Escorts Kubota Ltd has submitted a ₹4,500 crore investment proposal to Uttar Pradesh to acquire land and set up a greenfield manufacturing facility in the state as the farm machinery maker looks at expanding its existing capacities to meet future growth requirements.
The tractor manufacturer has proposed to acquire around 250-300 acres of land in Uttar Pradesh, according to a stock exchange filing.
The company intends to utilise a part of this land for setting up additional tractor and engine manufacturing capacity and balance for meeting its future growth requirements, the filing states. The project details are under finalisation and will be intimated in due course, it adds.
The project will be implemented in phases starting from the year 2028.
“The Company continues to explore various options for Industrial Land for setting up Green Field Facility and in this connection, Investment Intent has been submitted to Government of Uttar Pradesh (GUP) for acquisition of land, subject to requisite approvals, support from various government authorities and clearances,” the filing says.
Escorts Kubota’s existing capacity is 1.7 lakh units (tractor and engine), including 50,000 tractors capacity of joint venture company, Escorts Kubota India Private Limited. Capacity utilization in 2023-24 stood at 66%.
The company says it is enhancing the manufacturing capacity to meet growth plans for domestic and global markets.
Retail sales of tractors fell 12% year-on-year in July to 79,970 units in the domestic market. Escorts Kubota is India’s third largest tractor OEM with over 10% market share.
