Escorts Kubota aims to invest around INR 4,500 crore in a phased manner. On Friday, the company's shares closed 2.13% higher at INR 3737.60 apiece on the BSE Sensex. The company plans to acquire approximately 250-300 acres of land for additional tractor and engine manufacturing capacities.
When fully operational, the new facility is expected to generate over INR 10,000 crore in annual production revenue. The project also aims to create more than 14,000 direct and indirect jobs. The expansion will be rolled out in phases starting from 2028.
“The investment will be financed through the proceeds from a previous preferential share issue to Kubota Corporation, Japan, along with internal accruals,” Escorts Kubota said.
This investment intent is pending necessary approvals. Currently, the company has an existing capacity of 1.70 lakh units for tractors and engines, including 50,000 units from its joint venture with Escorts Kubota India Private Limited. The company reported a capacity utilization of 66% for FY24.
“The latest announcement follows after it had earlier informed withdrawal of its plan to set up a new manufacturing plant at Ghiloth in Rajasthan due to failure to meet all the key requirements for a large-scale project,” the company reiterated.
This new move comes as part of the company's effort to bolster its manufacturing capabilities and to be better prepared for future expanded operations.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
