Escorts Kubota plans to set up Rs 4,500-cr greenfield manufacturing facility

The tractor manufacturer announced setting up an integrated greenfield manufacturing facility in Uttar Pradesh for expanding its existing capacities to meet its future growth requirements with investment of Rs 4,500 crore plus to be done in phases.

The company expects an annual production revenue generation of over Rs 10,000 crore with the direct and indirect employment of more than 14,000 people at full capacity.

The company proposed to acquire approximately 250-300 acres of land. The tractor manufacturer intends to utilized a part of this land for setting up additional tractor and engine manufacturing capacity and balance for meeting its future growth requirements. The project details are under finalization and will be intimated in due course, it added.

The estimated direct and indirect investment including land to the order of approximately is Rs 4,500 crore. The company will begin the implementation of the project in year 2028.

The company will use the proceeds of the earlier preferential issue of shares to Kubota Corporation, Japan lying with the Company and internal accruals. The said investment will enhance the manufacturing capacity to meet growth plans of the company for domestic and global markets.

Escorts Kubota is primarily engaged in the business of manufacturing of agricultural tractors, engines for agricultural tractors, construction, earth moving and material handling equipment, round and flat tubes, heating elements, double acting hydraulics.

The tractor maker's standalone net profit grew 2.4% to Rs 289.55 crore in Q1 FY25 as against Rs 282.81 crore posted in Q1 FY24. Revenue from operations declined 1.5% year on year to Rs 2,292.54 crore in the quarter ended 30 June 2024.

Shares of Escorts Kubota rose 0.06% to currently trade at Rs 3,740 on the BSE.

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