Escorts Kubota Ltd has commenced work on a new greenfield manufacturing plant at the Yamuna Expressway Industrial Development Authority (YEIDA) industrial area in Uttar Pradesh as part of its expansion strategy.
The 154-acre facility will be developed in phases with an investment of over ₹2,000 crore and will manufacture tractors, farm implements, construction equipment and engines for domestic and global markets.
Phase 1 to add capacity
Phase 1 will expand capacity by up to 60,000 tractors and 15,000 construction equipment units annually, along with supporting infrastructure and allied facilities.
Once all phases are completed, the plant is expected to become one of the largest manufacturing facilities of the Kubota Group globally.
The project will be funded through proceeds from the earlier preferential issue of shares to Kubota Corporation and internal accruals.
India positioned as global manufacturing hub
The facility will house machining, assembly, testing, engine manufacturing and a mother warehouse for spare parts at a single location.
It will also incorporate the Kubota Production System, automation, digital quality control, energy-efficient utilities and safety systems.
Kubota Corporation CEO Shingo Hanada, said, “India is no longer only a market for Kubota. It is becoming a manufacturing and engineering hub for Kubota globally.”
Escorts Kubota Chairman and Managing Director Nikhil Nanda, said, “This is one of the largest investments we have made in our own manufacturing capacity.”
Escorts Kubota Deputy Managing Director Akira Kato, said, “This is an integrated manufacturing campus. Machining, assembly, testing, engines and a mother warehouse for spare parts will sit on a single site.”
Project aligned with Kubota’s 2030 strategy
The project is aligned with Kubota Corporation’s Mid-Term Business Plan 2030, which identifies India as one of the Group’s growth drivers and envisages developing the country as a global hub for affordable manufacturing.
Escorts Kubota currently has manufacturing capacity of about 1.70 lakh tractors and 10,000 construction equipment units annually.