Groundbreaking at Jewar

Escorts Kubota, the farm and construction equipment maker, has commenced construction of a greenfield manufacturing plant in Uttar Pradesh's Gautam Buddha Nagar district. The facility, located in the industrial area of the Yamuna Expressway Industrial Development Authority (YEIDA) near Jewar airport, will span 154 acres and involve an investment of ₹2,000 crore, as reported by The New Indian Express.

The project, which will be funded from the proceeds of an earlier preferential issue of shares to Kubota Corporation and from internal accruals, is expected to become one of the largest manufacturing facilities for the Kubota Group globally once all phases are complete. The plant will manufacture tractors, farm implements, construction equipment, and engines, catering to both domestic and global markets, and is expected to generate significant employment opportunities in the region.

Strategic ambition and market position

The company's leadership has articulated a clear growth strategy centered on India. Shingo Hanada, President and Representative Director, CEO of Kubota Corporation, told The Economic Times that Escorts Kubota aims to be among the top three tractor makers in India by 2030. Currently, the company is the fourth largest tractor maker in the local market, trailing Mahindra, TAFE, and Sonalika.

Hanada emphasized India's role in Kubota's global strategy, stating, "We have identified India as one of the most important growth drivers for us in future. And in that, we see the CAGR for the Indian business will be 9.5%, midterm, which is the highest growth ratio in our portfolio. The new greenfield facility and its scale reflect the role we expect India to play going ahead." He added, as quoted by The New Indian Express, that India is becoming a manufacturing and engineering hub for Kubota globally, not just a market.

Capacity expansion and product push

The first phase of the Jewar plant will bring a capacity expansion of 60,000 tractors and 15,000 construction equipment units per annum, according to both The Economic Times and The New Indian Express. The company's current manufacturing capacity stands at approximately 170,000 tractors and 10,000 construction equipment units per annum, with capacity utilization at around 70-75%, as reported by The Economic Times.

Alongside capacity growth, the company has been accelerating product introductions. Nikhil Nanda, Chairman & Managing Director of Escorts Kubota, told The Economic Times that the company has launched more than 40 products across its three brands—Farmtrac, Powertrac, and Kubota—this year and is gaining market share on a month-on-month basis.

Export hub ambitions

The Jewar facility is also positioned to support export growth. Hanada told The Economic Times that Kubota plans to start exports from India to North America by the end of next year, while ramping up exports to Africa, ASEAN, and Latin America. Currently, exports comprise about 5% of Escorts Kubota's sales.

Regional context

The plant's location was facilitated by YEIDA, which allotted the land following a Letter of Intent with the Government of Uttar Pradesh. The New Indian Express noted that the location combines road and air connectivity for pan-India distribution and exports, with access to the engineering and supplier base of the National Capital Region.

Hanada underscored the significance of the investment, saying, "This is one of the largest investments we have made in our own manufacturing capacity, and a defining moment in that journey," as reported by The New Indian Express.

Kubota Corporation holds a 54% stake in Escorts Kubota Limited, according to The Economic Times.