Escorts Kubota Groundbreaks New Greenfield Manufacturing Plant in Uttar Pradesh with INR 2,000 Crore Investment

Escorts Kubota Groundbreaks New Greenfield Manufacturing Plant in Uttar Pradesh with INR 2,000 Crore Investment​

Escorts Kubota Limited has initiated the groundbreaking of a new greenfield manufacturing facility in Uttar Pradesh. This strategic move is part of the company’s long-term growth plan and will establish one of the largest manufacturing sites for the Kubota Group globally upon completion of all phases.

The 154 acre facility, located at Sector 10, YEIDA in Gautam Buddha Nagar, stands as a major investment in the company's capacity. The new plant will be developed in multiple phases with a total indicative investment outlay exceeding INR 2,000 crore.

Operational Scope and Capacity Targets​

The manufacturing plant is designed to serve both domestic and global markets. It will manufacture tractors, farm implements, construction equipment, and engines.

Phase 1 of the project includes significant capacity expansion targeting up to 60,000 tractors and 15,000 construction equipment units per annum, alongside supporting infrastructure and allied facilities. The project's financing relies on internal accruals and proceeds from a prior preferential issue of shares to Kubota Corporation.

The site was allotted by YEIDA following a Letter of Intent with the Government of Uttar Pradesh. Its location is noted for its close proximity to the Yamuna Expressway and the Noida International Airport at Jewar, offering strong road and air connectivity crucial for distribution and exports.

Strategic Importance in Indian Market​

The expansion reflects the importance of the Indian market to the company's strategy. Shingo Hanada, President and Representative Director, CEO of Kubota Corporation, stated that India is one of the world's largest and fastest growing tractor markets. He added that the greenfield facility signifies that India is evolving into a manufacturing and engineering hub for Kubota globally, moving beyond just being a market.

Nikhil Nanda, Chairman and Managing Director of Escorts Kubota Limited, described this as one of the largest investments in the company's manufacturing capacity and a defining moment in its journey, serving farmers and construction contractors across India and international markets.

Akira Kato, Deputy Managing Director of Escorts Kubota Limited, highlighted that the campus will be integrated, incorporating machining, assembly, testing, engines, and a mother warehouse for spare parts on a single site. The facility will embed the Kubota Production System, automation, digital quality control, energy-efficient utilities, and rigorous safety standards from inception.

Existing Capacity and Future Vision​

The project is aligned with Kubota Corporation's Mid-Term Business Plan 2030, which targets India as a key growth driver and aims to build a global hub for affordable manufacturing in the region.

Prior to the new facility, Escorts Kubota Limited possessed an existing manufacturing capacity of approximately 1,70,000 tractors and 10,000 construction equipment units per annum.

ESCORTS Stock Price Movement​

Escorts Kubota Limited shares closed today having shed 0.07% to settle at ₹3054.9. The stock traded within the day, with a volume of 52,749 shares, managing to stay above its intraday low of ₹3042.2.