines, which includes the capacity of their joint venture company, Escorts Kubota India Private Limited.
Existing Capacity Utilization
In the fiscal year 2022-23, the company's existing capacity was utilized at 71%, taking into account production at their joint venture, Escorts Kubota India Private Limited.
Proposed Capacity Addition
Escorts Kubota Limited plans to acquire approximately 258 acres of land in Ghiloth, Rajasthan. They intend to utilize a portion of this land to establish additional tractor and engine manufacturing capacity, while the remaining land will be earmarked for future growth requirements.
The company aims to complete the proposed capacity addition by the end of the financial year 2027-28.
Escorts Kubota Limited expects to invest around Rs. 400 Crore in the land acquisition.
The company plans to finance this endeavor through internal accruals and the proceeds from a prior preferential share issue to Kubota Corporation, Japan.
Escorts Limited shares
The shares of Escorts Kubota Limited on Wednesday at 12:25 pm IST were at Rs 3,147, up by 0.69 percent.
