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Tractor sales in the festive months, spanning from September to November, are expected to grow 8-10 per cent this year on the back of good monsoon lifting market sentiments, according to farm and construction equipment firm Escorts Kubota Ltd whole-time director and CFO Bharat Madan. After a soft first half, the tractor industry is expected to gain momentum in the second half of the ongoing fiscal, growing in double digits, leading to an overall mid-single digit growth for the full year, he told PTI. "If you look at (festive) season months, which we normally count as September to November, we expect there'll be a growth of 8 to 10 per cent this year over last year's season months," Madan said. He was responding to a query on how tractor sales in the industry fared during the festive season. The festive season months account for about 40-45 per cent of the industry sales, he said, adding that this year, "in terms of volume, the industry will be somewhere around 3,25,000 tractors" fo
Farm and construction equipment manufacturer Escorts Kubota Ltd plans to invest up to Rs 4,500 crore over the next three to four years to set up a new manufacturing plant, according to its whole-time director and CFO Bharat Madan. The company is currently in talks with the Rajasthan government for a site at Ghiloth, where it intends to set up the greenfield plant to double its domestic tractor production capacity to 3.4 lakh units annually, while also setting up new engine and construction equipment lines in phases. "The greenfield plant will involve doubling tractor production capacity, setting up a new engine line and a construction equipment line in phases. Overall, the greenfield project may cost Rs 4,000 crore to Rs 4,500 crore over the next three-four years," Madan told PTI. He further said, "This year we expect to procure land which may cost Rs 400 crore to Rs 450 crore and then start construction by the end of this fiscal. At present, the company has a total annual tractor
Farm and construction equipment manufacturer Escorts Kubota on Friday said its consolidated net profit rose over two-fold to Rs 223 crore for the second quarter ended September, driven by brisk sales in the construction and railway equipment segments. The company had reported a net profit of Rs 99 crore in the July-September period of the last fiscal. The total income increased to Rs 2,154 crore in the second quarter of the current fiscal from Rs 1,969 crore in the year-ago period, Escorts Kubota said in a regulatory filing. The company said tractor sales declined to 22,024 units in the second quarter as against 23,703 units in the corresponding period last year. On the other hand, construction equipment volume went up 72 per cent to 1,577 units in the September quarter as compared to 917 units in the corresponding period last year. The company's revenue from railway equipment rose 29 per cent to Rs 234 crore as against Rs 182 crore in the corresponding period last year. Shares o