Escorts Kubota eyes top 3 tractor spot in India by 2030, plans ₹2,000 crore Jewar plant

New Delhi: Farm and construction equipment maker Escorts Kubota is working on growing volumes to emerge among the top three tractor makers in India by the turn of the decade, supported by fresh investment in new products and capacity, Kubota Corporation President & Representative Director Shingo Hanada told ET.

At present, Escorts Kubota is the fourth largest tractor maker in the local market trailing Mahindra, TAFE and Sonalika.

Escorts Kubota, which is in the process of commencing construction work at its manufacturing facility in Jewar (Uttar Pradesh) at an investment of more than Rs 2000 crore is also looking at leveraging India as a hub to scale up exports worldwide.


Hanada said, “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.” Kubota Corporation owns 54% stake in Escorts Kubota Limited.

The company has already started accelerating product interventions in the an Indian market over the past year. Nikhil Nanda, Chairman & Managing Director, Escort Kubota said, the company has launched more than 40 products across it’s three brands (Farmtrac, Powertrac, Kubota) this year and is gaining market share on a month-on-month basis.

In addition to expanding domestic sales, Hanada said Kubota is working on leveraging India as a manufacturing, procurement and engineering hub for globally in the coming years. “We are looking at starting exports from India to North America by the end of next year. We are also working on ramping up exports from here to markets on Africa, ASEAN and Latin America.” Exports currently comprise about 5% of sales for Escorts Kubota.

The new factory in Jewar will be funded from the proceeds of the earlier preferential issue of shares to Kubota Corporation and from internal accruals. In the first phase, Escorts Kubota will commission production capacity expansion for rolling out 60,000 tractors and 15,000 construction equipment units per annum, along with supporting infrastructure and allied facilities.

Escorts Kubota currently has manufacturing capacity of approximately 170,000 tractors and 10,000 construction equipment units per annum. The company is utilising around 70-75% of the installed capacity.