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Escorts forms a JV with Japan's Kubota to produce high-end tractors

The JV will aim to take leading position in domestic and export markets in medium to long term

Press Trust of India  |  New Delhi 

Escorts

Engineering and farm equipment maker has formed a joint venture (JV) with Japan's Kubota Corporation to produce high-end technology tractors for domestic as well as export geographies, a joint statement issued by the two Monday said.

The JV will leverage Kubota's technology and engineering prowess of to cater to an expanding market for higher efficiency, value-oriented utility tractors for a global leadership position, the statement said.

"With an initial investment of Rs 300 crore, the 60:40 manufacturing joint venture between Kubota and Escorts, respectively, will enable both partners to optimise their current and future capabilities in the segment globally," it added.

The JV will aim to take leading position in domestic and export markets in medium to long term, the said.

"Our global JV with Kubota is aimed at a technology-led collaborative growth in domestic and export markets," Chairman and Managing Director Nikhil Nanda said.

Escorts has a strong technology legacy and diversified portfolio in agriculture equipment solutions market and Kubota has a proven global technology, Kubota Corporation President and Representative Director Masatoshi Kimata said.

"Together we will cater to India and other growing economies which require high-end technology and new age tractors for growing demands of highly mechanised farming," he added.

Kubota group specialises in agriculture, water, and living environment products and has presence in over 100 countries.

Escorts shares were trading 2.72 per cent down at Rs 609.15 on the BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, December 10 2018. 13:45 IST
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